How Much Does it Cost to Build a Stock Trading App from Scratch?

If you are considering building a stock trading app from scratch, one thing you will undoubtedly want to know is how much the process will cost. 

So, let us delve into the subject to find out. 

What is a stock trading app?

Stock market apps, like the Sofi online trading app, make it easier for investors to buy and sell stocks on trading platforms, come up with winning strategies, and manage and update their investment portfolios. 

The apps can be web-based, mobile-based, or both.

Legalities to Address Before You Begin Building Your App

If you already own an authorized brokerage firm and want to expand, there will be a little less effort and cost involved in building a stock trading app. 

If your company is newly established, you will have various legal challenges to overcome before you can launch your new app. 

You will need to obtain a license from your country’s regulatory body, follow rules like the PSD2 Directive in order to protect the sensitive data of customers, and join regulatory institutions and investor protection programs to enhance your credibility. 

You will also need to use multifactor authentication and other security tools to protect the money of your app’s users. 

By determining all such legalities before you start building your stock trading app, you can calculate the estimated costs for each of the above elements.

Features of Stock Trading Apps

Similarly, by working out what precise features you want to include in your app, you can determine the amount of money and time you will need to complete the project. 

The basic features that any good stock trading app has include: 

• Stock trading tools for executing orders, viewing real-time data, and monitoring market positions. 

• Personal accounts in which users can edit and update their profiles and settings as well as track transactions and monitor quotes in real-time. 

• Asset management tools that enable users to check statuses in real time.

• Analytics tools to help users understand their investments better and simplify the process of creating portfolios, trading, and investments. 

• News feeds and notifications to keep users abreast of things like current exchange rates. 

The Development of Building a Stock Trading App

By working out the different elements of actually developing your app, you can come up with a reliable estimate of how much the overall app development will cost. 

The first thing to do is research. That stage involves coming up with an effective business model and roadmap for your app’s development. 

Next, your team will need to formulate the development approach by considering the app’s platform, cloud services, third-party APIs, and other critical tools. 

Then, your app development team needs to consider the design of the app’s user interface. 

Once those things have been carefully looked at and decided, the actual development process can begin. That will involve both mobile and web development, frontend and backend.

When considering the design of your stock trading app, especially for brokers and financial institutions aiming at large-scale operations, integrating a secure matching engine software becomes indispensable. This software not only enhances transaction security but also ensures that your platform can handle high volumes of trades efficiently, mitigating risks and offering an edge in today's competitive market.

Your team will need to select the right programming language and tools to use in the app development and perform complex testing across multiple platforms to ensure the finished product works correctly.

The Cost of Building a Stock Trading App

By putting all of the above together, we can come up with a good idea of how much your overall app development project will cost. 

However, bear in mind that the exact cost will depend on multiple factors. So, the only way of coming up with an accurate estimate for your specific app is to work out the costs for each element of your specific development. 

Creating a stock trading app from scratch takes between five and ten months and costs anywhere between $25,000 and $300,000. But typically, most developers spend around $55,000.