The increasing use of smartphones has led to a decline in the importance of personal computers, making mobile apps an indispensable tool for completing tasks anytime and anywhere. The trend of investment apps continues to rise as more investors prefer checking their portfolios on their phones rather than going through the tedious process of launching a computer, opening a browser, and searching for a broker’s website.
Creating an investment app is a promising business idea as the market is still relatively untapped in 2023, providing ample opportunity for entrepreneurs to establish their presence and generate revenue. This article delves into the crucial features an investment app should possess, the process of how to create an investing app, and how to set yourself apart in the competitive market.
As of June 2022, the combined market capitalization of domestic companies listed on stock exchanges worldwide reached $105.07 trillion, a significant increase from the $89 trillion recorded in 2020. Despite the various negative events that transpired during and after 2020, the stock market has continued to trend upward, as evidenced by the statistics. Over the long term, the market consistently improves, increases in value, and moves in an upward direction. Therefore, creating an investment app is an excellent decision.
Types of Investment Apps
The primary objective of any investment app is to assist users in managing their portfolios and investments. While such apps function similarly, they can be classified into subcategories based on the level of support they provide to the user. There are only four subcategories:
Do it Yourself (DIY)
These apps provide only basic information about securities, such as the current stock price and the minimum number of lots to purchase. They lack information about a company’s financial performance, investment house forecasts, dividend calendars, and a stock glass, requiring users to seek additional information on third-party services. DIY apps are suitable for a target audience looking to build a long-term portfolio for at least 15-20 years. Such investors are not concerned with financial reports or current prices because they are investing in their future.
Robo-assist
Such apps work in conjunction with artificial intelligence. Neural networks are the main trend of 2023, so every company strives to keep up with the times. Investment neural networks analyze the market based on historical data, and they can also conduct surveys for users to better understand their investment strategy. Based on the information received, artificial intelligence can suggest a security for purchase or sale to the client, as well as adjust their portfolio. The value of the app and your services in the eyes of the client will be significantly higher.
Hybrid
This type of investment app combines the advantages of the previous two types. The user can rely on the advice of artificial intelligence or make a decision to buy or sell independently.
Human advisor apps
In contrast to neural networks, in this type of app, all analytics are conducted by professional market participants who have extensive experience in trading and have received education in this field. Currently, this type of app is a real killer feature. People are willing to pay huge amounts of money just to get advice or a recommendation from a professional investor.
Top Investment Apps
With the increasing popularity of investment apps, it’s crucial to stay up-to-date with the latest trends and features in the market. By studying the top investment apps, you can identify the best practices and incorporate them into your own app, giving you a competitive edge and providing your users with an outstanding experience. So, let’s dive into the most popular companies and features worth adopting.
Robinhood
Robinhood is widely known as one of the most popular investment apps that gained popularity by offering commission-free trading services. It is noteworthy that Robinhood was the first company to implement this model. By combining investment inquiries from users and executing them through third parties, Robinhood managed to lower the financial entry barrier for users to start investing. Moreover, the company has developed Robinhood Gold, which allows users to trade on margin, make larger deposits, and access professional reports from Morningstar. It’s worth mentioning that many of today’s investment apps have been inspired by Robinhood’s innovative model. To create an investing app, we recommend conducting a thorough study of their product. This will enable you to develop an app that meets market demand.
Binance
Binance is the pioneer cryptocurrency and NFT investment platform that stands out from competitors by offering a robust security system equipped with advanced encryption and an expanded user control system. In addition, Binance supports the Secure Asset Fund for Users, which stores 10% of all trading fees in a secure asset fund to protect a portion of user funds.
Acorns
Acorns encourage a regular investment habit by automatically investing the change from users’ purchases into their investment account. The app offers various investment strategies tailored to the investor’s portfolio, age, and risk tolerance.
Must-Have Features for Your Investment App
To set your investment app apart from the competition, it’s important to adopt some of the key features that have made other investment apps successful. Here are a few must-have features that will help create an investing app:
Account Profile
The user’s profile should include their name, surname, portfolio status, and what securities and currencies it consists of. Additionally, it’s worth specifying statistical data on profitability for the day, month, half-year, and all-time. This helps users to understand the profitability of their investment strategy.
Educational Programs and Demo Account
Many people start their investment journey by trial and error, but this is not the most effective method, with over half of investors giving up because they can’t figure things out on their own. That’s why we recommend integrating educational materials that explain how to trade, what types of assets exist, and other information that is useful for beginners. To help reinforce this information, you can also create a demo account where users can practice with fake money and test their knowledge.
Transactions
Investors frequently engage in routine activities such as buying, selling, withdrawing, and depositing funds. Your challenge is to create an investing app with a user-friendly interface that streamlines the transaction process.
Integration with External Financial Systems
Providing more options for account replenishment and fund withdrawal expands your target audience and increases your profits. Integrate support for banks, electronic wallets, and cryptocurrency wallets to attract a larger user base.
Variety of Financial Assets
Cryptocurrency, NFTs, fiat currency, stocks and bonds, and futures – these are only a few of the financial instruments investors trade. Integrate as many financial instruments as possible to satisfy all investors.
Analytical Data
Investors make decisions based on the received information. Provide as much information as possible to help your clients. Integrate forecasts from investment firms, financial indicators from company reports, dividend calendars, stock glass, and news related to the selected asset. These features will simplify investment for clients and foster long-term mutually beneficial relationships, so take them into consideration before you start to create an investing app.
Create an Investing App in 5 Steps
Step №1.
Conduct Market Research. Utilize your competitors’ apps to gain insight into their business models and features. Carefully analyze the mistakes and inconveniences to avoid in your investment app.
Step №2.
Select an App Development Agency. To choose a company to develop your investment app, start by examining its portfolio. The agency should have experience building multiple iOS and Android mobile apps for investors or bank account management. Consider client reviews to manage your expectations.
Step №3.
Develop a Minimum Viable Product (MVP). An MVP is a working version of your app with basic features. Building an MVP will help you test the app before launch and avoid unnecessary spending. Your development team will help you create an investing app and assist with key details, such as tech stack, APIs, and integrations.
Ensure the MVP adheres to safety and compliance regulations, such as securely managing user account data and complying with financial industry regulations, such as GDPR, SEC, FINRA, and DTCC.
Step №4.
Launch. At this stage, all the preparations are complete, and your app is ready for customers. The agency will manage the technical side of the launch while you monitor initial user feedback.
Step №5.
Maintain. This is an ongoing stage of improving the app. Update functionality and design based on user feedback.
It is worth taking a responsible approach to each of these points, and most importantly, take your time and create a high-quality product. Create an investing app and conquer new horizons, we wish you success!