Stock trading platform development. The steps involved in creating one

Developing a stock trading platform involves integrating many technologies and adhering to regulatory compliance, making it a challenging but rewarding task. 

This article, which is broken up into two pieces, gives readers important information to help readers better understand what it takes to create and run a competitive trading platform:

• Key features (a must-have collection of features that will attract users)
• Aspects of development (the ones to deliver a complete software product)

The main elements, features, technologies, procedures involved in creating a stock trading platform, and pricing are described in detail in the comprehensive guide below.

Stock trading software can be used in two ways to enter the market

There are two best approaches for a FinTech startup to break into the market:

1) Commercial software;

2) Development of custom stock trading applications.

In the quickly changing financial landscape, creating a commercial software as a fintech startup might offer such advantages as expedited time to market and reduced expenses in contrast to custom software development.

While creating off-the-shelf software has its advantages, there are a number of disadvantages for fintech startups. These difficulties arise from the specific needs of the financial industry, regulatory constraints, and competitive factors. The following are the primary disadvantages for a financial startup creating an off-the-shelf solution:

1. Lack of personalization for specific clients

2. Strong competition

3. Inability to handle variations in compliance and regulations

4. Limited performance and scalability

5. Security risks

6. Lack of compatibility with legacy systems

7. Limited control over the roadmap and features

8. Decreased loyalty and client retention

9. Pricing pressure

10. Hard to develop niche solutions

11. Difficulties in establishing credibility and trust

12. A slower rate of adoption of new technologies

13. Limited brand positioning and differentiation

When you choose to enter the market with custom stock trading app development, you face the following core challenges:

• Higher product cost
• Longer time to market
• Absence of a trial product

Meduzzen knows how to deal with all three:

• Meduzzen’s outsourced software development services enable the identification of reasonably priced solutions.
• In five to ten months, Meduzzen’s skilled software development team will offer your trading app that is ready for the market.
• The organization develops a thorough product roadmap to assist FinTech startups.

As the product owner, you choose the best tech stack, develop a design, specify the features and functionality of your trading platform, and more.

Important benefits of this approach include:

• Authority over the process of development
• Intellectual property
• Exceptional, personalized resolution
• Robust security scalability
• Regular updates and support
• Excellent usability
• Increased adaptability
• Focus on the most important aspects
• Compatibility
• Smooth integration

Whatever approach you decide on, be sure your product will hit the market with the features mentioned in the next section.

Features stock trading applications require

Login (authentication)

The login process needs to be simple and speedy. Users also want to be sure that since your application is managing their finances, their data is secured. Enabling multi-factor authentication is a common method for accomplishing this (MFA). Alternatively, you can modify face ID and other biometric security measures.

User profile dashboard

Users can configure settings, including security aspects like turning on or off MFA, and edit their profiles here. Consider it as the application’s main menu.

Filters and the search bar

Allow customers to rapidly find desired stocks by utilizing the search bar and modifying the filters to improve the accuracy of the results. There are a tonne of stocks on the market. Prevent your users from endless guess-scrolling.

Newsfeed

Making decisions in trading requires information. Because the movement of the stock market is influenced by newsfeed information, it must provide the most valuable data.

Analytics

For users to engage in informed trading, they require access to both historical and real-time data. Give them access to figures, data charts, stock indicators, and previous benchmarks. Analytics is a way to conduct primary market research. The newsfeed and a data chart are complementary information items, so think about placing one next to the other.

Watchlist

With a watchlist, users can keep an eye on the most popular stocks, track their performance, and view real-time stock prices. This helps them to find profitable trading opportunities. The ability for users to build their own watchlists is essential, so your app must include the edit option.

Limit order

A limit order helps market makers in purchasing or selling stocks at a particular price point. For instance, if market makers own $100 worth of stock and wish to sell it for $110, they establish their preferred limit. When the specified price is reachable in the market, the order is carried out. The purpose is to ensure that the stock is not sold for less than the specified price. Similarly, market makers have the ability to establish a specific purchase price for a stock.

Favorites

It’s simple yet convenient.  Market makers can use this feature to bookmark their preferred stocks in a specific folder for quick access when necessary.

Push notifications

Receiving all essential news and data in real time is crucial for successful trading as it requires quick action against market movement and asset volatility. Thus, push notifications are essential for users to conveniently stay informed. It is important to keep notifications short as the message length can impact the click rate.

Tips and guidance for users

Provide extensive educational materials to ensure users can access all the necessary information for using your app. Consider creating both a written manual and a video tutorial. Additionally, if it is possible, set up customer support services, whether it be through a chatbot, live chat, email assistance, or online calling.

Scope for developing a stock trading platform

Creating a stock trading platform requires a thorough strategy that covers the front-end and back-end elements, along with the required regulatory adherence, security measures, and infrastructure.

Application Type

A crucial decision to make in the development process is choosing the type of application that best suits your needs.

Currently, there are four options available:

– Mobile

– Desktop

– Web

– Cross-platform

In addition to determining the device platforms, it’s important to consider the operating system. For instance, you need to decide whether your mobile application will be compatible with Android, iOS, or both, or opt for a cross-platform application to target a broader audience across both Android and iOS platforms.

Technical aspects

Considering the technical aspects of your project, you may need to opt for an alternative tech stack for building your application.

The following options are provided by leading software development firms based on your project’s specific attributes:

Frontend:

• Angular
• React.js
• Vue.js
• TypeScript

Backend:

• Rest API
• PHP 8 (Symfony LTS)
• NodeJS (Express, NestJs)
• TypeScript
• Python

Serverless:

• AWS Amplify (AWS Lambda, AppSync, Cognito, S3, CloudWatch, Pinpoint)

Infrastructure:

• Microservice Architecture
• Docker, Amazon Web Services (EC2, AWS Fargate, CloudFormation, CloudWatch, S3, RDS, Elasticache)
• Jenkins
• Groovy
• Ansible
• Terraform
• Redis
• RabbitMQ
• Kafka
• Elasticsearch

Databases:

• MySQL
• PostgreSQL
• DynamoDB
• MongoDB

Automation Testing:

• Unit
• Integration
• Functional testing

Development methodologies

• Scrum
• Kanban
• Waterfall

The development of applications for iOS and Android platforms offers different options:

• iOS
• Swift
• UIKit
• Alamofire
• SnapKit

Stripe payments:

• Cocoa Pods
• MVP, MVVM
• Android
• Java 8
• Kotlin
• AndroidX appcompat
• Coroutines, LiveData, DataBinding

Optimization and performance

Achieving a high-performance application is crucial to attract users. This can be accomplished through application optimization, which focuses on minimizing resource consumption while maintaining functionality. The quality of the code plays a significant role in this aspect. Overcoming this challenge necessitates the recruitment of experienced developers skilled in crafting performance-oriented code.

Interface features

In order to retain user loyalty, your stock trading application’s interface should be easy to use, engaging, and quick to respond. If the screen has enough space, you can show important trading data using charts, analytics, and a watchlist. If the device has a small screen, you should provide quick access to all other menus, allowing users to access the full functionality of your platform with just a tap.

Protecting your users from account breaches in your stock trading application is crucial, especially with the rapid evolution of online fraud and cybercrimes. Adhering to the best practices in data security is essential.

Software development companies often implement the following technical remedies to tackle security challenges:

1. Penetration tests should be conducted on a regular basis 
2. Ensure that compliance is scripted into the continuous integration/continuous delivery (CI/CD) process, and review it regularly
3. Integrate static and dynamic application security testing (SAST/DAST) into the CI/CD pipeline
4. Undertake regular security reviews performed by a human
5. Implement encryption for data at rest (databases, code, backups) and in transit (using HTTPS)
6. Enforce strict network firewall rules (deny all, allow only required ports to specific targets) and utilize a state-of-the-art web application firewall
7. Implement workload security monitoring and consider setting up a security operations center for this purpose
8. Implement network segmentation
9. Require the use of multi-factor authentication (MFA)
10. Implement single sign-on (SSO) if possible
11. Utilize anomaly detection based on application metrics
12. Enable proactive alerting based on logs monitoring

If your project becomes a victim of cyber attacks, there is a significant chance that your product will either cease to operate or malfunction. Consequently, it is reasonable to initiate a project recovery process. With regards to cybersecurity, this process involves conducting a security evaluation and focusing on addressing weaknesses, safeguarding networks, fortifying infrastructure, and enhancing security protocols.

Automation testing

For outsourcing software development providers to deliver flawless trading applications, their QA teams must conduct automation testing to identify bugs, defects, and other issues by comparing expected outcomes with actual results.

Release and marketing

A two-tiered-marketing-campaign approach can be utilized if you have a sufficient marketing budget. The initial campaign should highlight the unique value proposition (UVP), unique selling proposition (USP), and key advantages of your specific platform to generate interest among your target audience before the product release.

If you have limited marketing budgets, it is recommended to start with the second marketing tier. After your stock trading app is ready, you can attract users by offering a complete product and trying omnichannel marketing to determine the most effective marketing channel based on the results.

Similar to the first tier, emphasize a compelling UVP and USP to differentiate your competitive advantages to potential users. If you are using a subscription monetization model, consider providing free trial periods. Employ paid ads and engage trading influencers to promote your stock platforms, and pay close attention to user feedback to enhance your app based on their input.

What is the price of creating a stock trading platform?

The cost of developing a stock trading application can vary significantly due to two main factors. Firstly, the scope of work is determined by the desired functionality of the product. Secondly, the hourly rates of software development providers in different countries contribute to the cost variance, with hourly rates for software engineers ranging from $20 to $250.

Opting for the cheapest specialist carries the risk of receiving a buggy product, while selecting the most expensive one might not be cost-effective. Companies in the CEE region provide high-quality software development services at reasonable prices. Typically, they can complete a trading application within 5 – 10 months, with the total cost ranging between $47,500 – $125,000.

Set up environment 16-24 hrs.

Design                       408-739 hrs.

iOS/Android             840-1632 hrs.

Back-end development 488-840 hrs.

Admin panel development 96-192 hrs.

Release and production 32-40 hrs.

Total:                                   1,880 – 3,467 hrs.

Conclusion

As the global online trading platform market surges, more startups are considering entering the FinTech industry.  Establishing one’s own stock trading platform involves following proven methods, but it entails addressing various technical, security, and marketing challenges as well.

It is essential for entrepreneurs to understand the principles of stock trading and the requirements of their potential app users. This helps them to design a unique set of features that can be leveraged as a competitive edge. Startups seeking cost-effective yet top-notch solutions for creating their own trading platform can achieve success by opting for outsourced software development models.