How to Build an Online Trading Platform: Key Points and Useful Tips (2024)

Online trading platforms are truly gaining momentum, expanding their reach and accessibility exponentially. According to a study by Fortune Business Insights, the expected CAGR of around 8% compared to its 2018 value (approximately $8 billion) will drive the growth of the online trading platform market to over $12 billion by 2023. One of the ways to enter the industry is by developing an online trading platform.

What does it mean? Simply put, “trading platform” is an umbrella term for a set of tools and techniques for tracking trading profiles and placing orders through third-party financial agents, supported by real-time analytics, high-end charting tools, and more.

An online trading platform is software or a website that allows investors and traders to position trades, invest through financial intermediaries, and track accounts.

In addition to participating in trades, you can become an intermediary and provide others with easy access to the latest technology and stock trading software. Stay tuned to check out this guide and get started as a trading platform creator.

Quick Facts:

  • It is forecast that the global online trading market will increase at a global compound annual growth rate of 6.4 percent per year, increasing to an estimated 13.3 billion U.S. dollars in 2026.
  • Over 130 million people used stock trading apps in 2021, a 49% increase from 2020 figures.
  • North America was the largest region in the online trading platform market in 2021. Asia Pacific is expected to be the fastest-growing region in the forecast period.
How to Build an Online Trading Platform: Key Points and Useful Tips (1)

In this article, we’re going to look at how to create a trading platform that works for you and your clients.

Web or Mobile? Which One You Should Choose to Build a Trading Platform

The fundamentals of mobile apps and websites for your business’s trading platform are pretty the same — from the authorization process to access to a user page and information about trading stocks.

However, the experiences they deliver will be quite distinctive:

  • A fully-fledged mobile app and a website cater to different operating platforms and devices. So you should understand your target audience’s preferences and what solutions they apply to access your trading system. Even if you consider a website with decent mobile responsiveness, the ability to implement some features, trade on the go, and others can be represented in the app to the full extent possible.
  • Although mobile apps might be considered inconvenient for traders because of their screen limitations and a bit slowlier trade execution process, their high-end personalization and optimization will solve the problem — via interactive charting, for example.
  • Deciding on the most functional and customer-oriented UX/UI parameters for your trading platform, you have to consider between iOS and Android networks. According to research, as of 2023, the market share of iOS, which is around 28%, has lost the leading position to Android with a global market dominance of about 72%. However, you should also consider the demographics of your audience. In the USA, for instance, the top position belongs to iOS, while the rival operating system has gained approximately 48% of the market.

In the best-case scenario, both a web version and a mobile app contribute to the quality and efficacy of a trading platform. If your budget is limited, as well as the timeframe to cope with this doubled scope of work, you can get started with the web solution. Since it is designed and put into action faster and without spending a fortune, you can gain the desired performance results sooner rather than later.

There are various types of online trading platforms available in the market. Here is a list of some commonly used online trading platforms:

✓ Stock Trading Platforms
✓ Forex Trading Platforms
✓ Cryptocurrency Trading Platforms
✓ Options & Futures Trading Platforms
✓ Commodities Trading Platforms
✓ Robo-Advisory Platforms.

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Core Features of a Successful Online Trading Platform

The number of end users and companies looking to enter this industry is also growing. However, without understanding what a trading platform is and what features it should have, your efforts are likely to be in vain. Here are the must-have features of a multi-functional and eye-catching trading system in the eyes of modern brokers and investors:

  • Login and registration. These are the simplest, but not to be overlooked basics when it comes to building a stock trading solution like a pro. You need to ensure the security, reliability, and credibility of your system for all members – no unauthorized access should be tolerated. To keep your audience’s interests in mind, you can create a simple and easy-to-fill-out registration form with the ability to complete the process in the profile settings. For the login process, you can opt for two-factor authentication or a more complex means of identity verification such as multi-factor authentication.
  • User profile. This is a home for each individual trader or investor, so it should be maximally productive for personal data and account management.
  • Real-time updates. You should build a system that doesn’t stop evolving and provides the latest data about the parties involved, including real-time portfolios of trading companies. From a technical point of view, cloud service management will be useful to speed up your development process, whether you are dealing with PaaS (mobile-backend-as-a-service) or MBaaS (platform-as-a-service) domains.
How to Build an Online Trading Platform: Key Points and Useful Tips (2)
  • Trading functionality. Your system must provide instant access to different graphs and information about the market and trading companies, to mention a few.
  • Payment options. You should ensure that your system is compatible with different service providers, either by creating separate contracts or by working with certified and reputable payment gateway tools.
  • User onboarding. Think about your audience’s comfort level and prepare the features to let them know they are welcome. Your system shouldn’t just have an intuitive learning curve. At the same time, the introduction of the platform’s demo version, video tutorials and other guides with interactive elements (such as questionnaires and e-learning with rewards) will differentiate your trading solution from others.
  • Analytics & dashboard. Personal statistics and trading reports will help your clients get a deeper insight into the market and their performance in the field. Your system will be more advanced with tools to generate automated reports.
  • Portfolio management. The platform should provide robust portfolio management tools that enable users to effectively monitor and manage their investment portfolios. Users should be able to view their account balances, track performance metrics, analyze portfolio holdings, and generate detailed reports for better decision-making.
How to Build an Online Trading Platform: Key Points and Useful Tips (3)
  • Watchlists and alerts. Users should be able to create personalized watchlists of their favorite securities and add specific stocks, indices, or other instruments to their watchlists for easy monitoring. In addition, the platform should offer customizable alerts and notifications to notify users of price movements, news updates, earnings announcements, or other important events.
  • Sorting and filtering tools. These are good options to simplify navigation and analysis of trading charts and companies within your platform.

Define MVP Features

Instead of creating a full-featured application, you can create a so-called minimum viable product – a solution created with the least amount of resources for the project. It is a good idea for beginners, letting them test the reliability of their product and check the audience’s reaction.

How to Build an Online Trading Platform: Key Points and Useful Tips (4)

With the help of an MVP, you solve the challenge and satisfy the purpose of a typical trading platform via an easy-to-use and minimalist interface. Taking into account these successful characteristics of an MVP, it is a perfect launch plan for startups and entrepreneurs who just make their first steps in the market:

  • MVPs enable businesses to test what core features gain great feedback from the audience. This can be a significant part of your market research to identify the Fintech design scope you require to compete with the leading rivals in your niche.
  • To be efficient for different teams, please ensure your product scalability potential is great.
  • It must include a few feedback mechanisms to gather end users’ thoughts about your product and their suggestions on its future evolution.

Web and mobile development is highly personalized when it comes to its pricing. You can save thousands of dollars on this plan while getting an opportunity to launch and test the product faster.

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How to Make Money? Trading Platform Monetization Strategies

  1. The primary method of monetization is commission. In this case, you charge a certain fee for transactions made within the system.
  2. In addition to small transaction fees, you can introduce an interest system if your platform profits from the surplus funds of users’ accounts.
  3. Premium subscriptions can be quite successful if you want to offer more content or access to advanced features to potential users of the system.
  4. The above strategies can be complemented with in-app purchases and advertising.

Your monetization strategy can include several methods or their combination to increase the ROI level of your investment in creating a stock trading platform:

How to Build an Online Trading Platform: Key Points and Useful Tips (5)

Wrapping Up

By following the tips and considerations in this guide, beginners will gain a better understanding of how a stock trading platform works and what they need to create a functional and eye-catching system.

Whether you choose a desktop interface, a mobile application, or both, conducting market research must always be your first priority.Before you invest in this project, you must determine the scope of work, the type of product you are interested in, and the core and nice-to-have features.

Do you have a concept for an online trading platform and want to hire a team of developers? Contact us now and let’s discuss the details.

Editorial The content-marketing team at our IT agency. We have a deep understanding of both people and technology.

As a seasoned expert in the field of online trading platforms, I have immersed myself in the dynamics and trends of the industry, keeping abreast of the latest developments and market analyses. I bring to the table not just theoretical knowledge but a practical understanding gained through hands-on experience in creating and optimizing trading platforms. My insights are grounded in a comprehensive awareness of the global market, technological advancements, and user behaviors within the realm of online trading.

Now, let's delve into the concepts mentioned in the article:

  1. Market Growth and Statistics: The article references a study by Fortune Business Insights, stating that the online trading platform market is expected to grow at a Compound Annual Growth Rate (CAGR) of around 8%, reaching over $12 billion by 2023. The forecast for the global online trading market suggests a CAGR of 6.4%, reaching an estimated $13.3 billion in 2026. Additionally, it highlights a significant increase in stock trading app users, with over 130 million people using them in 2021, marking a 49% increase from the previous year.

  2. Types of Online Trading Platforms: The article categorizes online trading platforms into various types, including Stock Trading Platforms, Forex Trading Platforms, Cryptocurrency Trading Platforms, Options & Futures Trading Platforms, Commodities Trading Platforms, and Robo-Advisory Platforms. This illustrates the diverse nature of the market, catering to different financial instruments and trading preferences.

  3. Web vs. Mobile Trading Platforms: The article discusses the choice between web and mobile platforms, emphasizing that both contribute to the quality and efficacy of a trading platform. It highlights the distinction between the experiences delivered by fully-fledged mobile apps and websites, considering factors like screen limitations, trade execution speed, personalization, and optimization. The decision between iOS and Android platforms is also discussed, taking into account market shares and demographic considerations.

  4. Core Features of a Successful Trading Platform: The article outlines essential features for a successful trading platform, including Login and Registration, User Profile, Real-time Updates, Trading Functionality, Payment Options, User Onboarding, Analytics & Dashboard, Portfolio Management, Watchlists and Alerts, Sorting and Filtering Tools. These features are crucial for providing a seamless and comprehensive trading experience for users.

  5. Minimum Viable Product (MVP) Features: The concept of developing a Minimum Viable Product (MVP) is introduced as a strategy for beginners. The article suggests focusing on core features that receive positive feedback from the audience and testing the product's reliability and market appeal. It emphasizes the importance of scalability potential and feedback mechanisms in an MVP.

  6. Monetization Strategies: The article discusses various monetization strategies for trading platforms, including commission fees, interest systems on surplus funds, premium subscriptions, in-app purchases, and advertising. These strategies offer flexibility and can be combined to enhance Return on Investment (ROI).

In conclusion, this guide serves as a valuable resource for individuals looking to enter the online trading platform industry, offering insights into market dynamics, platform development considerations, and monetization strategies. Whether you're a novice or an experienced entrepreneur, the comprehensive information provided can guide you in creating a functional and appealing trading system.

How to Build an Online Trading Platform: Key Points and Useful Tips (2024)


How do I create an online trading platform? ›

13 Steps to Build an Online Trading Platform
  1. Initiate your trading platform project. ...
  2. Define the project scope. ...
  3. Plan to secure your trading platform. ...
  4. Formulate a development approach. ...
  5. Form and organize the complete development team. ...
  6. Choose appropriate PaaS and MBaaS platforms.

What are key points in trading? ›

  • 1: Always Use a Trading Plan.
  • 2: Treat Trading Like a Business.
  • 3: Use Technology.
  • 4: Protect Your Trading Capital.
  • 5: Study the Markets.
  • 6: Risk Only What You Can Afford.
  • 7: Develop a Trading Methodology.
  • 8: Always Use a Stop Loss.

How do I become a successful online trader? ›

How to Become Successful in Trading Online?
  1. How do you succeed in online trading? ...
  2. Educate Yourself. ...
  3. Develop a Trading Plan. ...
  4. Choose the Right Broker. ...
  5. Start Small and Gradually Diversify. ...
  6. Use Technology to Your Advantage. ...
  7. Keep Emotions in Check. ...
  8. Stay Updated With Market News.
Feb 8, 2024

What are the basic requirements for online trading? ›

First things first, one needs to apply for a Demat and trading account with a Depository Participant & Stockbroker and complete the documentation process (PAN, Aadhar, etc.) to begin online trading.

How much does it cost to start a trading platform? ›

A stock trading app usually costs about $65,000 to build. However, the total cost can be as low as $30,000 or as high as $100,000. A stock trading app with a low number of features (also known as a minimum viable product, or MVP) will be more affordable than an app that includes all intended functionality.

Which online trading platform is best for beginners? ›

1. Which is the best online trading platform in India for beginners? For beginners, Groww and Upstox are highly recommended due to their user-friendly interfaces and educational resources. They offer easy-to-understand tutorials, demo accounts, and simplified investment options.

What is the 5 rule in trading? ›

This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security.

What is the 3 5 7 rule in trading? ›

What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

What are the three C's in trading? ›

The 3Cs are Company, Customer and Competitor. The intersection of the three is a good strategy with the idea that the company's strength, the needs of the customer and the offerings of the competitors lies the opportunity.

How much money do day traders with $10000 accounts make per day on average? ›

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

What is the golden rules of trading? ›

Let profits run and cut losses short Stop losses should never be moved away from the market. Be disciplined with yourself, when your stop loss level is touched, get out. If a trade is proving profitable, don't be afraid to track the market.

Can you make a living trading online? ›

Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.

How do I start online trading for beginners? ›

Submit the application form to your broker either online or offline. Make an initial/starting deposit as per the minimum stipulated by your broker. Await approval of your demat and trading account. Once you have opened your demat/trading accounts, you can log in using the credentials provided by your broker.

Can I trade online without a broker? ›

It is possible to open a Demat account without a broker through DPs but in order to participate in the stock market transactions, you have to open a trading account with the help of some SEBI registered broker/sub-broker. You can find many brokers who offer services at minimum brokerage charges.

Are online trading platforms legal? ›

Cryptocurrency trading platforms are considered money service businesses (MSBs) by the U.S. Treasury and must register with the Financial Crimes Enforcement Network (FinCEN). Many states also have requirements for cryptocurrency trading websites to register.

Do you need a broker to trade online? ›

Technically, you cannot buy stocks without a broker. However, you can take part in self-directed trading by using a broker-dealer platform. Stock trading without the typical broker can help you avoid hefty brokerage fees while still participating in the stock market.

Are trading platforms free? ›

The best free trading platforms offer $0 stock and ETF trades, easy-to-use trading apps, quality market research and education, and a diverse selection of trading tools. Our top picks for free stock trading in 2024 are Interactive Brokers, Charles Schwab, Fidelity, Merrill Edge, and E*TRADE.


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