What Makes a Good Stock Trading App?
By Space Coast Daily // September 30, 2022
The world has been completely taken over by stock market apps. In April 2021, 3.23 million people around the world downloaded the Robinhood app each month.
Another investment application called WeBull had 2.69 million users all across the world as of July 2021.
Trading applications are becoming increasingly popular because they level the playing field for investing, which was once the domain of the wealthy alone.
Because of this, the industry is particularly profitable. In 2021, the market was estimated to be worth $8.59 billion.
Naturally, this also indicates that there is a lot of competition. Apps must go beyond the basics to succeed.
The following are some elements that you absolutely need to have in order to succeed.
Multiple methods for logging in and authenticating oneself
The most critical techniques to ensure the safety of a trading application are for users to log in and be authenticated. And contrary to popular belief, it does not pose a problem for the vast majority of users.
According to the findings of a study conducted by PYMNTS, 71.2% of users of financial services report being satisfied whenever they are presented with app authentication. On the other hand, a study conducted by Onfido came to the conclusion that 43 per cent of consumers leave app onboarding owing to concerns about their digital identity and authentication.
Therefore, the optimal strategy is to strike a compromise between convenience and safety. You may accomplish this by providing users with a variety of user-friendly login and authentication options. For example, it’s not uncommon for apps to provide both fingerprints and multi-factor authentication to their users (MFA). Face ID APIs make them simple to implement.
The app from Interactive Broker goes even further by including a separate authentication tool. It allows you to verify not only your own account but also those you have permission to manage with the help of your mobile device.
Source ( https://stockapps.com/uk/ )
An additional prevalent method of identity verification is the use of a one-time PIN (OTP) delivered to the user’s cell phone number, as is the case with credit card transactions. The app from Interactive Broker goes even further by including a separate authentication tool.
Access on a variety of different devices
Users should always be able to access their trading account, irrespective of where they are or the device they are employing to do so. When it comes to business, time is crucial. The difference between making money and losing money in the stock market can be determined by minute-to-minute fluctuations in share prices.
For this reason, any trading software should think about implementing a cross-platform strategy. A mobile app and a web-based version ought to be available at the very least. However, they shouldn’t be exact copies of one another in every way.
Take note of how the various versions seem visually. This is due to the fact that, ideally, each one would fulfill a different function.
For example, the mobile app allows users to carry out deals regardless of their location. It is used for quickly checking the current share price of a stock, as well as for placing orders in order to take advantage of abrupt price movements or opportunities that are time-sensitive. When devices have smaller screens, they typically only contain the most fundamental capabilities.
Research is a necessary component of trading. After all, in order to determine whether or not a stock is worth investing in, you need to take into consideration its historical performance, its current financial position, its management, and various other metrics.
Because of this, many apps include a newsfeed feature, which compiles a list of all the recent events that may have an effect on the performance of the stock market. Users won’t need to navigate away to a different application or website to obtain the information they need.
Robinhood’s VP of Product, Josh Elman, says that for many traders, having quick access to financial data is a high priority.
Notifications that are intelligent
Notifications can significantly increase your engagement rates when used properly. According to the findings of one study, it may potentially increase retention by 190 per cent. Trading apps are exactly the same in this regard. Only in this context do alerts play a considerably more significant role because they enable users to better monitor the status of their orders.
It is important to keep in mind that trades are not performed in real-time; as a result, the price may change between the time an order is placed and the time it is completed. Users should never lose touch with what’s happening with their portfolios by keeping their notifications up to date.
For example, it can tell them how the price of a certain stock is changing so they can take the right steps.
For day brokers, who make their living off of trading, this is vital because they are the ones most affected by the hourly fluctuations in the markets.
Monitoring real-time market data
It’s possible that news and the general emotion of the market are crucial elements in profitable trading. However, nothing beats double-checking the stock price itself. Price ought to be considered in every decision at all times. After all, knowing the appropriate price at which to purchase or sell is essential to successful trading.
It is highly desirable that your app provides real-time price data due to the fact that the prices of some stocks change throughout the trading day.
It is essential that you acquire the appropriate stock market application programming interface (API) in order to put this into action in your trading app.
Not all of them offer real-time data, though. Some only show prices from the past and others have a set delay.
Multiple payment options
If users are unable to fund their trading accounts, the accounts are of no use. As a result, you ought to make available a variety of means by which users can deposit money into the application. Convenience is the primary factor in this case. Getting as much friction out of the funding process as possible makes for a great user experience.
The best approach is to link the app to the user’s bank account. Because of this, they are able to complete the process of transferring money in the fewest possible steps.