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How to Build a Free Stock Trading App Like Robinhood

How to Build a Free Stock Trading App Like Robinhood

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Over the past few years, the number of internet and mobile users has strongly outstripped the number of desktop ones. The market has significantly turned in the side of mobile - friendly website and mobile applications. Such big shift has reshaped the way we operate our money. Products like PayPal, Mint, Apple Pay help users to mobilize their experience of finances management.

The field of money investments was always a bit conservative so innovations were limited until the launch of Robinhood market app. Previously, investing was a “toy for big boys” and was something elite. Robinhood has proved that if investing could be done in a convenient way, millennials are glad to use it. We can draw such a conclusion according to the fact that the average Robinhood users age is 26. Robinhood app makes investing a simple thing even for those who didn’t have a previous experience.

About free stock trading apps

This kind of applications is rather new so there’s the need to explain the definition. They provide service of commission-free equity and exchange-traded funds trading.

These apps will greatly fit for both experienced business sharks and newbies due to their simplicity comparing to traditional investing tools. Stock trading apps like Robinhood can show users the best offers for investing in real-time. Such a huge advantage has shaped the huge success of free stock trading apps and Robinhood is a market leader in this field.

How it works

  • Robinhood offers people the newest market data within the app
  • It allows users to create their stock profiles with investment portfolios for a convenient data storage
  • It provides users with notifications about important events like dividends or significant stock trading events
  • Now let’s have a quick look at things that make Robinhood so popular among millennials:
  • Commission-free trades makes Robinhood really cost-effective
  • Membership in FINRA and SIPC force Robinhood to keep their security standards high
  • Great UX & UI design makes the app really convenient both for experienced investors and newbies on the market

Biggest competitors

If you want to create your own stock trading application, you should considers the competitiveness you will meet. So let’s have a quick review of the biggest Robinhood competitors.

TradeHero

This app has really self-explanatory name. Its’ main purpose is to help newbie traders to test their knowledge and hone their skills in a safe environment. It also provide the ability to test non-traditional market strategies without actual financial risk. The app is all about simulating the real stock exchange using the real actual market situation so it’s really easy to learn investing using this app. It also provides social aspect as users compete with other users, create portfolios and exchange experience.

E*Trade Mobile

Another really great alternative to Robinhood but it’s not free. But even despite this fact, it has a huge popularity among professional traders. Using E*Trade people can trade a lot things including ETFs, stocks, mutual funds, and etc. It also provides an instant access to all honoured market industry related media like Morningstar or MarketWatch. E*Trade is available for Apple Watch so you can always be in the thick of things.

TD Ameritrade Mobile

Found in 1975, this company now has reached mobile technologies so created their application and it’s really competitive even to app-first market leaders. Users can trade options, futures, equities, and Forex with TD Ameritrade application. It also provides users with an “expertise feature” so they could get an appropriate financial advice. Really good feature is that you can take a photo of deposit checks to upload it on the app.

Robinhood Business Model

You may have a question like “How free-to-use and commission-free app earns money?” But the actual answer is rather simple. For users who afraid of investing in the app with incomprehensible business model, Robinhood has implemented a special button in the app.

The primary source of revenue for Robinhood is Gold premium offering. It’s an upgrade for users who are ready to take more risks and are a lot experienced. Robinhood Gold provides users with additional trading hours and increased buying power. It means that you can borrow money for a certain stock. Robinhood Gold charges from $10 to $200 depending on how much money do they have on their account and how much money they are allowed to borrow.

As Robinhood deals with huge money, its’ technical advantages are obvious. Both iOS and web apps are programmed and designed using the best practices and the best languages and libraries. It provides the fastest and the most reliable experience.

If you want to create a free stock trading app like Robinhood, feel free to contact us so we could discuss details of development, design, business model and other aspects.