These days, anybody may enter the trading and financial sector. It’s not necessary to work as a Wall Street blue-collar employee to wring any value out of profitable transactions. NFTs, cryptocurrency trading, and business investing are all accessible to regular individuals with varying amounts of money. Here we’ll delve into creating a trading platform.
What’s your worth in this situation? You will need your trading software to act as a middleman between the traders and the market. How can one profit from software development trade, and how can one rectify the situation with a trustworthy bespoke trading software development partner?
A Trading Platform: What Is It?
It involves coming up with, creating, testing, and designing a new trading system. Depending on the extent of the work, the timeliness, and the available funds, launching a new platform might take one to several months. All features that have been planned and developed throughout this time must still be useful to traders.
Your team has to be well-versed in the creation of trading platforms, the interconnectivity of modules, and how to provide the highest degree of security possible to protect user assets and the platform from malicious usage.
Different Kinds of Trading Platforms
You must first choose between proprietary (prop) and commercial trading platforms before looking for a trading software development firm partner.
- Platforms for prop trading. Major brokerage firms provide prop trading systems that are customized to fit certain trading styles. The requirements and trading style of electronic brokerage models are mimicked in this kind of bespoke trading platform.
- Platforms for Commercial Trading. Day traders and individual investors are the focus of these trading platforms. They provide features like news feeds, charts, exchange portals, etc., and are simple to use. Robinhood and Binance are business platforms.
Market Overview
The international trade market is in a really good place right now. Its revenue was close to $10.21 billion in 2022. Moreover, it is anticipated to rise to an approximate value of $13.3 by 2026.
It’s also important to note that, ever since the epidemic started, trading has become more common. One of the most well-known commission-free trading applications, Robinhood, is a clear illustration of this trend. The network had 13 million yearly users in the first quarter of 2020, the year the epidemic started. This figure fell to 15.9 in 2022 after rising to 22.5 million in 2021, yet it is still rather remarkable.
How to Create a Trading Platform
Developing a stock or cryptocurrency trading platform is a complex undertaking but breaking it down into core components helps streamline the build and launch process. The main pieces to put in place include:
Data & Content
The foundation for any trading platform is fast, reliable data and content. This includes real-time and historical pricing data, news feeds, charts, and analysis tools like technical indicators. Assessing needs around latency, coverage, cost, and permissions is required when selecting financial data providers and content sources.
Trading Engine
A resilient trading engine sits at the platform’s core to instantly match and execute buy and sell orders while managing the order book and security holdings. It should scale to accommodate surges in volatility and transaction volume. Most platforms opt for third-party solutions versus building from scratch. Cloud offerings help reduce infrastructure costs as well.
User Interface
An intuitive, responsive web interface enables easy order placement across device types, with robust visualization for quotes, position management, and more. Allowing some UI customization to support individual workflows improves usability. Mobile apps complement browser access, unified via a single unified account system.
Account Management
Secure login, user profiles, document verification, payment processing, and prompt issue resolution comprise account management fundamentals. Segmenting account types by usage patterns allows personalized experiences for retail investors, active traders, and advisors.
Risk & Security
Robust measures safeguard assets and transactions, including encrypted connections, multi-factor authentication, role-based permissions, and anomaly detection. Scheduled auditing plus penetration testing proactively identifies vulnerabilities. Integrating with existing cybersecurity systems streamlines threat monitoring.
APIs & Integrations
Offering trading APIs allows partner platforms and in-house systems to directly connect for data sharing or executing transactions programmatically. Supporting common protocols like FIX speeds integration while extensive documentation enables developer self-service.
Conclusion
Creating a profitable trading platform requires a blend of technological know-how, marketing knowledge, and financial experience. It is crucial to carry out in-depth market research, choose the ideal development team and technological stack, and guarantee security and regulatory compliance. Building a trading platform that offers consumers a valued service and establishes itself as a leader in the financial sector is feasible with proper strategy and execution.
