How Much Does It Cost to Develop a Stock Trading App Like Robinhood or Robinhood Clone App?

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You haven’t heard of the Robinhood stock trading app if you’re still paying $7 to $10 per trade. There was only one promise made when developing this app: the promise of free stock trading. Entrepreneurs interested in developing their version of Robinhood should be aware of this critical caveat before contracting with a FinTech app development company.

However, we have covered it for you in this blog, along with the features of the Robinhood app, its funding details, and its success story. The cost of FinTech app development is also included in this article.

Then, without further delay, let us begin.

Insight into Robinhood, a Stock Trading App

Menlo Park, California, is home to Robinhood Markets Inc., an American financial services firm. April 18, 2013, was when Baiju Bhatt and Vladimir Tenev founded it. For those who want to invest in public companies and ETFs without paying a commission, Robinhood is the company’s app. FINRA has approved Robinhood as a broker, and the Securities and Exchange Commission has permitted it to conduct business in the United States.

According to Techcrunch, the Financial Conduct Authority has granted Robinhood permission to operate as a broker in the United Kingdom. Wander Rutgers has been named the president of Robinhood International and will be responsible for the company’s UK operations.

In contrast, the European market is expected to be less successful for Robinhood than the American market, as Freetrade, a similar free stock trading app, has already gained traction in the continent.

Robinhood – Timeline

Even though many other stock trading apps like Robinhood have flooded the market, Robinhood still reigns supreme. As a result, people now know how to trade effectively. Many entrepreneurs were inspired by the Robinhood app’s working model and success story to create a revolutionary FinTech app of their own. Now that you know about Robinhood, you don’t have to be afraid to jump into the FinTech industry with a stock trading app.

Robinhood first appeared on Hacker News in December 2013, and it quickly went viral. Several high-profile websites like Techcrunch and VentureBeat subsequently wrote about Robinhood and made it available to their readers.
The company gained 100,000 new users in just 30 days.
Both of Robinhood’s founders were interviewed by CNBC and Bloomberg TV in mid-to-late February 2014.
More than 500,000 people had signed up for Robinhood by September 2014.
Almost 80 percent of the company’s users were millennials as of January 2015.
More than $30 billion had been traded on Robinhood by February 2017.
Robinhood was valued at $1.3 billion in April 2017 when it raised $110 million in funding.
This year, Robinhood launched a cryptocurrency exchange with no commission fees.
The Robinhood service had 3 million users by February of this year.
Robinhood raised $336 million in a Series D round in May 2018 at a valuation of $5.6 billion.
As of July 2019, Robinhood’s valuation was $7.6 billion, raising $323 million.
Robinhood’s business model, which you can also follow, is highly lucrative.

The fun begins now!

Unlike any other company, Robinhood created its business model, which is an admirable feat in and of itself.

The majority of Robinhood’s revenue comes from the company’s premium service, Robinhood Good. For a fee of at least $10 per month, you get access to after-hours trading and double your buying power.

Additionally, Robinhood is making a profit from user funds. In other words, it earns interest on the money that users typically leave in their Robinhood accounts but don’t use.

The first paragraph’s “catch” has finally come to fruition. Robinhood should be commission-free because it’s the right thing to do. Despite this, its survival as a non-profit organization is genuinely fascinating. Robinhood receives money from leading trading firms like Apex Cleaning and Two Sigma every time a user invests through the app. As a result, users aren’t purchasing stock from the stock exchange but rather from one of these trading firms.

Why Developing a Stock Trading App like Robinhood is Safe

More and more companies are going public due to the startup culture’s thriving. In recent years, stock trading has been boosted by this new ecosystem. According to a Bankrate Money Pulse survey, 48 percent of Americans regularly own stocks and trade stocks.

There are, however, several drawbacks to using traditional stock trading methods. However, a stock trading app like Robinhood provides many advantages, including lower fees, more control and flexibility, access to online tools, and real-time monitoring of investments. Using a Crypto exchange development company to develop a stock trading app, you won’t have to worry about a thin market problem.

However, creating a FinTech app isn’t as simple as it sounds. When working with a FinTech app development company, there are numerous considerations to keep in mind, including the feature set.

Next, we’ll go over some of the essential features of your stock-trading app. The user journey of Robinhood will be studied to make this learning rational.

Features of Your Robinhood Clone Trading App

To keep the app secure, users must choose between a touch id or a password when they first open the app.
The next step is for the user to enter their bank information into the app. A user’s bank account can be used to deposit funds into a Robinhood bank account. He can even set up a recurring deposit to his Robinhood account.
The account is now ready; Robinhood shows you how much money you have and how much you make every day in your account—viewing previous stock trading activities and earning details from the same window.
Searching for a specific stock can be done by clicking the search button.
To make it easier for users, the following information is displayed when they click on a specific stock. The user can buy that stock on this screen itself and not have to go to another screen for it.
A Market Buy page appears as soon as the user clicks the buy button. Select how many shares he wants from the drop-down menu.
The user inputs several shares he wants to buy and the cost is displayed. He only needs to swipe up to confirm the purchase.
Pre-market trading is available for users. Robinhood will automatically submit your order and buy the shares for you when the market opens.