stock trading app

People invest their money and income in different ways. Some individuals prefer to put their money in stock market purchasing shares of various companies, while others endow it in mutual and equity funds. According to the renowned Business News Channel CNN Business, about 54% of Americans invest either in stock market, mutual funds, pension, or retirement plans etc. Earlier, people were hesitant in investing their money in stock trading, but today there are various tools that help them in investment without any apprehension. In the conventional approach when people invested money through brokers, there was the element of risk involved in it. It is because the prices of the company’s shares keep fluctuating and the scenario of the share market remains uncertain most of the times. Why Develop a Stock Trading App for Investors? Numbers of Investors are soaring up Mobile applications are transforming the world activities making it more simplified, something which internet did when it made its inception. So, obviously, one of the prime reasons why you want to develop a stock trading app is the increasing number of global investors and traders as per the market research. According to Statista, about 14.1 million people in USA are using online methods to invest money in stock trading. Similarly, a survey by CNBC indicates that 93% of the stock is held by 20% household, whereas the rest 7% stock is owned by 80% households. If we talk about the target audience, it is estimated that individuals belonging to age group between 30 and 40 are keener to invest in stock trade. It is mainly because they look for good retirement plans and want their financial assets to reach a six-digit figure after they retire. And there are several broker companies that do not offer rightful services in the interest of their clients. Well, this has come out in a survey by Andreas Hackethal and Michael Haliassos of Goethe University in Frankfurt that points at the drawbacks of the stock trading companies and highlighting the need for stock trading apps. Lack of Performance It has been seen that individuals who hire the services of financial advisors and brokers receive about 5% less returns in comparison to others. This means if you are investing a large sum of money for a long span of time say 20 to 30 years, you would receive only 10 to 12% interest instead of 15%. This is getting you into a huge loss, which isn’t a good prospective. Lower risk-adjustment performance It has also been further seen that the brokerage companies claim to offer safe advice while investing in the stocks, but the actual picture is different. It lowers the Sharpe ratios, which tends to affect the performance, adjusting the risk factors. As a matter of fact, your returns get lowered due to the risk if availing the services of advisors. Keeping Self Interest on the Top Most of the investors and stock traders complain that the advisory companies act in their own interest most of the times not offering the best solutions and insights with respect to correct data. Therefore, looking these points, it becomes all the more important to create a stock trading app, which can help to monitor the data and analytics, allowing users to act wisely while taking the right decision. Moreover, it also maintains the transparency factor, which usually remains absent while consulting the conventional advisors. So, the users now are showing their interest in downloading and installing an app such as RobinHood, rather than going to potential financial advisors and availing their services. We can put forth some more relevant reasons why the trading app is the need of the hour. Managing the User Portfolio It has been perceived that the general investors and stock traders aren’t happy with the performance of their portfolio management. That is when the apps can come into play. In fact, we have also witnessed the quick growth of robo advisor, which is a software tool to manage portfolio. The apps help in notifying the investors to make the accurate choices in accordance with their portfolio. The users can take self decision on where to invest their money. Provides a Reliable Platform for Account Protection One of the probable reasons that stop people from investing into the stock trade is the risk factor. Yes, it involves risks because they won’t to share the confidential information such as account details with anyone. Now the stock trading app will offer their security comfort so that users can protect their personal information. Now, let’s say you have developed your app keeping in mind the US audience. In that case, it would be a plus point if you become a member of FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investors Protection Corporation) like RobinHood. It would further boost the trust element of the users in your app that their data would remain safe and protected. Send Real-Time Alert Data The stock trading apps are your trustworthy friends or the advisors who keep send you real-time data alert through push notifications so that you can know the real condition of the stock market. It would tell you which the stocks that are running high or low are and offer timely suggestions on where to put your money; all for free. Apart from that, the apps can also prove its worth by providing information on pricing filters and fastest execution etc. No Need to Open a Brokerage Account One of another benefits of building a stock trading account is that the users will not require to personally open a brokerage or a demat account for conducting the share trading. It must be noted that one has to pay a stipulated fee for opening a brokerage account and operating it. You can take decisions on what stocks to buy, hold for long or short term and which stocks to sell off. Features that Go into Stock Trading App The apps cannot be developed without the implementation of the features.