Macro- and micro-investment by trading ETFs and stocks via KYC, PCI, DCC protocols attracts hundreds of millions traders due to the possibility of receiving stable active or passive income. In order to
develop a trading platform, you have to know the rules and regulations that guide IT specialists and financiers, add features that attract investors with different deposit sizes, and unique functionality by inserting calculated forecasting. Details on how to
create a Forex website, launch MVP and add analytics with visualization - in the material of Merehead.
ECN and FSC, CFD and ETF, floating spread, classes and indices in functionality
RoForex is an example of a successful trading platform, with narrow and wide spreads, the ability to copy the actions of successful traders and lightning-fast ECN functionality. The availability of micro-accounts and lots starting from 0.01 units is an incentive to attract more people. Premium investors have special conditions - floating market spreads, thousands of instruments, MT4 and MT5 platforms. On MT5 there is a warning that almost 76% of traders lose assets as a result of ignorance or inability to use exchange instruments. Testing strategies in the conditions of demo accounts is a necessary tool for transition to real trading.
Gold, energy and metals, fiat and cryptocurrencies - the more classes of investments on the platform, generally the better. Commitment to developing a mobile app based on the principle of “trading on your phone” is a key metric for owners looking to attract Generation Z, Millennials and Alpha investors into stock trading. To achieve FSC certification, a solid platform participates in execution quality programs, protecting traders from negative balances through multi-factor verification.
Multi-asset trading platform R StocksTrader is an example of functionality with 12 thousand options, including indices, CFDs and ETFs, dividend splits and mergers, in-depth multi-factor valuation, trend modeling and a built-in trader bot builder. An indicator of risk limitation is leverage with a limit of up to 1:20: if they offer terms between 1:100 and 1:1000, it is a confirmation of a possible “drain” of the trader. There is a possibility of copying the actions of successful traders, with filtering by profit growth in %, the ratio between profits and losses, the amount and minimum size of the deposit, the maximum drawdown on transactions, with the choice of asset type and duration of the trader's activity.
The subtleties of the stack for the trading platform and application
The right technology stack is half of the platform's success. Usually a foundation based on JavaScript or Python languages is used. But for serious and complex tasks C++ or C# are used: these languages are object-oriented, they perform tasks related to arrays and multiple functions, overloading of operators and templates. Dynamic, local and global variables initialized in aggregate or universal format, abundance of specifiers and qualifiers complicate the development of functionality of a complex platform, the price of which reaches $80-100 thousand, and the time of creation and launch reaches 10-12 months.
Special attention to frameworks: in the classic version, Node.js is used for the backend and servers. The UI/UX interface is developed on the basis of React.js or Angular. Both platforms work well together, without crashes and hangs, which is important in trading. Bootstrap framework is suitable for simple layout. The jQuery library with a convenient API is used in situations where JavaScript with HTML is the programming choice.
It is good to connect React Native to develop a mobile version for iOS or Android: the convenience of trading stocks and currencies “on the go” is no less valuable than multifunctionality. Electron.js is designed for developing desktop cross-platform applications due to the possibility of combining JavaScript options, HTML markup, style sheets, CSS formatting. In the personal cabinet a trader sees a portfolio with assets - stocks, metals and energy, fiat and cryptocurrencies. The movement of the rate up or down with numbers and in % indicates by what share and in money equivalent the capital increased or decreased. If the platform's tasks will include offering exotic assets such as memcoins or clicker game coins, it is necessary to indicate the capitalization, trend and rate for the selected period (month, year, from the date of listing).
Such solutions are based on market research and audience needs, with a look back at competitors. Looking at everything through the eyes of customers involves a clearly defined niche with many nuances. This includes the type of search engine: Apple owners prefer Safari rather than Google Chrome, in China it's Baidu or Bing, for security it's DuckDuckGo. These rules are relevant in situations when traders use macOS and Linux operating systems. Analytical reports, real-time rate charts, push notifications or dialogs, a news feed complete the interface of the platform with a price tag of $40 thousand. Protection of transactions and tax (personal) information is important in the backend, so it is better to integrate a payment gateway into the platform.
Attention to numbers and data, agility and visualization
Investing in futures and ETF funds using CFDs is a job that requires care and knowledge of the stock market. The higher the spread, the more likely you are to lose assets. That's why you can't do without multifactor modeling - taking into account the available database for a quarter or a year. The faster the processing of figures and the more accurate the chart with trend line indication, the more likely it is that traders will choose a platform developed on the basis of native code, with connected libraries and the possibility of embedding various tools.
Operations of buying units (shares of cryptocurrencies, like BITS and SATS), forming lists of selected identified tickers in the personal cabinet with history recording for each asset and types of transactions should be clear and understandable. Embedding AI functionality helps to make forecasts on how the exchange rate will change depending on external and internal factors. For example, just a week ago, after the listing, the NOT exchange rate started to grow sharply and reached the level of $0.012 by 08/24/24. But immediately after the arrest of Telegram creator Pavel Durov the rate went down and fell to $0.009. The situation is similar with the TON rate, which fell to $5.5 from almost $7.
It is a bearish strategy: a deliberate depreciation of the exchange rate so that traders who set stop-losses at the level of a drop of up to 10% were forced to close their trades, thereby further depreciating the exchange rate. Equally dangerous are bull traps, when the candle reaches a maximum, increasing the number of longs and stimulating the purchase of cryptocurrency according to the FOMO principle. Shorts formed on a rising trend form an imbalance and cause a gap with a breakdown of the support level. If there are options on the platform in the cabinet that warn small traders about a possible bull trap or bearish mechanics - footprints, resistance breakout indicators, volatility growth and the number of green clusters in candlesticks, riskiness of shorts or unjustified longs - then novice traders will definitely choose the “tit” in the wallet.
Monetization magnets, MVP verification and leverage boundaries
Security and compliance with licensing rules, fast performance and a user-friendly, uncluttered design are the foundation of the platform. The user training video will show you where and what to open, how to go to the desired section or category, what button to press or how to scroll. Connecting modules and libraries for support and resistance levels, protection methods, tick history for futures, stocks and cryptocurrencies (with the ability to make marks on cluster charts) strengthens the position of the project when thinking through the stages of the plan, how to create a Forex site. Monetization differs depending on the type of solution and strategy:
- at E*Trade and Power E*Trade, traders pay for the contract;
- Robinhood makes money from Snacks app downloads;
- Stash limits contributions to between $1-9 per month, but teaches the art of investing.
Stock market requires substantial and thoughtful solutions, so without creating an MVP and testing before release, you can't get the project done. In the process of deployment, it is good to get feedback from users and add those features that are missing. A kind of encouragement will be the lack of commission for one or two withdrawals per month. It takes 3-6 months to develop a platform of medium complexity, based on the level of financial and economic mindset of the clients. All stages should go in a coordinated and easy way, as in the diagram.
In times when the instability of currencies and stocks, sudden jumps are clearly visible, it is advisable to suggest to traders that it is preferable to invest for a long period of time in metals (palladium and gold, platinum, californium, osmium, iridium and others). Positions on such assets are protected significantly higher, so leverage (leverage) can reach 1:500. Nevertheless, it is better to limit yourself to a maximum of 1:100 (when for $1 the platform provides support of $99) or lower. A built-in simulator with a demo account does not guarantee absolute subsequent profits in reality, even if a perfect selection of trading tactics is made. Therefore, it is valuable for a novice investor, given the emotionality and susceptibility to psychological and technical patterns, to get hints. This will show that the platform's profits depend on the trader's success, not his loss.
Key components of trading platforms
Having a close look at
investment platforms, you can take something new from each of them. Schwab has trading automation - a set of settings that form and monitor trading processes to rebalance the portfolio based on the investor's strategy. Transactions with stocks, ETFs and options, cooperation with mutual funds, except for OTC (over-the-counter) - on a free basis. Placement through broker - $25, options trades $0.65, for Premium advisory fee $300 with a further quarterly fee of $30. So alerting the investor of the fees charged is a mandatory option to avoid being labeled as an opaque resource. FDIC insurance, no transaction fees, no overdraft fees, and no minimum deposit requirement enhance the rating. Schwab's success was confirmed by its acquisition of TD Ameritrade.
Israel's eToro, with 30 million investors in a hundred countries, combines elements of a social network and an exchange. For 17 years in 6000 positions of the platform developers have collected proven stocks, different types of fiat and cryptocurrencies, securities. Portfolio diversification in the cabinet with 5000 tools of work on the exchange, the ability to copy the actions of profitable traders (social copy-trading) with CopyTrader customization and Popular Investor add-ons, podcasts and unpaid courses in the Academy of the resource give “relatedness” and family. Apps in the App Store and Google Play - to improve mobility of work.
According to the time parameters of trading application development, the range of processes varies from 400 to 2400 hours provided 4-5 IT specialists (backend and frontend developers, UI/UX designer, DevOps engineer and manager with tester) work. The average development time is 850 hours. The more complex the design, more functions and analysis tools, SQL-based structures and REST APIs for Touch ID profile operations, transactions and interaction with payment terminals, the longer the timeframe. Customization of server interaction with functionality, trading by timeframes, charts with candlesticks and key markers of trend changes complete the development before deployment, testing for resistance to DDoS attacks and bug fixes.
Regression equations in the functional for rate forecasting
Quality development is half of the project's realization. Marketing work must be carried out to become recognizable: it must be told in social networks, on news sites, in messengers such as Telegram. A clear explanation of the principles of the platform's operation and visual demonstration in a YouTube channel (or by proven traders-bloggers) is a step towards success and attracting an audience. The more traders understand how the liquidity of an asset is formed, what to pay attention to when buying, what leverage is best to choose, the more transparent the opinion of the service will be.
If the idea has just matured, but has not yet been formalized, it is better to rent software that works according to the White Label principle and
start a Forex trading business in your region. Usually the price of installation does not exceed $10 thousand, rent - in the range of $2-10 thousand monthly. Own resource on native code will cost $40-80 thousand. A mobile application with a screen that simultaneously displays 5-10 charts with stock prices and quotes for a week/month/quarter or more is a good option for design. When there are forecasting functions with regression equation development, it is a great solution. Let's take the example of TON & NOT by arranging cryptocurrency rates with a time interval of 30 days.
Days |
TON, rate in USD |
NOT, rate in USD |
1 |
2,3144 |
0,01026 |
30 |
2,1286 |
0,01936 |
60 |
2,5784 |
0,01493 |
90 |
5,3169 |
0,01132 |
120 |
5,2858 |
0,008494 *(Day 107th) |
150 |
6,4795 |
- |
180 |
7,5834 |
- |
210 |
6,605 |
- |
240 |
5,3632 |
- |
Regression equation:
TON rate = 2.389918435 + 0.020486526 × days |
Regression equation:
Rate NOT = 0.0152437938924421 - 0.0000393852806053509 × days |
Forecast |
Forecast |
Days |
Курс, USD |
Days |
Курс, USD |
300 |
8,535876091 |
120 |
0,01051756 |
400 |
10,58452864 |
150 |
0,009336002 |
500 |
12,63318119 |
200 |
0,007366738 |
600 |
14,68183375 |
250 |
0,005397474 |
700 |
16,7304863 |
300 |
0,00342821 |
800 |
18,77913885 |
350 |
0,001458946 |
900 |
20,8277914 |
400 |
-0,000510318 |
1000 |
22,87644396 |
450 |
-0,002479582 |
Working out the simplest regression equation with one independent indicator (days), we see that in one year the TON rate will be $14.68, in 2 years - $22. In terms of NOT, the financial picture looks as if the cryptocurrency will be worthless in a year. But there are other factors here: a quarter ago NOT rate reached $0.026, and the previous drops and collapse to $0.008 may have been provoked by the desire of large investors to start a panic and then buy up the cryptocurrency for nothing. The second reason is the arrest of Pavel Durov. It is clear that one time indicator is not enough, for a quality forecast you need at least 3 factors, maximum - 6-7. This list may include points with peaks, difference in % volatility (to the previous day, decade or quarter), capitalization by periods and trading volumes. Simple equations are for the free profile, complex equations are for the Premium profile.
Stock selection, embedded advisor and risks
Work under the control of a broker is safety and a certain insurance against stopping risky operations with a stop-loss. The main thing is that the
brokerage firm provides an opportunity to manage risks in your terminal on the website. P2P-type decentralization is designed for experienced traders who know how to set parameters, calculate potential benefits and profit from transactions. Therefore, the platform's business ideas should clearly demonstrate the financial success of the decisions made. Client-centeredness includes evaluation of investor's strategies of any level, shows ways of solving questions on buying and selling assets with time saving. Suppose a user comes in to select and purchase shares of a company. On the screen is a list of companies with a tile layout.