The development of mobile technology has influenced many facets of our lives, including trading on the stock market. Every task you can think of can now be completed with mobile apps. Utilizing a fitness tracker and its help makes prudent investing decisions straightforward. The Robinhood app, which allows anybody with no previous experience to trade stocks and execute deals for free, is one of the best examples in this area. Stay with us, and we’ll walk you through the Robinhood app, how it earns money, and what it takes to create an app like Robinhood.
What Is the Robinhood App, Exactly?
The goal of the stock trading platform Robinhood is to democratize finance for all users by enabling anybody to start trading. This application allows users to invest in equities without paying a brokerage charge. Individual investors have to pay the brokers a substantial sum of money while trading stocks traditionally. Robinhood, which has no brokerage costs, made the process simple. This revelation drew people in like bees to honey. Along with reducing unnecessary spending, Robinhood has simplified trading for users without prior trading experience. Customers may choose various stocks from Tesla, Apple, Google, and others.
Although Robinhood promises to encourage individual investors and give them control over their trading, the limits it imposed on Thursday showed its real face. As a result, many individuals are no longer willing to deal with Robinhood.
The present situation of the market for stock trading applications
This makes market trading more accessible. Stocks, fractional shares, ETFs, precious metals, bonds, and other financial instruments are available. The market for online trading platforms was worth $13.1 billion in 2019 and is expected to be worth $18.3 billion by 2027. Demand is increasing, and well-designed applications with the proper market strategy are quite successful. Take, for example, Robinhood, which has grown by 4 million customers each year since 2017. In 2020, they earned $682 million in payment-for-order-flow revenue, a 514% increase over the previous year. TD Ameritrade, Webull, Ally, E*TRADE, Acorns, Stash, eToro, and Revolut are more prominent stock trading applications.
Robinhood has a tremendously lucrative business strategy that you may emulate.
This is the exciting part!
Unlike any other company, Robinhood did not follow the crowd and instead developed its business strategy, which is remarkable in many respects.
Robinhood’s earnings come from its premium service, Robinhood Good. This premium service costs at least $10 per month and provides double purchasing power and access to after-hours trading. Robinhood also profits from the money of its users. In other words, it earns interest on idle funds in consumers’ Robinhood accounts. And the catch mentioned in the first paragraph is finally here. Robinhood is free of commissions, as it should be. But the way it exists without accepting the commission is fascinating. Top trading businesses such as Apex Cleaning and Two Sigma pay Robinhood money whenever a customer invests using the Robinhood app. This implies that consumers acquire shares from trading companies rather than the stock market.
Why is it a good idea to create a stock trading software like Robinhood?
With a strong startup culture, many firms are going public. This new ecology has recently enhanced stock trading. According to a Bankrate Money Pulse poll, over 48% of Americans hold and trade stocks regularly. However, traditional stock trading strategies have several drawbacks. In comparison, a stock trading app like Robinhood has several benefits, such as cheaper costs, more control and flexibility, access to online tools, and real-time monitoring of assets. Because of these many benefits, it is evident that if you employ a FinTech app development business, design a stock trading app, and deploy it in the market, you will not be a victim of a thin market issue.
However, developing a FinTech app is more complex than it looks. You and the FinTech app development business must consider numerous factors, including the feature set. The next portion of this article will go through the top features you should include in your stock trading app. However, we will investigate the Robinhood user path to make this learning more logical.
Script for a Robinhood clone
Robinhood Clone Script will allow you to establish your commission-free stock trading and investment trading platform similar to Robinhood. Our Robinhood clone script is a completely customized stock trading app clone script that incorporates all of the essential Robinhood-like features.
We provide a Robinhood Clone, which enables you to create a 100% customizable commission-free stock trading/investing platform identical to Robinhood.
Characteristics of the Robinhood Clone
Robinhood clone is a ready-made stock trading platform solution that allows entrepreneurs to build a stock trading and investing platform quickly. Take a peek at some of its characteristics.
An Unmistakable Dashboard
A dashboard is a visual representation of all trading data for the trader. Order status, balance, charts, watchlist, holdings, and so on are all included. All data should be clear and understandable.
Trader’s Portfolio is a tool that allows the user to construct and manage his trading portfolio. This filter and sort functionality allow the user to search easily.
Stock data should be updated every second because stock values change instantly. Charts and stock quotes must be projected to make this data comprehensible to consumers.
Trading in Stocks
The most significant aspect of the Robinhood Clone App is this. This feature allows the user to purchase or sell stocks.
Transfer of Funds
The user must transfer money from his account to the app to trade. Only after transferring money into the app can the consumer purchase or sell a stock.
A watchlist is a tool that allows the user to keep track of stocks that he wants to purchase or sell in the future. The watchlist is editable at any moment.
This function allows the user to synchronize his trading account across all his devices and trade in any of them, whether a mobile phone or a laptop.
Scanners for Stocks
To make excellent money via your user, you must scan stocks to grasp the metrics and sell or purchase at the proper moment. This functionality assists your user.
The stock market has long been a fortress of the wealthy, and others have found it difficult to join. However, as trading becomes more digitized, individual traders want to see a chair with their name. Launching white-label trading and investing software like Robinhood will enable independent traders to follow your example.