Stock exchanges have long since moved to online. All the most important transactions are now held sitting in front of computer screens. At the same time, it is surprising that the market of mobile applications for the game on the exchange has not enough many influential representatives so far. What is the reason for this phenomenon – high cost to make a stock trading app or inexpediency of the project – let’s try to understand in this article.
Building a Free Stock Trading App Like Robinhood
The top representative of the class of applications for stock trading is Robinhood. This application allows the user to trade directly from his/her smartphone, provides reliable and up-to-date market data on the stock exchange, notifies the user about the close completion of the transaction or changing its status, etc. All that is needed to start trading is to create your account and deposit. In other words, this application transfers all the functionality of the brokerage office to the mobile platform. At the same time, it doesn’t even charge users with the commission for conducting operations, withdrawing or adding money to the account. It would seem that everything is envisaged in it, and there is nothing more to think up, but do not be in a hurry to despair of desire to create a free stock trading app like Robinhood.
Despite all its advantages, it has a significant drawback: there is not enough competition in the market of solutions similar to that, that’s why the application does not seek to improve or innovate. The main advantage of the application is its simplicity, but at the same time, it imposes limitations. It is designed for ordinary traders, while professionals may be dissatisfied with its capabilities.
Some apps like Robinhood try to find their place in the market offering some special services. But in general, Robinhood is the leader in the field of applications for stock exchanges, which is waiting for a worthy competitor.
Three Things to Consider While Building a Robinhood Clone
User-friendly UI design
It is known that stock exchanges trading is not an easy task, requiring preparation and understanding of many things. In addition, traders need to constantly seek information about all the slight changes, monitor market info and make decisions based on their observations. It is important not to complicate this task for them. If your application provides information from stock exchanges, give it in an understandable form.
UX that prevents mistakes
These kinds of applications bear great responsibility since they deal with money and investments. As for the mobile interface, there may be mistakes due to negligence, for example, accidental taps, or other actions that could potentially lead to a loss of cash. Therefore, one of the features of Robinhood free stock trading apps is their protection against accidental undesirable actions. Everything should be exact: by clicking on the button the user knows exactly what will happen, and it would be even better if they also would be asked again whether they sure to do that. It will be better for your business too, because you may be obliged to reimburse these funds.
Testing, Testing, Testing
Also, due to the fact that any Robinhood clone involves integration with a large number of external services, which can lead to errors in the application, it needs to be thoroughly tested. Moreover, for the loss of clients of the funds, it is necessary to test the cases of failures that can occur due to the fault of these external services too. In general, it is difficult to imagine an application that would need more comprehensive testing than this. To develop an app like Robinhood, integration and system testing are a must.
The Diversity of Stock Trading App Features
Applications for the stock exchange trading should have lots of functions, as you will see in the following list:
• Authorization, profile features;
• Deposit and withdrawal of funds;
• Different payment gateways (mind that each of them should be integrated separately);
• The list of available trades (best if there is an ability to filter them and see more information concerning the trade terms);
• Buy/sell trades (this is not a required feature, but it is also possible to include it into your app, for example, into its extended version);
• Synchronization, time tracking planner (this is quite an important feature, though it looks somewhat simple. The time at the moment of conversion plays an important role in concluding and completing the transaction, therefore it is important that all actions take place without delay and synchronously);
• Push notifications and messaging (for the user to be instantly notified about important issues);
• Statistics, market analytics;
• Stock market utility integration;
• Different contract types (this is also an optional feature, but still, it makes sense to provide more trading possibilities to customers);
• History of holdings;
• Personal page (balance, settings, credentials);
• Security and encryption (very important feature; in the case of stock trading apps, security is nothing else except a feature. Without security and encryption, the app is meaningless, as no one will entrust money to an unreliable software);
• Novice tutorials (to avoid the initial embarrassment caused by the complexity of the stock trading itself and to attract more customers making them a ground to stay);
• Customer support (for the resolution of possible disputable situations, if any).
However, the main function of such an application is… to earn money. Not only for the user but for the creator of the application too.
How Robinhood Makes Money?
The application is completely free, no commission is charged for its use. Then the question arises: how Robinhood makes money? In the case of Robinhood, there are two applications: conventional one and an app with advanced capabilities. The latter provides an opportunity to participate in a greater range of trades. The expanded version is paid, it is necessary to pay membership fees for the use of it.
As a rule, there are three ways to make money on Robinhood alternative applications: a freemium, a paid version, and a commission. Often applications use freemium which allows you to unlock a wider range of possibilities, but nothing prevents you from coming up with your own way to monetize the application.
The Cost to Develop an App Like Robinhood
As for the pricing of the development of such an application, it depends on many factors. For example:
• Do you want to make an application for Android, or for iOS (or both)?
• What list of features did you choose?
• Do you want to develop a prototype first?
• In which country do you want to hire developers?
• What kind of cooperation do you like?
• How much payment systems and stock exchanges do you want to integrate?
In order to give an exhaustive answer about the pricing, it is necessary to answer these questions. However, according to our calculations, the development of a Robinhood alternative will cost you not less than $25 000.
Summary: How to Make an App Like Robinhood?
Stock exchanges are difficult to master, but the development of an application for making trades is much easier if conducted by the professionals. It is essential that the team working on such an app should consist of specialists from different areas of knowledge and have a corresponding experience. In this article, we tried to find it out how to make an app like Robinhood, and we guess, we have answered to this question. We sincerely hope that reading this material inspired you with confidence in your plans.