Table of contents
How to build a stock market website? What are the main difficulties of this process? What functionality should this platform have? How much does it cost, and how long does it take? You will find all the information you need in our new article.
What is a stock trading platform?
A stock trading platform is a place that can be used to place orders for financial products such as stocks, bonds, currencies, commodities and derivatives with financial intermediaries such as brokers, dealers, market makers or stock exchanges over the network. Before we start talking about how to build a stock market website, let’s analyze what types and trends of stock trading platforms exist.
Types of trading platforms
In general, there are two types of trading platforms:
- Prop (proprietary) trading platforms. Proprietary platforms are created by big brokerage companies and imitate the style of trading and specifications of electronic brokerage models.
- Commercial trading platforms. Retail investors and day traders are the primary targets of commercial trading platforms. Commercial trading platforms are simple to use and provide useful tools such as charts and news feeds to help investors and traders do research and provide more insightful information.
Also, trading platforms are divided into:
- cryptocurrency platforms
- platforms with company shares
- index platforms
- forex platforms
How to create a trading platform: Trends
Knowing the trends that can affect the stock market can help you understand better how to create a stock trading platform. We have compiled a list of top trends that you should be aware of:
Covid-19 vaccine and pharmaceutical stocks boosting
If the pharmaceutical industry can control Covid-19, it will be a scientific accomplishment. Companies that participate in the endeavor will be highly rewarded.
Some beneficiaries will be clear, such as vaccine manufacturers Pfizer (PFE) or Moderna (MRNA), while firms that are focusing on therapeutic pharmaceuticals, such as Regeneron (REGN), will also profit.
There will also be less apparent victors. Just one example: distributing the vaccination will necessitate a massive logistical effort. Some vaccinations, for instance, need shipment at temperatures much below freezing, so companies who market cooling technologies stand to gain.
Demand for restaurant stocks
Fast-casual restaurant franchises stand to gain from a possible return to normalcy. Many have hobbled along on take-out orders, but on the day Pfizer revealed its vaccine achieved 90% effectiveness in Phase 3 studies, there was a general rally among chain restaurants spanning practically every cuisine.
Darden (Olive Garden and Longhorn Steakhouse) (DRI), Ruth’s Chris Hospitality Group (RUTH), Cracker Barrel (CBRL), Cheesecake Factory (CAKE), Denny’s (DENN), and Dave & Buster’s (PLAY) all enjoyed double-digit percent gains that day, to name a few.
The sphere of socially responsible investment
In 2021, many investors are actively investing in stocks of companies whose policies are in line with their social, corporate and environmental principles.
Thus, S&P Global Market Intelligence conducted a study in which 26 funds from the sphere of responsible investment (ESG) were examined. 19 of them showed better financial results during the coronavirus pandemic (from March 2020 to March 2021) than the S&P 500. Based on these data, it can be assumed that the ESG sphere will not lose popularity in 2022.
In recent months, the crypto market has been experiencing increased volatility. Against the background of attempts by the price of bitcoin to recover after falling to $30 thousand, the exchange rate of many other digital currencies also looks unstable.
Some analysts assumed the possibility of a drop in Bitcoin quotes to $10-20 thousand. However, in his video review, Benjamin Cowen claims that Bitcoin is ready to return to an upward trend.
How to create a stock trading platform: Challenges
How to build a stock market website and make it a success? First of all, you should be aware of the challenges that you may face during product development. Let us look at some of them!
How to create a trading platform: Financial security
When it comes to finances, security should come first. You should remember that the better your trading platform is protected from leaks of users’ personal data and other types of fraud, the more trust in it will be on the part of users. Therefore, your product will be used by a large number of people.
How to create a trading platform: Legal regulation
Because you will be entering the financial sector, you should obtain legal advice before you begin. In the United States, the Securities and Exchange Commission is in charge of the legal aspects of internet trading.
In addition to the SEC (Securities and Exchange Commission), you should register with:
- MSRB (Municipal Securities Rulemaking Board)
- CBOE (Chicago Board Options Exchange)
- FINRA (Financial Industry Regulatory Authority)
- NFA (National Futures Association)
As the platform’s owner, you should get acquainted with the necessary norms and regulations. Furthermore, before you begin creating the website, you should consider the registration process and other factors.
How to create trading platform: Idea and innovation
How to create a stock trading platform that will be popular? Today there are a large number of trading platforms. Therefore, your product idea should be clearly described at the very first stages of development. To stand out from hundreds of other products, you need to add something innovative and recognizable to your platform.
It can have some unique features, remarkable design, etc. Also, your product should answer a specific question. That is, your product must locally or globally solve a problem that you think exists.
How to create a trading platform: Onboarding
The trading platform is a complex product. Therefore, it is vital to explain how the platform works in the first minutes of user interaction with the product. Good onboarding ensures that users will not leave the platform. No one will use a product that does not show how to use its functionality.
How to create a trading platform: User experience
User experience covers all aspects of the end-user interaction with the company, its services, and its products. It represents the totality of all human sensations during these interactions. For your platform users to have a great experience, you need to consider the following:
- Interaction Design
- User Interface
- Visual Design
- Information Architecture
We will talk about this in more detail later.
How to create trading platform: Lack of Trust
Lack of trust in the trading platform is a widespread problem. People do not want to lose money, so most often, they bypass the platform where they see at least one hint of fraud. Your task is to make people sure that they will not be deceived.
How to create a stock trading platform: Northell Experience
Northell team has a wealth of knowledge and experience in creating stock trading products. We know how to build a stock market website that will be in demand.
One of our clients, FXF, needed exceptional standardization, unification of the cryptocurrency trading system, and a unique set of features to make the solution fast, simple, and convenient both for beginner and advanced traders.
FXF aggregates offers from participating exchanges, thus, providing users with access to the best buy and sell prices. The project strives to empower the cryptocurrency community, providing traders with top-level transparency and an exceptional level of liquidity that the market couldn’t boast of so far.
As a result, we designed a platform with much-needed standardization and unification to the cryptocurrency trading system, making it clearer and faster for traders of any experience to use.
In both desktop and mobile versions, it is possible to observe oscillations on 4 markets simultaneously, see clear data sets, and track fluctuations on leading exchanges using one wallet.
- One account and one wallet for convenient use.
- Unique features combined in one platform.
- Ability to view 4 markets at the same time.
- Easy registration and KYC functionality.
- Advanced security.
- A desktop version + responsive design + advanced app to use the system on the go.
- Rich and user-friendly design both for beginner and advanced traders.
How to build a stock market website: Top Features
How to build a stock market website that will win the attention of thousands of beginners and professional traders? Of course, the platform must have certain functionality and features. Our team has compiled a list of top features for the stock market website. Let’s take a look at them:
In how to create a stock trading platform, success depends on functionality.
Giving the ability to establish a distinct user personal account is important for a variety of reasons:
- It contributes to a more customized experience
- Send customized suggestions
- It assists in gamification (required when you scale)
Demo account for training
This account will help users prepare for real trading without losing money. Take this feature seriously as the user experience will largely depend on it.
The presence of alerts
For users to always be aware of events, news and updates, they should receive regular alerts. Alerts indicate that you care about your users.
Every user should be able to get customized push messages. It might be when their chosen stock outperforms or underperforms. Or when a new firm is set to launch its initial public offering (IPO). Send notifications to leaders when someone follows them.
History and analytics
Make sure your users can view their deposit history. Create built-in capabilities to assist them in viewing their previous trading performance. This is critical in learning how to develop a stock trading platform. If clients can review their prior transactions, they can better plan their future ones.
24/7 technical support
In any unclear situation or when a problem arises, users should be able to contact support at any time for help.
Use of touch ID or face ID
This feature increases the platform’s security and gives users confidence that they will not have personal data leakage and, as a result, money.
By using this feature, users will be able to save a lot of time buying and selling stocks. Hence, they will be more active on the platform.
Current market news
A news feed feature will keep clients up to date on the social aspects of trading. It will encourage people to interact with one another. Traders may exchange their knowledge, trading strategies, and success metrics.
Training and onboarding
Onboarding is one of the most important features of the stock trading platform. Users need to be shown what the platform is capable of and how they can use it to achieve their goals.
Every user should be able to search for a certain stock and company readily.
Guide on How to Build a Stock Market Website
How to create a stock trading platform and what development stages should you go through? We have compiled a detailed guide that will help you learn how to create a stock trading platform in more detail.
How to create trading platform: Idea & innovations / validation
Everything always starts with an idea. However, your idea of a future product shouldn’t become another product copy. You always need to improve what already exists or solve problems in another way.
That is, you need to add something new and innovative to your product. Thus, you can definitely distinguish your product from hundreds of other similar ones. The aspect of novelty and innovativeness is crucial, especially in the digital world.
If you’re building a stock trading platform from scratch and dealing with sensitive information like user data, social security numbers, or credit card credentials, you must first address the legal aspect.
If you operate in the United States, you must adhere to the Securities and Exchange Commission’s guidelines. Trading platform developers in Europe assess if their implementations match the regulatory criteria of the General Data Protection Regulation (GDPR).
Among the other regulatory entities and investor protection initiatives are:
- SIPC – Securities Investor Protection Corporation
- NFA– National Futures Association
- FINRA – Financial Industry Regulatory Authority
How to create a trading platform: Business plan
How to build a trading platform and be successful? Good planning is always the key to success. You need to describe your idea in the form of a business plan, including monetization and steps to achieve the goal.
If you need help with business planning or monetizing your product, we will be happy to help you. Feel free to contact us. Very often, you should start creating a new product with an MVP. You can read more about this in our article How To Create a Minimum Viable Product (MVP)? [Startup Case Studies].
How to create a trading platform: Product requirements
Next, you should create a document with the requirements for your project. This document is needed for the design and development team that will work on your project. Usually, the design requirements (specifications) document includes the following things:
- Full project overview
- Primary needs and goals
- Target audience
- Functional requirements and desired set of features
- Aesthetic aspects
- Non-functional details
- Recommendation and prohibitions
You can find more about creating such a document in our article How To Write The Design Specification? [Quick Guide].
How to create a trading platform: Team Hiring
When choosing a team for your project, there are two options: in-house team and outsourced team. What is the best team to build a stock trading website?
Of course, it all relies on your time and financial constraints. In-house development will cost you significantly more, but the main advantage is that you will be able to collaborate with a design and development team.
Outsourcing is becoming more popular, and it has proven to be quite successful even when there is a time difference, communication is done online, and so on.
Nowadays, product development businesses use the best management approaches and an agile strategy to tackle these difficulties successfully. To be honest, it is the twenty-first century, and everyday communication is not an issue. Our Northell team is now available for you and your project.
Contact us to discuss the details of the project. We know how to build a trading platform that will win hearts of many traders and investors.
How to create a trading platform: Product Discovery
Product discovery includes drawing up the business logic of your product and competing research that will help you create a solution that will outperform other players in the market. You also need to determine what problem your product will solve, whether people will buy and use your product and whether your solution will work.
The more information you collect and prepare at this stage, the easier it will be for your design and development team to understand what kind of product they need to create. It will also increase the likelihood that you will be able to create a truly valuable solution.
While working on the FXF project, the discovery phase included understanding the client’s needs and defining and interviewing the target audience.
How to create a trading platform: UX Design
How to build a trading platform that will be user-friendly? We mentioned earlier that UX is vital for any product. Here are 6 steps to successful UX design:
- Study the users. The first step is to understand exactly who you are designing for. There are many methods to get information about your users. Combine quantitative and qualitative analytics and feedback data. Only by understanding your users’ goals, needs, and desires can you create an effective design for them.
- Define scenarios. Next, based on your research, be clear about what you (or rather your users) are trying to achieve. Create the perfect journey map for your client and identify any possible barriers on the way. Define as many scenarios and uses as possible for your product/service.
- Formulate an idea. Gather together all the collected information and start brainstorming. Create a storyboard or mood board to convey the problem you are trying to solve visually.
- Create a prototype. Prototyping is the most effective way to bring your idea to life even before the development stage. Lay out a mock-up of the interface with all its important components on paper, and then ask as many people as possible to replay the script. This process will help you identify any potential barriers or unexpected user behavior that you may have overlooked.
Working on the FXF project, our prototyping stage included:
- Style design
- Customer journey map
- Site map
- Responsive design
- Mobile app design
Here’s what we got as a result.
- Test it. Testing is vital for UX design. It doesn’t have to be a long, laborious process. According to the Nielsen Norman Group, 85% of all problems on your site can be detected by just 5 users.
- Repeat steps as needed. Depending on your testing results, you may need to go back to the idea stage and find some other alternative solutions. The UX design process is iterative: some steps need to be repeated to achieve the desired result.
FXF project was projected to meet the needs of both beginner and advanced traders, so we created different user personas to address the requirements of both auditories.
After the detailed research and in-depth interviews, we found that all the existed cryptocurrency exchange aggregators and similar solutions had the following characteristics that could be avoided/ improved in the FXF project:
- Multiple accounts
- Multiple wallets
- Multiple KYC (identity verification procedures)
- Multiple interfaces
With these drawbacks in mind, we built a complex customer journey map that covered all the actions and desired functions and a site map that summarized the app architecture.
How to create a trading platform: UI Design
How to build a trading platform that will be visually attractive for users? The UI is focused on making the user experience a pleasant experience. UI design is all the elements that the user sees and interacts with. For example:
- text fields
- search bars
The main color used in the FXF project is black that is associated with top-level products. The logo was made gold to reflect the value and the premium quality of the product.
Also, since red and green are the colors widely used in trading charts and recognized by all users, we utilized them for graphics to make the design intuitive and user-friendly:
- We designed a desktop version of FXF.
- We worked on the site’s responsive design, ensuring that users could conveniently access the aggregator from mobile devices.
- We created a mobile app that allowed for an enhanced user experience.
Although it was challenging to fit all the markets into a small screen, we came up with a design solution that allowed for the convenient displaying of all the essential information.
How to create a trading platform: Front-end Development
The term “frontend development” refers to the creation of the application’s user-side, including the screens, the interface, and everything the user will interact with.
Hiring an outsourcing software development firm makes it easy to obtain your trading platform development. You will also get access to skilled developers who will do the task more quickly and efficiently.
How to create a trading platform: Back-end Development
Back-end development largely entails the creation of your desktop-based application’s server and database.
This necessitates the use of a skilled back-end developer or someone who is well-versed in database planning and structuring and website development services. All functionality such as alerts, sign-in, and transactions will be created during this phase.
How to create a trading platform: QA
How to build a stock market website without any bugs and mistakes? The answer is to test the platform well initially. It is impossible to underestimate testing as the process of identifying flaws in a platform or website, particularly in Fintech.
Financial technology cannot afford flaws because they risk causing clients to lose money. The more problems quality assurance engineers discover the more likely the final product will function properly.
The structure of the testing process is determined by the trading platform development business or the client’s needs and may include:
- Functional testing. Financial platform test cases are carried out with the use of fake cards. These cards attempt to improve payment quality, speed, etc.
- Performance testing. The process of determining the system’s speed, scalability, and stability is known as performance testing. The speed is tested to understand the velocity of app responses, while scalability reveals the maximum number of people who may use the app simultaneously without the app crashing. Furthermore, stability indicates if the program operates well under varied loads or if there are any potential flaws.
How to create a trading platform: Launch
When you have successfully gone through all stages, you can launch your product.
Do you think this is the end? The work on the product has just begun! There are still many iterations ahead of you, and you need to be prepared for this.
After the release of the product, your task is to collect feedback from the first users quickly. How to do it? For example, conduct a survey or interview. After receiving feedback, it will be clear what needs to be changed: something will have to be added, and something will have to be permanently removed.
Don’t be discouraged if your product gets a lot of negative reviews – this can be used to improve your product.
How to create a trading platform: Scaling
Scaling is the process of fine-tuning the specifics of a digital product in order to make it the best it can be under current (and predicted) market conditions. It is dependent on frequent modifications and adaptations, including the introduction of new features, as specified, which are evaluated with the product’s user base.
Scaling is about taking full use of the market’s prospects when the product has already been proved fit for the market.
How to Build a Stock Market Website: Cost & Timeline
How to build a stock market website and not lose lots of money? To do this, you need to know how much the stock trading platform can cost and how long the development can take before starting development.
The cost of creating a stock trading platform can vary greatly depending on the direction of the business and the required functionality, so it is impossible to give an exact development figure.
However, we have compiled a table of approximate prices for different stages of broker application development, depending on the country in which the design and development team is located.
|Product discovery||UI/UX design||Development||QA|
Let’s also consider how long it takes to build a stock trading platform. For your convenience, we calculated how much time each stage of broker application development will take for different sizes of businesses:
Enterprises: 60-120 hours.
Middle-size project: 30-60 hours.
Small projects: 15-30 hours.
Enterprises: 100-250 hours (UX), 200-300 hours (UI).
Middle-size project: 60-100 hours (UX), 55-110 hours (UI).
Small projects: 30-45 hours (UX), 25-50 (UI).
Enterprises: 20-50 hours (technical documentation), 250-500 hours (frontend), 300-600 hours (backend).
Middle-size projects: 12-25 hours (technical documentation), 120-200 hours (frontend), 130-210 hours (backend).
Small projects: 8-10 hours (technical documentation), 70-90 hours (frontend), 80-100 hours (backend).
Enterprises: 80 hours.
Middle-size projects: 40-80 hours.
Small projects: 40 hours.
Having this information in mind, you can calculate the approximate development cost and timeline of the entire project.
How to build a stock market website: Summary
How to create a stock trading platform? The world is continuously changing as a result of technological advancements, and the trade industry is no exception. Whether you are a trader, broker, or customer, the electronic trading platforms may appear complicated. However, stock market software might make one’s investments even more profitable.
So, while looking for a trading platform developer, consider all of your possibilities. Before selecting a stock market software provider, look for case studies, innovative and cutting-edge design talents, and a stronger communication platform.
Have an idea but don’t know how to build a trading platform? Let us know about your difficulties, and we’ll assist you in any way we can! We know how to build a stock market website.
What team do I need?
PM (Project Manager)
BA (Business Analyst)
What technology stack do you recommend?
What problems can I face?
- lack of attention attached to usability and UX;
- software bugs;
- unnecessary functionality;
- poor focus on target audience research.
Is MVP mandatory for me? If so, what functions do I need?
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