When to use SOAP API and REST API in Salesforce ?

REST API  IS USED WHEN:

1.) When my Data is in the form of XML or JSON    files.

2.) Browser-based  or Mobile app  Integration.Since JSON is Light weight (provides inbuilt support with Javascript & Browser) so uses less bandwidth.

3.) Less Preferred where Security     is the biggest Concern. eg- Banking Apps. Because REST API only provides Http SSL Encryption .

4.) When Custom Error handling is to done.Since there’s no built in Error handling Feature in REST.

5) REST services are Cacheable.

This feature is very useful, Say if you want to share with your friend a Mobile details that you are planning to purchase, what you need to do is just share the link which is a REST call.

SOAP API IS USED WHEN:

1.) When my Data is of the form  XML.

2.) Used in Real-time client applications that update small numbers of records at a time.Avoid it in case of low Bandwidths as XML (Heavy-weight).

3.) Preferred where Security     is the biggest Concern. Example – Banking Apps & industry standard softwares like TIBCO, IBM . Because SOAP API  provides both Http SSL Encryption & WS Security Encryption.

4.) When built in Error handling is required.If there is a problem with SOAP request sent.SOAP response will contain error information of it.

5.) SOAP services are not cacheable as there is a need to explicitly form a SOAP request so that server can understand.

Say if you like to purchase any mobile and want to share details of that mobile with your friend in this case you need to explicitly tell your friend to go to xyz url and then press this button etc. which is painful.