The consequential growth of the online stock trading market has justified the role of e-trading apps like Robinhood. One of the most talked-about genres of digital trading platforms of the present time is stock trading app.
And besides that, the record-breaking popularity of stock trading apps is reflecting the inclination of capitalists towards digitalized modes of making market investments. The user base of such online stock trading & investment apps does not limit its application.
According to a survey report by Business Of Apps, the adoption rate of stock trading apps like Robinhood, Fidelity Investments, CashApp, etc. has grown exponentially. Moreover, with over 91.5 million active investors in 2020, stock trading apps are emerging among the top trending mobile app categories with around 150 million users in 2021 across the global nations.
No doubt, all the advancements in the Fintech industry are creditable for such a rapid proliferation. Moving ahead to the topic, this article will further outline a brief intro on Robinhoood app, features, & its revenue model.
Intro to Robinhood, An E-trading App that Simplified Stock Market Investments
Have you ever wondered that there is an ample no. of stock trading apps available?
Why only a handful of them succeeded to make a great hit even during pandemic days?
Maybe it’s quite hard to believe that Robinhood is the topmost e-trading app that introduced the concept of zero-commission investments.
In this section, you will discover how Robinhood stands apart from other crypto trading apps & why businesses should consider it for stock trading app development.
Let’s have quick stats to find the answer!
- The annual revenue of the Robinhood app spiked to reach $959 million in 2020 and a sum of $3.4 billion was added to its share when Gamestop stocks were squeezed.
- The no. of Robinhood app users increased from 13.2 million to 22.5 million from 2020-21.
- The average valuation of the Robinhood app was recorded as $11.7 billion in 2020 which grew to $20 billion in 2021.
- Robinhood’s asset value is recorded as $80 billion while its average account size is valued at $3,500. The average payment-for-order revenue generated by Robinhood was $682 million in 2020, which is an increase of 514 percent from past years.
The idea of Robinhood-like stock trading app development is fruitful for enterprises existing in the stock trading industry.
E-trading apps like Robinhood are exclusively popular for offering free stock trades to users. From tracking share market updates to managing stock investments, online trading facilitates investors to make the right investment decisions.
Similar to the Robinhood app, the majority of stock trading platforms feature a bundle of addons to make trading easy.
Important features to keep in mind for Robinhood-like app development
The exceptional demand for stock trading app development is in the current scenario. Apart from gathering up-to-date market insights, users can do many more activities to make secure investments whenever they want to.
Let’s define some noteworthy features that every stock trading app must have to meet the standards of Robinhood.
1. Signup or Check-in process
The very first screen of any stock trading app like Robinhood should showcase a simple user authorization process.
Rather than focusing on multi-step check-in, a process of single-step login must be there to make it easy at once. With multiple check-in options such as pin code, biometrics, social media, etc., users don’t have to log in manually.
2. Profile Creation
Once a user successfully gets registered on the stock trading app.
Next step offers a feature to create a user profile.
A user profile shall mark all the personal information & preferences to receive notifications regarding any update.
3. Orders & Investments
One of the prime features of every stock trading app like Robinhood provides the necessary functionality to track all orders & inve
Users can simply view their order history along with details of all past transactions done on the app.
4. Real-time updates
Ensuring real-time portfolios is a core element of the stock trading app development strategy. Regardless of the app type, it’s crucial to integrate a feature to provide real-time updates to users as they greatly depend on portfolios to make investments.
Every Fintech app developer marks the importance of this feature that allows investors to check out portfolios & make rewarding investments decisions on the stock trading app like Robinhood.
5. Investment deposits
An option to view the status of all deposits & investment updates on the e-trading app.
It’s a much-have feature to check all deposits on your account on the go, no hassles, no delays.
6. Filtered search
One-click way to search active stocks & see their current market rate available for investors using a stock trading app.
Anyone can keep a check on stock updates before making any investment decisions on the app.
7. Access to Analytics
Smart analytics for e-traders to keep an eye on the statistics & analyze their performance in terms of trades, transactions, revenue, & more.
Every stock-trading app like Robinhood features this unique function that brings useful insights of the stock market.
8. Push Notifications
Users may get too busy to visit their stock trading portal every single minute.
By enabling push notifications, it becomes effortless for investors to get notified about all updates when it is nearly impossible to view stocks in the middle of the day.
9. News Feed
Even though a newsfeed might not be a topic of concern for stock trading app developers, it’s a much-needed feature to guide first-time stock trading app users who’re not familiar with the ins & outs of online trade & investments.
People who’re new to the world of e-trading will prefer to explore their news feed to learn more about stock market trends, stock updates, & other latest happenings in the industry.
How do stock trading apps like Robinhood generate revenues?
According to a recent survey, the Robinhood app generated net revenue of $365 million in the third quarter of the year 2021. With such impressive growth, this popular stock trading app influenced millions of business minds to invest in e-trading app development for long-term benefits.
Now the question comes how exactly do these stock trading apps earn money when most of their services are free of cost? The revenue model of the Robinhood app unveils the strategical modes of generating revenue under certain parameters & here are they:
- Earlier, investors have to approach the stock exchange where they were charged the commission fee of stockbrokers involved in the trading process. While users have to pay at least $500 to open an account on the traditional e-trading platforms, the Robinhood app makes it completely commission-free.
- Despite not being the only free app for online stock trading, Robinhood emerged as a front runner with absolutely no fee for trading & sale or purchase of assets.
- Robinhood’s paid version for premium subscribers is a source of revenue for the company. Referred to as Robinhood Gold, the investors with gold membership can opt for value-added services such as an extended trading timeline, insights of well-researched market data of 1700+ stocks, VIP 24/7 customer support, & more at a monthly fee of $5.
- The Robinhood gold subscription benefits are available only up to a margin of $1000, beyond which a user will be charged with 5% interest.
- The fee for transferring investments to a broker on this stock trading app is $75.
- Users can send a domestic check for $35.
- Moreover, the interests earned on the cash balances in the users’ accounts add to the total revenue of the Robinhood app.
Get profit-driven mobility solutions for the stock trading app
The success story of Robinhood will inspire you to launch its clone app with all imperative features. The moment you find out how a Robinhood-like app can drive your business growth, it’s undeniable to have curiosity about stock trading app development, and costs, right?
The cost of building a mobile app varies as per the location of developers, project requirements, a team of dedicated experts, technologies, & aspects of the development process. Being a globally recognized Fintech app development company, Hie HQ stands as a trusted group of award-winning tech experts with unparalleled expertise in creating stellar mobile apps for businesses from diverse niches.
1. Should we trust stock trading apps?
Yes, of course! There is no question of not trusting stock trading apps. The multiple benefits they offer and ease of usage are one of the significant ways due to which you can prefer stock trading apps for your business.
2. What are the challenges of building stock trading apps?
Several challenges come with building stock trading apps. These include developing an intuitive user interface, integrating with exchanges and databases, and creating insightful real-time charts. Additionally, app developers must constantly be up-to-date on the latest market trends to provide their customers with the best possible service.