Trading has been a vital part of human civilizations for ages. As everything today happens online, so does trading. Various entrepreneurs and small business owners are now making purchases online, which has been seen as a common practice. There are various reasons for people to shift online, but primary reasons include ease of convenience and competitive prices.
As per the report of a prime American stats provider, over 1.92 billion buyers/sellers worldwide are dealing digitally in the year 2019. The numbers don’t stop here; the predicted figure can hit an all-time high of 2.20 billion traders by the year 2022. These numbers suggest that there is plenty of scope for trading app development in the coming years. Who knows, your project could be the next biggest trading platform.
As the online trading market has grown massively over the past few years, there has been a significant decline in the popularity of offline trading firms or organizations. It has never been easier to buy and sell financial products through these online trading platforms. To develop an efficient trading platform, you need to find a dynamic trading app development company with significant experience in the field. Let’ dig deep to find out the requirements of an efficient trading app development process.
What Is a Trading App, And How Does It Work?
The online trading platform is a comprehensive software solution that delivers the ability to monitor accounts and make trades in real-time. These platforms have been proven to be revolutionary, and everyone is rushing towards it, whether it is an entrepreneur or an investment firm. Offline brokerage firms are a cul-de-sac for these investors. Online trading delivers them the freedom to take care of their investments remotely from anywhere in the world.
In simple terms, these online trading platforms are a valuable tool for those interested in big or small competitive organizations for long-term investment and short-term investment. Various types of trading platforms are being used today, all with different functionalities.
Also Read: How to create a trading mobile app like E-Trade?
What Is a Trading App, And How Does It Work?
The online trading platform is a comprehensive software solution that delivers the ability to monitor accounts and make trades in real-time. These platforms have been proven to be revolutionary, and everyone is rushing towards it, whether it is an entrepreneur or an investment firm. Offline brokerage firms are a cul-de-sac for these investors. Online trading delivers them the freedom to take care of their investments remotely from anywhere in the world.
In simple terms, these online trading platforms are a valuable tool for those interested in big or small competitive organizations for long-term investment and short-term investment. Various types of trading platforms are being used today, all with different functionalities.
Working Of a Trading App
The working of these trading apps can be termed as simple based on their performance from a user’s point of view. Any transaction like buying or selling is quickly done in a matter of seconds on these apps. However, these apps are packed with various financial algorithms that determine the kind of transaction and act accordingly.
When the user logs in or sign-up in a trading app, they are connected with an online broker. This broker will receive the order for a transaction from the user. Then the order for that particular commodity is stored in the database of these platforms.
In the next step, the database analyzes the various trading markets and fetches the best price for that commodity for the user. Further, a notification is sent to both the seller and the buyer by the market that paired them. Once the deal is finalized, the price is displayed to all the available investors. Further, a record of this same transaction is stored in the database for reference purposes.
The last step consists of sending a binding contract to the brokers of both the parties involved in that particular transaction. Trading platforms are on the rise ever since the past decade, and some key features should be present in an efficient trading app.
Features To Be Included in the Trading App Development
Features of an app 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. When you contact a trading app development company to develop your project, make sure to include these features in your app.
1. Log-in/ Authorization
For users to start trading on your platforms, checking in is the initial and most crucial feature to have in your project. It should not only facilitate easy log-in and sign-up, but it also should be secure enough as compared to various other apps. These apps deal with varying amount of capital and your app should be able to keep their data secure.
Your application can use the security features of the user’s device, such as fingerprint and face-id. Along with security, it should be easy to use. Hence, the user should have various options to log in, such as their social media handles and phone numbers.
2. Bank Account Integration
Users will use your platform to conduct transactions, and money is the power shaft of this engine. You have to deliver them an option to add their bank accounts to your platform. For this purpose, you can take the help of Plaid API as this tool has been widely accepted as the medium to security connecting bank accounts to such platforms. Trading in various commodities is complicated, and you could lose a deal in a matter of seconds; hence, this feature is a must for your trading app development process.
3. An efficient Home-screen
The home screen of a trading app should be as an information bulletin. Users should be able to view all the current stocks that are at the top for the day, the amount they have invested, the status of the invested stock, etc. There should be a tiny block that displays the amount left in the user’s trading account to purchase various commodities. Your app’s home screen should have all the necessary details that an investor should know before trading ahead.
4. Newsfeed
You can say this feature is a crucial part for the apps of this genre. As we know, stocks of any kind, whether global or local, are pretty sensitive. Everyone wants to purchase a high-performing asset at a low price; that’s where this feature comes into the picture. Every news related to the fluctuation in the price of stocks of any industry should be displayed in this news feed.
The price fluctuation can occur due to numerous reasons. When they do, it’s better to purchase them at a lower rate and later sell them at a more considerable profit margin, and news like this will make your project popular among the users. The only thing you have to take care of is that this news should be reliable and verified by various sources such as financial analysis reports, expert opinions, etc.
5. Trading
Needless to say, this feature is the foundation of any trading platform. Users should be able to conduct transactions of various stocks and commodities on your app with ease. Before investing, the users love to read about that particular stock and see a detailed chart depicting various info about that stock.
Your project should avail them of the critical pieces of information like the company’s detail offering its shares, the average, highest, and lowest-earning from that stock, analysts’ ratings, etc.
The users love automatic features; you should deliver them an integration in your project that allows them to add a price limit so that the stock automatically gets sold when it reaches the preset price.
6. Other Prominent Features
Above mentioned features are the mandatory ones. Several features can hike up the popularity of your trading app, such as sorting and filtering of stocks based on various parameters, push notifications to inform users about the status of their purchased stocks and various upcoming stocks.
Users should be able to search for stock via their name and other parameters, and there should be a section where users can reinvest their earnings.
Also Read: How to Develop a Mobile App like Robinhood?
Trading App Development Process
While deciding to develop your trading platform, there are certain factors you should consider and research about. These factors include detailed market research to find out the current trend of the investment market, knowing about your competitors, and what are their platform’s functionalities. The next thing is to decide who will be your trusted partner during this journey, i.e., find a trustworthy trading app development company.
Next up is the capital you are willing to allot for this project and the platform that you want to launch on. Remember, launching on a single platform will cost less as compared to launching on multiple platforms.
1. Technologies to consider
The technologies for a trading platform are different from other kinds of applications as it requires constant market feed of real-time data that consists of indices, stock quotes, currencies, commodities, and much more.
a. APIs
Your app should have integration of various APIs that deliver real-time data. However, some APIs rely on cryptocurrencies, historical data, and exchange rates to fetch the required data. Some of the most popular APIs that you should consider is Yahoo Finance API, Finage Currency Data Feed API, Investing Cryptocurrency Markets API, Alpha Vantage API, Zirra API, Stock and Options Trading Data Provider API, and Twelve Data API.
Some APIs offer research functionalities and stock metrics along with the stock market feed, such as Tradier and Finbox. You can also use tools like Sailfish used for broker system testing and M.T.F.
b. Languages and Frameworks
You can either hire a trading app developer or tie-up with a trading app development company for your venture. Ensure the developer is well-rehearsed in the languages and frameworks that are mandatory for developing such platforms.
Front-end development: Everything on this site will be visible to your user. This part deals with the design and web interfaces of your trading app. Users will interact with your project through this side; hence, make sure to show all your creativity here. You can consider HTML, CSS, JavaScript for the development of this part. Apart from this, you can use React and Angular, including jQuery, Bootstrap, etc., to build complex systems for your platform. Using Ajax technology will be an added benefit.
Back-end development: This is the part where your app handles the functionalities and helps you upgrade or maintain your platform. There are several programming languages and frameworks used in the backend development process, such as Ruby, Python, NodeJS, .Net, and MySQL, relative databases like M.S.S.Q.L., PostgreSQL, Java, and Oracle. Distributed databases such as SingleStore and Dolphin D.B. will build features like alerts, transactions, log-in, and other related features.
2. The Cost Involved in A Trading App Development
The capital required for your trading app will vary on several factors. Before entering this market, you should research all the non-technical components that are required to launch a trading platform.
You would require a license to operate in various countries and should be aware of the rules and regulations of the regulatory body of that specific country. In the U.S.A., the regulatory body that deals with these platforms is S.E.C., and in India, it’s S.E.B.I. Getting these licenses will also affect the development cost of your project.
Apart from that, you should be safe and secure on all parameters. Getting the best security feature for your app will cost you a decent amount of capital. Your app will deal with many financial transactions in a day, and having a great security integration is a must.
The development process will give you two options: hiring an individual or a trading app development company that will take responsibility for all your needs and bill you only for the time and human resources invested in your project. In any case, you would require a Project manager, Q.A. engineers, and designers. The number of people will depend upon the complexity of your project. The number of features will also impact the overall development cost.
Wrapping Up
Transactions of any kind are the backbone of any economy. Trading is the new trending industry in the market that is snowballing. With added features and commitment towards users, your trading platform can make it big. All you need is a trusted partner.
At Matellio, our diligent app developers have delivered several trading apps with excellent ratings. We are referred to as the proficient trading app development company. Our various engagement models offer packages that will suit your budget, and our Cryptocurrency Developers deliver the quality that will suit your extraordinary success. If you are curious to know all about the trading platform development, call us to know more!!
