A trading application is a platform that allows individual investors to engage with the market through a smartphone.
From offering a variety of features such as convenience and accessibility to users to providing real-time market insights, a trading app helps individuals enhance the decision-making process with comprehensive market details.
The integration of the latest technologies like AI and machine learning has enabled the prediction of outcomes and potential trends in trading emerging in the future.
Building a trading app is important for financial institutions to expand their market, tap into new customer segments, and generate more revenue streams by cross-selling and up-selling their products.
Planning to develop a trading app encompasses multiple factors such as feature and capability integration, application’s complexity, development platform (iOS, Android, or both), and the region of development or outsourced services.
This blog will navigate through the benefits of a trading app and the incurred costs for financial institutions.
Breaking Down the Costs of Building a Trading App
First off, it is vital to hire app developers in India. Having them by your side will contribute to developing a highly cost-efficient app. Besides, here is a breakdown of the cost of building trading applications based on the complexity level.
1. Basic Trading App
A basic trading app with a simple user interface and normal buying and selling functions, prominent market data, and account management. Such apps may cost approximately $30,000 to $60,000 and may require 3 to 6 months to develop.
2. Mid-Level Trading App
Trading apps with advanced charting, multi-asset trading (crypto, stocks, etc.), advanced security features, real-time data, and push notifications cost slightly more and fall in the range of $60,000 to $150,000 with a development time frame of 6 to 12 months.
3. Advanced Trading App
Super advanced features like social media integration, algorithmic trading, advanced encryption and biometrics security features, AI-driven analytics, and integration with multiple exchange platforms may cost within the range of $150,000 to $500,000. Such apps may take more than 12 months to develop due to high complexity.
Costs Additional to Building a Trading App
• Maintenance and updates: To maintain a trading app may cost approximately 20% to 30% of the development cost. The higher the complexity, the higher the maintenance cost.
• Hosting & Servers: It may cost around $600 to $9,000 per month, based on the infrastructure, data, and app scale.
• Licensing & Regulatory compliance: This cost may be bioregion-wise variation.
Factors Influencing the Cost of Building a Trading App
Development team region
Developers in Western Europe and North America charge higher for application development ($100 to $200/hour) than the ones in Eastern Europe and Asia ($25 to 75$/hour). To minimize the cost, outsourcing to a mobile app development company in India can be cost-effective.
Custom vs. Off-the-shelf
Custom applications have high specificity and offer tailored solutions compared to off-the-shelf applications. However, it may cost more, it tends to offer high flexibility and more features than off-the-shelf applications that are less expensive and offer less flexibility and features.
Benefits of Building a Trading App for Users
Convenience and Accessibility
A trading app provides continuous accessibility to investors to trade or monitor dynamic market trends anytime, anywhere. A trading app with an intuitive interface allows users to navigate the features and execute trades regardless of their proficiency at trading app usage.
Real-Time Market Data
Users can enhance their decision-making ability with effortless access to information such as real-time quotes, market trends, and news. Push notifications enable users to stay alert and informed about ongoing market movements, important events, and price changes.
Lower Transaction Costs
Trading apps charge lower fees and commissions than traditional brokerage services, making them more cost-effective. Providing access to multiple markets like forex, stocks, and cryptocurrencies from a single platform simplifies the trading process for investors and increases loyalty.
Enhanced Security
Trading apps offer advanced security features to secure transactions, trading, and data. Two-factor authentication, biometric login, and encryption allow individual investors to experience a safe navigation and trading process. Regulatory compliance ensures the trading adheres to the regulatory guidance, fostering peace for users.
Educational Tools and Resources
Many trading apps allow educational resources like tutorials, webinars, or market insights to help improve users’ trading skills. Advanced technologies have enabled investors to practice their trading skills in virtual trading environments, minimizing the risks related to real money investments.
Customization and Personalization
A trading app offers customizable interfaces allowing users to personalize their dashboards, set notification preferences, and decide which segment and how they would like to view the market insights. Many apps have launched the feature of algorithm trading. It basically allows users to create and deploy their self-created trading strategies based on specific criteria while trading.
What Financial Institutions Gain from Building a Trading App?
More Customer Engagement and Retention
With features like personalized recommendations, market insights, and investment options, a trading app can significantly enhance the user experience, leading to high engagement and long-term customer loyalty.
New Revenue Streams
Financial institutions can generate significant amounts of revenue from trading commissions, subscription models, and premium features. By integrating apps with banking, lending, or wealth management, financial institutions can cross-sell and upsell products, generating more revenue.
Market Expansion
With a trading app, financial institutions can reach out to new customer segments, comprising young and tech-savvy users, who prefer trading on smartphones. Online trading apps also allow finance-based businesses to tap into geographically diverse markets, expanding their market reach globally.
Data Collection and Analytics
Trading apps collect data and convert it into insights, allowing businesses to tailor their services and products. Valuable data like user behavior, trading patterns, and preferences allow businesses to identify patterns, optimize their future services, enhance customer satisfaction, and manage risks.
Brand Differentiation
A well-tailored trading app can distinguish a financial institution from its competitors and position it as the leader in the industry. Offering a seamless trading experience and customer-centric services to its customers can foster more customer loyalty and improve brand recognition.
Cost Efficiency
By automating multiple processes, a trading app can reduce manual intervention and minimize operational costs. High scalability allows institutions to manage large sets of data, including user’s personal and transactional data without additional costs.
Conclusion
Trading apps cater to the advancing trading needs of both individual investors and financial institutions. For investors, they serve as a convenient platform to trade and gain access to dynamic markets, enhancing trading skills and improving investment decisions.
For financial institutions, trading apps unlock new revenue streams, increase clientele, and increase brand differentiation.
In this rapidly evolving market, trading apps are effective solutions to guide investors based on data and analytics and make wise monetary decisions in this extremely sensitive realm of finances.
You just have to find a trusted fintech app development company that would help in developing a trading application.