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What Is An Online Trading Platform?
If you are well involved in the stock market and trading world, then you probably know what an online trading platform is. But if you don’t, then let us tell you.
Online trading platforms are websites and application offered by Internet-based brokers and trading companies. With these platforms, you can trade financial assets via an electronic communication network. Stocks, currencies, bonds, futures and options, everything can be traded online.
One of the biggest advantages of the online trading platform is that you can execute your trade and transactions anytime anywhere.
If you are reading this then you probably already know all about the recent popularity of stock trading apps. You are also aware of the presence of apps like E*Trade and Robinhood.
But you want to know how to create a trading software of your own. So how are you going to do it?
An online trading app is useful for both the user and the brokers. The user can check the market stats any time they want from their phone. Such a platform makes them feel as though they have control over their finances and offers them transparency.
For brokers, the main benefit is the expansion of investors. By knowing how to build a trading system with online trading apps, they can easily attract the younger, tech-savvy crowd to the world of stock markets.
However. Before you start with the process of trading software development, you need to clear up the legalities.
How to Start a Trading Platform – Legal Aspects You Should First Know About
Before you start wondering about how to create a trading software, there are some legal aspects you need to know about.
If you already have a successful and established brokerage business, then great. But if you are just starting up with trading software development, you need to check out the legalities of it all.
- -In America, all your actions regarding the online trading app would be monitored by SEC (Security and Exchange Commission). In different countries, you’d have different regulatory organizations that will monitor your actions as a stockbroker.
- You need to get a license for every country you want your app to operate in. It is also good for the credibility for your platform to be a member of investor protection programs and regulatory organizations such as SIPC (Securities Investor Protection Corporation) and FINRA (Financial Industry Regulatory Authority)
In different countries, the cost of getting a license and becoming a part of regulatory organizations are different. But you have to go through a background check in all of them. In some states, you have to even submit your fingerprints. Different states have different requirements, and you need to go over them if you want your platform to operate there.
Features That You Need To Build An Online Trading Platform
Online trading can be a complicated matter, and most of the beginners are afraid of making a mistake and losing money.
Which is why rather than adding a ton of features into it, make it as simple and straightforward as possible. Adding too many features will only confuse the user and they might get discouraged from your trading platform.
Now that we have given you the word of caution, let’s look at few of the must-have features if you are wondering how to make trading software.
Ease Of The Authorization Process
The authorization process is the first thing the user is going to interact with. So you have to make it as simple as possible. You can offer them an alternative login process like login using Facebook or Google.
Even though you have to make it easy, you still can’t compromise on the security part. When thinking about trading software development, you have to be extra careful with the security measures.
Importance Of Profile Page
The user is going to use the profile page to keep a track of all their data and edit it when needed.
It needs to be easy to navigate and edit and also easy to find. All the information needed on this page needs to be relevant to the app and its function.
Simple Dashboard For a Seamless Management
The dashboard is where the user is going to find all the information about their stocks. It is very easy to cram the dashboard full of all kinds of information and charts.
But too much detail is going to overwhelm the novice trader who just started to use your platform. So when planning on how to create trading software, keep it simple. The details on the dashboard should be tailored to the kind of trader using your app.
For a casual once-in-a-while trader, you don’t really need to put in too many information but only the necessary ones.
So you know why simple dashboard is an important aspect when you look for how to build automated trading system. For a more experienced and professional trader, you can add more information on the dash as they already have an idea and are not going to be too overwhelmed by it.
Updatable Portfolio Filters
Adding this feature is going to make it easier for your user to filter and search through the portfolios, and track them in real time. They can also easily monitor their own positions as well.
Trading Functionality That Smoothens the Process
There is no point in thinking about how to create a trading software if it’s not going to have any trading functionality.
This is the central function of your app. The trading functionality is what makes your app and this feature needs to operate as smoothly as possible.
For this, you need to incorporate all the information relevant in making an investment decision, such as real-time data, company profiles and everything else. remember, the trading function is the core objective of your app and it needs to work as seamlessly as possible.
Fund Transfer Safely, Securely
Since your user would be buying and selling trades, it only makes sense to have a fund transfer feature to make the money transfer easier. Be sure to make this feature as simple and secure as possible.
Streaming Real-Time Quotes And Charts
Since stock trading is a rapid process, the traders need to make a swift decision. These decisions are based on the newest stock updates.
Streaming quotes and charts onto your app live, you can make it more efficient and easier for your user to make that snap decision.
Any stock related news and information needs to be latest and updated, from reputed sources such as Bloomberg, or CNBC. This feature will help the traders using your app to make informed choices about their investments.
Newsfeed Analysis And Forecast
The stock market is extremely sensitive to both global and local events. Even the shut down of a company can affect the worldwide stock market. So having real-time stock market news on their fingertips is going to help the traders immensely with their investment decisions
When planning on how to create a trading software and what features it should have, make sure to incorporate this feature to the app.
With the newsfeed analysis, you can give your users real-time updates on the market, the stock exchange rates and any other happenings that might affect the market and their investments.
Push Notifications for Instant Pings
The push notification is going to let your users set alerts for important changes in the stock market that might affect their investments. This is a useful feature that you can not skip out on.
- Watchlists
With the watchlist feature, the user can add stocks that they are interested in their watchlist so that they can track it.
- Synchronization
Most traders use more than one device to track and manage their investments. So during trading software development add the synchronization feature to the platform for seamless access to all their information on your trading platform. All these aspects should answer how to start a trading platform. But it’s equally important to understand the tech aspects as well. Let’s explore.
The Technical Aspect You Need to Know When you Build Trading Platform
Now that you know the important features you need to put into your app, it’s time to talk about the technical aspects. But before you delve deeper into the development process, you need to ask yourself two questions:
1. Do You Need A Mobile Supported Website Or A Mobile App?
before asking how to build a trading system, ask whether you should choose a mobile supported website for a mobile app for your online trading platform?
The mobile supported website is optimized to fit all screen types across devices. It is easier and you don’t need the extra resources to optimize it for different platforms since it works on all kinds of browsers.
However, a mobile app is the modern choice for a trading platform. It is easier for the traders to interact with the app. An application can offer more features and functionality than a mobile website.
It is also a flexible option, increasing business for the brokers and profits for the traders, both. So, when you think of how to create a trading software, talk to your development team about this.
2. Choose The Platform Carefully
Initially, it is suggestible that you start small. Research your audience and see what device they use the most, and then figure out how to build a trading platform for that device first.
Once your app is up and going for the device, start on the development for other platforms. It is a good idea to develop your trading apps for both Android and iOS platforms.
What’s Under the Development Hood?
1. Mobile Development
The very first part of the answer to the question of how to create a trading software starts with Mobile Development.
For the first part of the development stage, you need the help of experienced mobile app developers. Developers skilled in programming languages such as swift or java can help you with developing the app from scratch.
2. Backend Development
The backend development is the development of server and database of your app. For this, you need a skilled backend developer, someone who deals extensively with database architecture and software logic.
It is during this phase that all the features such as login, notifications, and transactions are going to be developed.
3. Frontend Development
The frontend development refers to the development of the client side of the app, the interface, the screens and everything the user is going to interact with is included in the frontend development.
How To Design A Trading System – The UI/UX Considerations
The stock market is such a place where one wrong decision can lead to a major failure. With that in mind, the trading mantra for success needs the design to be simple and effective.
Start planning the UI/UX design while planning the app, and formulating ideas and requirements for the app.
Don’t ignore the importance of testing the app. It may be difficult because the stock market is not open 24/7, but companies such as E-trade offer the use of their APIs.
With proper testing, you can make sure that all your app functionality is working properly.
Keep The Safety Top Notch – Without Fail
You need to take proper security measures for an online trading application. Finding the right balance between convenience and security is key to keeping your users happy.
The reason why you need to find the right balance is that the users will be unhappy if the security process is too long or too complicated. So keep it smart and keep it simple.
Some Famous Online Trading Apps And Their Features
With the popularity of online trading apps rising, there are quite a few trading platforms out there who are getting more famous every day. So before you start developing your own trading platform, take a good measure of the competitions in the market.
1. Robinhood
With their fee-free trading, Robinhood was essentially geared to market towards the millennials. They started with their phone app, making it easier to trade on the phone.
Their other features are
- Trading in stocks, options, ETFs, and cryptocurrency (Bitcoin and Ethereum)
- Stock details
- Quarterly earnings reports
- Portfolios
- Money transfers
- Real-time market data and charts
- Update cards
- Alerts
- Market news
- Smartwatch sync (Android)
- Watchlists
With a polished and easy to use an app, Robinhood is one of the major contenders in the online trading apps market.
2. E*trade
The first firm to go online E*trade trading platform is one of the oldest and most popular platforms in the business. Even though their trading fees are quite higher than others, the number of trades offered by E*trade is unmatched by any other online trading platform.
The major features of E*trade are
- Trading in stocks, mutual funds, ETFs, and options
- Touch ID authorization
- Portfolios
- Market news
- Watchlists
- Alerts
- Money transfers
- Live quotes and charts
- In-app chat with customer service
- Learning tools
3. Acorns
Acorns is a robotic trading advisor. its automated system is designed to do everything for the user. With the information you provide, Acorns is going to choose five collections of ETF portfolios. After choosing the one you can set an investment schedule. It can be set to daily, weekly or monthly.
If you pay with the card connected to your Acorns account, the system is automatically going to round up the payment to the next dollar. The difference will go to your Acorns account and it will, later on, get invested.
This is a perfect app for those who are not really that into trading but like to have a little extra cash and savings in their hands.
Major features of the Acorns app include-
- Trading in ETFs only
- Found Money program
- Potential tool
- Automatic roundups
- In-app chat support
4. TD Ameritrade
TD Ameritrade is another major player when it comes to online trading platforms. However, the uniqueness of the TD Ameritrade is that you can choose between the two kinds of app, depending on the kind of trader you are.
if you are a beginner and just starting out as a trader then you can choose the regular TD Ameritrade mobile app. it’s beginner-friendly and provides well enough research data and trading advice.
if you are an experienced trader then you can choose the TD Ameritrade Mobile Trader app. this app provides you with a different variety of charts and indicators.
- Trading in stocks, options, and ETFs
- Portfolios
- Watchlists
- Real-time streaming quotes, market data, and charts
- Learning tools
- Analyst reports
- Market news
- Money transfers
- Customizable dashboard and screens
- Alerts
Some Final Words On How to Create a Trading Software
Now that you know all about Online trading platforms and their development, you must want to know about the cost. And ways to hire a trading platform developer.
Different development companies have a different estimate on the development cost of online trading platform developments. But in general, the cost starts from $40,000 and go up.
The world is changing with the technology and trading world is also changing with it. The online trading platforms may seem a little complicated whether you are a trader or a broker. But they can make your investments even more profitable. So, when you look for trading platform developer, do your research well. Look for their case studies, design skills, and communication platforms before you hire them. Have an automated trading platform idea in mind? Let us know your challenges and we’ll help you out!
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