NOVEMBER 13, 2022
9 min read
Many people who are seeking a way of generating money are interested in creating a trading platform. Traders all around the world turn to software companies to build a trading platform that can efficiently and quickly examine data on currency pairings.
The impact of banks on today’s youth is dwindling with each passing year. Nowadays, it is unusual to find a Millennial or a Gen Z standing in front of a bank, ready to deposit money. Individuals are instead more inclined to put the money into major corporate and startup shares. Nonetheless,the bulk of them encourage the use and will to build a crypto trading platform.
What Is a Trading Platform?
Trading is often considered to include the purchase and sale of stocks, contracts, cryptos, and currencies. You can buy Samsung or BMW shares using only your smartphone.
A trading app serves as a go-between for ordinary traders and the equity markets. Simply put, a stock trading app provides a simple platform for buying and selling stocks. Members download an app to track the market in real time and invest in stocks over the long and short term.
Keep in mind that money is a significant subject of safety, and in order to create a cryptocurrency trading platform, you must get a license in each country where you intend to represent yourself.
How Trading Platforms Make Money?
A proper monetization plan comes first, followed by implementation. Before deciding how to develop a trading platform, consider how you will generate money using it and what your strategic planning will be. There are several monetization alternatives, and we will go through the most common and successful ones in this article:
- Interest. Consider the story of Robinhood as an example. The app generates interest on uninvested assets in a user’s account and has been roundly denounced as a consequence. Yes, consumers must pay an extra fee for it, similar to how a bank earns interest on cash deposits based on the amount deposited.
- Premium membership. That is exactly how applications like Robinhood generate money: by providing their customers with a premium account. If you have $2,000 or more in your account, you will have access to more stocks, bonuses, and longer trading hours.
- Fee per operation. Some applications charge a modest fee for each activity made with your account on the trading app; this is also an option.
The Fundamental Prerequisites for Trading Platforms
The perfect solution is one that completely addresses technical specifications. The following are the most important non-functional needs for online trading platform development:
- Scalability—the system’s capacity to handle a rising number of inquiries and workloads.
- Outstanding performance and parallel processing.
- Security and protection—how the app reacts to unexpected breakdowns or assaults and secures against unwanted access.
- Compatibility—the capacity of a system to interact with certain other platforms.
- Dependability—how it handles faults and operates despite them.
Automated trading platforms necessitate high levels of quality and attention to detail. Strong non-functional objectives aid in determining how effectively the system must work. They serve as regulating criteria for developers in order to establish and describe the software product’s quality.
What Functionalities Should a Trading Platform Have?
There are some critical functional prerequisites to make a cryptocurrency trading platform. They include an efficient payment support service, safe cloud hosting services, powerful data analysis instruments, risk management, correct quotations, and the essential varieties of charts.
Nonetheless, every development process begins with a phase of discovery. The development team does investigations, evaluates rivals, examines the target market, and eventually brainstorms the core functionality that a trading app should provide.
The discovery step is incredibly beneficial, particularly when there are several unknown factors. However, there is a consistent list of indispensable components when beginning to create an online trading platform for cryptocurrency.
Simple Registration Stage
The registration process should be seamless since it is the first step of user engagement on the trading platform (after the landing page). If a person has any serious troubles with this one, they are gone for good. You certainly do not want that!
To prevent such a disaster, we propose designing the page to ensure that it takes the user no more than 5 minutes for users to complete.
Give the User a Sense of Security.
At this point, you must verify that the user is aware of all personal privacy and financial details. Simply put, the user should be able to exit the registration step knowing that their data is secure.
In order to increase security, trading platforms may require users to sign in using social networks or phone numbers.
Implement the Onboarding
Allow the user to feel at ease. Onboarding is a fantastic approach to doing this! Onboarding is a tool that can assist users in understanding how the app works. Onboarding can involve the following:
- Interactive features.
- Educational clips or lectures.
- Short presentation telling more about the app.
By onboarding the client, you protect them from dissatisfaction due to a lack of a certain function. You also prevent your business from missing new users.
A trading dashboard is a collection of trading instruments. The user should see the following on their dashboard:
- Current balance.
- Owned stocks.
- Held stock price.
Furthermore, the dashboard should include real-time graphs and market research data to assist users in making better trades.
The ability to trade stocks or currencies is a critical component of the platform. This capability should contain the following:
- Real-time updates to graphics using trading information.
- Company reviews.
- Other factors that assist consumers in making trading selections.
Payment capabilities should always be available on a trading platform. We propose incorporating licensed payment gateway suppliers for secured transactions and customer data to execute safe payments on your application.
Analytics for Users
If you want to build an online cryptocurrency trading platform, you should know how to encourage your clients to invest more and make larger deals. Trading platforms have a tab with personalized user progress to motivate users. Some platforms even create reports automatically once per week or month.
High-level Safety and Security
Any type of software requires protection. However, when it relates to trading platforms, the matter becomes much more critical.
Here is a list of tools that can assist you in delivering the required levels of safety in your trading app:
- Authorization with many factors.
- Internal transaction encryption from beginning to conclusion.
- Real-time reminders and notifications in the instance of abnormal app behavior.
- Documentation is securely digitized, with a specific encryption code for each user.
- Reliable KYC (a multi-step procedure of verifying users’ identities).
- Employee and supplier confidentiality agreements signed.
- Data loss protection.
- AI-based fraud detection
HINT: find out who your target audience is, what their interests are, and how to keep them engaged to determine which features will be popular with your app users.
How Much Does It Cost to Develop a Trading Platform?
The cost to build a trading platform is determined by the amount of effort involved. If you opt to construct the software from the bottom up, it will cost you between $100K and $150K, assuming a $50 per hour pay rate. The discovery stage, UX/UI design, the full development phase, quality control, and team communication are all included in this pricing.
The cost of a product is directly proportional to the time taken between setting up the environment and releasing the product. Depending on the project’s complexity, the total duration for all of the stages might range from 2000 hours to 5000–6000 hours.
How to Create a Trading Platform in 5 Easy Steps
If you want to build a stock trading platform from the ground up and work with confidential material like user data, social security numbers, and payment card details, you must first address the legal aspect. The specific guidelines you may require depend on the country where your business operates. Trading platform providers in Europe assess whether their solutions match the regulatory criteria of the General Data Protection Regulation (GDPR).
2# Extensive Market Research
If you want to create an NFT trading platform or a simple trading marketplace application, you must follow a certain development approach. The following are the critical stages that you must constantly consider.
Begin with a discovery phase option if the project concept is hazy and requires a detailed evaluation of the intended audience and industry trends. A discovery will assure the usability of your product for end customers, evaluate prospective costs and time, and revise and record objectives. The process’s result will be the compiled Project Scope Document, which will include:
- Requirements for business. The team examines your company’s needs, history, and dangers.
- Non-functional and functional needs The team develops the solution’s functional decomposition in order to cover important business operations as efficiently as possible.
- Technical insight. The section that discusses the architecture, technological stack, organization models, and technical hazards of the product.
- Wireframes. UX design sketches.
3# Selecting a Platform and Deciding on Tech Stack
The next phase is choosing if your trading market will be a digital app of your current stock market webpage or a full-fledged app. A website’s mobile version adapts to multiple devices. There is no reason to build a stock trading app for multiple devices and operating systems in this circumstance. The mobile app can include functionality that the website cannot completely implement.
The next step is to select a platform: Android, iOS, or even both. After that you should think about your team of pros developers and a programming language.
A company of professional developers is required to createa crypto trading platform. More particularly, the developers you choose should be proficient in a broad range of technological instruments. There will be a wide selection of languages for each project. The following is a rough list of coding languages for creating a trading app.
4# Developing Process
This stage consists of the following elements:
- Backend Development
- Plan to protect your application by using cutting-edge approaches and solutions such as multi-factor login, bank-grade encryption, cutting-edge firewalls, and so on.
- Creating APIs to implement basic functionality
- Signing up for third-party APIs to provide non-core functionality like access to specialized markets such as equities, currencies, or stock markets.
- Frontend Development
- The design of a platform and a web interface Prototyping throughout the app’s development lifecycle is a quick technique to create the initial design concepts. It should lead to a shared vision with the consumer about how the app should feel and how many versions should be made. Following that, UI/UX designers may create the app’s design by adding the best interactions, motions, and aesthetics to make the app seem seamless in use and have an understandable UI.
5# QA and QC testing
Testing is the procedure of identifying flaws in a software program, which is very important in fintech. Companies that specialize in fintech software development and the creation of financial technologies cannot afford flaws in the product because they risk losing money. The more defects quality assurance experts discover, the more likely the finished product will function properly. The structure of the testing process is determined by the trading platform development firm or the client’s needs and may include:
- Functional testing: providing input and assessing the outcome.
- Performance testing: the process of determining the system’s efficiency, extensibility, and safety.
The trading business and NFT development is attracting an increasing number of people, including those who are not financial specialists. As a result, there is a huge increase in demand for user-friendly and flexible trading platforms, and developing such applications is a brilliant business concept.
If you’re seeking professional developers to assist you in trading platform software development, check out DashDevs. Our skilled developer teams have created a variety of trading platforms and digitalized cryptocurrency trading applications that are currently available on the market!
Get updates from experts in the field