How to Build an App Like Robinhood - Cost, Features, Process

Since its launch in 2013, Robinhood has been a go-to stock trading app for everyone; not just investors. As of January 2025, Robinhood had 24.3 million and 11 million monthly active users.

But why are apps like Robinhood so popular? The reason for this is the democratization of investment. The U.S. Investor Pulse 2024 study by Broadridge shows Gen-Z and Millennial investors along with Gen-X holding more assets compared to declining asset holdings from Boomers and Silent Generation investors who experience a shift from mutual funds to ETFs and U.S. equities while self-directed investing gains popularity amongst all generations.

So, if you are an experienced fintech entrepreneur, you might have come across many apps that involve stock trading. But when it comes to an app that can attract a huge number of users exponentially, you might have thought, at least once - how to build an app like Robinhood.

This blog post is aimed at helping you understand how you can develop a stock trading app like Robinhood. So, without further ado, let’s get started.

What is a Stock Trading App Like Robinhood and How Does it Work?

Robinhood is a stock trading platform designed for retail investors to democratize Invesment. The platform enables investors to trade stocks, ETFs, and options alongside cryptocurrencies completely free from commission costs. Robinhood delivers intuitive tools plus supportive resources designed to help users take control of their financial investments and achieve their economic targets.

Robinhood features allow users to purchase fractional shares ideal for investing in premium stocks with limited capital plus offers educational resources which guide beginner investors through trading basics. The platform implements streamlined investment tools to make financial market participation available to everyone. New users who sign up receive their initial stock without cost when they register under specific requirements and agreements.

Stock trading apps like Robinhood have changed how retail investors invest in financial markets. Such apps offer a commission-free trading experience, and they have user-friendly interfaces. Using such apps, even beginners can participate in trading stocks, ETFs, options, and cryptocurrencies. In a nutshell, such apps work as intermediaries between an investor and financial markets.

As per the Journal of Student Research, the advent of the stock trading app Robinhood led to millions of downloads for trading applications, especially during the pandemic.

How Robinhood App Works?

Let’s understand a bit about the onboarding flow for a user who wants to trade in stocks and ETFs using the Robinhood app:

• User Onboarding: Users can create an account and complete identity and financial background checks.

• Account Funding: To start depositing funds, users can link their bank accounts or any preferred payment method.

• Trading Interface: The app has a simplified dashboard wherein users can search for stocks, view real-time prices, and execute trades.

• Order Execution: Once an order is placed, the app processes the same through Robinhood Financial LLC.

• Portfolio Management: Users have access to monitor their portfolio performance, check their transaction history, and manage investments.

Having mentioned portfolio management here, nowadays AI has taken charge of managing your financial portfolios, hence managing portfolios has become seamless now. Not only this, but there are also AI in wealth management examples which would leave you awestruck!

Why Stock Trading Apps Like Robinhood are Getting Popular: Market Analysis

Let’s have a look at the market analysis for stock trading apps like Robinhood in various aspects:

1. Rise in Retail Participation

As per a report, the US stock market has seen a good spike in retail investors. By 2021, they comprised around 25% of total equities trading volume. This is double the percentage reported a decade prior. Moreover, in February 2023, retail investors set a new all-time high for weekly inflows, with $1.5 billion dollars pouring into the market in a single week.

2. Change in Market Growth

2021 has witnessed exceptional net inflows which have reached $1.42 billion. What’s more interesting is that it continues to grow to reach 1.51 billion in 2023, thereby indicating a significant increase in retail investment activity.

3. Expansion in User Demographics

Stock trading platforms like Robinhood have led to an expansion towards younger demography, wherein an average user is 31 years old. This demographic shift also shows a change in investment habits, as this younger chunk of retail investors are leveraging technology to participate in financial markets.

4. Emergence in Competition

The presence of apps like Robinhood or the latter itself has led to the emergence of competitors like Webull, E*Trade, and Acorns. These platforms are making a difference by offering features like

• advanced analytics, leveraging AI consulting in fintech

• fintech educational resources and

• a large variety of investment options.

Core Features for a Stock Trading App Like Robinhood

As we progress to learn how to build an app like Robinhood, let’s understand features for the same:

Advanced Features to Consider While Developing an App Like Robinhood

In case you find your investing app like Robinhood to perform well in the market, here are some advanced features that you can integrate into your existing platform:

How to Build an App Like Robinhood: Step-by-Step Process

After understanding the basics, we have reached the segment of how to build an app like Robinhood. Here are the detailed steps for the same:

1. Conduct Market Research and Define Your Target Audience

You need to start with market research. Know your users’ needs and pain points. Analyze competitors like Robinhood to identify market gaps and possible opportunities.

To get you started, here are the top retail investment platforms like Robinhood:

• Webull

• E*Trade

• Acorns

While analyzing, do look at their market positioning, app architecture, feature sets, pricing, and monetization strategies.

2. Plan Core Features and App Architecture

On the basis of the first step, decide what would be your app’s basic and advanced features. Design the app’s architecture in a way that ensures scalability, security, and performance.

For example, the features like real-time stock prices, comprehensive dashboards, stock and asset search delivers the core value of your app, so they should be prioritized for initial state; whereas features like robo-advisory, AI-powered investment suggestions can be added later.

3. Design User-Centric UI/UX

Create a simple, yet visually appealing interface for better user experience. Being an experienced company in stock trading app development, we’ve seen that the simpler the UI is the better the user experience. So, try to keep the UI clean with a focus on delivering the core value proposition. Also, try to deliver as much value as possible in a single screen; of course, without overwhelming the users.

In case, you are curious to learn the cost of UI/UX, here is a detailed guide for you – UI/UX design cost.

4. Build the MVP with Essential Features

Before proceeding to build a full-fledged app like Robinhood, prefer to develop a minimum viable product (MVP). The MVP should include core features like user registration, real-time market data, stock search, secure payment gateways, and others that we’ve listed earlier.

Executing this step would give you confidence in whether your idea is really going to work in the market. Moreover, in case you do not have budget constraints, you can also opt for AI-based custom MVP software development. This version of MVP is even good at providing better market insights.

Once you make up your mind to develop MVP, you will definitely want to know its development cost. Here is the detailed guide for you – How much does it cost to build MVP?

5. Test and Launch the MVP to Gather Feedback

At this stage, you should perform rigorous testing and identify bugs. Launch the MVP to a small chunk of the audience and measure user satisfaction by seeking feedback.

Looking at the importance of MVP in stock-trading app development, you may search for experts. To fulfill this purpose, you should hunt for an experienced fintech solution development company like Biz4Group.

6. Analyze Feedback and Iterate for Improvements

At this step, you should use users’ feedback to refine the app's functionality and design. Do not skip addressing the users’ pain points, thereby enhancing the overall experience. Here is how you can do it:

• Collect and Prioritize Feedback: Collect feedback about user experience through methods such as platform reviews alongside surveys and customer support direct channels. Measure all feedback to identify frequent user challenges.

• Refine Core Features: Users may need better portfolio management options along with optimized order execution approaches and clear fee structures for trust building.

• Simplify UI: Resolve navigation problems to simplify major trading activities such as stock purchases and sales.

• Enhance Security: Security protocols require improvements in 2FA alongside enhanced compliance measures and better stability under peak application workloads.

• Add Features: Users often request new functions to advance their trading experience so give high priority to expanded options trading alongside advanced charting tools and alert systems.

• Boost Education: The trading education materials within the app may need better information delivery about complex trading concepts.

• Test and Communicate: Monitor updates through A/B testing procedures and communicate these changes directly to the users.

7. Add Advanced Features for a Full-Fledged App

Integrating advanced features like AI-powered recommendations and fractional trading is also a great option, provided either you are experienced, or budget is not a constraint. You can also consider more features like:

• Provide in-depth technical indicators like customizable charts and market analytics.

• Allow users to follow top-performing investors through social trading features.

• Enable users to create watchlists and personalized notifications for price changes or market news.

• Add voice search command feature.

• Automate portfolio creation and management based on user goals and risk tolerance.

• Expand the app’s global appeal by offering multi-language options.

• Allow users to access and review their portfolio data in offline mode.

• Add gamification elements like trading challenges, achievements or educational quizzes to engage users.

• You can also integrate the app with wearable devices like smartwatches for more convenience.

8. Launch the Full-Fledged App and Scale Globally

Release your app to a wider audience. Make strategies to scale that should include marketing and local/global compliance measures. Make sure to promote your app at the time of launch. This can be the strategy:

• Translate the app into multiple languages.

• Collaborate with legal experts to handle international compliance intricacies.

• Use digital marketing strategies, such as targeted ads to reach international audiences.

• Leverage cloud hosting solutions like AWS to handle increased user demand.

• Build alliances with local brokers to enhance app’s credibility for users.

• Use robust customer support system.

• Regularly update the app with region-specific features.

• Host online webinars to create buzz.

• Monitor user behavior and app performance using analytics tools.

How Much Does it Cost to Make a Mobile App like Robinhood?

Here we are to analyze the cost to develop a stock trading app. We will go through various factors that can impact the mobile app development cost. However, if we speak about the overall cost to build an app like Robinhood, then it may range between $40,000 to over $400,000.

Whereas for MVP development, the cost may typically fall between $40,000 - $100,000.

Additional costs for server hosting and app maintenance including updates may range from $5,000-$20,000 per month.

If you are hunting for a software development company in Florida that can build an app like Robinhood, at a reasonable cost, you can consult Biz4Group for expertise.

Tools & Tech Stack Required for the Development of Robinhood Like App

When we are discussing how to build an app like Robinhood, tools and tech stack play a major role. Let’s understand the categories and purpose of each tool.

How Does a Trading App like Robinhood Make Money?

As an investor, if you choose to build an app like Robinhood, you would have your target of earning a certain amount of profit. Therefore, to understand the same, let’s have a look at how Robinhood makes money.

1. Payment for Order Flow (PFOF)

The source of earning money for Robinhood is market makers and trading firms. The app directs users to them for directing trade. This way the app doesn’t have to charge commissions to users and also earns a significant portion of revenue.

2. Premium Subscriptions (e.g., Robinhood Gold)

One of the features called Robinhood Gold which comes with a paid subscription provides users with benefits. Such benefits are access to margin trading, advanced market data along higher interest on uninvested cash.

3. Interchange Fees from Debit Cards

Robinhood also offers debit cards. It thereby generates revenue through interchange fees which are charged to merchants every time users make purchases.

4. Margin Lending

Margin lending includes lending money to users for margin trading. Users can borrow funds to trade in exchange for a fixed percentage of interest on the borrowed amount. Hence, the platform earns interest by lending money.

5. Advertising and Partner Promotions

The app also monetizes user engagement. It provides advertising opportunities or partnering with other financial services to promote their product.

How Can Biz4Group Help You Build a Trading App like Robinhood?

Biz4group has a proven track record in delivering wealth management and fintech solutions. Here are the reasons why you can rely on its expertise:

1. End-to-End Development Services

From ideation and design to development and deployment, our team at Biz4group ensures a smooth app development process. For AI-based apps, our experts use top-notch AI development platforms like Microsoft Azure, Amazon AWS, etc.

2. Advanced Technology Integration

We at Biz4Group leverage the latest tech stack which includes AI and cloud-based infrastructures. For more details, you can go through an in-depth study of AI case studies for Biz4Group.

3. Security & Compliance

Our experts at Biz4group ensure that your app adheres to legal and compliance standards. Our development process focuses on data security and user privacy.

4. Scalability & Reliability

Whether you aim to build an MVP or a full-fledged app, we at Biz4Group ensure that your product is reliable and scalable.

If you want to check the work we’ve done in the FinTech sector, you’d love to check our recent project we delivered. Check this out:

Worth Advisors

Wrapping Up

The development steps included in how to create an app like Robinhood require significant planning and investment. A clear understanding of the costs and monetization strategies is required so that the project is well-prepared for launch and scalability.

Partnering with experienced developers, such as Biz4Group helps to simplify the journey and provide innovative solutions.

FAQ

1. How long does it take to create a mobile app like Robinhood?

Though it takes 9-12 months to develop an app like Robinhood, but the timeline also depends on the complexity of the platform. Developing an MVP with essential features may take 3-6 months.

2. Can a Robinhood-like app support cryptocurrency trading?

Yes, integrating cryptocurrency with apps like Robinhood is possible, by utilizing APIs from platforms like Coinbase or Binance.

3. Can I customize my trading app to target specific markets or user groups?

Yes. You can customize the app’s features and design to cater to specific user demographics or market segments. Here is how you can do it:

• Provide language support for multiple regions.

• Offer custom investment recommendations based on user demographics and financial goals.

• Ensure regional compliance.

• Customize the app’s design to align with cultural preferences, such as icons and UX patterns.

• Incorporate niche investment opportunities like fractional trading.

• Partner with local influencers.

• Offer subscription plans with varying features, based on the economic conditions.

4. Is the Robinhood mobile app profitable?

Yes. While you are learning the process of how to make an app like Robinhood, you’ll find that Robinhood is profitable. It is because of Payment for Order Flow (PFOF), premium subscriptions, and margin lending. These strategies ensure revenue generation, even by keeping trading free for users.

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