When you're looking at the rates offered by an exchange rate provider, there are a number of things you need to consider. Uptime and availability are important, as is price and data quality. There are plenty of vendors to choose from, hence take your time to consider the following factors before making your decision!
Uptime & Availability
Uptime and availability are the most important factors when choosing a provider. You want a service that will be available when you need it, especially when the market is volatile and you're looking to make some fast decisions.
Uptime refers to how often your chosen provider can be accessed and utilized. This will differ depending on whether or not it's an online service, but generally speaking, a good uptime percentage ranges from 99-99.999%. A service with an uptime below this range may have trouble staying up during periods of high usage—when everyone else is trying to access it—and could even go down entirely if too many users try using their platform at once. If your chosen provider doesn't have sufficient infrastructure for handling large amounts of traffic (which is likely in today's world), this could be an issue for them and you!
How much they charge
The fees charged by exchange rate providers vary widely, so it's important to do your research before committing to a plan. Most vendors charge a monthly fee per user, but some offer yearly subscriptions or pay-as-you-go plans. The amount you pay will depend on the features offered and whether you're an individual or a business. Fees can range from $9 per month (like fxapi.com) per user to more than $1,000 per month for large enterprise-level plans.
What kind of data do they provide
- What kind of data do you need? Some companies provide daily updated rates, while others provide weekly or monthly rates.
- How much quality do you need? If you are an individual who uses the currency exchange rate provider only for currency conversion when traveling abroad, then daily and weekly updated data may be sufficient. However, suppose your business activity involves using many currencies at once. In that case, it is better to choose a service that provides more accurate data from many sources and partners.
- How many currency pairs do you need to be covered? When choosing a service provider for your company’s needs, consider how many pairs of currencies are used by your company regularly and also how often these exchanges occur.
What level of service do you get
- How available is your provider?
- Are they able to answer questions about their data?
- Can you get the information you need in a format that suits you and your business?
- Do they have someone on hand who speaks the same language as you, or do they insist on communicating with you via email and phone?
Be sure to choose a provider that provides clear and accurate rates. The first thing to consider is the rate provider's ability to provide accurate, up-to-date rates. You don't want to be charged a higher rate than you need because your provider doesn't know the current rates or hasn't updated its website in a long time.
Next, look at how clear and easy to understand the exchange rates are. You want your customers (or potential customers) to understand what they're getting when they use your company's services, so it's important that the exchange rate information presented is accessible and easy for them to process quickly.
Considering all these things, it can be tough to know which provider is best for you. The most important thing to remember is that there are many reputable companies out there, and not all of them will be able to provide the same level of service. Some may charge more than others, while others might not offer as much data or a high level of uptime. It's up to you to decide what's right for your business, but we hope this article has helped give some pointers in making your decision!