Before trading apps, traders were glued to their computers the whole day, watching out for market crashes and price fluctuations. With the emergence of smartphones and the latest innovations in the technology industry, people became able to trade stocks, bonds, and even cryptocurrencies at the palm of their hands, literally. In this article, we’ll explore how to create a trading app in 2022.
Determine the type of your trading app
There are two types of trading apps. The first is the mainstream stocks, bonds, ETFs, derivatives, metals, currencies, trading apps, and the second is the cryptocurrencies trading apps. Before cryptocurrencies appeared, there was only one type, but as the crypto industry became worth trillions of dollars, it became a necessity to have crypto trading apps in place.
However, if you’re considering building a crypto trading app, then you should consider the regulations and the limitations that cryptos bring to the table. We’ll talk later in the article about the detriments of crypto trading apps.
Run a competitive analysis
There are thousands of smartphone stock-trading apps that survived. But there are also hundreds of thousands that were lost in the ashes. This is because trading app developers overlook the importance of studying the competition.
If you’re building a trading app, then it is very important to research why clients are going for a particular app. For instance, 37% of millennials and GenZ use the Robinhood app over its competitors. This is because the trading app has gamified stock trading, and facilitated the task for non-techie young investors. Doing research and asking the what, who and why about your competitors will save you tons of work.
For trading app development, we’re talking about money, the economy, and financial systems. The subject is very sensitive and complicated, and watchdogs do not tolerate mistakes. So whether your app has only one user or millions of users, regulators will not miss out on the chance of suing you if you ever go wrong.
For example, if you decide to go with a hybrid application that combines both stocks and crypto trading, then you should know what countries accept cryptos and which do not. If you want to get users from China, then you won’t be able to do that because your app allows for crypto trading, which is illegal in the country.
No bugs allowed
Let’s suppose you have a beta version for your trading app, and you want to test it out. That can’t actually happen, because people would never risk investing in a beta trading app. Since trading apps earn from users who invest through their platform, it is very important to build a trading app that doesn’t bug or crash. This might seem very complicated, and it is since code is at the end of the road is a code and not a holy book, and mistakes happen. However, trading apps should avoid bugs at all costs, or else you’ll result in heavy losses to your app users and traders.
Safety and security
Apps get hacked. Scammers usually seek credit card credentials, personal information, and everything valuable in the dark markets. But trading apps get hacked at higher rates compared to any other apps out there. This is because the moment that hackers put their hand on an account of a trader, they’ll be able to deprive them of thousands of dollars, if not millions. This means that setting up very complicated security measures to prevent fraud and scams is as important as building your trading app from the scratch.
Have an ethical market
If you write the name of any app and add “sued” next to it in the Google search, then you’ll be surprised by the number of platforms that are facing charges. It sued some trading apps over manipulating markets, while it alleged others of advantaging financial institutions over day-traders. If you want to build a successful trading app, then make sure that you’re there to save your app traders from market manipulators and immoral trading apps.
Building a app isn’t like building any other app. This is because the financial system can be very complicated, and your users will have money at play. This obliges you to take the responsibility of avoiding bugs and reinforcing the safety of the app. Finally, traders usually have over one phone, with different systems, so make sure that you create an IOS/Android trading app.
If you have any queries then you can contact us for more help.
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