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I would say a couple hundred KHz so pretty much any encoder interface could work.
Also better if its a square wave so it asks the least of the frequency/period counter.
An offset frequency is good also so you don't lose bandwidth near 0 frequency.

That fixed the message popping up, thanks!

SimplexCAM and eCam look quite the same. Couldn't find any differences so far except the price. Could you?

Thanks for the information. One of the issues I'm running into is something to do with needing an "enable" signal or something. Still working through that.

I did the latency test. It came out around 150 nanoseconds if I remember correctly.