How Much Does It Cost to Build Stock Trading Apps like Robinhood?

How Much Does It Cost to Build Stock Trading Apps like Robinhood?

3660 Views | 7 min | November 25, 2019
apps like Robinhood

The use of mobile apps is growing in almost all sectors of the economy. And, the stock market is no exception. Gone are the days when investors had to remain dependent on stockbrokers to invest in financial markets. In those times, stock trading was considered the privilege of a few who could comprehend what the finance world was all about.

With the entry of stock trading apps like Robinhood, users can now buy and sell their securities with just a single tap on their mobile screens. This has resulted in what Robinhood terms as the democratization of the stock markets.

Robinhood app is an investment platform that lets its users buy and sell stocks, Exchange Traded Funds, options, and cryptocurrency, all at a zero-commission fee. Founded in the year 2013, in a very short span Robinhood successfully raised a total of $ 912 Million in over 8 funding rounds.

By giving the option of low-cost service and mobility in stock trading, the Robinhood app has ensured its exponential rise among its users. This is the reason why it has become a popular online trading platform among young traders, diving into stock trading on the go.

If you also want to enter the online stock trading market and build a stock trading app like Robinhood, you first need to have the knowledge about what is the need to build such apps, what are the features of a successful stock trading app and how much will be the cost of development of such an application.

Here is all you should be aware of before you start building your own stock trading app like Robinhood.

Why Is It a Good Idea to Build a Stock Trading App Like Robinhood?

Currently valued at $7.6 billion, Robinhood has a huge user base of over 6 million. Giving its users the ease of mobile trading, the Robinhood app is progressing fast on its mission of democratizing the world of finance for all.

If you also plan to build a stock trading app like Robinhood, you must have a solid understanding of the stock trading app market and the major players that are ruling it as of now.  

To find the same, let us analyze how well Robinhood and its other competitors are performing in the market and with it we will also find an answer to why is it a good idea to build another stock trading application like Robinhood.

  • Robinhood App– As per Crunchbase, the Robinhood app registers over 510,307 app downloads in a month. With the estimated annual revenue of $ 90 million, the Robinhood app is the leader in the online stock trading segment.
  • Freetrade App– Launched in 2016, Freetrade is also a no-fee stock trading mobile application, which allows its users to trade in stocks and at the same time also take advice from professional experts. Freetrade app has been recognized as Best Share Trading Platform at the British Bank Awards 2019. It received a total funding of £20.6M in over 7 rounds of fundings. It is estimated that Freetrade earns over $2 million annually.
  • eToro– Founded in 2007, eToro gives its users an online social and investment platform for trade in currencies, commodities, indices, and stocks. eToro has been successful in raising a total of $222.7M in over 10 funding rounds. With over  217,680 monthly app downloads, eToro’s estimated annual revenue is over $8 million.

An overview of the increasing funding profile of these stock trading apps clearly shows that the utility of such apps is growing day by day. The traction these online stock trading platforms have generated among the users is something that will reach greater heights in the times to come. 

Also for a comparatively younger stock trading app, it is very much possible to dominate the whole online stock trading scene that too in a short time span. Taking a cue from these big players, you can also build your own stock trading app and soon start a profitable venture with endless funding opportunities.

Now that you have learned what are the current market dynamics in the online stock trading segment, let us move ahead and discuss, what are the must-have features in a  Robinhood like stock trading app.

8 Must-Have Features of a Stock Trading App like Robinhood

The key to building a successful app is to integrate amazing features in it that ensures the highest level of user engagement. This becomes even more crucial in the case of stock trading apps. This is because if users experience difficulty in using a stock trading app, they will leave it in no time. Stock trading is already a serious affair, users cannot waste their precious time in trying to understand the app itself. 

The basic premise of building stock trading apps is to encourage more and more people for stock market investments. To ensure this, there is no way better than integrating user-friendly features in such apps.

Here is the list of must-have features you should be aware of before proceeding to build a stock trading app like Robinhood:

 

stock trading apps

1. Dashboard

Dashboard feature in the Robinhood app helps its users get a variety of information like order status, watchlist, balance, charts, holdings, etc all in one place. 

When you build your own stock trading app you must ensure that all such crucial information for an investor is displayed in a way that users do not face information overload.

2. Investment Portfolio

Robinhood app lets its users create an investment portfolio that allows them to invest automatically. This means that users have the option to invest through an automated algorithm besides buying and selling stocks individually.

If you are planning to build an app like Robinhood you can add the filter and sort functionality to this portfolio feature. This will help your app users get what they are looking for without much effort.

3. Collection of Market Data

This feature allows users of stock trading apps to get all the financial market insights in one place. This becomes important as being aware of the market trends help investors in making the most profitable deals.

The Robinhood app gives its users all the market data in real-time. This allows its users to keep a tab on the rise and fall of their investment portfolio. Thus they can make well-informed purchase and selling decisions on the app platform.

When building your stock trading app you will have to ensure that this data on market insight is structured and organized. This will make it easier even for beginners to understand the technicalities of the financial markets.            

4. Stock Trading Functionality

This is the most basic feature in a stock trading app like Robinhood. This is the feature with which users interact the most in such apps. It is the reason behind making user’s stock holding, buying and selling experience hasslefree.

Unlike the other stock trading applications, the Robinhood app allows its users to trade in stocks, shares, options, cryptocurrencies, etc at zero commission fee. In the paid version of the Robinhood app ‘Robinhood Gold’, users are charged in order to increase trading hours and purchasing capacity.

When you build your own stock trading app, you can remove the prior deposit condition for using the application. This way you can attract those people who do not have much experience in stock trading. And for those users who are well versed in the stock market dynamics, you can offer deals with high-risk exposure. You can charge a commission on such deals once the transaction amount exceeds a certain threshold.

5. Smart Notifications

Notifications features help users get updates on how their stocks are performing. It can help in providing timely updates on upcoming investment events. This helps the application to keep in touch with users and make them open it again and again.

When you build your own app, you can also integrate this smart notifications feature. This way you can remind users about the latest investment opportunity or a share fall. However, you should give your users the option to time their notifications and choose what they should be notified of. This way you can avoid making these notifications bothersome for app users.

6. Watchlist

This feature in the Robinhood app lets its users track how a particular stock is performing and then buy or sell that stock. Users can add a stock in which they are interested in their watchlist. This way users can get the latest trading price of that stock without the need to search for that stock every time they open the app.

7. Fund Transfer

This is one of the most important features of a stock trading app like Robinhood. This feature allows users to transfer funds from their bank accounts to the Robinhood application. Users have been given the option to go for either one-time transfer or periodic transfers. Users can then use these funds in trading stocks on the Robinhood platform.

This functionality is the one where you should focus more when building a stock trading app. This is because only a secure and seamless fund transfer platform can ensure users in carrying out financial transactions in real-time.

8. Data Protection

Robinhood app has integrated a well-established security system that encrypts all the sensitive user data. This high-level security and encryption allows users to control their personal information.

If you also plan to build such a stock trading app, you should also focus on the encryption of user’s personal data like bank data, balance, transaction details, etc. This will ensure users have a long-lasting association with your app. This is because people are obviously interested in making money but not at the risk of losing their confidential information.

Besides these, there are certain additional features which you can consider integrating into your stock trading app like Robinhood. These include financial news feed, cash management, paid features like a tax protection plan, etc. The addition of these features can further enhance the user trading experience on your application.

Now that we have enumerated the features to include in a stock trading app like Robinhood, let us learn what tech stack is utilized in the development of such apps.

Robinhood like apps

Robinhood App Tech Stack: A Bouquet of Robust Technologies

Stock trading apps like Robinhood are not just about the financial newsfeed and carrying out stock trading. These apps are a combination of robust technologies.

If you are planning to build an app like Robinhood, you must get an idea of technological tools that are employed in the development process of such apps. Integration of best in class technologies will ensure that your stock trading app gives its users a seamless trading experience.

Let us have a look at Robinhood App technology stack:

Robinhood Tech Stack

To build a profitable venture based on a stock trading app, we recommend you should build a minimum viable product first. Based on our experience in developing successful apps in various categories, we can tell you that the most strategic approach is to first build an MVP and then adding other features as your app gains ground among users. It will be the best way to go about a stock trading app, considering the cost implications and growth prospects.

Now that you have understood what all goes into building a stock trading app like Robinhood, let us discuss how much does it cost to build an app like Robinhood.

How Much Does It Cost to Build Stock Trading Apps like Robinhood?

Well! It is not an easy task to give an exact figure for the cost of the development of a stock trading app like Robinhood. This is because the cost can vary as per the needs and requirements of a client.

Usually, the cost is calculated based on hours required for the app development process. Also, this per hour development cost varies based upon the country in which you are undertaking the app development. So, to give you a rough estimate of the total cost to build a stock trading app like Robinhood, we can say it comes out to be around $ 30,000-$40,000.

So, are you ready to bring your own stock trading app to the market? Let’s start together. We have tried making our write up as comprehensive as it can be to help you have a clear picture of how much will be the cost of development of a stock trading app like Robinhood.

If you still have some doubts, feel free to contact us. Share exactly what are your requirements for building the app. Our team of experts will give you the exact pricing.

Build app like Robinhood

 

Rate this article!

Bad Article
Strange Article
Boring Article
Good Article
Love Article

(1 ratings, average: 5.00 out of 5)

Tags: , , , , , ,