In the fast-changing world of fintech, if data is king, API is the key to unlocking its power. If you are an analyst, developer, or product manager, understanding data delivery methods is essential for your business as it will help you adopt a suitable technique for the appropriate purpose. We provide two types of forex API: streaming (Push) and REST API (Pull).
In this article, we will attempt to understand the two broad API delivery methods in the context of market data: The Push and Pull mechanisms. Out of Push and Pull forex API, what would be the best way to avoid common pitfalls? Choose a suitable communication method between a client and server to achieve that.
Understanding Push and Pull Forex Data
Let us see what both methods are:
Pull Data
In the Pull method, also known as polling, a client or user requests data. The server sends the requested data as a response. It works through one-direction communication at a time.
It is like a vending machine where you must ask for the right resource to get what you want.
The popular type of Pull-based transport is:
-HTTP Get Request
Push Data
In the Push method, a client establishes a connection and receives the data in a flow. It works through a persistent, bidirectional connection.
It is a bit like a phone call where connecting allows two-way communication. The Push model forms the basis of many real-time web and other platforms. The popular types of Push-based transport are:
- WebSocket,
- FIX (Financial Information Exchange Protocol), and
- SocketIO.
Also Read: WebSockets Vs. REST
I know it may be daunting for beginners to come across these terminologies. But it is really not that difficult to understand the underlying mechanism. For this article, we will keep the technical jargon to a minimum so we can explain the concept of Push and Pull API in simple terms.
Before we discuss the differences between Push and Pull systems, let us see how each of them work and what are the use cases.
Uses and application of Pull API System
If an App needs data, it can request it from a server (ex. TraderMade REST API) with a simple Get request over HTTP. The server sends the data requested, and the whole exchange is over in a few milliseconds. One example is using TraderMade REST API to get live EURUSD prices.
The Pull system is better if the App has infrequent or ad hoc data needs. Example:
- Price updated every few minutes to a customer crypto wallet; or
- To show a Forex Chart in an app.
The Pull system works fine with lower loads. But, it is better to explore the Push system for higher loads, where the system requests data multiple times per second.
Uses and applications of Push API System
A Push-based system is preferable if an App is heavily dependent on data updates and wants to be aware of any price change as soon as possible. Here a server (TraderMade WebSocket API) will send data continuously to the App that can consume it.
The Push system is efficient for heavier loads with high-frequency data needs. Examples:
- Trader quotes board which displays live currency updates.
- A price-quoting engine for market making.
Now we know a bit more about the two data delivery methods. So, let us look at the differences and pros and cons of each:
Push API Vs. Pull API
- Pull API is request-driven, and a client controls it for data needs. Whereas the Push API is event-driven, and the server manages it.
- Pull API is slower than Push API and not ideal for higher loads (tens of times per second). When we say slower, the difference is 10-20ms for REST API and 20-40ms for WebSocket API in the TraderMade case.
- Pull API is more versatile, dynamic, and easy to replicate system-wide without much effort than Push API.
- Pull APIs are unidirectional, while Push APIs are bidirectional.
Pros of Push API
- Push involves a bidirectional connection for the request-response operations.
- This mechanism increases the speed of data transfer.
- It does not need to establish an interconnection in every instance.
- A Push API is a go-to method for continuous data needs and when every tick matters.
- Great for higher loads
- Push API ensures higher efficiency, as it helps cater to the needs of many clients in a short time.
Cons of Push API
- Push API can be resource-intensive. It needs monitoring, high upkeep, and good technical skills.
- It’s not easy to deploy and replicate across systems applications.
- Not ideal for low-request needs.
Pros of Pull API
- Pull systems are easy to deploy. They ensure optimized scalability for the available computing resources.
- The Pull system is versatile, which helps with dynamic data needs
- A Pull system is ideal when data needs are low and diverse.
Cons of Pull API
- The Pull system is not ideal for higher loads. Setting up a connection and continuous data requesting is resource intensive.
Though we have discussed the pros and cons, the question is not “what is the best solution to get forex data ?” but “what is a more appropriate solution to get forex data?”
As discussed above, Pull System (REST API) is versatile, easy to implement, and great for ad hoc data needs but not for heavier loads that go into tens of requests a second. On the other hand, Push System (WebSocket API) is super fast, efficient at higher loads, and ensures each price change is communicated.
The Push system is more appropriate if you require each price update and need low latency continuous feed. Alternatively, the Pull system is preferable for your data needs that are not continuous and if you need a quick and versatile mechanism with less effort.
Rely on Us for Forex Streaming API
TraderMade has been providing historical and real-time forex data through various delivery methods. We source forex data from reputed banks, institutions, and broker-dealer networks. You receive a curated and real-time data feed.
We strive to make market data accessible to all. In the same context, we strive to provide the best real-time forex data via forex streaming API. We have been a reliable source of market data through Push-Pull API.
Sign up for a free API Key and start a 14-day WebSocket trial. You get the latest forex price feed updated in sub-seconds. We ensure users get the best quality, most accurate, and most reliable real-time forex data. Our market data helps users analyze the market and make well-informed trading decisions.
Wrapping-Up
The article takes you through various technical aspects of Push and Pull forex data. It helps you understand which data delivery method suits which type of forex data. Leverage our streaming forex API to access real-time price feed. Our streaming data API covers wide-ranging currency pairs. Have a safe trading journey in the long run.
