As technology prompts people to invest in lucrative opportunities such as trading, it becomes necessary to create the perfect trading platform.
Developers and entrepreneurs will want build a trading platform to get market share, but it’s not easy. There are several things to consider and essential factors and characteristics to include.
Go with a platform type
A trading app or website makes it easy to access the respective market, and it is very profitable when done right.
When creating your trading platform, you can choose between cryptocurrency or traditional depending on the asset you want your users to trade with. Each has its own advantages and disadvantages. Cryptocurrency, for example, is an emerging and lucrative niche and holds great promise, while traditional transactions with age-old assets such as stocks, currencies, and EFTs, among others.
Cut the competition
Every respectable company will study the industry and identify its competitors. You should do the same and diligently see what works on their end and what could be improved.
Binance and Coinbase are some of the biggest names in the crypto exchange, and for traditional exchanges you have eToro, NetDania, and more. When doing research, think as a user and point out the right features and why they are popular, e.g. easy to use, allows high volumes etc. and areas for improvement e.g. slow , limited to a few actions and so on.
Identify the key features you want to integrate
All successful trading platforms will have some common key characteristics that make them attractive to the general public.
If possible, you should have push notifications, analytics, research, news feeds, and a user page, in line with basic things like the ability to place a transaction, a transactions and payments section, a listing of portfolios, filtering and sorting systems and monitoring of quotes. , among others.
Combine them all into one site or app and you have the beginnings of a good trading platform. You can also choose to add the ability to create a demo account or allow robo-trading.
Don’t make security an afterthought
In all things, security should be a top priority for trading platforms. However, there should be a fair balance between user security and convenience, as most would not want to stay in the authentication process for too long.
Whether you are building an app, a website, or a mobile platform, user security can be built in in a number of ways. It is an ongoing process even after you have completed your trading platform and launched it to the public.
What about the legalities?
Legality is a bit tricky when it comes to trading platforms, as different countries will require different licenses. To do this, you can take stock of where you want your platform to be introduced and obtain the appropriate license (s). Along the way, you’ll want to register with the country’s regulatory body so that you can be monitored in your day-to-day activities.
In addition, there are programs that protect the interests of investors – SIPC and FINRA are just a few names that you will want to join. It adds to your overall reputation as a trusted trading platform and is well worth the effort you put in.
A license represents a considerable expenditure of time and money. Your budget will be split between licensing and developing apps, developing websites, and hiring staff to manage and maintain the platform when it goes live.
The process of building a trading platform is ultimately a rewarding endeavor when done right. Take note of the things you need to learn or understand before continuing with the process so that you feel less pain points along the way.