The Robinhood stock trading app may or may not be familiar to you. This is an app that was built with only one promise in mind: Free Stock Trading. However, there is a big catch here that you should know if you are an entrepreneur looking to hire a fintech app development company to build a stock trading app similar to Robinhood.
Luckily, we’ve got it covered in this blog with Robinhood app features, funding information, success story, and fintech app development costs.
So, Without Any Delay, Let’s Get Started:
Robinhood – A Powerful Stock Trading App
Robinhood Markets Inc. is a Menlo Park, California-based financial services company. The company’s robust app Robinhood allows users to invest in public companies and exchange-traded funds without paying commissions.
According to TechCrunch, The Financial Conduct Authority has given Robinhood permission to operate its stock trading business as a broker in the United Kingdom. Vander Rutgers has been named president of Robinhood International and will be in charge of the company’s UK operations.
While Robinhood’s entry into the European market is unlikely to be as successful as its entry into the US market, FreeTrade, another free stock trading app, has already proved successful in Europe.
Robinhood Timeline
Despite the fact that many other stock trading apps have to boom the market, Robinhood remains the top stock trading app. It has taught people to trade effectively. In fact, the working model and success story of the Robinhood clone app inspired many entrepreneurs to create such a revolutionary fintech app.
The first article about Robinhood was published on Hacker News in December 2013, and it quickly went viral. As a result, several other major online media outlets, including TechCrunch, VentureBeat, and The Street, published articles about Robinhood and made them available on their websites.
- The company gained 100,000 users in just 30 days
- CNBC and Bloomberg TV interviewed both Robinhood founders from mid to late February 2014.
- As of September 2014, over 500,000 users had requested to join Robinhood.
- In January 2015, the company announced that Millennials made up about 80% of its users.
Robinhood Has a Very Profitable Business Model That You Can Emulate
Now comes the exciting part!
Unlike any other company, Robinhood developed its own business model, which is commendable in many ways.
Robinhood’s premium service helps generate the majority of the company’s revenue. This premium service, which costs as little as $10 per month, gives you double the purchasing power and allows you to trade after hours.
Robinhood is also making profits from the money of its users. In other words, it earns interest on the money left in users’ Robinhood accounts.
Why is Developing a Stock Trading App Like Robinhood a Safe Bet?
More and more companies are going public as a result of the thriving startup culture. In recent years, this new ecosystem has fueled stock trading. According to a Bankrate Money Pulse survey, nearly half of all Americans own stocks and trade them regularly.
On the other hand, traditional stock trading methods have several drawbacks. On the other hand, stock trading apps like Robinhood have several advantages, including lower fees, greater control and flexibility, access to online tools, and the ability to track investments in real-time.
Because of these myriad benefits, it is clear that you will not fall victim to a thin market problem if you hire a fintech app development company to build a stock trading app and implement it in the market.
Features that must be included in your Robinhood stock trading app
When a user opens the app for the first time, it prompts him/her to choose between Touch ID or Password as the app locking mechanism.
The user’s bank information is the next thing to be entered into the app. The user can transfer funds from his bank account to his Robinhood account. He can also make a regular deposit to his Robinhood account.
After adding all these details, the account is now ready, and it looks like this. It displays the amount you have in your Robinhood account as well as the amount you make daily. The user can also view the details of his past stock trading activities and earnings from the same window.
When a user clicks on a stock, it now displays all the details of the stock, such as the following. The user can buy that stock from this screen without switching to another.
How Much Does It Cost To Develop a Stock Trading App Like Robinhood?
A leading fintech app development firm responds to a large number of inquiries regarding fintech app development, including e-wallet app development, peer-to-peer lending app development, and stock trading app development.
Having highly qualified developers and designers by your side will help meet all your requirements to the best of their abilities, creating one of the most robust stock trading apps available. A professional partner can develop and deliver your fintech app in 45-55 business days for less than $10k using our rapid app development technology.
What Is The Revenue Model for an App Like Robinhood?
The Robinhood app, as we mentioned at the beginning of this article, allows users to trade for free. This begs the question: How does Robinhood make money if they charge no trading fees? What is the business model of the Robinhood app?
The premium offering known as Robinhood Gold is the main source of income for the Robinhood app.
Monthly fees, which range from $10 to $200, are largely determined by the level of the user, which in turn is determined by the amount of money in the user’s account. They deposit securities and cash in Robinhood in the same way that banks do with cash deposits.
How Can You Make Money In The Crowded Stock Trading App Business?
It isn’t much you can do in terms of design and development that the Robinhood app hasn’t already done. While you should try to keep the app’s stock trading industry standards on those two fronts, you can work around features to make your app much more versatile.
With Educational Components
The learning material you should provide to the user base that is part of the new investor class should be available to explain the fundamentals of the stock trading industry. So that they can begin their journey to become an expert investor.
Increase Research Capacity
You should provide users with the opportunity to learn more about the stock market, such as how it is progressing what events can increase or decrease the value of a stock, and the stocks they buy or their watchlists.
Forum For Discussion
The stock trading app should include a forum where users can discuss the market with other investors in the app and learn from each other.
