Nowadays investing in stocks has become a thing of few taps or clicks. So building an app seems a pretty profitable idea. Check out our article before developing an app like Robinhood ✅
Table of contents
Intro What are free stock trading apps? What makes the Robinhood app so popular? Key features of an app like Robinhood Monetization model of the Robinhood app How much does it cost to develop a trading app? Summing up
The Robinhood app has become a success in the world of investing and stock trading. The app makes it easy to keep track of the stock movements and sell or buy stocks in real time. Let’s look into the details that make the Robinhood app the most popular stock trading app on the market 🔽
What are free stock trading apps?
Like any other mobile apps, trading apps are created to increase your efficiency and mobility. Mobile devices created whole new trading experiences and traders needed new easy-to-use trading apps for their handheld devices. Free stock trading apps allow users to invest in stocks for free and earn money.
There are lots of commissions and extra trading chargers that may take the lion’s share of the traders’ income. And who wants to pay extra? Right, no one. Instead, traders started looking for free stock trading apps to get healthy returns. So free stock trading apps are built for users to help reduce extra fees or even completely wipe them out.
Mobile trading platforms offer mobility that allows traders to keep track of the stock market anywhere and anytime. And traders do like the ability to carry out transactions at any time that, in turn, facilitates the growth of trading apps on the market.
The Robinhood app was launched to allow users to sell and buy ETFs and stocks without any additional fees. The Robinhood app lets users trade stocks without extra charges and makes investing easy, even for people without trading experience.
Robinhood has a wide selection of stocks that includes stocks by Tesla, Apple, and Google. Do you want to buy Apple stocks? Then Robinhood is right up your street.
What does the Robinhood app do?
Allows users to create an investment portfolio
Features updated and latest market data
Notifies investors on the upcoming events (like dividends)
Allows for trading without “settling” funds
What makes the Robinhood app so popular?
The Robinhood app tops the charts of free stock trading applications. The app has two key rivals - WiseBanyan and LOYAL3. But these three competitors have different business models as well as market positioning.
Both the Robinhood app and LOYAL3 are stockbrokers, whereas WiseBanyan is a financial advisor. But Robinhood features far more stocks than LOYAL3. It means that you get more opportunities to double or triple your money with the Robinhood app.
A seamless onboarding truly separates the Robinhood app from the other competitors. It takes around 10 minutes for users to sign up, link their bank accounts, and buy stocks. Onboarding can be quite tricky when it comes to apps dealing with private information and money. But the Robinhood app solved the following issues with flying colors.
One more thing to mention - its simple UX/ UI design. The Robinhood app takes advantage of a clear color scheme. It has only four primary colors to indicate the main events of the app - red, white, black, and green. Such a rigid color scheme helps users focus on stock numbers.
For example, when the market is open, the main screen remains white. But when the market is closed, the main screen changes its color to black.
Four reasons why the Robinhood app tops the charts
Its simple and intuitive design
Commision free trades
No account minimus
It’s secure. The Robinhood app is a member of the FINRA and SIPC
Need more information on how to make an app like Robinhood? Feel free to contact us , and we’ll help you develop a top-notch stock trading app. At mova.io, we can build iOS and Android apps for every business sphere. Check out what we’ve already built .
Key features of an app like Robinhood
Since users can trade stocks and become investors with the Robinhood app for free, there should also be some advanced features for premium users. So let’s start with some basic ones.
Easy-to-use dashboard
A dashboard is a working space for a trader. Here users can check order status, balance, charts, watchlist, holdings, etc. As you can see, there are lots of information to be placed on the screen. Don’t forget about trackers while building an app like Robinhood.
Traders’ portfolio
It’s where users will be able to create and manage their portfolio without leaving your app and using third-party services. While creating an app like Robinhood, consider adding filters and sort functionalities. The following will ease the search for investors and make your app more user-centric.
Real-time charts and stock quotes
Charts as well as stock quotes should also be presented on the dashboard screen. Your data need to be updated every second in order to present the most accurate analysis, price patterns, and stock strategy. Every second can make a difference when you’re buying and selling on the stock market.
Stock trading
It’s the core of any free stock trading app. The following feature will be the most used one. Pay more attention to the stock trading feature to ensure its smooth performance in the process of developing an app like Robinhood.
Stock scanners
Constant stock scanning will provide your users with valuable insights of the stock market. The following metrics will allow for making well-informed decisions and earn more on buying and selling stocks.
Fund transfer
The following feature helps users transfer their funds from their accounts to the app. Without the fund transfer feature, traders won’t be able to sell and buy stocks. You need to make your app a secure platform for trading. Consider adding a two-factor authentication or audit log to keep users’ accounts safe and sound.
Watchlist
A watchlist enables traders to keep track of the stocks they’re eager to buy. Users should be able to add or remove stocks from the wishlist with ease. With the wishlist, traders won’t need to browse the app from cover to cover every time they need to check prices.
Synchronization between multiple devices
As a rule, free stock trading apps like Robinhood are developed for multiple platforms at once. In this case, the information should be simultaneously updated. For example, the trader opens a mobile app, then he continues his work on his iPad, and finally sells his stocks on a laptop.
Check out iOS mobile development for more information on developing a trading app like Robinhood for iOS-powered devices.
Monetization model of the Robinhood app
Though the Robinhood app has no extra fees and allows for commission-free trades, the app generates a pretty penny. But wait, how does Robinhood make money?
Robinhood is backed by big investors, including Index Ventures and Google Ventures. The following helps keep the app free for users. The main source of revenue is its premium offerings. Robinhood Gold is an upgrade for traders who want to play big and take higher risks.
Users need to pay a monthly fee to take advantage of Robinhood Gold. The price ranges between $20 and $2000 depending on the traders’ level. The level is determined by how much money traders have and how much they can borrow.
With Robinhood Gold, traders can buy and sell stocks a few hours longer. Also, traders get increased buying power. It means that users can borrow money if they need to buy particular stocks.
Also, you can add some ads to your apps and get paid for placing them. It’s one of the most easiest and widespread ways of generating money through apps. Taking into account how the Robinhood app makes money, you can provide extra bonuses (like extended trading hours) or smart widgets for a monthly fee.
Are you going to make an app like Robinhood for Android? Check out Android mobile development to get a better understanding of the development process for Android-powered devices.
How much does it cost to develop a trading app?
There are a number of factors that influence the end price of your project. To get a complete understanding of how much it will take to make a trading app like Robinhood, you need to understand these factors.
App design
Robinhood’s design is quite simple and clear. But there are a lot of micro elements that eases the navigation through the app. In terms of design, the Robinhood app doesn’t take a lot of time and money.
Backend and frontend development
While building a free trading app like Robinhood, backend and frontend development take the largest share of your budget. As a rule, the development cost strongly depends on the technologies, frameworks, and tools required to build your mobile application.
Testing
Testing is an essential part of the app development process especially for the apps dealing with personal information and money. There are several things that should be thoroughly tested before the official release of your application - the performance of your app when the stock market is open and the synchronization between devices.
Having both mobile and desktop app versions is an ideal business model for free stock trading apps. Developing apps for mobile and desktop platforms takes more time and financial resources when compared to native app development for one platform.
Development team
The size of development team can also influence the cost of your app development project. As a rule, a development team consists of:
Project manager
UX/ UI designers
Android or iOS developers
Frontend developers
QA engineers
The bigger team you need, the more you should pay. But you cannot just hire one app developer to build your app. Mobile app development is a tedious process and requires not only skilled developers, but also PMs, designers, and QAs.
Time needed
Budget
UI design
2-4 weeks
$2,000+
Movile App Development
3-4 months
$15,000+
Backend API
2+ months
$8,000+
Admin Panel
~1 month
$5,000+
Total
4-5 months
$30,000
Summing up
When mobile devices have taken the world by its horns, stock trading apps are also coming to the fore. Developing a free stock trading app like Robinhood needs skilled developers to overcome tech challenges and ensure a smooth and stable performance of your app.
With mova.io, developing a free stock trading app will take around $XXX. Contact us to negotiate all your project details.
Have a question? Just write to us at:
📮 mail@mova.io
