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How to Make an App Like Robinhood | Robinhood Like App Development Cost

Online stock trading has been around for a while now and still tops the list of hot trends. The reason behind its...

Written by Niel Patel · 6 min read >
make an app like robinhood

Online stock trading has been around for a while now and still tops the list of hot trends. The reason behind its popularity is the ever-growing desire of humans to earn more or the willingness to take risks in return for profits. So building an app like Robinhood is a pretty profitable idea.

Before we begin learning how to make an app like Robinhood, allow us to take you through the basics of the app and the statistics that make it a top-rated online stock trading app. Choosing the right financial software development company is complicated, so make the wiser decision to your task done.  

Basics Of Robinhood App

Robinhood app is an investment platform that allows users to buy and sell stocks. Low-cost service and mobility in stock trading make it highly popular among users. 

Must-Have-Features-of-Robinhood-App

Here are a few statistics about it that will encourage you to know how to build an app like Robinhood. 

  • The app generated $682 million in payment-for-order-flow revenue in 2020, a 514 percent increase year-on-year.
  • In May 2020, Robinhood revealed it had 13 million active users.
  • In August 2020, Robinhood’s valuation reached $11.2 billion following a $200 million funding round, up by nearly one-third from a previous injection of funds just a month ago. 

Things That Make Robinhood App Popular

Robinhood is an investment management application with a simple and effective working procedure. The users can create their investment portfolios and trade stocks using the mobile application. Additionally, the app also offers updated market data and informs about upcoming events like dividends on investments. 

Free stock trading services to inexperienced investors make the app unique. Its features are not just restricted to it but go beyond where there is no requirement of minimum investment to start the investing process. 

What is the revenue model for the Robinhood-like app?

The Robinhood app, as we indicated at the start of this post, allows users to trade for free. It begs the question: how can Robinhood make money if they don’t charge any trading fees? What is the business model for the Robinhood app?

The premium service known as Robinhood Gold is the main source of income for the Robinhood app.

Robinhood Gold is a paid upgrade for app users who have a lot more experience and are ready to take bigger risks with their money. The upgrade requires a monthly payment in exchange for extended trade hours and increased purchasing power. This increased purchasing power translates into the ability for customers to borrow money to purchase equities.

The monthly costs, which range from $10 to $200, are largely decided by the user’s tier, which is determined in turn by the amount of money in the user’s account. They gather securities and cash in the Robinhood in the same way that banks do with cash deposits.

Now that we’ve looked at the money aspect of the Robinhood-like software, let’s look at the fame aspect.

How to estimate the cost to develop stock trading app?

The answer to how much does it cost to make a stock trading app is an estimate that is arrived at after gathering a complete understanding of the app development project. 

Some of the factors that you will have to look into are:

  • The designing requirements
  • Platform choice
  • Technology set 
  • Team size
  • Scope of testing

Top 6 Must-have Features Of An App Like Robinhood

If you wish to know how to create an app like Robinhood, then you must know the features you must include in your app. 

  1. Account & Trade Protection

Users have concerns over security where finance-related online activities are involved. Scrimping on safety is never a wise decision, and this is what users look for while using an app like Robinhood. 

Ensure you integrate safety features to gain the audience’s trust by protecting user data using multi-factor authorization, advanced encryption algorithms, suspicious activity monitoring, and more. Moreover, ensure that the servers are protected from DDoS, software vulnerabilities, and other attacks. 

  1. Easy-to-use Dashboard

An easy-to-use dashboard allows users to check order status, balance, charts, watchlists, and more. The ones planning on how to make an app like Robinhood must not forget trackers because there is lots of information placed on the screen that users view at a given time. 

  1. Modular Structure & Integration

Developing an app like Robinhood means you need to contemplate a modular structure that accommodates various users and functions. This will allow you to combine features into functional blocks, easier access, and better usability. In addition, the given modular structure promotes multiple monetization plans based on different features. 

Some of the most essential functionalities that you must integrate are:

  • A user account area with profile data and history
  • A trading module with buy and sell functions
  • A real-time stock market tracking and logging module
  • A news module
  • A stimulation module
  • A notification module
  • A communication module
  1. Intuitive UI/UX Design

Aim at offering the most convenient and intuitive UI/UX that suits the specifications of various modules, hardware platforms, and operating systems. In simpler words, design development is the most crucial step in the journey of learning how to create an app like Robinhood. For that, you need to make a smart choice of various development technologies, including languages, APIs, frameworks, protocols, data formats, and more.

  1. Fund Transfer

The fund transfer feature allows traders to buy and sell stocks and transfer their funds from their accounts to the app. However, simply integrating the fund transfer feature is not enough, and making it secure is highly imperative for trading. 

  1. Watchlist

Watchlist features let users track how a particular track is performing and buy or sell it accordingly. Furthermore, users can add a stock to their watchlist, which will enable them to know the latest trading price of that stock without the need to search for that stock every time they access the app. 

How To Develop An App Like Robinhood?

Developing an app is no cakewalk, especially when you’re heading nowhere to plan things for the process. It would help if you had a clear understanding of every technical aspect that goes into developing an app like Robinhood. 

  1. Know Your Audience

Make yourself aware of the people you wish to target to trace the features you intend to integrate into the app. Before proceeding towards knowing how to build an app like Robinhood, furnish yourself with the information on the target audience. 

For instance, different countries have different numbers of users who deal in stock trading. Therefore, you can plan your strategy accordingly and know how to progress. 

  1. Select A Suitable Platform

Select a suitable app development platform once you have identified your target audience. Conduct a survey to learn the number of Android and iOS users. This will provide you with a base to select the correct type of platform.

  1. Determine The Necessary Features

Identify and include the necessary features to make your app stand apart from others in the market. The features that you can consider including are:

  • Investment management
  • Real-time data
  • Smart notifications
  • Free stock trading
  • Data protection
  • Fund transfer
  • Dashboard
  • Watchlist
  1. Choose An Appropriate Business Model

Opt for an appropriate monetization model to generate the desired revenue from the app. This way, you can attract more users and optimize profits for your business. Ensure at every step of the process that the business model meets your needs and requirements.

  1. Focus On UI

UI and UX hold the most crucial position in the development process of an app like Robinhood. If the question of how to make an app like Robinhood is occupying your mind, then you cannot miss paying attention to UI and UX. An interactive user interface and well-defined functionalities will work for enhancing customer delight while attracting more users to the app. 

  1. App Development

Once you have obtained the required information, it’s time to get the app developed. You can either hire an in-house team or outsource an app development company. However, weigh the benefits before you choose either of the options.

  1. Test & Deploy

The final phase involves testing and deploying the app. Bear in mind that the app has to go through various quality tests to check its smooth functioning. 

How Much Does It Cost To Develop An App Like Robinhood?

There are various factors that influence the cost of developing an app like Robinhood. Let us have a look at those factors.

  1. App Design

Robinhood’s app design is simple and clear, with a lot of micro elements that make navigation easy through the app. 

  1. Backend & Frontend Development

Want to learn how to create an app like Robinhood? If yes, then you must know that creating a similar app requires significant investment in backend and frontend development. In simple words, the development cost depends on technologies, frameworks, and tools that are imperative to building an app like Robinhood.

  1. Testing

Apps that involve financial transactions must go through rigorous testing. Talking about how to create an app like Robinhood, you cannot ignore the testing aspect. Before officially releasing the application, test its performance when the stock market is open and the synchronization between the devices. 

  1. Type Of Platform

An app having both mobile and desktop versions proves to be highly profitable in the world of trading. Moreover, native app development is cheaper as compared to apps that have mobile and desktop versions.

  1. Choice Of Development Company

The total cost of your app development project also depends on the company you choose. Getting in touch with various app development companies to know how to build an app like Robinhood will furnish you with the costing information that each company has to offer. 

As a rule of thumb, the bigger team you need, the more you should pay. The process is not easy, and you cannot afford to hire a company that does not house a team of developers who carry the required domain expertise. You will require a team that consists of:

  • Project manager
  • UI/UX designer
  • Android or iOS developers
  • Frontend developers
  • QA analysts

Wrapping up:

Walking the path of determining how to make an app like Robinhood can be overwhelming if you do not follow the chronological order of knowing what you require from scratch. Developing an app that functions like Robinhood, without any doubt, requires rich expertise and skills to be exhibited by the team of developers. Keep your logic simple and clear to stuff your app with the features that are effective enough to lure more users. 

Want to know anything and everything about how to create an app like Robinhood? Partner with a reliable app development company to allow your idea to see daylight. 

We hope this blog post brought you all the information you were seeking.

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