Why and How to Create an Online Stock Trading App for Mobile Users in 2022?

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9 min read

Statistically, there are over 15b mobile phones operating all around the world. This number is predicted to grow to over 18b by 2025. Really, it seems like everything can be done on your smartphone today — you can pay your bills, order groceries, purchase tickets for your next holiday, and even trade stocks! And you know what — there are even more stock trading apps users than you might think!

For example, Robinhood — one of the top trading apps today — had over 22m of users and over $565m of net revenue in 2021. The second-placed WeBull had approximately a half of that number. Totally, there were about 150m of stock trading apps users this year. These are huge numbers that prove the demand and the profitability of this industry. Will the statistics continue to grow? Highly probable.

Financial experts claim 2022 is going to be a really promising year for investments and stock trading. That’s why you, as a business owner and an entrepreneur should definitely keep your eye on all the tendencies, changes, and expectations in terms of stock trading app development. DashDevs have gathered the most relevant information on possible benefits, pitfalls, prices, and features for you to consider in the coming year. Let’s get it started!

Stock Trading App: Is Its Development Worth Your Resources?

The biggest surge in its popularity stock trading app industry saw in 2020 when the pandemic began. It was the time when millions of people got stuck at home and had to think how they can make a profit online. That’s when zero-commission stock trading apps came in handy. Since then, the users’ interest has only been growing as the benefits they get are numerous.

Benefits of Using an Investment App to Trade Stocks

DashDevs have singled out a few reasons why investors go for stock trade apps instead of choosing traditional brick-and-mortar brokerage firms.

  • No commission. This is, probably, one of the most prominent advantages of online trading. Previously, investors had only one choice — to pay stockbrokers (whose services were usually quite expensive). Now they can put money in the stock market with no commission at all.
  • Convenience. Don’t you agree that time often plays the most significant role when trading stocks? Using an app, you don’t have to make appointments just to initiate a trade. You can do it yourself almost immediately.
  • No brokerage bias. You’re in total control of your investments. The thing is, brokers aren’t always that conscientious — they might advise you something they, but not you, will benefit from.

Disadvantages of Using an Investment App to Trade Stocks

Still, online trading isn’t almighty. There are certain limitations you’d better be aware of when considering stock trading app development.

  • No assistance. Yes, on the one hand, you’re your own master and can be in total control of all the trades. On the other hand, all the investments you make are your full responsibility. This requires lots of research, time, and effort, especially if you’re inexperienced in trading.
  • High speed. Similarly, this is a great advantage to be able to buy stocks fast and easily. However, it may result in overinvesting and making bad financial decisions if you don’t give yourself time to think it all thoroughly.
  • Dependence on the internet. Not all depends on you. Things can unexpectedly go not according to the plan you had when the internet connection appears to be too slow, or you get disconnected at all. This may result in potential money loss.

What Is The Best Stock Trading App?

To develop your own product, you need to know the competition. Look at the list of the most popular stock trading apps by DashDevs. Let’s find out why they’re so successful!

1. Wealthfront

This is truly one of the best stock trading apps and platforms known today. It’s perfect not only for investing, but for banking, goal-setting, and planning as well. Its management fee is just 0.25%. There’s no trading commission or fees for withdrawals or transfers. Moreover, it’s extremely easy to use and there’s almost no typing.

Users choose it not only as an investing app. Wealthfront have developed a great interactive Financial Health Guide aimed to answer customers’ personalised questions. Besides, clients have an opportunity to link all of their financial accounts to Wealthfront which is very convenient.

2. Ameritrade

Ameritrade is usually a top pick for the safest stock trading app on the market today. What are its other advantages? First, it’s great for beginners as it’s extremely user-friendly and provides industry-leading education and research. Clients can learn to invest with live webcasts, news, and analysis on practically any related subject.

Second, there’s a number of features users love. For instance, an Ameritrade’s simulator, also known as paperMoney. It’s free for customers and lets them practice their investing strategies. On top of that, you don’t need a minimum deposit to use Ameritrade. There’s also no management commission. However, they still charge $6.95 for trading penny stocks.

3. Charles Schwab

Charles Schwab started as a traditional discount brokerage in 1971. Now it provides investing and banking services to clients both in America and all around the world. The company claims that your satisfaction is guaranteed, and your security is their priority. And it seems like they are keeping promises as they’re currently assisting over 33m accounts. What are its other benefits?

First, really low prices. You can literally use the majority of services for absolutely free. Second, Schwab can aid you with financial planning. Third, there are robo-advisors that help build and manage your portfolio. Sounds great, don’t you think so?

4. Fidelity

Similarly to already stated mobile stock trading apps, Fidelity is among the best ones due to the numerous benefits clients receive. For instance, you get professional investment management with low-cost robo-advisor solutions. There are also useful tools that help to get prepared for retirement. But what are its advantages over the competitors?

Let’s start with the price. Fidelity offers the lowest published margin rates (just 4%) and zero expense ratio index funds. They also provide analysis services to help your trading strategy. There are lots of other helpful tools like a Fidelity Estate Planner — a guide through the estate planning process that helps you identify an attorney.

5. SoFi Active Invest

SoFi believes that their main strength is that you do it all yourself, but not alone. There’s a big community of like-minded investors and integrated learning resources. The app allows you to fast and easily become a smarter investor as you’re learning by doing and pay no commission fees! That’s why the users love it so much!

Moreover, when you create an account on SoFi and start investing, you get access to rate discounts on other SoFi products. There are lots of brands you surely know and can consider as the most suitable assets. In short, no one will be left indifferent to such a user-friendly app with endless financial opportunities.

What Features a Good Stock Trading App Should Possess?

To make sure potential investors will choose you over other competitors in the trading industry, your app has to have unique features and technologies, be user-friendly and modern. Deep market research and a marketing strategy are required for that. But let’s start with the basics. To make it a bit easier for you, DashDevs have singled out the features a good stock trading app should possess.

1. Authenticated login. If the registration process is time-consuming and difficult, users will just keep away from your app. Implement a few different ways of check-in, including biometrics and social networking sites.

2. A user page. Its owner should be able to edit and update it.

3. Transaction management. With its help, order executions (like deposits and withdrawals of currencies) can be securely recorded and monitored.

4. Placing trades on stocks or mutual funds. This is probably one of the most important features so place a high emphasis on it. Users should be able to view and edit the data they need.

5. Stock hunting. When users can search for available stocks and trending stock market rates, they make a better profit. Consequently, the app rating grows.

6. Market trends. The feature allows an app to collect the statistics of users’ trades and transactions. It’s then analysed and can serve as a background for further financial decisions, investments, etc.

7. Watch lists. They’re necessary when monitoring stocks and planning further investments. Your app will be useless if users don’t have a feature to identify trading opportunities.

8. Notifications. Stock trading app users typically want to stay informed of all the changes and updates on the market. And that’s how your business can stay in touch with its customers.

No doubt, these are just the basic features to consider. A good stock trading app is much more complex and so a big team of various experts is required for its development. And as DashDevs have a big expertise in custom app development, let’s have a look at what algorithms we apply to accomplish such a task.

How to Build a Stock Trading App?

DashDevs really know the ins and outs of the whole application development process as we’ve managed to successfully accomplish over 500 projects by now. Moreover, we developed a top UK fintech app in just one year. So let us tell you a bit of what should be expected when creating a stock trading app is your plan.

1. Requirement gathering. Simply put, you need to clearly understand what exactly you need so that the idea of the final product can be validated by the specialists. Once you and the development team are on the same page, a development roadmap can be created.

2. Designing. At this stage, UX/UI designers work on how your app will look. Typically, there are lots of charts, tables, and other visual graphics that users require. That’s why user-friendliness is what crucial here.

3. Development. You’ll need a team of iOS/ Android developers as well as back-end developers at this phase. They choose the most suitable programming language and tools and start working on your app. By the way, DashDevs implement Agile methodologies during all phases of SDLC which allows being flexible and react to any requirement changes fast.

4. Testing and deployment. Quality assurance engineers thoroughly test the product so that the errors can be detected and fixed. After that, it’s deployed to a production environment.

5. Maintenance. Once the app is placed in stores, the team supports it, repairs any bugs, and update it if required.

This is an approximate model of how the process looks. Of course, there are millions of nuances to keep in mind. But that’s what a software development company, not you, should worry about. But you, as a business owner, are probably wondering how much it’s going to cost. DashDevs have it covered for you as we’re aware of top techniques for a project cost estimation.

How Much Does It Cost to Develop a Stock Trading App?

The cost of a new stock trading app depends on lots of factors like a set of its features, complexity, operating system, cloud services, the time for development, and many more. What’s certain is that developing a finance app is a pretty complicated process of making it as simple and user-friendly as possible. Consequently, it’ll require resources but will make you stand out among the competitors.

But let’s get down to the figures and estimates. On average, creating a mobile stock trading app takes about 6–12 months. The average hourly rate of $20-100. After doing little math, we see that the final cost can be $25k — $300k. Yes, it varies and as we said — depends on lots of factors. However, if talking about average numbers, the total cost of developing a stock trading mobile application is usually $25k — $55k.

How Can DashDevs Help You With Developing the Best Stock Trading App?

DashDevs have helped hundreds of businesses to find a digital solution to their business needs. We’ve developed products that are now considered the best in the fintech world. So if you have an idea of creating a stock trading app and need assistance, guidance, or just a piece of advice — you’re always welcome to contact DashDevs. Our experts will answers any of your questions and shed the light on topics that now may seem absolutely vague for you.

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