May 14, 2024

How to Create an Investment App: Detailed Guide

Ever wondered how those sleek investment applications on your phone work? The ones that let you track your portfolio, buy and sell stocks, and maybe even get a little financially savvy along the way? Well, buckle up, because we're about to take you behind the scenes!

Let’s just look at the numbers. The global mobile investment app market is projected to grow to a staggering $3,409bn by 2028, growing at a CAGR of 5.13% from 2024.

That's a whole lot of people looking to manage their money on the go! And with more and more millennials and Gen Z-ers getting into investing (a whopping 43% of them, according to a Bankrate survey), the demand for user-friendly, feature-packed investment services is only going to keep growing.

But here's the thing – creating an investment application isn't child's play. It takes some serious know-how to build an app that's user-friendly, secure, and packed with all the features an investor wants. That's where this guide comes in. We'll walk you through every step of how to create an investing app. By the end of this guide, you'll have all the knowledge you need to create an app that'll revolutionize the way people invest their hard-earned money.

What is an Investment App?

Before diving into how to build an investment app, let’s understand what it is. An investment app is a mobile solution that allows users to buy, sell, and manage various financial instrument types. These are stocks, bonds, mutual funds, and more. It is a convenient platform for individual investors to access financial markets and make trades directly from their smartphones or tablets.

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

The key appeal of investment applications lies in their accessibility and ease of use. Gone are the days when investing was a complex, intimidating process reserved for professionals. These applications have democratized investing. They empower everyday people to take control of their finances and build wealth on their terms.

Market Overview of Investment Apps

The investment application market has exploded in recent years. Several key factors are propelling rapid market expansion:

• Consumers have an increasing appetite for user-friendly mobile trading and investing tools.
• Apps are enhancing capabilities with cutting-edge AI, machine learning, and blockchain technology.
• Supportive regulations and economic policies are fostering a positive environment.
• Improving economic conditions are boosting individual investing power.

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

Cryptocurrencies have attracted investors with their innovative blockchain technology and potential for lucrative gains. As crypto adoption grows, this segment is poised for rapid expansion.

When it comes to platforms, mobile dominates with over 60% market share. However, web-based platforms are rapidly growing too, offering easy accessibility across devices. Android retained the largest operating system share at 50.7% in 2023. It benefits from its massive global user base and developer-friendly customizability. Yet, iOS is gaining ground quickly. Apple provides robust security features and a premium user experience. These are the key considerations for financial software.

Looking ahead, investment software is positioning itself at the forefront of the financial markets' digital transformation. As technology evolves, these apps will unlock new opportunities. They combine intuitive platforms, innovative trading tools, and data-driven insights to empower investors worldwide.

While the future looks bright, the industry faces challenges. They are high investment risk and security concerns over data breaches. Add to this the lingering impacts of COVID-19 volatility and financial strain.

Types of Investment Apps

If you want to know how to make an investment app, you should also understand the different types of these applications.

Banking

Many banks offer basic investment solutions. They let you sell and buy stocks, bonds, and funds. They connect to your bank account for easy transfers. Banking apps provide stock prices and trading, but little analysis or advice. The main benefit is managing investments and banking in one place.

Robo-Advisors

Robo-advisor applications use computer algorithms to manage your investments. They ask about your goals and risk tolerance. Then, they create and manage a diversified portfolio for you. Robo-advisors are low-cost and require minimal effort from you.

Hybrid

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

Exchange Platforms

Exchange platforms are apps that connect you directly to stock and cryptocurrency exchanges. They let you buy and sell investments yourself. These solutions are for hands-on investors who want full control over their trades.

Human advisor apps

Most high-end investment applications provide dedicated human financial advisors. You can video chat or message advisors for personalized investment advice. These services are useful for those who want a personal touch and ongoing guidance. Human advisors offer customized strategies and one-on-one coaching. Yet, this personalized guidance comes at a higher cost compared to robo-advisors.

Important Features of Investment Apps

Investment apps are software programs that allow you to buy, sell, and manage different types of investments. The best solutions have several key features to make investing easy and convenient.

Registration and Onboarding

A smooth registration and onboarding process is critical. Users should be able to sign up quickly and verify their identity. They should be able to link their bank accounts or funding sources with minimal hassle. Clear guidance and tutorials can help new investors feel comfortable getting started.

Personal Profile

Each user should have a personalized profile. It helps track their portfolio, investment history, watchlists, and preferences. This allows the app to provide personalized recommendations suited to users’ needs. Allowing customization of the app's look and feel can enhance engagement.

Trading Management

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

Analytics

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

Virtual advisor

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

News and Social Feeds

Applications curate relevant financial news and research reports. Integrating social trading communities where users can discuss strategies can also enrich the app's utility. Social feeds allow 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 channels to assist with any queries or issues.

Investment Calculator

Calculators help users plan for the future by projecting potential investment growth. It is done 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 check out.

Hargreaves Lansdown

This is one of the biggest investment platforms in the UK. Their solution lets you buy and sell funds, shares, investment trusts, and more. It has a simple interface that's easy to use. You can manage your whole investment portfolio through the software.

AJ Bell

AJ Bell gives you access to a wide range of investments. These are stocks, funds, and pensions. The application lets you easily track the performance of your investments. It also has plenty of research and analysis tools built in.

eToro

eToro is centered around social trading. You can copy the investment portfolios of top traders on the application. It makes it easy to invest in stocks, cryptocurrencies, commodities, and more. The interface of this software is very user-friendly.

PensionBee

As the name suggests, this product focuses specifically on pensions. PensionBee lets you combine all your old workplace pensions into one simple online plan. You can manage and top up your pension through a straightforward application.

Trading 212

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

Monetization Strategy

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

Subscriptions

One popular approach is to offer a free basic app, but charge a monthly or yearly subscription fee to access premium features. The free version could include basic portfolio tracking and market data. Subscribers get advanced analysis tools, research reports, alerts, and more data.

In-app purchases

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

Advertising

Free applications can generate revenue by displaying ads. This works best if your product has a large user base. The downside is that too many ads can create a poor user experience.

Transaction fees

Some apps take a small percentage fee from transactions executed through them. This could apply to trades, fund transfers, or other transactions. Just be sure fees are reasonable and disclosed.

Paid download

The simplest approach is to charge a flat fee to download the application. Yet, paid solutions need to offer something compelling over free alternatives to entice users to pay upfront.

Data subscriptions

For apps centered around providing 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 mix that aligns with your app's features and target users. Freemium models work well to get users into the app first, then upsell premium services. We would advise you not to overdo ads or fees that degrade the user experience.

How to Create an Investment App: Steps to Follow

Creating investment software requires careful planning and execution. Investment applications deal with people's money, so it's crucial to get it right. Here are the steps to follow when building an investment application.

Step 1. Conduct Market Research

You need to understand the market and your potential users before you start coding. Research existing investment applications and see what features they offer. Identify gaps in the market that your product could fill. Look at user reviews to understand pain points. This research will help shape your app's unique value proposition.

Step 2. Choose a Monetization Strategy

Determine how you will earn money from your investment application. Above, we covered popular strategies. Consider your target users and what they would be willing to pay for. Having a clear monetization plan is critical for long-term sustainability.

Step 3. Cooperate with a Qualified Development Team

To create a successful product, you'll need a skilled development team. Thoroughly vet candidates to ensure they have experience 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 must-have features for your application. Core features may include account funding, portfolio tracking, stock trading, and market data. Advanced features could include social trading, robo-advisors, and advanced charting tools. Prioritize features based on resources.

Step 5. Create an Attractive UI/UX Design

Your app's UI and UX design are critical. The product must be intuitive and easy to navigate. Work with professional designers to create a clean, modern interface that guides users smoothly. Use consistent visual cues and ensure key information is quickly accessible.

Step 6. Choose the Right Tech Stack

You'll need to select the appropriate technologies to build your investment app. Common choices include React Native for cross-platform solutions or native development with Swift for iOS and Kotlin for Android. You'll also need robust backend technologies and invest in security best practices. Choose proven, well-supported technologies.

Step 7. Release your app

You're ready for launch once your application is built and rigorously tested! Submit your solution to the iOS App Store and Google Play Store. Promote your application through investing communities, social media, and content marketing. Actively seek user feedback and update your software regularly based on insights.

How Much does it Cost to Build an Investment App?

The short answer is: it depends on a lot of factors. The main driver of costs is the feature set and overall complexity of your investment application. Supporting multiple platforms like Android, iOS, and web apps will add significant costs compared to building for just one platform.

Once you've nailed down the feature set, the next big factor is the rates you'll pay developers 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 etc): $30 - $80 per hour
• Latin America: $40 - $100+ per hour

Working with freelancers or agencies in Asia could cut costs dramatically versus hiring in the U.S. However, you may face challenges with communication, time zones, cultural barriers, etc.

Eastern European agencies will charge $50 - $100 per hour. Creating an investment application is a major undertaking with significant costs, ranging from $30K on the low end to over $300K for complex software. You can plan and budget by understanding the major cost drivers like features, platforms, and developer rates.

You can reduce costs substantially by hiring freelancers. 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 right execution partner, like Stfalcon, you can build a world-class investment application to bring your vision to life.

Conclusion

Developing a successful investment app from scratch is no easy task. It requires extensive planning, market research, professional design skills, 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 of developers, designers, and project managers specializing in FinTech solutions.

With more than 14 years of experience, we built applications following strict security protocols for different industries. Our developers have deep expertise with technologies like Swift, Kotlin, and cloud architectures. Our UI/UX designers create intuitive, user-friendly interfaces tailored for financial products.

We have a comprehensive understanding of regulations, compliance requirements, and industry best practices for investment app development. Our proven processes ensure your application launches smoothly while delivering the features your users need.

From concept to launch and beyond, Stfalcon can be your trusted partner for bringing your investment app vision to life. Save yourself the headaches and safeguard your app's success by contacting our team today. We'll ensure you create a standout investment software providing an exceptional user experience.

Building investment software is a complex process with many considerations. To provide some clarity, here are answers to a few frequently asked questions about how to create an investment app.