Foreign exchange rates are the foundation of the global economy, as they help in determining the relative value of different currencies in the international market. Getting access to historical exchange rates can be extremely beneficial for businesses, investors, and financial analysts in analyzing past trends and making informed decisions about future investments.
Fortunately, with the advent of modern technology, getting access to historical Foreign exchange rates API has become easier than ever. One of the most common ways of accessing this information is by using an API (Application Programming Interface).
In this article, we will discuss how to get historical exchange rates using an API, along with some of the best API options available in the market.
What is an API?
An API is a set of protocols and tools that allow different software applications to communicate with each other. In the context of exchange rates, APIs provide a way for users to access and retrieve exchange rate data in a structured format, making it easy to use in applications or programs.
APIs are widely used in the financial industry, as they enable applications to retrieve real-time or historical data, such as exchange rates, stock prices, and commodity prices. APIs also allow businesses to integrate financial data into their systems, automating financial operations, and improving the accuracy of financial reporting.
How to Get Historical Exchange Rates Using an API?
To get historical exchange rates using an API, you will need to follow these simple steps:
Step 1: Choose an API
The first step is to choose an API that meets your requirements. There are several API providers in the market, and you need to select the one that offers the exchange rates you are interested in, and provides reliable data.
Some of the popular API providers for historical exchange rates include:
- Open Exchange Rates
- Exchange Rates API
- Currency Layer
- Fixer
- XE Currency Data
Step 2: Sign Up for an Account
Once you have selected an API provider, you will need to sign up for an account. Most API providers offer free and paid plans, with varying levels of access and features.
Free plans usually come with limited access to historical data, while paid plans offer more extensive historical data and real-time rates. You should choose a plan that fits your budget and requirements.
Step 3: Retrieve the Historical Exchange Rates
After signing up for an account, you can start retrieving historical exchange rates using the API. APIs typically provide historical data in a structured format, such as JSON or CSV, making it easy to import into applications or programs.
To retrieve historical exchange rates using an API, you will need to send a request to the API provider, specifying the currency pair, the date range, and the data format you want to receive. The API will then return the historical exchange rates in the specified format.
Here’s an example of how to retrieve historical exchange rates using the Fixer API:
Ruby Copy code
https://data.fixer.io/api/latest?access_key=YOUR_API_KEY&base=EUR&symbols=USD,EUR,GBP
In this example, we are retrieving the exchange rates for USD, EUR, and GBP for July 1, 2016. To retrieve data for a different date or currency pair, you will need to modify the request accordingly.
Best API Options for Historical Exchange Rates
As mentioned earlier, there are several API providers for historical exchange rates. Here are some of the best options:
Fixer API
Fixer is a lightweight and simple API. It provides historical and current foreign exchange rate data. Fixer uses reliable data sources for real-time API exchange rate. Hence, SMBs, large corporations, and developers around the world love to use it. Fixer offers scalable volumes. Also, it provides high availability and performance. It responds within milliseconds to your queries. Besides, Fixer comes with time-series data and separate endpoints for the single currency conversion. It provides historical data up to 1st January 1999.
Open Exchange Rates
Open Exchange Rates is a reliable and accurate API provider that offers historical exchange rates dating back to 1999. The API provides data in JSON format, making it easy to use in applications and programs. Open Exchange Rates offers free and paid plans, with varying levels of access and features.
Exchange Rates API
Exchange Rates API is another popular API provider that offers historical exchange rates dating back
Conclusion
In conclusion, accessing historical exchange rates using an API can be an extremely useful tool for businesses, investors, and financial analysts. With the help of APIs, users can easily retrieve and analyze past trends to make informed decisions about future investments. There are several reliable API providers in the market, such as Fixer, Open Exchange Rates, Exchange Rates API, Currency Layer, and XE Currency Data. By following the simple steps outlined in this article, users can retrieve historical exchange rates and use them to their advantage.
