How to Build a Stock Trading Platform?

The demand to build a trading platform has increased substantially in the financial sector.

It is because trading platforms have seen a rise in users between 2020-2022 due to increased FinTech tools.

For example, Robinhood (a commission-free trading app) had half a million users in 2014. The same user count reached 22 million by 2022. (Source: Statista)

The algorithmic trading market has seen rapid growth ever since the arrival of Big Data, Artificial Intelligence (AI), and Management Information (Ml).

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.

Choosing to build a brokerage app in the market with such potential is a lucrative decision.

But you have to learn various facts about stock trading app development before moving forward with it.

Top Trading Platforms in the USA

Learning about top trading platforms introduces you to the competition and factors that make a trading platform successful.

1. Fidelity

Fidelity provides commission-free stock trading, options trading, and exchange-traded fund (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.

2. TD Ameritrade

TD Ameritrade 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.

3. Charles Schwab

Charles Schwab offers three platforms for trading and charges no fees for registration. It provides commission-free stock, extensive fund selections, options, and ETF.

The total count of Charles Schwab’s domestic and international customer accounts comes down to 33.6 million.

4. Ally Invest

Ally Invest provides no-minimum user accounts and trading in options, mutual funds, US-listed equities, and ETFs. Ally Invest has over 250,000 customer accounts with $4.7 billion in assets.

Operating Systems for Online Trading Platforms

You have to build a trading platform based on the needs of your target audience. But 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 like:

1. Windows
2. Android
3. iOS
4. macOS
5. Linux

Essential Features for Electronic Trading Platforms

1. User Registration

Users must be able to sign up and sign in to the platform with a few easy steps.

Your platform must provide the feature to sign up with an email address, mobile number, and social media accounts.

2. User Profile

Users should be able to create a detailed profile on the platform and update it whenever necessary. It helps users manage and track their activity on your online trading platform.

3. Company Registration

You must build a brokerage app/website that provides registration and profiles for companies. It helps companies create a professional profile and present their IPOs successfully.

4. Live Updates

Users must get live updates about the latest changes and news on the e-trading platform. For example, a user should get a real-time update if a company is about to run its IPO soon.

5. Multiple Payment Gateways

Provide users with multiple payment modes like Stripe, Braintree, PayPal, and Google Pay within the trading platform.

6. Watchlists

This feature will help users create different watchlists of stocks they wish to monitor and buy later. It’s one of the most critical trading platform features.

7. Search & Filter

A search and filter option can make it easy for users to find the stocks they are looking for within the e-trading platform.

8. Push Notifications

This feature sends notifications to users about important e-trading market news, changes in owned stocks, and pending payments.

9. Portfolio Management

This feature helps users check and manage their portfolios with live updates.

10. Payment Management

Users can check information about past or current transactions and deposits. Users can also download a document that provides information about all payments.

11. Analytics

This feature will help users analyze key financial data from recent and historical trades. Financial reports of all trading activity will help users make better investments in the future.

12. Real-Time Risk Analysis

Users can analyze the risks of company stocks they are about to invest in or buy.

How to Create an Online Trading Platform?

You can create an application for Windows, Android, iOS, and macOS. And you can also stick to one platform and grow the business with a specific target audience.

Here are some steps you can follow for stock trading app development:

1. Hire a development team

How to start your own trading platform professionally? Gather a team of experienced professionals with a background in developing trading applications. It’s a clever choice to go with developers who already know how to create an investment platform.

Here is a list of personnel you will need for your trading app development:

1. Project Manager
2. UX/UI Designer
3. Backend Developer
4. Frontend Developer
5. JavaScript Developers (Web Development)
6. Android Developers 
7. Swift Developers (iOS development)
8. DevOps Engineers
9. Testers & Maintenance Team
10. Security & Marketing Analyst

The economical way to create an app development team is by hiring a mobile app development company. 

An experienced offshore company can manage the design, development, testing, launch, app marketing, and post-launch support/maintenance.

2. Plan Your Minimum Viable Product (MVP)

A minimum viable product will be a version of your app with only the core features.

Experts advise that it’s best, to begin with, an MVP product whenever you try to create a web or mobile platform for any business.

3. Plan the Security of Your App

Trading platforms contain and exchange sensitive information about millions of individuals. Platform security must be your number one priority during trading application development.

Get a security analyst with a background in stock trading app development. Such analysts can better handle security challenges associated with stock trading platforms.

4. Monitor the Development Process

You can deal with many mistakes when you monitor the stock market app development while it happens. It saves you from the additional effort when the final product is ready.

Make sure the features like Buy, News Feed, Search, Risk Analysis, Sell, Manage Payment, and Withdraw are all performing perfectly. Because these features will either improve or worsen the user experience for all your customers.

Every feature that your target audience needs must be easy to find and use. Figure out whether hybrid or native apps are suitable for your target audience.

The user interface of your application must be accessible to the eye if you hope to capture and maintain user attention.

5. Choose Technology Stacks

Carefully chosen trading platform technology stacks are essential for the smooth functioning of your platform.

Surround yourself with web/app developers that know how to select the best tech stacks for your platform.

Here are some trading platform technology tech stacks required for trading app development:

1. G-Suite
2. Figma
3. AWS
4. Laravel
5. React.Js & Angular
6. Jenkins & Docker
7. Java & .NET
8. Amazon SageMaker

6. Conduct Frequent Testing

Your stock trading platforms will demonstrate their true potential and errors during the testing. And you can deal with them before the launch date.

Frequent testing will ensure that your web/mobile trading platform runs smoothly and without any errors for a long time.

7. Discuss Your Goal with the Marketing Expert

A good marketing strategy is the final brick your online brokerage platform needs to stand straight. Explain your goals with the trading platform to your marketing expert.

It will help you create a marketing strategy that can attract the entire target audience to your platform.

A well-developed trading platform does even better if you do conduct its marketing in a professional manner.

8. Launch and Post-Launch Support

The work continues even after the “how to build a stock trading app?” part. Plan the trading platform launch with the finesse of an experienced business professional.

Then you will have to focus on post-launch support and maintenance.

You must get a development team that knows how to build trading platforms and maintain them. Because your trading platform (web and mobile) will need updates and solutions for any potential or existing bugs.

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 become familiar with every legal aspect associated with a trading business and its various platforms.

Here are some legal requirements to keep in mind during the stock market app development:

1. US Securities and Exchange Commission (SEC)

The SEC protects investors from fraudulent activities and ensures fair outcomes for all. The SEC enforces US securities laws regularly. And your trading platform must comply with it.

2. Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority protects American investors by regulating Broker-Dealers, Funding Portals, and Capital Acquisition Brokers. Make sure your trading business conforms to FINRA as well.

3. Chicago Board Options Exchange (CBOE)

Keep your electronic trading platform in compliance with Chicago Board Options Exchange. CBOE is the largest options exchange in the world. 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, swap dealers, futures merchants, exchanges, and commodity trading advisors.

It’s essential to keep your trading platform in accordance with the rules and regulations of the NFA.

Cost Structure to Build a Stock Trading Platform

Certain common factors like the features, app design, or the location of the app developer affect the development cost of your platform.

Developers you hire can tell the 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.

But the complex/multi-feature app development may cost between $45,000 to $65,000.

App Development Cost: The Definitive Guide

It is also a rough estimate because the cost entirely depends on your requirement.

And it may even go up to $200,000 if your app requirements involve numerous complex features and app designs.

Frequently Asked Questions