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“The stock market is a device for transferring money from the impatient to the patient.”

– Warren Buffett.

In the ever-evolving landscape of financial technology, the popularity of trading apps has skyrocketed, with Robinhood emerging as a trailblazer in democratizing access to financial markets. As the demand for user-friendly and accessible trading platforms continues to surge, the question on many entrepreneurial minds is, “How to build a trading app like Robinhood?”

According to a Robinhood report, the app generated net revenues of $ 1.82 billion for the entire year 2021. Comparing December 2020 to December 2019, the company showed an 89% growth. Robinhood also has 22M+ users.

There is no doubt about the profitability of starting a fin-tech business. Various businesses are looking to grab this profitable opportunity to invest in trading app development. If are you also among them, then this blog is for you.

This blog post will serve as your comprehensive guide to Build a Trading App Like RobinHood, dissecting the key features and monetization strategies required to embark on this transformative journey.

What is Robinhood App?

Robinhood is an online trading platform without commissions that allows users to buy and sell stocks and options, ETFs, and cryptocurrency without having to pay traditional brokerage fees. Robinhood was launched in 2013 and quickly gained popularity due to its easy-to-use interface. It also democratized access to the financial markets.

It allows novice investors to trade easily, with features such as fractional shares and an easy mobile app interface. Robinhood, while praised for being accessible, has been criticized for its business model and gamification. The platform is designed to make financial markets accessible to all by removing the barriers of entry that are traditionally associated with them.

Market Stats of Robinhood Trading App

Robinhood achieved revenue of 565 million USD in 2021’s second quarter and 380 million U.S. Dollars in 2022’s final quarter.
From a half-million users in 2014, the number of users has grown to 22,9 million by June 2022. Since its launch, the app’s revenue has also steadily increased. It reached 91 million U.S. Dollars in the second quarter of 2021.
The number of Robinhood downloads increased almost five-fold compared to last month. It now stands at around 3,23 million.
The final quarter of 2022 will see revenues at 380 million U.S. Dollars.
In 2022, Robinhood’s revenue was $1.35 billion. This is a decline of 25% year-on-year.

Robinhood has 10.8 million active users by 2022
The Upstox app had $89 billion in assets under management by the end of 2023’s second quarter.
Stock trading apps reported a net loss of $1 Billion in 2022
Robinhood’s valuation dropped from $20 billion in 2021 to $8 billion in 2022.

Steps to Build a Trading App Like RobinHood

Developing an app that sets a standard for the industry and provides consumers with a distinctive experience is difficult given the abundance of trading applications on the market.

You might opt to hire mobile app developers who can comprehend your project concept and build a trading app like RobinHood that is tailored to it, to make things easy for you. However, you may still develop your app concept by following these simple steps to build a trading app like Robinhood.

1. Conduct Market Research:

Many businesses are so focused on designing and developing their trading app like robinhood that they tend to skip this step. We believe it is crucial to the user journey and contributes a lot. You should have a basic understanding of the stock market prior to developing your trading app. Before you begin the development process, there are some common questions that need to be answered.

Why would you like to build a trading platform like Robinhood?
What is the target audience of your mobile device?
What is your investment budget for building an app?
What are your technical specifications and requirements?
What are the competitors you face and how can you differentiate yourself?

2. Plan the Development Approach:

Next, you should explore all the stock trading app development options and select the one that best suits your business objectives. Pre-built templates to Build a Trading App Like Robinhood and design can speed up development and be cost-effective.

On the other side, custom solutions may take longer, but they can provide a better user experience and cater to your brand’s identity. Before you begin the development process, evaluate the options and choose the one that best suits your needs.

3. Design Interactive UX/UI:

You must begin working on the roadmap as soon as you have finalized the plan to Build a Trading App Like RobinHood. Your team should focus on developing an app prototype or wireframe. You will be able to get a better idea of the final look of the app and gather feedback from users before you begin the design and development phase.

4. Hire a Mobile App Development Company:

It is not easy to build a trading app like Robinhood. That is why it is important that you choose a trading app development company that specializes in mobile app development. You will be relieved of the responsibility and your app development and design is in capable hands.

5. Test and Deploy the App:

Your trading platform development team will need to test the app thoroughly after it has been created. This is done in order to identify and debug any bugs. This will allow you to identify problems with the app and fix them before it is released.

It will make sure that your app is working as it should and ready for deployment. Your team will now release your app on the platform that they feel is best to let users use it and enjoy the experience.

Key Features to Build a Trading App Like RobinHood

You must know that to build a trading app like Robinhood, requires careful consideration of key features to ensure a user-friendly experience, compliance with regulations, and competitive positioning in the market. Here are essential features to incorporate into your app with the help of a trading software development company.

#1.Registration of a Personal Profile:

This should be the easiest phase. It is a great idea to provide multiple registration options (e.g. via Facebook, Google or Apple ID). Add the option to sign in using an e-mail/phone and password. Whatever options you choose, ensure that they are secure.

Add a feature to your app that allows users to create a profile. This will give it a more personalized feel. Your users should have the option to upload their photos, data, and performance.

#2. Adding Bank Card:

Users should be able to add their bank information in this section of the Robinhood-like application. This is a crucial feature for your online trading apps. This section should be easy to navigate and secure. You must integrate this feature in your app with the help of a fintech app development company.

#3. Analytics:

Charts are typically used to implement analytics in Robinhood-like apps. These complex technologies include data science, AI/ML, and other advanced technologies. To apply this feature effectively, you will need a partner who has extensive expertise in data and data visualization.

Basic charts, for example, show Bollinger bands and moving averages. Line break charts, Fibonacci plots, and other advanced features may be included in the more sophisticated charts.

#4. Third-party Payments:

Payments must also be secure. Link trusted third-party payments to your favorite stock trading app like stock trainer. You can, for example, integrate your service with giants like PayPal, ApplePay or Google Pay.

#5. News Feed:

This feature is essential, especially if your plan is to create a stock trading app that caters to beginners and day traders. These users of a Robinhood alternative rely on reliable resources such as Reuters Newswires Dow Jones Newswires PR Newswire etc.

It is therefore a good idea, for an app like Robinhood, to incorporate the most recent relevant news from these editions in your news feed with the assistance of an iOS app development company for the iOS platform.

#6. Scanning Tools:

AI-powered scanners search for possible trades in the stock market. Scanners, like analytic tools, can have different levels of complexity. Simple scanning tools, for example, can give insights into the best stocks to invest in at this time, the companies on the rise or the ones that are declining. A sophisticated scanning system can also look for patterns to help your users make better investment decisions.

#7. Fundamental Research Tools:

These tools enable your users to access information quickly about the companies in which they intend to invest. Research tools that provide insight into financial metrics, the latest news, and other relevant information for trading. Instead of searching the web, users will use your app to find the information.

This will allow your trading platform to serve as an all-in-one shop, increasing user time spent on it. So, if you build an app like TradingView, then you must know that such features are essential to incorporate for better user engagement.

#8. Support:

When you build trading apps, reliable support is essential. How you support users is crucial to the success of your Robinhood stock app. When trading, speed is essential. Ensure that users are able to get all types of support, whether technical, administrative, or trade-related, directly through the platform.

Top 5 Trading Apps Like Robinhood

Popular Trading Apps	Available Platform	Downloads	Ratings
Webull	Android \| iOS	10M+	4.3
Fidelity	Android \| iOS	5M+	4.3
Zerodha	Android \| iOS	10M+	4.1
M1 Finance	Android \| iOS	1M+	4.5
eToro	Android \| iOS	10M+	4.1

1. Webull:

Webull is an easy-to-use, commission-free trading application that provides investors with advanced tools. It provides real-time data on the market, technical analysis, and a customizable user interface.

Users can trade stocks and options, ETFs, and cryptocurrencies, without having to pay traditional brokerage fees. Webull’s intuitive interface is designed to appeal to both novice and experienced traders. It offers extended trading hours, as well as in-depth financial insight.

2. Fidelity:

Fidelity’s mobile app offers users the best online trading platforms to buy and sell stocks, options, exchange-traded funds (ETFs), and much more. The app offers real-time data, advanced charting, and customizable watchlists for tracking investments.

Fidelity’s intuitive interface makes it easy to manage your portfolio and execute orders. Users can also access research and educational tools to help them make informed decisions.

3. Zerodha:

Zerodha provides user-friendly apps to facilitate financial transactions. Kite, the company’s flagship app, offers a comprehensive trading platform for stocks, commodities, and currencies. Kite’s clean interface and advanced charts ensure a smooth trading environment.

So, if you are planning to develop a trading app like Zerodha which offers features such as market analysis, live quotes and instant order execution, then now is the correct time.

4. M1 Finance:

M1 Finance is an easy-to-use trading app that combines investing and banking. Users can create their own portfolios using the “Pie”, a system that allows them to customize stocks and ETFs. Fractional shares allow investors to invest as little as $1. M1’s automated investment allocates funds based on preset percentages while maintaining portfolio balance.

The platform provides no-commission trading as well as dynamic rebalancing and dividend reinvestment. M1 Spend integrates with a checking account to provide a holistic experience.

5. eToro:

eToro, a popular trading application, allows users to trade in a variety of financial instruments including stocks, cryptocurrencies, and commodities. An online trading platform Like the eToro App is known for its easy-to-use interface.

It also combines social features that allow users to copy and follow the trades of successful traders. The app provides real-time data, charts, and analysis tools for decision-making. eToro’s global user base allows for seamless trading and investing opportunities across borders.

Cost to Build a Trading App Like RobinHood

The Robinhood mobile app development cost can range between $10,000 to $25,000. However, the cost to build a trading app like Robinhood depends on many factors, including the hourly rate for developers, the UI/UX of the app, the coding process, and the platform.

Understanding the exact Robinhood app development cost can be a difficult task. A fintech app development company is the best option to assist you in understanding the finer details of your specific business requirements and give you a clear estimate of to cost to develop a crypto trading app.

The complexity of the stock trading application can be estimated by evaluating the app’s overall design. A complex app that has a long list of features will cost more than a simple one with a shortlist. Based on the complexity of your app, we will give you a rough estimation of the costs and time required to develop a stock trading app like Robinhood.

App complexity	Cost Estimation	Time Duration
Simple App	$10000-$16000	2-4 months
Medium App	$16000-$21000	5-7 months
Complex App	$25000	9 months

So, to know the exact cost to develop a mobile app like Robinhood, you must consult with a reputed app development expert.

How to Monetize Trading Apps like Robinhood?

Monetizing trading apps like Robinhood involves strategically aligning revenue streams with the app’s value proposition. In this section, we will discuss how to effectively monetize your trading app:

1. Commission Fees and Premium Features:

Implement a fee structure similar to Robinhood’s original model. You can offer premium features and advanced trading tools to users through a subscription-based model. You can cater to both advanced and cost-conscious users.

2. Margin Trading and Interest Income:

Users can borrow money to trade and pay interest on it. It can be a lucrative revenue source, but you must educate your users on the risks of margin trading. Transparency is key when it comes to interest rates and margin requirements.

3. Data Analytics and Market Insights:

Users willing to pay more for real-time information and in-depth market research will appreciate premium data analytics. Offering a subscription service that includes premium research reports to serious traders and institutional investors can help generate revenue.

4. Partnerships and Affiliates:

Forge partnerships with asset management companies, financial institutions, or other relevant firms. Integrate affiliate programs that allow you to earn commissions for every user who signs up with or uses the services of your partner companies through your platform. Make sure that the partnerships you choose align with your users’ interests.

5. Education Services:

Create educational content, such as webinars, tutorials and courses, on trading strategies, investment principles, and financial literacy. Consider charging users to access these educational resources and offering badges or certifications for completion. This will not only increase revenue but also user engagement.

6. Robo-Advisory Services:

Integrate automated, algorithmic-driven financial planning services and investment app development strategies. Users can be charged a fee that is based on the assets they manage (AUM). This will appeal to users who are more comfortable with a hands-off investment approach, while also creating a revenue stream that is recurring for your platform.

Conclusion

The financial industry is no exception to the rule that businesses must embrace technology in order to be competitive in today’s market. In the case of existing trading businesses, it can be implemented when you build a trading app like Robinhood to broaden your customer base.

In order to create a trading platform you must have an understanding of both the internal and external processes. Selecting the right mobile app development company will help you to create the unique value of your app, select the niche in which your platform stands a better chance of success, and choose features with care.

Frequently Asked Question

1. How to Develop a Stock Market Website?

To develop a stock market website, you must follow the crucial steps:

Outline features like real-time stock data, user portfolios, news feeds, and a user-friendly interface.
Choose a robust technology stack, integrate APIs for market data, and implement secure user authentication.
Design an intuitive UI, ensure responsive web design, and conduct thorough testing before launch.

2. How Much Does it Cost to Make a Trading App like Groww?

The cost to make a trading app like Groww can be around $10000 to $25000, depending on features, complexity, and development team rates. Factors such as design, security, real-time data integration, and regulatory compliance contribute to the overall expense. Ongoing maintenance and updates also impact long-term costs.

3. How Long Does it Take to Build a Trading App Like Robinhood?

The time to build a trading app like Robinhood depends on factors such as complexity, features, and team efficiency. Typically, it can take 2-4 months to 7-9 months or more. Developing key functionalities, ensuring security, and obtaining regulatory approvals contribute to the overall timeline.

4. What Are the Benefits of Creating an App like Robinhood?

Developing an app like Robinhood offers advantages like democratizing financial access, fostering financial literacy, and providing a user-friendly platform for stock trading. Additionally, it can attract a young, tech-savvy audience, generate revenue through premium features, and contribute to the evolution of fintech innovation in the market.