Do you want to build a stock trading app?

It’s 2024 and stock trading has become all the rage across the world. This is something that has been closed off but to a select few for a very long time.

It was also not very transparent.

However, all of this has changed with stock trading platforms that let any average Joe buy and sell stocks.

This gives us a great opportunity for businesses to make “A LOT” of money.

But how do you develop a trading app? Well, that (and a lot more related to it) is what we are going to discuss in this blog.

Therefore, with this being said, let’s get right into it, starting with a basic overview of the market:

User Demographics of a Stock Trading App

The best way to understand a market like the one we are discussing today is fintech statistics.

Let’s look at some important market figures and user demographics. These are, as mentioned below:

These are the major market figures that show just why and how companies from across the world are so eager to develop a stock trading application.

For those engaged in trading and seeking to streamline their morning routines, the Morning Download offers invaluable insights tailored for stock market enthusiasts. Keeping abreast of daily trends can empower better decision-making and sharpen your trading tactics.

Speaking of which, before you dive into development, it’s a good idea to understand the ecosystem.

Let’s do just that in the section below.

Understanding the Stock Trading App Ecosystem

So, what is a stock trading app?

“Stock trading app” is just that, a mobile application that is designed to allow end-user analysis, buying, and selling of stocks.

Now, there can be 100s of feature variations and different specifications, but at its core, this is what these apps do.

To allow these simple things, there are many great technologies at work.

With that out of the way, let’s see how trading works in the app:

  1. The very first step as a user is to register on the platform. It is a super simple signup process that requires basic details initially followed by KYC.
  2. Analyze the market with various features and tools provided within the app. Unlike how it used to be, the apps make it that much easier, simpler, and better understandable.
  3. Place the trade. Here, the user gets to choose the stock as well as the order type. It’s a digital version of the traditional stock-buying process.
  4. After the order is placed, the brokerage happens in the background, handled by a complex network of firms and stock exchanges. After passing through the funnel, you will get a confirmation.
  5. Lastly, sell. It is as easy as the purchase. The user can put up one or multiple stocks for sale and they will go through the pipeline again.

This is the stock trading app ecosystem.

How Do Stock Trading Apps Earn Money?

A lot of people want to know how fintech apps make money.

Well, there are a lot of ways to build a stock trading app and monetize it. In this section of the blog, we shall be looking at the very same thing.

How Stock Trading Apps Earn Money

These methods are, as mentioned below:

1. (PFOF) Payment for Order Flow

First of all, what is PFOF?

It stands for payment for order flow.

In simple terms, this is when trading apps receive compensation from market makers or brokers for directing user orders to them for execution.

Therefore, rather than sending the order directly to the stock exchange, apps send it to a third party that executes the trade.

Here’s how it will help you monetize the stock trading app you are building. You can charge the user base a small fee for every order that goes towards market makers.

When the size of the user base increases into the millions, this is going to be a major income source.

2. Premium Subscription

While this isn’t something super specific to a stock trading app, a premium subscription is one of the best strategies you can follow.

One part of the app can still be free, while you allow other users to pay a premium fee to access the better version.

This can be based on advanced features, expert insights, or priority.

There are various ways to implement this. You can take inspiration from top platforms from across the world. So with that out of the way, let’s move on to the next steps. 

3. Securities Lending

If you have been studying the other stock trading apps in the market, there is a high chance you have heard of this one.

Here’s how it works. Your stock trading app apps lends the stocks held in user accounts to other investors or institutions, typically for short-selling.

The app earns fees for lending out securities from the user’s account. In some cases, apps share a portion of this income with the user.

A good example of a platform that uses this method is Robinhood.

4. Commission on Trade

Commission is the bread and butter of any mobile app monetization strategy.

So, when you are creating a stock trading app, this isn’t something that you can ignore. Let’s see how you can incorporate this.

There are various ways to add this. For instance, there are a lot of apps that charge commissions on trade types like options, futures, or international stocks.

What you are going to do here is charge a fee for every trade made, typically ranging from a few cents to a few dollars per trade, depending on the complexity of the order.

Simple, isn’t it?

CTA 1_Do you want to create a stock trading app

5. Partnered Financial Products

Lastly, we have partnerships.

You can see that the market is filled with fintech apps and companies. One of the best things that you can do is partner with them.

This increases the user visibility of your product and that of your partner.

You can also earn affiliate commissions or referral fees for promoting or integrating these products into their platform.

Examples include credit cards, savings accounts, and retirement products.

So, these are the monetization strategies that you should follow if you are planning on building a stock trading platform. Now that we know how to make money trading stocks, let’s move to the next section and look at the 5 best stock trading platforms.

Best Stock Trading Platforms

Now, if you are going to make a Stock Trading App, you need some inspiration. We all do.

That’s why here are the top 5 stock trading platforms on the market, and what each of them has to teach you.

Best Stock Trading Platforms

Therefore, with this being said, let’s get right into it:

► Charles Schwab

The first one on our list is Charles Schwab.

It is a well-known name in the world of stock trading as well as stock trading apps. This is perfect for all types of traders, new or experienced.

But why?

Well, there are no minimum limits. In addition to this, they don’t charge commission (at all). And to top it all off, they also have dedicated real-time news.

► Fidelity Investments

The second window of inspiration is Fidelity Investments.

Known for its $0 stock trades, the platform is filled with amazing technology. Namely, extensive research tools and goal-setting resources.

Whether you are new investors or those focused on retirement planning, this is the platform for you.

► Thinkorswim

This app is designed for active traders. If you want to build a stock trading platform for them, this is all the inspiration you need.

It comes with features like advanced charting tools, profit and loss calculators, and 24/5 trading.

And that’s what makes it a super powerful day trading tool.

► E*TRADE

E*TRADE is a well-known name in the world of stock trading and here’s the reason why. It comes in the form of 2 different apps.

Namely: E*TRADE Mobile for basic trading and Power E*TRADE for advanced tools. Both offer commission-free trading, making them a popular choice.

Again, it can be used by both experienced and fresher traders.

► Robinhood

Robinhood stays true to its namesake and offers commission-free trading, more so than others.

There is no-commission stock, ETF, and cryptocurrency trading. And it’s the best for beginners. If you have to learn anything from it, it has to be the “value to the user” part.

So, these are some of the top stock trading apps that you should learn from when you are going to develop your own. Therefore, with this being said, let’s get right into the next section.

Key Legal Considerations for Developing a Stock Trading App

Fintech is a highly regulated field.

In simple words, if you want to create a fintech app, there are a lot of things that you need to deal with.

Key Legal Considerations for Developing a Stock Trading App

Let’s talk about them.

♦ Regulatory Compliance

Let’s start with the Financial Regulations that you have to follow when you are Developing a Stock Trading App.

To name a few, we have:

  • Securities and Exchange Commission (SEC) Regulations
  • Financial Industry Regulatory Authority (FINRA)
  • Securities Investor Protection Corporation (SIPC)

When we are talking about starting a stock trading business, these are things that you need to focus on. It’s something that needs to be done well before starting the deployment process.

Compliance has to be built into the application itself.

♦ Licensing Requirements

Depending on your location in the Western world, there are different licenses that you might need to Build a Stock Trading App and start your business.

In any case, the two major licenses for the stock trading app are:

  • Broker-Dealer License
  • Money Transmitter License

Both of these are very important for various reasons, but most importantly, you can’t work without them.

♦ Data Protection / Privacy Laws

Next up we have data and privacy protection laws, which are important in both the US and European markets.

And not complying with them can land your platform in great trouble. Therefore, this is something that you must keep in mind.

A few of the important ones within this are, as mentioned below:

  • General Data Protection Regulation (GDPR)
  • California Consumer Privacy Act (CCPA)
  • Know Your Customer (KYC) and Anti-Money Laundering (AML)

All of them are important in specific areas. This has to do with technical components like digital onboarding APIs, KYC, etc. However, they are the benchmark of the industry, therefore complying with these laws will lead you a long way.

♦ Intellectual Property Protection

Lastly, we have the intellectual property protection law.

As the name suggests, it is important to protect the user’s intellectual property in your stock trading app development.

So if you are to move forward with this, you will need:

  • Software Licensing
  • Third-Party Integrations

With this mentioned, we are done with the regulations and legal considerations for Building a Stock Trading App.

With that out of the way, let’s finally look at some challenges that you might have to face when developing an app like this one in the section below.

Essential Steps to Develop a Stock Trading App

It’s time to look at the development process of a stock trading app.

In this section of the blog, we shall be looking at each step involved in

Essential Steps for Developing a Stock Trading App

Step 1: Market Research

It starts with mobile app market research.

Speaking in technical terms, it involves competitor analysis, assessing the market’s openness for entry i.e. barrier to entry, SWAT analysis, target audience analysis, and so on.

But if we are to put it in a simpler format, you can say it’s all about understanding the market and understanding the people you are going to sell to.

It’s the data collected in this step that will fuel the rest of the development.

Therefore, with this being said, let’s move on to the next one.

Step 2: Planning

It’s time to align your business goals with market needs and the concept of the platform to create the ultimate plan to make a stock trading platform.

In this step, you decide everything starting from which development company to work with to platform, timeline, deployment, budget, and so on.

Take it easy, take your time, and don’t rush it.

Done here? Let’s move forward and start designing the platform.

Step 3: App Designing

It’s time to work on fintech app design.

Stock trading apps should be interactive and gamified. They should be easy to work with and super easy to use, regardless of age group or background.

Too complex a platform can deal damage to the user base as no one wants to use it.

Therefore, when you are working on an app’s design, you must ensure, create a stock trading app that is easy to use and also engaging.

With this done, we will work on the development part.

Step 4: Front-End/Back-End Development

This is the step of how to build a stock trading app where developers do all the heavy work.

In this step, they will put all the different components together and make them work flawlessly as a single unit.

This is by far the most time-consuming and resource-consuming part of the entire thing. And that’s what makes it so important too.

However, you must be sure to maintain clear and open communication channels with the development team.

Once you are done with this process, let’s move to the next one where we do this.

Step 5: Testing

Fintech app testing is one of the most crucial things.

One would go as far as to say that it is as important as development itself. The reason being, if that was crafting something, this is perfecting it.

There are various tools and techniques to be used here.

Once the app is tested, fixed up for bugs and errors, and polished, it’s time to deploy it.

Step 6: Deployment

Now that we are done making the stock trading app, it’s time to deploy it.

First, you provide it with an online database and then launch it on a platform like Android’s App Store or iOS’ App Store based on the platform.

This takes 2 weeks at most. However, if there are any mistakes, you will get the submission back with a lot of changes to make.

Whenever that’s done, your app is live and ready to take over the market. 

Step 7: Maintenance

Maintenance is important.

Even more so when we are talking about fintech app maintenance. The reason is that it has a lot of moving parts and integrations that need to be taken care of for proper working of the platform.

This is an ongoing process that will continue for a long while.

This is how you make a stock trading app. With that out of the way, it’s time to look at other important elements of the project, for instance the tech stack.

Technologies Required to Build a Stock Trading App

 The fintech development tech stack is super important considering we are developing a super complex platform.

Therefore, you have to carefully select technologies for stock trading app development.

Speaking of which, let’s look at the options for the stock trading app tech stack. These are, as mentioned below:

Category Technologies Description
1. Frontend Development React Native, Flutter, Angular, React.js, Swift, Kotlin to build cross-platform mobile apps (React Native, Flutter) or native iOS (Swift) and Android (Kotlin). Angular and React.js for web versions.
2. Backend Development Node.js, Python (Django/Flask), Ruby on Rails, Java (Spring Boot) Handles server-side operations, user authentication, trade execution, and business logic. These frameworks provide scalability and performance.
3. API Integrations IEX Cloud, Alpha Vantage, Polygon.io, Tradier, Yahoo Finance API For real-time market data, stock prices, historical data, and financial news to inform users of up-to-date market conditions.
4. Security Technologies SSL/TLS Encryption, Two-Factor Authentication (2FA), OAuth 2.0, AES Encryption, Biometric Login Ensures the security of user data and transactions with encrypted communication, secure logins, and fraud detection algorithms.
5. Real-Time Data & WebSocket Integration WebSockets, Firebase, Socket.IO WebSocket protocols allow real-time updates of stock prices, market movements, and trade execution confirmations within the app.
6. Cloud Infrastructure & DevOps AWS, Microsoft Azure, Google Cloud, Docker, Kubernetes, Jenkins Cloud infrastructure supports app scalability, while DevOps tools ensure continuous integration, testing, and deployment in an agile environment.
7. Analytics and Monitoring Tools Google Analytics, Firebase Analytics, Sentry, Datadog, New Relic Used for tracking user behavior, monitoring app performance, and troubleshooting issues to ensure smooth operations and optimize user experience.

So, this is all you need to know about the tech stack for a stock trading app. Now that we are done with this part of making a trading app, let’s discuss features.

Essential Features of a Stock Trading App

Features are the brain and bones of a mobile app.

That’s why, when you are creating a stock trading platform, it’s very important to select the right set of features.

Much like any other fintech app feature, a stock trading platform needs a strong set. So, let’s look at the essential features of a stock trading platform.

Essential Features of a Stock Trading App

These are, as mentioned below:

♦ User Registration & Authentication

The very first feature is the most essential one. It allows a simple sign-up process with strong authentication (OAuth, biometrics, two-factor authentication).

♦ Portfolio Management

Since we are talking about creating a stock trading app, it goes without saying that it should have portfolio management feature.

As the name suggests, with this the app allows users to monitor their investments, view asset performance, and analyze portfolio allocation.

♦ Real-Time Market Data

The name of the feature says it all. Seem in all top applications for trading, real-time market data is essential to deliver much-needed insight to users.

This includes real-time stock prices, market indices, financial news, and stock charts.

♦ Buy/Sell Functionality

Another core feature of the stock trading app is, buy and sell option.

This allows seamless trading with multiple order types (market, limit, stop, trailing stop orders).

♦ Push Notifications & Alerts

Today, push notifications have become an essential integration in all apps. With this apps can send real-time alerts on stock price changes, order executions, and news updates.

♦ Research and Analysis Tools

If you want to break the market, it’s important to understand it. And that’s what this feature is for. In-depth charts, technical indicators, news feeds, and company financial data.

♦ Fractional Share Trading

It goes without saying if a user wants to buy a fractional share on a stock trading app, they should be able to. And that’s what this feature is all about. It allows users to buy fractions of expensive stocks.

♦ Educational Resources

Some of the best mobile apps for stock trading have educational resources like articles, video tutorials, webinars, and investment guides. This does well to motivate more users towards the platform.

♦ Advanced Trading Options

Moving into the category of advanced features, we are looking at Options trading, margin trading, and futures trading.

♦ Social or Copy Trading

Another great feature you can offer when you make your own stock trading app is social i.e. copy trading. This option lets users follow or copy the trades of experienced investors.

♦ Watchlists

Not buying the stocks yet but want to observe them? Well, your users will have that luxury via customizable watchlists for users to track specific stocks or ETFs.

♦ Secure Payments & Fund Transfers

integration with secure payment gateways for deposits and withdrawals, with support for multiple currencies.

♦ Customer Support

Lastly, we have one of the most important features, customer support. You can deliver it via in-app chat, email, phone support, or chatbot integration.

These are the top features you should include when making a trading app. With that out of the way, let’s talk about cost and timeline.

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Cost and Timeline of Stock Trading App Development

So, what’s the cost to build stock trading app?

The average cost to develop a stock trading app ranges between $25,000 to $150,000. It is based on factors involved in the development.

Here’s a breakdown of the development cost of a fintech app:

Development Phase Cost Range (USD) Description
1. Market Research & Planning $3,000 – $10,000 Initial market analysis, competitor review, and feature definition.
2. UI/UX Design $5,000 – $20,000 Designing wireframes, prototyping, user experience, and interface design.
3. Frontend Development $10,000 – $50,000 Building the app interface and user interaction elements for Android, iOS, and web platforms.
4. Backend Development $15,000 – $60,000 Server-side logic, databases, API integration, and security features.
5. API Integration (Real-Time Data) $5,000 – $15,000 Integrating stock market data feeds, payment gateways, and external services.
6. Testing & Quality Assurance $3,000 – $10,000 Testing functionality, performance, and security for both front and backend.
7. Security Features $2,000 – $10,000 Implementing security protocols like encryption, 2FA, and fraud detection systems.
8. Deployment & Launch $2,000 – $5,000 Publishing the app on Google Play and App Store, setting up cloud hosting and monitoring tools.
9. Post-Launch Support $5,000 – $10,000 Ongoing maintenance, updates, and user support after launch.

Another important thing apart from the development cost of a trading app is, the time required to make a stock trading app.

The development timeline for a stock trading app is usually between 6 and 10 months.

Here’s a breakdown.

Development Phase Time Range (Months) Description
1. Market Research & Planning 1 – 2 Months Gathering market insights and defining core features.
2. UI/UX Design 1 – 2 Months Creating the app’s design and user interface flow.
3. Frontend Development 2 – 3 Months Developing the user interface for mobile and web platforms.
4. Backend Development 3 – 4 Months Setting up server infrastructure, databases, and API logic.
5. API Integration 1 – 2 Months Integrating third-party services for real-time data and payment systems.
6. Testing & Quality Assurance 1 – 1.5 Months test the app for bugs, performance, and security issues.
7. Deployment & Launch 0.5 – 1 Month Final launch, including app store approvals and hosting setup.
8. Post-Launch Support Ongoing Continuous updates, bug fixes, and feature improvements.

 Both the development time and development cost of a trading app are two very important things to consider.

In this blog section, we will discuss both of them in detail. With that out of the way, it’s time to talk about how to choose right app solution partner.

Why Choose Us to Make a Stock Trading App?

Are you looking for a development partner who can help you make a stock trading app?

Nimble AppGenie is here to help you. We are a market leading fintech app development company who have experience of delivering unmatched services to our clients.

This is what makes us the best choice for your needs.

If you have any idea of how you want to make a stock trading app, we can turn it into reality.

Reach out to us right now.

Conclusion

Creating a stock trading app in today’s time is a good idea looking at the ever-growing market and size of it. 

In addition to this, the user demand for this platform is amazing. In this blog, we have gone through everything you need to know about the same. 

Following all this information you can create one of the best platforms and conquer the market. With that, we conclude the blog.

FAQs

Creating a stock trading app involves market research, regulatory compliance, UI/UX design, frontend and backend development, API integrations, security features, testing, and ongoing maintenance. You must partner with a brokerage and follow financial regulations.

Stock trading apps generate revenue through methods like payment for order flow (PFOF), premium subscriptions, securities lending, commissions on trades, and partnered financial products.

Yes, AI-driven tools are used for algorithmic trading, market prediction, and automated portfolio management. Many stock trading apps integrate AI for insights and data-driven decisions.

Yes, you can create your own trading platform by working with a development team, obtaining necessary licenses (e.g., broker-dealer), and ensuring compliance with financial regulations.

Yes, automated stock trading (algorithmic trading) is legal as long as it complies with regulations set by authorities like the SEC and FINRA in the U.S.

The cost to develop a stock trading app ranges from $25,000 to $150,000, depending on the app’s complexity, features, and development team.

Some of the top stock trading apps in 2024 include Charles Schwab, Fidelity, TD Ameritrade (Thinkorswim), E*TRADE, and Robinhood, each offering unique features for different types of traders.