How To Build A Stock Trading Platform | Features, Revenue Model, Development Cost

By RisingMax

July 07, 2023

How To Build A Stock Trading Platform | Features, Revenue Model, Development Cost

The digital age has made investing convenient for investors, brokers, and traders with the launch of stock trading platforms. They don't have to show physical presence at major stock exchanges while investing in the bull or bear market. 

Real-time data access, predictive analysis reports, and market updates are the tip of the iceberg. These solutions provide great assistance to modern traders. 

You cannot deny that stock market apps provide predictive solutions only. And no such app or software can define an accurate stock market picture. 

The demand for building a trading platform has dramatically risen due to increased users between 2020 and 2022.

For example, Robinhood had half a million users in 2014 and increased to 22 million by 2022.

Building a stock trading platform with an experienced stock trading app development company can be a great decision if you have the potential to change the entire trading world. 

How To Build A Stock Trading Platform

Convinced to create a stock trading app but wondering where to start? No worries, we have got you covered.

Keep scrolling, you will get answers to all your questions like:

Before that, understand what a trading app is.

What Is A Trading Platform?

If you are looking for ways to develop trading platforms, you must know the facts about trading and how it works. So, let us move forward to understand the facts about trading platforms.

The stock trading platform allows traders and investors to conveniently buy and sell stocks in the stock market. These apps provide real-time data access and market insight into various shares and securities. Hence, traders and investors can freely conduct all sorts of transactions, such as buying equity shares, purchasing preference shares, and investing in debentures or secured bonds.

Everything is available on fingers. It boosts users' interest and provides new opportunities to invest in the share market world. 

Why Now Is The Best Time To Build A Stock Trading Platform?

  • The global market's value for online trading platforms is expected to increase from $9.32 billion in 2022 to $9.94 billion in 2023 and then to $15.34 billion in 2030.
  • Mordor Intelligence predicts that the market for algorithmic trading will grow at a compound annual rate of 10.5% between 2022 and 2027.
  • Cloud-based solutions and constant technological advancements are driving the bright future of the online trading platform market, as there is a rising demand for them.
  • The largest market for online trading platforms is in North America.

How To Build A Trading Platform?

If you are planning to venture into the trading business and launch your stock trading app, then this section is a must-read for you. In this section, we have shared a step-by-step approach to how to get started and create a trading platform.

Step 1 -  Define Project Goals

Keep in mind that the stock trading platform market is a competitive space, and your first priority should be to identify key domain challenges and how you can solve them. With this, you have a clear idea about the project goals and empower you to create a trading platform by clearly understanding target audience needs & expectations.

We have identified key challenges for a stock trading platform and how it assists in defining project goals;

  • Reduce trading charges
  • Increase order placement speed
  • Better UI/UX interface
  • Multiple payment options
  • Advanced trading tools

According to Businessofapps, leading stock trading platforms like Robinhood have 16.3 million users & Cash app has 4.8 million users. Understanding stock market traders' and investors' needs aids in designing a trading platform that stands apart in the crowded stock market space.

Step  2- Define Project Scope

With clearly defined project goals, it's time to sit around with your team and experts to define the project scope. During this stage, plan out the features and functionality required to build an outstanding trading platform. Sales team, project manager, domain expert, and you will define project goals which include estimated development time and project cost.

Step - 3 - Address Trading Platform Security Concerns

The associated security concerns and strict regulations often result in entrepreneurs and owners stepping back while creating a trading platform. A reputable trading platform development company will assist you in designing and developing a platform in accordance with the current government regulatory standards. Our team will integrate security features like MFA, biometric authentication, bank-grade encryption, etc.

Step 4: Selecting The Right Technology And API

Are you worried about which technologies are the best to develop trading platforms? Fret not; we have got you covered! Our software development team at RisingMax Inc. will assist you in choosing the right tech stack and APIs best for your project. With a clear project understanding in mind, our team will move forward with developing a trading platform.

Here’s a list of popular APIs for your trading platform;

  • YH Finance API
  • Finance Currency Data Feed API
  • Twelve Data API
  • Yahoo Finance API
  • Metamark API
  • Latest Stock Price API
  • Alpha Vantage API

Step 5 - Onboard Developer Team

Next, you need to form an in-house developer team or hire a remote team to handle the development of the stock trading platform. Hiring a remote software development team is the most preferred option, as you can start the project development within days and save money. Your trading platform development team should have the following;

Step 6 - Trading Platform Development

To create a trading platform, you have two options - either to launch a full-fledged trading platform or first release an MVP (the first version) and keep on adding features and functionality to improve the overall app experience. We at RisingMax Inc. follow an agile software development process to transform clients’ visions into reality. Following agile methodology empowers us to deliver customized solutions that are at par with current business standards.

Step 7 - Testing And Deployment

Our QA experts at RisingMax Inc., will employ advanced testing tools and softwares to ensure error-free deployment of stock trading platforms. Any technical issues or bugs will be forwarded to the development team for rectification. Only after clearing all the testing standards, we move forward with the trading platform deployment. We deploy the stock trading app on the leading platforms to ensure maximum exposure and effectively reach the target audience.

Looking for The Team to Build a Brand New Trading Platform? Contact us we are a great fit for all your business needs.
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How Does A Stock Trading Platform Make Money? 

Before establishing your business, understanding the monetization model is a priority for everyone. The same lies with the stock trading business. If you too are planning on how to build a stock trading app, surely you could be wondering how to make money, sooner or later. We are here to answer your every query. Read out how to build a stock trading platform and monetize it for profit. 

Interest: Capturing the interest of the users is the most trending technique for collecting money from stock trading platforms. As you were seeking earlier on how to create a Robinhood-like app, here we came up with an example of it. Robinhood collects interest from users on uninvested amounts in their accounts. This is another way to motivate users to invest in desired securities than keeping idle cash.

Premium subscription:Offers extended hours of trading hours, extra stocks, and margins on your platform to users who have purchased membership plans. Robinhood’s Gold plan is a leading example of it.

Fee per trade: Do not offer free trading transactions on your platform. Charge a small portion of the fee for every transaction made by investors. The fee charges allow you to cover platform maintenance charges. 

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Must Have Features of Stock Trading Platform

Although registering on a stock exchange platform like Robinhood is free for users, some features still attract traders and investors. While going through your stock trading app development process, you cannot deny these features to make a better overall experience.

Let’s check out these in a short while.

Online Dashboard

An online dashboard is also considered a portfolio dashboard containing sortable data. An online dashboard enhances users' experience with easy-to-find filter options, various payment gateways, a graphical presentation of trending stocks, and more. So, while building your trading platform, make sure it must be embedded with all the essential features on the dashboard. 

Real-Time Streaming Of Stock 

Real-time stock streaming boosts users' experience and trust in your platform. If users are able to track companies or top cryptocurrencies' current market position, they will rely more on you and look for investment opportunities. Therefore, when you go about finding answers to how to create a stock trading platform, ensure that you learn about all the essential features that help present users with accurate analysis, price patterns, and efficient strategies.

Stock Screeners/Stock Scanners

Stock screening helps to provide desired results like charts and quotes that derive results from using fundamental, technical, and descriptive metrics. These concerns help the traders and brokers to make prompt stock-picking decisions. 

Watch Lists

Generally, people keep an eye on their favorite stocks to buy or sell at lucrative deals in the future. For this, the best practice is to keep the stocks on the watchlist. The list will define users' price, volume, bid, and percentage change. Hence, it helps to make better and on-time decisions. 

Recent Market News

Keeping users updated with the latest news and trends are in high demand. And modern investors appreciate the business, too, which keeps them a step ahead. Thus, provide current market news to your readers and keep them engaged for a longer duration. 

Calendars And Stock Notifications

24*7 availability and real-time tracking are the common features that everyone expects from a stock trading platform. But modern users want to go beyond these with a variety of alerts on important topics. Set a calendar to provide all-time stock market notifications. 

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Individual Profile

Establish individual profile information on the app. The section will contain information related to users' pictures, personal details, language indications, and priority stocks. It also helps you to gather information related to the majority of users' interests.

Investment Portfolio 

Stock exchange platforms offer venture portfolios in their apps to promote speculation. The AI and machine learning skills of these apps help to provide robotic calculations, independent buying or selling of stocks, and more. 

Registration Form

From the start of registering on your platform, create an easy-to-sign and login structure on your platform. The overall structure helps to make the page convincible where no one needs to put in additional effort. 

Installment Choice

Trading could be a better experience if someone can get a loan or fix an installment through an app. Offer a great option that can motivate users for more investment opportunities. 

Search & Filter Option

Clients do not want to wait for a long time to find a single stock or security. A quick filter and search option in a trading app can prove a healthy choice for them. Make sure your trading platform cost breakdown includes a section for advanced search filters. Users should be able to find what they want. This, in turn, helps retain customers and improve user experience. 

Approval 

To ensure your app or platform’s security, create an approval option. It could be based on touch ID or Fade ID that defines your users' ID, and suspected accounts won’t be able to track details. 

Interested In Stock Trading Platform Development?

We're ready to help you! Implement your business idea and create the trading platform of your dream.

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How Much Does It Cost To Develop A Stock Trading Platform?

With the upgrading technology and growing industry needs, building a stock trading platform on your own is not easy. So, if you are planning to develop an app yourself, remember you have to buy accurate technologies from design to testing. A single mistake can grab your income. Hence, choosing an expert approach always proves to be a healthy decision. You can get a full-fledged ready-to-launch solution in a stipulated time frame. 

You can also hire a developer for specific hours who will work for your project only. You just have to pay specific hours charges only. 

Now, let’s check out the scope of your work and how much you need to pay for it. (Remember: these are just estimated figures at the time of writing or posting a blog, the charges could vary due to time, features, and technology.)

Platform Development StagesCost
Native Development$13000
UX/UI Design$5500
Backend Development$7000
Quality Assurance$9000
Project Management (10-15% of the total budget)$2500
Total$37000

Conclusion

Today, millennials are the new consumers of the era. Hence, building a new, advanced method for trading traditional stocks is obvious. Developing a stock trading platform assists users in taking immediate financial investment action. Not only this, but it also provides an opportunity to shine in the world of stock or crypto exchange. 

Now, what is troubling you? Finding a reliable stock trading platform development company?

Just check out our achievements before looking anywhere.

  • 15+ years of experience
  • Proficiency in developing NFT, crypto coins, and wallet integration projects
  • 150+ blockchain developers to handle every query instantly.
  • Already developed Robinhood like, Binance like, and UpStock like platforms 
  • Ready to talk and take issues 24*7
  • To know more about us, call now.

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