How to Build Own Trading Platform

Expected to reach a whopping 12.16 billion USD by 2028, the online trading platforms market is proving to be quite a promising and lucrative venture. However, successfully developing a software product, let alone a trading platform is no easy task. 

According to a survey by KPMG, AIPM, and IPMA, only 19% of organizations deliver successful software products, with 36% delivering within budget and only 30% doing so on time. To help you try and avoid being part of the negative statistics, in this short and to-the-point article, our experts are going to walk you through the entire process of building your own online trading platform.

The article outlines all the pertinent details and steps to guide your custom trading software development. Read on to get it right the first time!

Types of Trading Platform

There are two types of trading platforms—Commercial platforms and Proprietary platforms.

  • Commercial platforms

These platforms are built for retail investors and day traders. As a result, they are often user-friendly and offer several built-in features such as newsfeeds, educational resources, and charts to facilitate research and learning. An example of this platform is MetaTrader 5.

  • Prop platforms 

Proprietary platforms are created by large brokerage companies and customized to fit their trading styles, traded assets, and other requirements. Unlike commercial trading apps, prop platforms may have complex features that only suit high-end traders. An example is IB (Interactive Broker)

Core Features of Trading Systems

The features to implement vary across trading apps. However, there are must-have features your trading system should prioritize. These are:

  • Authorization

The authorization protocol should be highly secure but as simple as possible. Users may log in using their email addresses, phone numbers, or social media accounts. Besides passwords, your app could support Face ID or Touch ID systems; and two-factor authentication for additional security. 

  • Payment

This feature allows users to manage and monitor the movement of funds for selling or buying assets. To facilitate the process, consider adding multiple payment gateways integration users are familiar with. 

  • User Profile

Users should be able to view their personal information and update specific fields. From their profile, they could also access settings, view transaction history, etc.  

  • Onboarding

If users cannot understand how your platform works, chances are they won’t use it. Your trading app should have in-app guidance, tutorials, and other related functionality that explains how to use your app. 

  • Dashboards

A Dashboard displays a user’s activity and portfolio in sections, charts, and figures. Ensure that your app allows traders to view their balances, accumulated interests, stocks, and assets they own in real-time.

  • Admin Panel

Another core feature your online trading platform must have is an admin panel. This feature facilitates all aspects of platform management. It allows for several functions such as approving trader accounts, editing the spread, and managing trading fees.

  • Push Notifications

Push notification is a great way to notify users about the status of triggered activities such as orders and payments. You could also use it to update traders on changes in platform policies, offers, and products.  

Process of Trading Platform Software Development

To make a trading app from scratch, we have broken the process into four stages. 

1. Discovery stage

This stage starts with gathering user requirements. The business analysts, UX/UI designers, software architects, and project managers undertake market and audience research to understand the project goals. The UX/UI designers hash out the design and features to implement as well. At the end of this stage, the team will have a product scope and estimate, technologies to use (tech stack, hosting infrastructure, etc.,) prototype, and product roadmap

2. Development phase

For this stage, choose a development team that suits the specific trading platform you need. For example, for a mobile app (iOS and Android), you would need mobile developers. If you need a web application instead, frontend and backend developers can help. While developing the platform, ensure that it complies with GDPR, CCPA, and other privacy and security regulatory compliance within your region.

Development phase

3. Testing phase

Here the Quality Assurance (QA) engineers will check:

  • Performance and functionality to test for speed, responsiveness, and stability
  • User experience and usability to ensure it will meet users’ expectations
  • Security to identify vulnerabilities within the app.

4. Maintenance

Once your trading platform is live, this stage ensures that it continues to operate at peak performance levels. It includes monitoring users’ feedback, adding new features, fixing bugs, and providing timely updates. 

What does it cost to develop trading software

The cost of custom trading software development depends on several factors. For one, if you need mobile apps and a website, the fees are typically higher than when you need just one. 

Also, the more complex the platform, the higher the hours the development team might spend on the project. Sophisticated features may also require skill sets which typically vary across regions. For example, in Eastern European countries like Ukraine, you will find React Native developers for $32-$90/hr on average. In the United States, a similar skill would go as high as $140/hr. For an accurate quote, we would need to know your requirements.

Final thoughts

Financial and Investment platforms promise more potential as technological advancements continue. Thus, your platform should be at its best performance to deliver a smooth trading experience to users. By following these steps, you can develop your app better.