In this digital world, it has made investing convenient for investors, brokers, and traders with the development and launch of stock trading platforms. They don’t have to show up physically at major stock exchanges while investing in the bull share or bear share in the market. Real-time data access, predictive analysis reports, and market updates are a small part of the stock market. These solutions will help you in providing great assistance to modern traders/investors. You cannot deny that stock market apps provide predictive solutions only and there is no such app or software that can give you an accurate stock market picture. It is not possible as the stock market is never predictable.
The demand for building a trading platform has drastically risen due to increased users between 2020 and 2022. We can take an example of the Robinhood application which had half a million users in 2014 and has increased to 22 million by 2022. Building a stock trading platform with a skilled stock trading software development company can be a great decision if you have the potential to change the entire trading world.
The demand to build a stock trading platform has increased rapidly in the financial sector. It is because stock trading platforms have seen a rise in users between 2020-2022 due to increased FinTech tools and software. The algorithmic trading market has seen rapid growth ever since Big Data, Artificial Intelligence (AI), and Management Information (MI) have been introduced.
According to Polaris Market Research, the value of the global online trading platform was $9 billion in 2021 and the analysis of Mordor Intelligence states that the algorithmic trading market will reach a CAGR of 10.5% between 2022 and 2027.
Top Stock Trading Platforms in the USA
Now we will learn about the top most 4 stock trading platforms that are in competition with each other in all areas of online stock trading and we will also look into the factors that have made them successful in this competitive market of stock trading platforms.
Fidelity is the most used and fast-growing stock trading platform that provides commission-free stock trading, options trading, and exchange-traded funds (ETF). You can also open a brokerage account on Fidelity for free. Fidelity had 83.4 million user accounts in 2021 and the count has rapidly increased since then till date and it is growing still.
TD Ameritrade trading app platform offers low-cost funds and a better list of investment products like stocks, mutual funds, bonds, option contracts, forex futures, and exchange-traded funds (ETFs). TD Ameritrade has 11 million user accounts and it has been increasing since then.
Charles Schwab offers 3 platforms for online trading and its does charge any registration fees. It provides commission-free stock, extensive fund selections, options, and exchange-traded funds (ETFs). The total count of Charles Schwab’s domestic and international customer accounts comes down to 33.6 million and it is still increasing.
Ally Invest is a platform where no-minimum user accounts and trading in options, mutual funds, US-listed equities, and ETFs are provided. Ally Invest has over 250,000 customer accounts with $4.7 billion in assets and it has shown rapid growth.
Operating Systems for Online Trading Platforms
You have to build a trading platform based on the demands of your target audience. However, the recommended action is to use multiple operating systems to reach a wider audience.
Your user must be able to use your trading platform on operating systems:
Essential Features for Electronic Trading Platforms
Registering a user account is the first step. Users must be able to sign up and sign in to the stock trading platform with a few easy steps. Your trading platform must provide the feature to sign up with email details, mobile numbers, and social media accounts if needed.
Users should be able to create a detailed profile on the platform and update it whenever they want to. It helps users manage and track their activity on your online stock trading platform.
You must build a brokerage app/website that provides registration and profiles for companies as well. It helps investor companies to create a professional profile and present their IPOs in the market.
Users must get live updates about the latest changes and news on the e-trading platform that has happened to keep updated. For instance, a user should get a real-time update if a company is about to run its IPO soon and any other live update.
Multiple Payment Gateways
Provide users with multiple payment modes like Stripe, PayPal, Google Pay, etc within the trading platform. Multiple payment gateway will help the user to choose and use the preferred payment gateway and this makes them comfortable and happy and feel safe.
Watchlisting is a feature that will help users create different watchlists of stocks they wish to monitor and buy later.
Search & Filter
Search and filter options can help the user by making it easy to find the stocks they are looking for within the e-trading platform.
The push notification feature sends notifications or popups to users about important e-trading market news, changes in owned stocks, pending payments, and many more updates.
Portfolio management features help users check and manage their portfolios with live updates.
Payment management can help users in checking information about past or current transactions and deposits. Users can also download a document that provides information about all payment details of payment activity.
The analytics feature will help users analyze key financial data from recent and historical trades. Financial reports of all trading activities will help users/investors make better investment decisions in the future.
Real-Time Risk Analysis
The real-time analysis will help user to analyze any risks of company stocks they are about to invest/buy. It will help in showing real-time analysis to the users
How to Create an Online Trading Platform?
You can create an application for Windows, Android, iOS, and macOS on the online trading platform and you can also select and use one platform and grow the business with a specific target audience you desire.
Below are a few steps you can follow for stock trading app development:
1. Hire a development team
Hire a team of experienced developers to develop your trading applications. It’s an advisable and right choice to go with dedicated developers who already know how to create an investment platform and invest your money and time with a well-versed developer.
Here is a list of professionals you will need for your trading app development:
- Project Manager
- UX/UI Designer
- Backend Developer
- Frontend Developer
- Android Developers
- Swift Developers (iOS development)
- DevOps Engineers
- Testers & Maintenance Team
- Security & Marketing Analyst
The economical way to create an app development team is by hiring a developer from mobile app development company, an experienced software trading development company can manage the design as you desire, development of the application, testing, launching the application on request platforms, application marketing on the internet, and post-launch support/maintenance of the application.
Plan Your Minimum Viable Product (MVP)
Minimum viable product (MVP) is basic version of your app with the core features. Professionals advise that it’s best, to begin with, an MVP product whenever you try to create a web or mobile platform for any business.
Plan the Security of Your App
Trading platforms contain and exchange sensitive information about millions of individuals on their trading platform. Platform security must be your number one priority during stock trading application development. Hire a dedicated professional who is an experienced security analyst with a background in stock trading app development. This analyst can better manage the security challenges associated with stock trading platforms in a professional and well-mannered way.
Monitor the Development Process
You can deal with many mistakes when you monitor the stock market app development while it works because it will save you from the additional effort when the final product is ready. Make sure the features like Buy/sell, News Feed, Search, Risk Analysis, Payments, and Withdrawal are all performing perfectly on the application. Because these features will either improve or worsen the user experience for all your customers on the platform.
All features that your target audience needs must be easy to find and use on the user interface. Figuring out whether hybrid or native apps are suitable for your target audience and choosing from the options you have to make your application successful. The user interface of your application must be easy to use and pleasant to the eye if you hope to capture and maintain user attention on your developed trading platform.
Choose Technology Stacks
Choosing trading platform technology stacks is essential for the smooth functioning of your platform and making it user-friendly by letting users adopt the application easily.
Hire dedicated developers of web, Android, and IOS for yourself with web/app developers who know how to select the best tech stacks for your platform.
Below are some trading platform technology tech stacks needed for trading app development:
- React.Js & Angular
- Jenkins & Docker
- Java & .NET
- Amazon SageMaker
Conduct Frequent Testing
Your stock trading platforms will demonstrate their true potential and errors during the testing time and you can rectify any error with them before the launch date. Usually testing will help in making sure that your web/mobile trading platform runs smoothly and without any errors for a long time.
Discuss Your Goal with the Marketing professional
A good marketing strategy is the last step to your online brokerage platform needs to stand tall. Get into detailed view of your goals with the trading platform to your marketing expert and it will help you create a marketing strategy that can attract a large number of targeted audiences to your trading platform. A well-developed online trading platform does even better if you professionally do its marketing strategy.
Launch and Post-Launch Support
Plan the trading platform launch with the skills of an experienced business professional. Then you will have to focus on post-launch support and maintenance.m You must hire an app development team that knows how to build trading platforms and maintain them. Your trading platform whether it be web or mobile it will need updates and solutions for any existing bugs. You can hire Android and IOS developers. The post-launch support team will deal with such problems and keep your platform functional for users.
How To Build a FinTech App
Consider the Legalities of Trading Application Development. You have to acknowledge every legal aspect associated with a trading business and its various platforms.
Below are a few legal requirements to consider and keep a note of while making stock market app development:
1. US Securities and Exchange Commission (SEC)
The SEC protects investors from fraudulent activities and ensures the right outcomes for all. The SEC enforces US securities laws regularly and your trading platform must go parallely with it.
2. Financial Industry Regulatory Authority (FINRA)
The Financial Industry Regulatory Authority (FINRA) protects American investors by regulating Broker-Dealers, Funding Portals, and Capital Acquisition Brokers. Make sure your trading business conforms to FINRA also.
3. Chicago Board Options Exchange (CBOE)
Keeping your electronic trading platform in compliance with the Chicago Board Options Exchange. Chicago Board Options Exchange (CBOE) is the largest options exchange in the world and it provides US and European equities, options, futures, multi-asset volatility products, exchange-traded products (ETPs), and global foreign exchange (FX).
4. National Futures Association (NFA)
The National Futures Association protects investors and markets by regulating brokers, commodity pool operators, dealers, futures merchants, exchanges, and commodity trading advisors. It’s important to keep your trading platform by the rules and regulations of the NFA.
Cost Structure for Building a Stock Trading Platform
Certain common factors like the features of the trading application, app design, or the location of the app developer affect the development of your cost of trading platform.
Custom software development companies offer you developers to whom you can hire and they can tell you an estimate if they know how to make a stock market app in Android, iOS, and Windows.
The MVP trading app development would cost between $30,000 to $40,000 and it varies from location to location. The complex/multi-feature app development may cost between $45,000 to $65,000 and it also depends on what you desire for your application or platform.
App Development Cost:
Trading App Development Cost
- Platforms MVP Complex (Multi-Feature)
- Android $30,000 to $40,000 $45,000 to $65,000
- iOS $40,000 to $45,000 $55,000 to $70,000
- Windows $35,000 to $40,000 $50,000 to $60,000
It is also a rough estimate because the cost entirely depends on your requirements. It may even go up to $200,000 if your app requirements involve numerous complex features and app designs.
We hope that this guide has helped understand the process of creating a trading platform and choosing the right software development company. Developing such tools is a complex process that involves a range of technical, design, and compliance. It is important to carefully plan and design the platform to ensure that it meets the needs of the target audience and provides a reliable and user-friendly experience to the customers. We are aware that trading stock market has big players in the online trading market it’s always worth building your solution.
If you are interested in developing your trading platform, contact Nevina Infotech today so we can discuss your ideas and help you achieve your goals. We ensure to provide you with the best team of skilled developers and professionals to make your dream stock trading platform successful.