How to Build an App Like Robinhood

How to Create a Stock Trading App Like Robinhood

In the past few years, online trading apps have become a hot topic because they offer convenience and accessibility to stock trading. No more lengthy phone calls or tedious paperwork because people can manage their investments on the go.

Popular fintech apps like Robinhood have created this world. With over 22 million active users, this app has truly disrupted the traditional financial industry. One thing that has made Robinhood an attractive investment option is its zero-commission fee strategy.

So, if you are an entrepreneur who wants to create stock market app like Robinhood, you have come to the right place. This blog will discuss everything from cost to features, the tech stack, and more.

In this blog, we will cover:

  • Market analysis of trading apps like Robinhood
  • Must-have features of trading apps
  • How to create a stock trading app?
  • How much does it cost to create a stock trading app?
  • What are the best monetization strategies for trading apps?

Market Analysis of Trading Apps Like Robinhood

Did you know that Robinhood has acquired a total net revenue of $1.87 billion, making a 37% YoY increase? The app has also recorded 10.9 million monthly active users.

According to a report by Statista, the final quarter of 2023 contributed 471 million USD.

Market Analysis of Trading Apps Like Robinhood

Here are some more stats that show the market potential and success of trading platforms:

  • The global market size of trading platforms in 2023 was $9.55 billion. This figure is expected to cross $16.71 billion by 2032.
  • The market is forecast to show a CAGR of 6.4% from 2022 to 2030.
  • Asia-Pacific is the fastest-growing region in the online trading platform market.
  • In the UK, the online trading platform market is predicted to grow at a CAGR of 8% between 2022-2028.

Must-Have Features of Trading Apps

Stock trading apps are equipped with multiple functions to meet user expectations and demand. Below are some of the most useful features that you must include in your Robinhood-clone app:

 Must-Have Features of Trading Apps

1. User Authentication

When you build a stock trading app, include a simple and secure login option. It will allow users to register via numerous options, like phone numbers, email addresses, usernames and passwords, biometrics, and social media platforms.

Government-approved trade protocols, guidelines, and regulations must be part of the authentication. It should allow users to follow the rules when they create and use their accounts.

2. Dashboard

The dashboard is a crucial component of the Robinhood-clone app. You must hire skilled developers to make an educational and user-friendly app dashboard. Make sure your users can access the dashboard straight from the app homepage.

Important information like the watchlist, balance, holdings, charts, order status, and user information must be displayed in the dashboard design. Do not pack the page with too much information. Be direct and concise.

3. Investment Portfolio Management

Users can track and manage their investments via portfolio management. They can also view and update their portfolios, receive alerts for changes in their portfolios, and access historical data. Users can make informed decisions about their portfolios when they have a clear overview of their investments.

4. Stock Trading Feature

Your trading app must have this core functionality so users can buy and sell stocks. In addition, your app must be user-friendly for placing trades. It should have features like real-time market data, order types, and the option to set price targets and stop-loss levels. The feature can streamline the trading process of stock holding, buying, and selling.

5. Search and Filter

Search and filter allow users to quickly find the stocks they're interested in. Users should be able to filter based on market capitalization, sector, and industry. By including this feature in your app, you can help users identify and track their target stocks without delay.

6. Watchlist

Users can monitor their favorite stocks and receive updates when the market changes via a watchlist. It also allows users to add and remove stocks, view real-time data, and set custom alerts. When users keep track of their favorite stocks, they stay informed about market trends and can make timely trading decisions.

7. News and Media

Users should know about market trends and news so they can perform successful trading. For this, you must include a section for news and media, which provides users with relevant articles, videos, and podcasts. When you provide a comprehensive news feed, you allow users to stay up-to-date on market events.

8. Transaction Management

Your app needs a transaction management system with features like transaction history, order status updates, and cancel or modify orders. What’s more? This feature should also have options for setting custom alerts and notifications for specific transaction events.

9. Direct Order Routing

It's an advanced feature that allows users to place trades directly with the exchange, bypassing intermediaries. It includes options for market, limit & stop-loss orders, real-time market data, and order status updates. One can use this feature to ensure their trades are executed quickly and efficiently.

10. Push Notifications

Push notifications and reminders are real-time alerts that inform users of trades and market movements. When adding push notifications to your app, make sure it includes features like customizable alerts for price targets, stop-loss levels, market events, and reminders for upcoming events.

How to Create a Stock Trading App?

With its user-friendly interface and commission-free trading scheme, Robinhood has completely changed how people think about stock trading.

If you're wondering how to build an app like Robinhood, check out this in-depth guide, which covers all the necessary processes:

Steps to Building Stock Trading App

Step 1: Conduct Market Research

When creating a trading app, people skip this phase because they don’t understand the importance of conducting thorough marketing research. Make sure you don’t repeat the same mistake.

Before starting the development process, gain a thorough understanding of the stock market. You can conduct market research to predict future trends, identify a promising new feature, and choose a winning business model.

To simplify the process, try getting answers to these questions:

  • Why do you want to develop a trading app like Robinhood?
  • Who are you trying to reach?
  • What is your budget, and when would you like to launch the app?
  • What are your technical requirements?
  • Who are your competitors?

The answers to these questions will give you a basic idea of the market and help you plan your app development properly.

Step 2: Decide Your Development Approach

The second stage requires you to choose a reliable development strategy. You can either choose a pre-built module that allows you to quickly launch an app or build one from scratch.

If you are a startup with limited resources, you must use a pre-built module. While this approach will limit the scalability of your software, it will help you get started on your project in just one week. But if budget is not an issue, you can get an app developed from scratch.

Before starting with the development, decide on the operating platform that you want to launch your app on.

Step 3: Create UI/UX Design

After finalizing the app development approach and working on the roadmap, you should create a wireframe and prototype. Make sure the interface of your app is user-friendly, interactive, and easy to access.

Step 4: Choose a Software Development Team

Choose a reliable app development company so you can create a robust app like Robinhood without fail. Remember that the success of an app depends on the skills and knowledge of the developers you have hired for the project.

Make sure your team consists of a business analyst, project manager, app developer, UI/UX designer, and quality assurance engineer.

Step 5: Follow the Regulatory Requirements

When developing an app, you must adhere to regulatory rules to stay out of trouble and to lawfully operate your trading app. Your app should follow the anti-money laundering mobile app laws and requirements of various governments and financial organizations in various regions.

If you are planning to create a trading app in the USA, you must follow these legal requirements:

  • CFTC
  • FinCEN
  • BSA
  • NFAA

Step 6: Test and Deploy

The app development team can help you easily finish the coding process. After that, you can test the app to find possible issues. Your testing team should use both automated and manual testing approaches so your app can function as intended. After the testing is completed, you can deploy the app.

How Much Does it Cost to Create a Stock Trading App?

Are you wondering how much does it cost to build a trading platform like Robinhood? Well, it will roughly cost you between $12,000 and $15,000 and more.

Below are a few factors that affect the app development cost:

  • Trading app design
  • Tech stack and app type
  • Front-end and back-end
  • App features and functionalities
  • Launching platform
  • Development complexities and maintenance
  • Number of hired resources and their location

You can choose hourly-based engagement and pay developers accordingly. The picture below includes the price breakdown for each location:

trading app development cost breakdown based on location

Depending on the app's complexity, here’s a rough breakdown of the trading app:

  • For a simple trading app with basic features, you need to pay $10,000 to $15,000. Development time can be around three months.
  • For a mid-level trading app with the necessary features, you need to pay $15,000 to $20,000. Development time can be between six and eight months.
  • For an advanced trading app with the latest features, you need to pay $25,000 to $30,000. Development time can be more than nine months.

What Are the Best Monetization Strategies for Trading Apps?

Instead of charging commission fees, traders are charged each time they trade. This commission is far lower than that at traditional brokerage firms, which makes Robinhood an attractive option.

Below are three of the best monetization strategies:

Monetization Strategies for Trading Apps
  • Commission Fees: Besides earning money from commission-based trades, apps like Robinhood charge interest on cash balances kept on the app. After customers deposit money into their Robinhood accounts, the company uses it to invest in low-risk, short-term assets to generate a return.
  • Premium Features: Apps like Robinhood offer several premium features, but they require a paid membership. These benefits include 24/7 customer support, access to advanced research instruments, and other benefits. To access premium services, you can provide clients with a weekly, monthly, or yearly membership.
  • Selling Data to Third Parties: Apps like Robinhood generate revenue by selling market data to third parties. As the company has an extensive user base, it generates a huge amount of money on trades.

How Can Protonshub Help You Develop a Trading App?

Still wondering how to create a trading app like Robinhood? Well, to build a trading app, you need an in-depth understanding of the market. You also need a reliable company like Protonshub Technologies on your side.

With more than 5 years in the market, our team of experts has gained quite some knowledge about the fintech industry. Our experts have worked with companies of all sizes. No matter how simple or complex your project requirements are, you can always trust us!

So, don’t wait anymore. Reach out to us today and get started on your journey of building the best trading apps.

Frequently Asked Questions

Common features that you must add to the Robinhood-clone app are a watchlist, portfolio tracking, push notifications, educational resources, a user-friendly interface, and more.

When building the Robinhood clone app, you can use React.js or React Native for the front end, Node.js or Python for the back end, MongoDB or MySQL for the database, and Microsoft Azure or Google Cloud for cloud hosting.

Your trading app must follow various financial regulations, like FINRA and SEC. You must also obtain the necessary state licenses, implement robust security measures, and provide risk warnings to users.

You can maintain the security of the trading app by implementing measures like 2FA, SSL/TLS, and regularly conducting audits.

Common monetization methods for trading apps include margin lending, subscription fees, trading commissions, affiliate marketing, and referral fees.


Ekta Singh

"Senior Content Writer"

Ekta Singh is a rookie food experimentalist and k-drama fan with 4+ years of experience in writing. Bridging gaps between companies and customers through conversion-driven content is her forte. She believes in writing stories for a living and living life for exploring places.