As technology draws people to invest in money-making opportunities such as trading, there becomes a need to craft the perfect trading platform.

Things to Consider before Building a Trading Platform

Developers and entrepreneurs will want to build a trading platform to get a share of the market, but it isn’t done easily. There are several things to consider and essential factors and features to include.

Going with a Platform Type

A trading app or website makes for easy accessibility to the respective market, and it’s very profitable when done right.

When creating your trading platform, you can choose from cryptocurrency or traditional depending on what asset you want your users to transact with. Each has its own pros and cons- cryptocurrency, for example, is an emerging and lucrative niche and shows lots of promise, while traditional deals with time-honored assets such as stocks, currencies and EFTs, among others.

Size Up The Competition

Every respectable company will study the industry and identify their competitors. You should do the same and with due diligence see what works on their end and what could be improved on.

Binance and Coinbase are among the biggest names in crypto exchange, and for traditional exchanges you have eToro, NetDania and more. When conducting research, think as a user and point out the good features and why they’re popular, e.g., easy to use, allows for large volumes, etc., as well as areas of improvement, e.g., slow, limited to a few stocks and whatnot.

Identify Key Features You Want to Integrate

All successful trading platforms will have common key features that make them attractive to the general public.

If possible, you should have push notifications, analytics, search, newsfeeds and a user page, in line with staples such as the ability to place a trade, a transactions and payments section, list of portfolios, filtering and sorting systems, and quote monitoring, among others.

Combine all of them in a site or app and you’ll have the beginnings of a good trading platform. You can also choose to add in the ability to create a demo account or allow for robo-trading.

Don’t Make Security an Afterthought

In all things, security should be a top priority feature for trading platforms. However, there should be a fine balance between user safety and convenience, since most wouldn’t want to stay too long in the authentication process.

Whether you’re creating an app, a website or a mobile platform, user safety and security can be integrated in numerous ways. It’s a continuous process even when you’ve finished your trading platform and launched it to the public.

What About Legalities?

Legality is a bit tricky when it comes to trading platforms since different countries will require different licenses. To do this, you can take stock on where you want your platform to be introduced and get the appropriate license(s) for them. Along the way, you will want to get registration from the country’s regulatory body so you can be monitored as you do your daily business.

Also, there are programs that protect investors’ interest- SIPC and FINRA are just a few names you’ll want to join. This adds to your overall reputation as a trusted trading platform and is well worth the effort you put in.

A license makes for a considerable expense in time and money. Your budget will be divided among obtaining licenses and app development, website development and hiring personnel to manage and maintain the platform when it goes live.

The process of building a trading platform is ultimately a rewarding endeavor when done right. Take note of the things you need to learn or understand before going ahead with the process so you experience less pain points along the way.

iLounge author Lucy Bennett

Lucy Bennett is a Contributing Editor at iLounge. She has been writing about Apple and technology for over six years. Prior to joining iLounge, Lucy worked as a writer for several online publications.