5 Insider Tips For Choosing A Financial Data Vendor

By Yury Sokolov, finance founder, innovating at the crossroads of finance and technology.

In the rapidly evolving financial landscape, data is the lifeblood that fuels decision making and strategy formulation. However, the value derived from this data depends significantly on its source: the financial data provider. Choosing the right provider is crucial to ensure you receive accurate, high-quality and reliable data that meets all regulatory standards. As the founder of a financial data marketplace, here are some key factors I recommend considering when selecting a financial data provider.

1. Compliance

Compliance should be the cornerstone of any data acquisition strategy. Ensure that your financial data provider sources data transparently and complies with all relevant regulations and industry standards. Vendors who fail to meet these standards often face a regulatory backlash and can be abruptly pulled out of the market, leaving their customers in the lurch. Therefore, due diligence in evaluating a supplier’s compliance strategy is not only recommended; it is essential.

2. Data quality

Data quality is another critical factor to consider. Even established vendors can sometimes deliver poor data, hurting your decision-making processes. Consider aspects such as accuracy, consistency, timeliness and completeness of the data. A provider with a strong data validation process and a commitment to regular updates is likely to provide higher quality data. Always ask for a data sample and test it rigorously before making a decision.

3. Prices

Transparent, simple and clear pricing is a hallmark of a trusted data provider. Be wary of complicated pricing structures, as they can hide hidden fees, which will lead to you spending more than expected. A seller should be able to provide a detailed breakdown of costs and explain charges that may arise in the future. Remember that while cost is an important factor, it should not come at the expense of data quality or compliance.

4. Tech Stack

In the digital age, a vendor’s technological capabilities can significantly affect the usefulness of the data they provide. Look for providers that use the latest technology to obtain, validate and deliver data. Their platform should be easy to use and the data should be easily integrated into your existing systems using SDKs and plugins. Also, consider its adaptability to emerging technologies and trends. A technologically savvy provider will be better equipped to meet your evolving data needs.

5. Customer service

Customer service is an aspect that many overlook when choosing a data provider, but its importance cannot be overstated. A seller with a dedicated, responsive and knowledgeable customer service team can greatly enhance your experience. They can provide quick solutions to any data issues, minimizing disruption to your operations. Consider factors such as the vendor’s support channels, response times, and their commitment to customer success.


Choosing the right financial data provider is a strategic decision that requires careful consideration of several factors. Compliance, data quality, price transparency, technology capabilities and customer support are critical aspects to evaluate. Remember, the goal is not just to find a vendor that can provide data, but also to find a partner that can support your data needs as you navigate the complex financial landscape. It may take time and effort to find the right vendor, but the payoff in terms of high-quality, reliable and compatible data will be worth it.

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As the financial landscape evolves and technology advances, there is an ever-increasing need for reliable, up-to-date financial data. With the right data, financial professionals can make informed decisions about their investments and strategies. But, with all the data vendors out there, it can be difficult to decide which one to choose. Here are five insider tips from Ikaroa for choosing a financial data vendor:

1. Understand Your Needs Before You Shop- Before you start looking for a financial data vendor, it’s important to know exactly what kind of data you’re looking for. Figure out what specific types of data you need to make informed decisions. Do you need economic data, stock market data, real-time news and analysis, etc.? Once you know what you’re looking for, you can narrow down your selection to vendors that meet your specific requirements.

2. Vet for Reliability and Accuracy- A good data vendor needs to be reliable and provide accurate data. Before you make your final decision, do some research into the specific vendor and review customer feedback or ratings. Additionally, you can reach out to the vendor for a few samples of the type of data you’re looking for. This is a great way to get an idea of the data’s accuracy and relevancy.

3. Consider Unique Sources- Many financial data vendors specialize in certain markets or data sources. If you want a more comprehensive set of data, then you may want to look for a vendor that leverages multiple sources to ensure more comprehensive coverage. This includes unique data sources like non-traditional data. Non-traditional data refers to datasets that capture sentiment, trends or events that may not be covered by traditional sources.

4. Pay Attention to Accessibility- Choose a data vendor that provides easy access to their data. Does the data need to be integrated into your existing systems? Does the vendor offer application programming interfaces (APIs) for easy visualization? Do they offer web-based solutions? By considering these factors in advance, you can ensure that you’re selecting a vendor that can meet your needs.

5. Don’t Ignore Price- Price is obviously an important factor when selecting a financial data vendor. Make sure that you’re getting the most bang for your buck. Ask for quotes from multiple vendors and compare them to see which one offers a more competitive price. Additionally, it’s important to consider the cost of implementation, maintenance, and support services ahead of time.

Using data to make informed decisions is crucial in today’s ever changing financial landscape. With the right financial data vendor, you can be confident that you’re getting reliable and accurate data. Here at Ikaroa, we understand how important it is to choose the right data vendor, so we hope these five tips gave you a better idea of what to look for.


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