Want to create your own stock trading app with some unique features but don’t know where to start or how much it will cost? Welcome here to this blog. Since it helps companies investigate the potential of developing a stock trading application to be sold to different retail investors, stakeholder awareness is very important. According to Statista, the worldwide internet trade industry is anticipated to grow 6.4% yearly to $13.3 billion by 2026.
Read this post to get all the required knowledge if you wish to build a stock trading app. Being a top mobile app development company USA, iQlance Solutions is well-versed in customizing a trading application.
Including development expenses, required features, technological stacks, and industry leaders, the following blog content will teach you methodically how to design stock trading applications.
In this blog, you’ll learn about:
- The process of developing an online trading app
- Development cost, timeline, and technology stack
- The benefits of building a fintech app
- Five top stock trading apps available in the market right now
Ready to dive in? Let’s get started!
What is a Stock Trading App?
A stock trading app is a mobile application through which people can deal in stocks and other investments using their mobile phones. It connects the retail investor directly to other stocks exchange markets that are either National Stock Exchange-NSE, Bombay Stock Exchange BSE or even the NASDAQ markets.
The investment procedure has been drastically changed by these apps, which have made it easier for both new and experienced investors to participate in the stock market. Some of the general benefits they offer include real-time data updates, an easier user interface, and faster transaction times.
How Does a Stock Trading App Work?
In its simplest form a stock trading app is an application through which users can conduct a stock trade. It is an intermediary that links the user to online trading companies that undertake the trade on authorised platforms.
Here’s how it works step-by-step:
- User Registration: Users are required to sign up when they initially use the application, and required identity for identification, usually through a passport.
- Fund Deposits: It includes recharge by bank deposit, credit card or debit card or through third party internet payment method. These funds are used for purchasing shares They are paid with the intention of purchasing stocks.
- Stock Search and Filtering: The platform allows users to philtre stock results by the market or price or any criteria of their desire. The App offer information feeds of stock exchange in addition to offering real time updates.
- Placing Buy/Sell Orders: Customers pick the stocks that they would wish to buy or sell and then order for it and the application carries out the transaction.
- Transaction Confirmation: They are normally useful in providing users with confirmation details such as price, stock volume and time of trade.
- Portfolio Management: Analysts can monitor the current position they hold; they can cheque whether the particular stock is in profit or loss; and trace the result for a given investment.
- Withdrawals: Any surplus of amount can be withdrawn from the trading account straight into the user’s bank account.
Applications such as Robinhood, Webull, and Zerodha which are usually easy to use and with very low charges for execution of trades have also boosted stock investment.
Comprehensive Summary of the Stock Trading Platform Market
Market Overview
The market for the online trading platform has expanded progressively over the years with the improved technology plus elevated globalisation. This market is anticipated to reach USD 2.31 billion by the year 2028, at a CAGR of 6.8%. The Asia-Pacific (APAC) is the most emerging area in the use of financial technologies, where financial technology usage is constantly growing.
Key Trends and Drivers
- AI and Machine Learning: AI and ML are impacting the trading process by enhancing the prediction models, developing customised recommendations about investing, and perfecting trade executions.
- Blockchain Technology: Traditional trading is gradually getting transformed by blockchain technology with key developments such as DeFi, NFTs, and Cryptocurrencies. These technologies are expected to bring about more security, transparency and effectiveness.
- Robo-Advisors: Various investment applications, or robo-advisors – automated investment platforms – are on the rise with their demonstration of simplified and cheap investment services that engage mostly a wider circle of users.
Market Segmentation
- Type: The Market is divided into commissions and fees; even though both types are charged, commissions remain the major source of income.
- Geography: The industry can be broadly categorised by geographical regions such as the North American, European, Asia-Pacific (APAC), Middle East & Africa, and South American markets.
Market Challenges
- High Transaction Fees: Other platforms are costly since they charge fees that make new entrants into the markets to avoid trading platforms.
- Security Concerns: Trading platforms delivery is still at risk by cybersecurity and financial fraud.
- Market Manipulation: And therefore, it is imperative for the market to remain stable to prevent exploitation and unfair practises.
Future Outlook
The new trend in online trading platforms and their efficiency can be provided by such solutions as AI, Blockchain, and others. These advancements will help traders have better tools and better instruments and that will help this industry to grow on and on.
Why Invest in Creating a Stock Trading App?
The trading of stocks has expanded significantly in the last couple of years, and currently, mobile applications control over 50% of the retail trading stock. This increased usage of mobiles holds great potential for new entrants to positions themselves in the market.
Key Reasons to Invest in a Stock Trading App:
- Market Growth: The global stock trading app market will grow from $20 billion in 2021 to $36 billion in 2028 at a Compound Annual Growth Rate of 11.7%. This growth still means there is room for other players to join.”
- Daily Active Traders: Currently, over $200 billion are traded daily, within 25 million daily active traders, in the united States of America only.
- Untapped Potential: Today, a meagre 7% of households at the USA directly invest in stocks, which means there is enormous potential to tap the new, retail market.
- Mobile First: More than half of trades of equities worldwide were made through mobiles in 2020, a rise of 54%, from 37% in 2016. Mobile is becoming the dominant channel for stock trading due to it’s rapid adoption.
- Millennial and Gen Z Investors: Modern traders who are the members of the under-35 years group insist on mobile trading apps. They are more investors active in investing compared with earlier generations.
Must-Have Features for a Successful Stock Trading App
For your stock trading to stand out, some of the features that you are going to need for your app are quite essential. These make sure that the users get the best experience ever in the way they trade, comfortably, effectively and securely. Here’s a breakdown of must-have features:
1. Easy Registration and Login
Should provide an easy registration for the users where they use social media accounts, email or phone contact. Use MFA in order to increase the level of protection among the users.
2. Real-Time Market Data
Provide actual stock market information with elaborate graphs and figures. This serves the purpose of helping traders make the right decisions without some delay.
3. Portfolio Management
Investors must be in a position to manage their funds with ease, through the application of a well-organised panel. Provide philtres like revenues or expenditures, assets and liabilities, and resource volatility information.
4. Trade Execution
Make certain that buy and sell orders occur at virtually the same time. For traders, a delay means a loss. You should be able to trade stocks, bonds and also new generation assets such as bitcoins or even ethereum among others through your app.
5. Search and Filter
Stocks must be easy to find by the user using company name, ticker, index or simply the market listing. Include additional philtre criteria that let you select stocks by performance, price or market capitalization.
6. Push Notifications
Updates the users on the stocks and indicators immediately and also the portfolio balance.
7. Analytics and Reports
Enable users in real-time to analyse complex data indicators, generate charts and reports and monitor market trends in their portfolio.
8. News Feed
The news system should be a ‘live’ news feed that will provide an array of news and updates concerning the market.
9. Customer Support
Optimise a chat or helpdesk support with a real-time or 24/7 support using a chatbot or human attendants.
Technologies Used in Building a Stock Trading App
Developing a robust stock trading app involves choosing the right technology stack to ensure scalability, performance, and security. Here’s a look at the key technologies:
- Frontend Technologies:
React Native or Flutter: These frameworks help to develop the app on many plates which is good for your app because your app can run on ios and android.
JavaScript (React.js): A popular choice when it comes to designing geographic large and highly engaging pains and energetic resumes.
- Backend Technologies:
Node.js or Python (Django): Each of these technologies provides a fast and a scalable back end for processing multiple transactions in short synapse time.
Ruby on Rails: A further powerful solution for constructing reliable and sustainable backend foundations.
- Database:
PostgreSQL or MongoDB: The current changes should guarantee safe and effective storage of the user data and trade history.
- Security Technologies:
Blockchain: With the use of blockchain to encrypt the data, a lot of security and transparency is achieved, and very few hackers would try to corrupt the data.
SSL Encryption: Sensitive information exchange between the app and servers is made safe through the use of Secure Socket Layer (SSL).
Cost Estimation for Stock Trading App Development
The expenditures involved in creating an application for stock trading stand as some of the most diverse ones as they are influenced by the ultimate complexity, the ultimate set of features, and the localization of the development team. Here’s a breakdown of the costs involved:
1. Based on App Complexity
- Basic App: A basic app that could contain only the fundamental trading tools could set you back anywhere between $10, 000-$50,000.
- Medium Complexity App: As the choice criteria mentioned above, the application with additional features, such as a more advanced form of analytics, real-time data provision, and realisation of compatibility with several stock exchanges, shall range between $50000 –$100000.
- Highly Complex App: If you want a complete platform like Robinhood, which is a start-up company, the estimate can stretch up to $150000.
2. Based on Development Phases
- Planning and Research: $5,000 – $10,000.
- Design and Prototyping: $10,000 – $20,000.
- Backend and Frontend Development: $30,000 – $80,000.
- API Integration: $10,000 – $30,000.
- Testing and Launch: $5,000 – $15,000.
3. Maintenance and Updates
The recurring costs of application maintenance and new versions can be estimated to lie between 15-20% of the original development cost for each year.
How iQlance Can Help You Develop a Stock Trading App
At iQlance Solutions, we specialize in developing high-quality fintech applications, including custom stock trading apps. Here’s why partnering with us makes sense:
- Experienced Team: Many of our fintech developers and consultants have worked on trading platform development for different types of markets.
- Custom Solutions: Our solutions are made with your business requirements in mind; whether your audience is the small retail investor or the high turnover trader.
- Security-First Approach: Security is integrated at the highest levels within all our apps to ensure user data and transactions security.
- End-to-End Development: An independent team that performs all the processes starting from the idea and ending up with the app release.
Our Development Process:
- Consultation: We talk on what you want to achieve with your app.
- Design and Prototype: Our design team builds friendly formalised intricate graphical user interfaces that appeal to your customers.
- Development: Our developers implement the app in the use of the prevailing technologies.
- Testing and Launch: It is expensive because we run through different tests to validate its performance before releasing it to the app stores.
Top Trading Apps in the Market
Here are some of the top stock trading apps making waves in the market:
- Robinhood: Known for commission-free trades and easy-to-use interface.
- Webull: Offers advanced charting tools for active traders.
- E*TRADE: Provides a wealth of educational resources for new traders.
- Zerodha Kite: A popular choice in India, offering low-cost trades.
- Groww: A fast-growing platform aimed at millennials and first-time investors.
Each of these apps has set a benchmark in terms of user experience, features, and innovation. By studying them, you can gather inspiration for building your own app.
How to Develop a Stock Trading App
Step 1: Start the Project
To start with it is necessary to outline such factors as target audience, market demands, and necessary application functions. The scope of the project needs to be determined according to the necessities of the users and based on the technological aspects for the record.
Step 2: Define the Core Features
Make sure the app has functionalities such as trading in stock, getting real time information, authentication of the user and management of the portfolio.
Step 3: Secure the App
Security is of high importance in applications of fintech. The issue of user data and transactions should be secured by SSL encryption, two factor authentication and secure APIs.
Step 4: Design the User Interface
Some of the changes to your app that should be made include having an easy to understand setting on the home screen as well as an easy to use navigation bar. Increase the emphasis on the fact that users coming to your website for the first time would still be able to easily navigate through it while at the same time having in mind that professional users would require extra tools.
Step 5: Structure Your Development Team
Hire professional developers or outsource your mobile app development to an experienced firm such as iQlance Solutions for all the backend, frontend, and API handling needs.
Step 6: API for Core and Non core Features to implemented
You will incorporates an API (Application Programming Interface) into your app to access to real stock data, perform trades and analysis of the stock market.
Step 7: Testing, delivery, and maintenance are the main activities of the software quality assurance process.
Several testing methods should be used effectively to help in the identification of all the bugs and performance flaws. When the app is developed, release it on application store platforms and only offer annual/periodic maintenance to the app.
Monetizing Your Stock Trading App
Monetization is an important aspect in the business to be able to have improved profits from the business of your stock trading app. Here are common ways to generate revenue:
- Commission Fees: Set a small amount of cash to be charged every time a sale is made on the platform.
- Premium Features: Additional benefits like premium analytical reports or the presence of automatic advisory services can be provided to users for subscription.
- Advertisements: Engage organisations especially in the finance industry regarding advertising techniques within the running of the app.
Stock Trading App Security
Security always plays an essential role when it comes to the creation of such apps in the particular case, of a stock trading app. It remains your responsibility to safeguard the users’ money and their information as well at all times. Use security technologies like secure sockets layer (SSL) encryption, 2 Factor Authentication (2FA), and biometry to fend off hackers.
Challenges in Stock Trading App Development
Building a trading app is not without some hurdles. Here are a few:
- Regulatory Compliance: Financial regulations differ from one country to the other. There is thus the need to respect all the legal requirements that are governing your app.
- Security Risks: Since fintech applications are popular, your app is especially vulnerable to cybercriminals, so you need to protect it.
- Market Volatility: Having constantly varying data in the market to integrate introduces challenges of switching and hence a strong system must be established.
Conclusion
The idea of developing a stock trading app is a great chance to create revenue-generating opportunity for businesses to expand the market of mobile-first traders. The right features, the appropriate technology stack, and the necessary security to ensure that your app remains a step ahead of the competition can be achieved. . By outsourcing app development to iQlance Solutions you will be able to get all the assistance you need in order to develop your app successfully. Feel free to contact us at [email protected] or call us at +14693988817 for the start of our service today!
Frequently Asked Questions (FAQs)
Q1: How much does it cost to build a trading app in India?
It is fairly cost-saving to develop a stock trading app in India and may take anything from $30,000 to $100,000 at most.
Q2: Can I create my own trading platform?
Yes, depending on the chosen development team you can develop your own trading platform for your business.
Q3: How to build an app like Zerodha?
Zerodha app has to be designed after understanding its basic architecture and its focus must be on user experience, efficient trading and security. To do this, partner with experienced fintech developers.
Q4: Do AI trading apps work?
Yes, some of the best trading apps employ the use of artificial intelligence and more specifically, machine learning to analyse data and independently make forecasts on the market and the same exactly give a word of advice on the best investment to make but that does not mean they are perfect all the time.
Q5: How do trading apps make money?
The trading apps can make their revenues by charging commission on the trades made, selling subscriptions for their premium features and by displaying ads in the trading app.
