How to Develop a Trading Platform?

Updated on Apr 16th, 2024

Enhanced market analysis and decision-making, improved risk and compliance management, increased speed and efficiency of trading operations, and customized investment strategies. Do you want to enjoy perks like these and many more? Well, then, AI trading platform development is the solution!  

AI in finance has become a hot trend in the industry. Whether we talk about cash flow management, budgeting and forecasting, revenue management, or even compliance management, SMEs and Fortune 500 companies have actively invested in AI stock trading platforms to streamline and automate several tasks.   

AI trading platform is a custom enterprise solution that is trending in the corporate world these days. It offers several benefits, like informed and personalized investment suggestions based on past data analysis, predictive techniques to suggest the best stock, automation of routine and mundane tasks, and so on.   

But how can you create an AI trading platform that works on your business issues and ideas? Well, that’s what our blog is all about! In this blog post, we will uncover a step-by-step process for developing a custom AI-based trading platform in the most convenient way. You can explore the market scenario, trends, features, and the required resources for AI trading platform development.   

  • AI trading platform development has today become a hot trend in the stock trading market. AI-based trading platforms offer benefits like data-backed investment decisions, personalized trading strategies, compliance and risk management, etc.  
  • Features like predictive analytics, automated trading algorithms, risk management tools, data security tools, and portfolio optimization can add value to your custom AI trading platform.   
  • You must choose a trusted consultancy that can assist you throughout your project, from technology consulting and strategy creation to designing, prototyping, software development, and testing and deployment.   
  • There are several things you should consider during AI trading platform development, such as following the Agile methodology, ensuring an easy-to-integrate platform development, hiring dedicated developers using scalable models, and opting for MVP development.    

What is an AI Trading Platform, and Why Use It?  

Trading was always a game of complex calculations and predictions. However, that game changed with the advent of AI development services, especially for trading. Companies started leveraging AI trading platforms to enjoy countless benefits like data-backed decisions, processing of thousands of data files in one blink, and predictive analytics to get accurate suggestions on the stocks. And AI trading platforms aren’t a replacement for traders; they’re a force multiplier, elevating their capabilities and streamlining the entire trading process.  

Why Use AI Trading Platforms?

The industry, which once relied on human analysis and predictions, a potentially time-consuming and less precise approach, has today been transformed by the use of AI-based trading platforms.   

As per a trusted source, the AI trading market is expected to grow at a CAGR of 38.1% between 2022 and 2030. In fact, AI-based trading platforms are already being used by some of the most successful hedge funds in the world. And why not? After all, AI in trading has so much to offer!  

Consider the speed of trade execution – a pivotal factor in dynamic markets. Without AI, trades are manual and time-consuming. However, with AI trading platform development, trades can happen almost instantly, enabling traders to capitalize on market movements in real time.  

Today, the use of AI trading platforms has enabled traders to gain the ability to swiftly analyze vast amounts of real-time data, unveiling trends and patterns imperceptible to the human eye.  

All in all, AI trading platform development isn’t just an investment; it’s a strategic move towards unparalleled efficiency and competitive advantage. By investing in an AI trading platform, you’re not merely keeping pace; you’re positioning your company as a leader in the ever-evolving landscape of trading.  

Also Read: How to Develop a Stock Trading App Like Invstr?   

Features To Be Included in the AI Trading Platform  

Now that you have finally made up your mind to invest in AI trading platform development let us quickly discuss one of its crucial parameters – its features. Features of any custom enterprise solution define its operational feasibility. Whether a user will switch to your trading solution and leave his current platform depends solely on the features and the ease of operation your project provides.   

And you know that these days the concept of smart features is in trend. Hence, you should always consider opting for a mix of basic and advanced features for your custom AI stock trading platform. That being said, finding the latest and most reliable features that can play in the long run can be daunting. Hence, as a leading AI development company, we have listed the most prominent features that can add value to your AI trading platform.    

Real-Time Market Data  Real-Time Market Data  

This feature is useful for AI trading platform development as it empowers traders with up-to-the-second information, enabling swift and informed decision-making. Real-time data is crucial for capturing opportunities and reacting promptly to market fluctuations.  

Order Placement and Management  Order Placement and Management  

This feature of an AI-based trading platform streamlines the trading process, allowing users to execute and manage orders efficiently. An intuitive order management system contributes to user satisfaction and operational efficiency.  

Historical Data Analysis  Historical Data Analysis  

Historical data analysis facilitates in-depth analysis of past market trends, enabling traders to refine strategies based on historical performance. It is a fundamental feature for making informed predictions and optimizing trading approaches.  

Security Protocols  Security Protocols  

You can establish trust and credibility by safeguarding user data and transactions via this feature of the AI stock trading platform. Robust security measures are paramount in the financial industry, ensuring the integrity and confidentiality of sensitive information.  

Notifications and Alerts  Notifications and Alerts  

This feature keeps users informed about market movements and relevant events. Customizable alerts enhance user engagement and enable timely reactions to critical developments.  

AI-Powered Predictive Analytics  AI-Powered Predictive Analytics  

You can leverage advanced AI development services to provide traders with predictive insights into market trends, enhancing decision-making. Predictive analytics equips users to anticipate market movements and make strategic trading decisions.  

Automated Trading Algorithms Automated Trading Algorithms  

You can consider this AI-driven feature for AI trading platform development to optimize trading strategies by automating execution based on predefined algorithms. Automated trading ensures timely responses to market conditions, minimizing manual errors and maximizing efficiency.  

Sentiment Analysis  Sentiment Analysis  

This feature offers a holistic view of market sentiment derived from news and social media. Sentiment analysis helps traders gauge market mood and make decisions aligned with prevailing sentiments.  

Risk Management Tools  Risk Management Tools  

Your custom AI trading platform should be able to mitigate potential losses by providing AI-driven risk assessments. Advanced risk management tools enhance portfolio resilience and protect against unforeseen market fluctuations.  

Pattern Recognition  Pattern Recognition  

With this feature, your custom AI trading platform can identify recurring patterns in market data, assisting traders in anticipating future movements. Pattern recognition contributes to accurate predictions and informed decision-making.  

Portfolio Optimization  Portfolio Optimization  

This feature of the AI stock trading platform enhances portfolio performance by utilizing AI algorithms to optimize asset allocation. Portfolio optimization ensures a balanced and diversified investment strategy, maximizing returns while managing risk.  

Backtesting  Backtesting  

Finally, the Backtesting feature of AI-based trading software evaluates trading strategies against historical data to assess performance. Backtesting provides valuable insights into the viability and effectiveness of different trading approaches.    

Do You Need Some More Exclusive Features for Your Custom AI Trading Platform?

AI Trading Platform Development Process – A Step-by-Step Approach

So, we are now at the most awaited section of our blog post – the process of developing an AI trading platform. Now that you have the reasons and ideas for your custom AI-based trading platform, it is time to convert those ideas into reality.   

But who will do that for you? That’s where the concept of outsourcing comes into play! Like the majority of companies, you should also partner with a trusted consultancy that can assist you through your AI trading software development process. Whether we talk about strategy creation, feature recognition, trend analysis, competitor and market research, designing, prototyping, testing, and even maintenance, a trusted software development company will handle everything to offer you a ready-to-launch product.  

And the approach is pretty simple. You only need to follow some simple steps to partner with the right firm and get started with your project. Here are those steps:  

Don’t want to scroll through the whole content? We have got you covered! Fill out our form to leverage a free 30-minute expert consultation for your project. Discuss your ideas with experts and get a no-obligation quote for your custom solution.   

Understand the Requirements and Market Trends   

The foremost step to creating a custom AI trading platform is to understand your requirements and analyze the latest yet reliable market trends. Now, before proceeding with the development part, you must have a clear understanding of your business goals, operations, and the ROI of your investment.   

For instance, you should ask yourself questions like:  

  • What operations will be automated or streamlined via an AI trading platform?  
  • What features do I need to add to my custom solution?  
  • Do I need any other next-gen technology besides AI/ML that can add value to my AI trading platform?  
  • What resources do I need to hire to develop a custom AI-based trading platform?  
  • How can I measure the ROI of my investment?  

Answering questions like these will help you craft a perfect roadmap and development strategy for your AI trading platform development project. Well, for a better evaluation of your requirements, you can always reach out to expert consultants, which is our next step.   

Choose a Reliable AI Development Company  

The next and most crucial step for AI trading platform development is to choose a trusted consultancy. Now, many of you might think about the benefit of leveraging consulting for your project. Well, there’s not one or two; there are several benefits that you can get after choosing an expert consultation.  

For instance, a trusted consultancy will help you throughout your project, from requirement analysis, business and technology consulting, cost and time estimations, resource planning and optimization, strategy creation, designing, development, and more.  

With a reliable consultancy, you not only get developers or testers, but you also get a talented team of consultants, UI/UX designers, project managers, business analysts, and even API developers who work at flexible pricing models.  

A trusted consultancy always helps you with market and competitor analysis, requirement gathering, data management, cloud integration services, and DevOps, which are the core aspects of developing future-ready digital solutions these days.  

Well, at least, Matellio offers all such services and many others to its clients. All in all, you should always partner with a reliable and experienced consultancy to streamline your software development journey and gain good ROI.    

Read More: Financial Software Development: A Complete Guide for Businesses

Choose the Best Features and Next-Gen Tech  

Once you are done with a roadmap and strategy creation, the next step would be to choose the most suitable features and tech stack. Now, we have already listed the top features that you can consider for AI trading platform development. Having talked about that, the technological stack of your custom solution solely depends on your ideas and requirements. For instance, the tech stack will be different for different sets of features.  

Moreover, there are multiple options available for a single aspect (like many front-end programming languages, many cloud platforms, different APIs for payment gateway, and more). Hence, you should have a clear requirement before hiring dedicated resources for your tech needs.  

However, to give you an idea of the tech stack, here we have mentioned the general tech stack used for AI trading platform development:  

Best Features and Next-Gen Tech

Choose the Agile Methodology for Software Development  

Now that you have the required resources, aesthetic designs, suitable features, and trending technology stack in mind, it is time to convert everything into a profitable reality. But you need to consider a few things while developing an AI-based trading platform.  

First, always focus on creating a scalable and secure custom solution that can grow alongside your business. For that, leveraging the cloud integration services could be the best option. Second, follow the Agile development methodology that can help you get constant updates on your AI trading platform development project after each development stage.  

In the Agile method, your complete project is divided into manageable sprints. You can easily verify your product, the features, and the designs after every stage and can even introduce changes without disturbing the previous sprint. That means no surprises and no rework – you get a business-focused and expected digital product at the end of the development stage.   

MVP Can be Beneficial in the Start  

Another crucial thing to consider during AI trading platform development is to develop an MVP instead of a large enterprise solution. But what does an MVP mean? MVP stands for a minimum viable product. In simple words, it is a custom solution with essential features and a basic design that can be scaled on the feedback of your target audience.   

This concept is widely used by many leading brands to save on development costs and introduce the necessary features of design components that are liked by the target users. So, you can also follow this strategy by investing in MVP development for your custom AI trading platform.   

Read More:  A Complete Guide for MVP Development 

Do Not Forget Testing  

Last but not least, do not forget the testing of your product. Testing is one of the most crucial stages of the custom software development process. By opting for testing services, you can easily determine the performance and security of your custom enterprise solution under diverse conditions. For instance, with security testing services, you can check the security aspect of your digital solution. Similarly, we also offer functional and performance testing services to determine the functional component of your AI trading platform.   

In short, you should always ask for testing services for your digital solution. Well, at Matellio, we offer testing as an integrated part of our software development package. We offer automated and manual testing services options which our clients can choose as per their requirements.   

Need a Free Cost-Estimate for Your AI Trading Platform Development Project?

Ready to Begin AI Trading Platform Development?  

To conclude, we can say that AI in trading has become a hot trend in the market. An investment in AI trading platform development can yield top results like data-backed investment strategies, personalized suggestions of top stocks in just a few seconds, risk and compliance management, and so on. However, the type of features you choose and the expertise of your development partner greatly affect the scope and capabilities of your custom AI-based trading software. An experienced consultancy will always help you find the latest and most reliable technology trends and features for your custom solution.   

That’s where Matellio comes in!  

With a decade-long experience in software engineering and consulting, we can be your one-stop solution for AI trading platform development. As a leading software development company in the USA, we have worked with several businesses, helping them step into the digital era by transforming their ideas into a future-ready business solution.   

Whether you need to create an AI trading platform from scratch or you need to enhance your existing trading software with AI/ML capabilities, our experts can help you in the most efficient way. Their experience in delivering services and solutions to different industries has made them capable of understanding your true business concerns.   

With us, you can easily leverage a wide array of professional services, including technology consulting, DevOps, cloud integration and migration, data visualization, AI/ML integration, software designing and development, and even testing and maintenance, under one roof!  

So why wait until you can begin your project today? Simply fill out our form to discuss your requirements over a free 30-minute consultation call and get a no-obligation quote matching your requirements in no time!   

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