How to Create an Investment App: Detailed Guide

Are you curious about how those sleek investment apps on your phone operate? The ones that allow you to track your portfolio, trade stocks, and get a bit more financially savvy? Get ready because we're about to give you a behind-the-scenes look!

Let's examine the numbers. The global mobile investment app market is expected to reach an impressive $3,409 billion by 2028, growing at a CAGR of 5.13% from 2024.

That's a significant number of people wanting to manage their money on the go! With more millennials and Gen Z-ers entering the investing world (an impressive 43%, according to a Bankrate survey), the demand for user-friendly, feature-rich investment services is set to keep rising.

But here's the thing – creating an investment application is no simple task. Developing an app that is user-friendly, secure, and equipped with all the features investors desire requires considerable expertise. That's where this guide comes in. We'll take you through every step of building an investing app. By the end, you'll have all the knowledge needed to create an app to revolutionize how people invest their hard-earned money.

What is an Investment App?

Before diving into how to build an investment app, let's clarify what it is. An investment app is a mobile solution that enables users to buy, sell, and manage various financial instruments, such as stocks, bonds, mutual funds, and more. It provides individual investors a convenient platform to access financial markets and execute trades directly from their smartphones or tablets.

Investment apps offer portfolio tracking, real-time market data, and trading capabilities. Users can monitor their investment performance, receive alerts on market movements, and execute buy/sell orders with just a few taps. Many services also provide educational resources, analytical tools, and news updates to help investors make informed decisions.

The primary allure of investment applications is their accessibility and ease of use. Gone are the days when investing was a complicated, intimidating process reserved for professionals. These apps have democratized investing, empowering everyday individuals to take control of their finances and build wealth on their own terms.

Market Overview of Investment Apps

The investment application market has surged in recent years. Several key factors are driving this rapid market expansion:

• Consumers are increasingly seeking user-friendly mobile tools for trading and investing.
• Apps are advancing their capabilities with cutting-edge technologies like AI, machine learning, and blockchain.
• Supportive regulations and economic policies are creating a favorable environment.
• Improving economic conditions is boosting individual investing power.

The popularity of derivatives trading has been a significant growth driver, holding over 31% market share in 2022. Derivatives offer flexibility, allowing investors to speculate on price movements and hedge risks. Their versatility appeals to those seeking diversification and higher potential returns through leverage.

Cryptocurrencies have captivated investors with their innovative blockchain technology and potential for substantial gains. As crypto adoption increases, this segment is set for rapid expansion.

In terms of platforms, mobile leads have over 60% market share. However, web-based platforms are also rapidly growing, providing easy accessibility across devices. In 2023, Android held the most extensive operating system share at 50.7%, benefiting from its extensive global user base and developer-friendly customization. Meanwhile, iOS is quickly gaining traction, thanks to Apple's robust security features and premium user experience. These factors are crucial considerations for financial software.

Looking ahead, investment software is poised to lead the digital transformation of financial markets. As technology advances, these apps will unlock new opportunities, combining intuitive platforms, innovative trading tools, and data-driven insights to empower investors globally.

While the future appears promising, the industry faces several challenges. These include high investment risks, security concerns over data breaches, and the lingering impacts of COVID-19 volatility and financial strain.

Types of Investment Apps

If you want to learn how to create an investment app, you must understand the different types of these applications.

Banking

Many banks provide essential investment solutions that allow you to buy and sell stocks, bonds, and funds with easy transfers connected to your bank account. These banking apps offer stock prices and trading capabilities but typically lack in-depth analysis or advice. The primary benefit is the convenience of managing investments and banking within a single platform.

Robo-Advisors

Robo-advisor applications use computer algorithms to manage your investments. They gather information about your goals and risk tolerance, then create and manage a diversified portfolio. Robo-advisors are low-cost and require minimal effort on your part.

Hybrid

Hybrid investment software combines robo-advisor technology with access to human advisors. The application manages routine investments through algorithms while allowing you to consult human and financial advisors for personalized strategy guidance when needed. This approach blends automated portfolio management with expert advice.

Exchange Platforms

Exchange platforms are apps that connect you directly to stock and cryptocurrency exchanges, allowing you to buy and sell investments independently. These solutions are designed for hands-on investors who want complete trade control.

Human advisor apps

Most premium investment applications offer access to dedicated human financial advisors. You can video chat or message advisors for personalized investment advice, making these services valuable for those who prefer a personal touch and ongoing guidance. Human advisors provide customized strategies and one-on-one coaching. However, this personalized guidance typically comes at a higher cost compared to robo-advisors.

Essential Features of Investment Apps

Investment apps are software programs enabling you to buy, sell, and manage various investments. The best solutions offer several key features to make investing easy and convenient.

Registration and Onboarding

A seamless registration and onboarding process is crucial. Users should be able to sign up quickly, verify their identity, and link their bank accounts or funding sources with minimal hassle. Clear guidance and tutorials can help new investors feel comfortable as they begin.

Personal Profile

Users should have a personalized profile to track their portfolio, investment history, watchlists, and preferences. This enables the app to offer tailored recommendations that meet individual needs. Allowing users to customize the app's appearance can also enhance engagement.

Trading Management

The core functionality must include robust trading capabilities. Users should be able to research assets, place buy and sell orders, monitor real-time prices, and manage their holdings within the app. Top applications integrate with major brokerages for seamless trading.

Analytics

Investors depend on data and analytics to make informed decisions. The software should offer detailed performance metrics, charts, research reports, and analysis tools to help evaluate potential investments. It should display portfolio performance, asset allocation, diversification metrics, and projected returns based on the user's holdings and goals.

Virtual advisor

A virtual advisory feature can be extremely valuable for less experienced investors. It offers automated portfolio management based on individual risk profiles and goals. Virtual advisors use advanced algorithms to advise and recommend asset reallocations, tax strategies, diversification ideas, and opportunities suited to the user's circumstances.

News and Social Feeds

Applications curate relevant financial news and research reports. Integrating social trading communities where users can discuss strategies further enhances the app's utility. Social feeds enable users to follow other investors, discuss strategies, and share insights.

Customer Support

Top investment solutions provide quality customer service. They do this through live chat, email, and phone to assist with queries or issues.

Investment Calculator

Calculators help users plan for the future by projecting potential investment growth based on contribution amounts, time horizons, expected returns, and fees. These tools aid in setting realistic goals.

Best Examples of Investment Apps

Here are some of the top investment applications to explore.

Hargreaves Lansdown

This is one of the largest investment platforms in the UK. Their solution lets you buy and sell funds, shares, investment trusts, and more. It features an easy-to-use interface, enabling you to manage your entire investment portfolio through the software.

AJ Bell

AJ Bell provides access to various investments, including stocks, funds, and pensions. The application lets you easily track your investments' performance and offers various built-in research and analysis tools.

eToro

eToro focuses on social trading, allowing you to copy the investment portfolios of top traders on the platform. It simplifies investing in stocks, cryptocurrencies, commodities, and more. The interface is highly user-friendly.

PensionBee

As the name implies, PensionBee specializes in pensions. It allows you to consolidate all your old workplace pensions into one easy-to-manage online plan. You can manage and top up your retirement through a straightforward application.

Trading 212

Trading 212 is aimed at active traders and investors. The software charges no commission for trading stocks, ETFs, and other assets. It provides advanced charting tools and analytics. The downside is that it may be too complex for total beginners.

Monetization Strategy

One key question is how to make money from your application. There are a few main ways to monetize investment software.

Subscriptions

One popular strategy is to offer a free basic app while charging a monthly or yearly subscription fee for access to premium features. The free version could include basic portfolio tracking and market data, while subscribers can access advanced analysis tools, research reports, alerts, and additional data.

In-app purchases

Like subscriptions, you can offer a free app but charge for additional premium features or data access through in-app purchases. For instance, you could sell individual stock research reports or premium data packages.

Advertising

Free applications can generate revenue by displaying ads, which is most effective if your product has a large user base. However, the downside is that excessive ads can lead to a poor user experience.

Transaction fees

Free applications can generate revenue by displaying ads, which is most effective if your product has a large user base. However, the downside is that excessive ads can lead to a poor user experience.

Paid download

The most straightforward approach is to charge a flat fee for downloading the application. However, paid solutions must offer something compelling to attract users' attention and encourage them to pay upfront compared to free alternatives.

Data subscriptions

For apps that provide stock data and research, you could offer subscriptions for premium data packages or research services directly within the software.

The key is to find the right monetization strategy that aligns with your app's features and target audience. Freemium models are effective for attracting users initially and then upselling premium services. We recommend avoiding excessive ads or fees that could negatively impact the user experience.

How to Create an Investment App: Steps to Follow

Creating investment software requires careful planning and execution. These applications handle people's money, making it essential to get it right. Here are the steps to follow when building an investment application.

Step 1. Conduct Market Research

Before coding, you need to understand the market and your potential users. Research existing investment applications to learn their features. Identify market gaps your product could fill and examine user reviews to uncover common pain points. This research will help define your app's unique value proposition.

Step 2. Choose a Monetization Strategy

Determine your monetization strategy for the investment application. We've discussed popular methods above. Consider your target users and what they might be willing to pay for. Having a clear monetization plan is crucial for long-term sustainability.

Step 3. Cooperate with a Qualified Development Team

To create a successful product, you'll need a skilled development team. Carefully vet candidates to ensure they have experience in building secure financial apps. An experienced team will help you avoid common pitfalls. If your budget is tight, consider hiring freelance developers.

Step 4. Draw Up a List of Features

Based on your market research, compile a list of essential features for your application. Core features may include account funding, portfolio tracking, stock trading, and market data. Advanced features could encompass social trading, robo-advisors, and advanced charting tools. Prioritize these features based on your available resources.

Step 5. Create an Attractive UI/UX Design

The UI and UX design of your app are crucial. The product must be intuitive and easy to navigate. Collaborate with professional designers to create a clean, modern interface that guides users seamlessly. Use consistent visual cues and ensure essential information is readily accessible.

Step 6. Choose the Right Tech Stack

It is crucial to select the appropriate technologies to build your investment app. Standard options include React Native for cross-platform solutions or native development with Swift for iOS and Kotlin for Android. Additionally, you'll need robust backend technologies and should invest in security best practices. Opt for proven, well-supported technologies for reliability.

Step 7. Release your app

Once your application is built and rigorously tested, it's ready for launch! Submit your solution to the iOS App Store and Google Play Store. Promote your application through investment communities, social media, and content marketing channels. Actively solicit user feedback and regularly update your software based on insights gathered.

How Much Does it Cost to Build an Investment App?

The cost of developing an investment application depends on various factors. The primary driver is the feature set and overall complexity of the app. Supporting multiple platforms, such as Android, iOS, and web apps, will incur significant costs compared to building for just one platform.

After finalizing the feature set, the next significant factor is the rates you'll pay developers, which vary based on their location.

• U.S. developer rates: $130 - $200+ per hour
• Western Europe: $80 - $150+ per hour
• Eastern Europe: $50 - $100 per hour
• Asia (India): $30 - $80 per hour
• Latin America: $40 - $100+ per hour

Engaging freelancers or agencies in Asia could significantly reduce costs compared to hiring in the U.S. However, you might encounter challenges related to communication, time zones, and cultural differences.

Eastern European agencies typically charge between $50 and $100 per hour. Developing an investment application is a substantial project, with costs ranging from $30,000 on the lower end to over $300,000 for complex software. Understanding the main cost drivers, such as features, platforms, and developer rates, can help you plan and budget effectively.

Hiring freelancers can substantially reduce costs. However, dealing with freelancers might be risky unless you have the technical expertise to manage them.

In addition to developer costs, you'll need to account for:

• Design: Professional UI/UX design can cost $5K-$20K
• 3rd party tools and APIs: Stock data feeds, news APIs, etc.
• App store fees: $99/year for App Store, $25 one-time payment for Google App. Plus, commission rates at each store.
• Servers & hosting: Hosting can range from $50+ per month
• QA and testing: 15-25% of your project's total cost
• Maintenance & updates: Ongoing costs for new features, updates, etc.

With proper planning and the correct execution partner, like Stfalcon, you can build a world-class investment application to bring your vision to life.

Conclusion

Creating a successful investment app from scratch is a challenging endeavor. It demands thorough planning, in-depth market research, professional design capabilities, and robust engineering expertise. If you don't have an in-house team with proven experience building secure financial apps, consider partnering with Stfalcon. We are a highly skilled team comprising developers, designers, and project managers with expertise in FinTech solutions.

With over 14 years of experience, we have developed applications adhering to stringent security protocols across various industries. Our developers have extensive expertise in Swift, Kotlin, and cloud architectures. Additionally, our UI/UX designers craft intuitive, user-friendly interfaces customized for financial products.

We comprehensively understand regulations, compliance requirements, and industry best practices for investment app development. Our proven processes guarantee a smooth application launch and deliver the features essential for your users.

From concept to launch and beyond, Stfalcon can be your trusted partner for bringing your investment app vision to life. Contact our team today to save yourself headaches and safeguard your app's success. We'll ensure you create standout investment software with exceptional user experience.

Creating investment software is a multi-faceted process with numerous considerations. Here are responses to several commonly asked questions about developing an investment app.

FAQs about creating an investment application

What is an investment app?

It's a mobile application enabling users to trade and manage various investments, including bonds, stocks, mutual funds, ETFs, and more. These apps connect users to financial markets, offering tools to track portfolios, analyze investments, access data insights, and execute trades.

How much does investment app development cost?

The expenses for investment app development can vary considerably based on features, complexity, design requirements, and the development team's expertise. A basic investing app might cost $30,000 or more to develop, while more advanced apps with innovative features like robo-advisors or social trading could cost $100,000 and above.

How long does it take to create an investing app?

The investment app development timeline generally spans 3 to 9 months for most apps. Smaller solutions with basic functionality may be completed in 2 to 4 months. However, complex apps with advanced features and integrations could require 6 to 12 months or longer.

Originally published at Stfalcon.com.

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