How to create an investment app in 2024: Step-by-step guide 

In the increasingly mobile-driven world of the early third millennium, people rely on their devices for a wide range of activities – from studying and working to shopping, obtaining treatment, and having fun. The same is true for our financial endeavors. Thanks to the versatile fintech products inhabiting our mobile devices, they become gateways to different financial operations.  

One such solution is a mobile investment app that enables its users to try their hand at the stock market or other investment initiatives and embrace a potentially limitless source of revenue in addition to their core income base. This article will inform you about mobile investment platforms’ nature, peculiarities, and benefits, their types, and the nitty-gritty of investment app development. 

Planning the development project? Check out our fintech app development services.

What is an investment app?

Let’s begin with the basics and understand what investment apps are and how they work.  

An investment app is an online investment platform that enables users to buy, sell, and manage their investments. It acts as a channel that provides a secure connection to a person’s bank account and lets them transfer funds to an investment account. This wealthtech product offers people multiple investment options (for instance, bonds, stocks, securities, futures, cryptocurrencies, and more), displaying their prices and performance history. With such information at their fingertips, customers can make an investment, and the app closes the deal.  

To allow users to make knowledgeable investment decisions, many apps display real-time market data, offer reviews of financial markets, and give access to educational resources. Leveraging all capabilities of such apps, people can monitor the performance of their assets, conduct market research in the niche of their interest, and introduce changes to their investment portfolio as the market situation requires. 

At a layperson’s sight, it all may seem close to rocket science, which entails a high degree of risk. But in fact, this is one of the current mobile banking trends offering an opportunity to make a fast buck hand over fist and beckoning millions of people across the planet. Only in the USA, 61% of the adult population invested in stocks last year, 5% more than in 2021. And the younger a person is, the more likely they are to become an active player in the investment realm.  

As a result, the total value of digital transactions Americans conclude manifests a steady CAGR of 5.13% and will reach the mind-blowing $3,409 billion within four years. Naturally, such a huge consumer market with a millions-strong target audience and great expansion potential attracts numerous startups, traditional banks, and neobanks that launch their mobile investment products, hoping to carve a fair share of this juicy revenue pie that keeps growing yearly.  

And the chances are that they will succeed, given the exponential spike in the wealthtech market, whose CAGR is expected to top 14% by 2028.  

Why are investing apps such a big hit? Their overall success has much to do with the benefits they usher in, which prevail over the downsides of using them.  

Related article: How to build a fintech app

Pros and cons of investment apps

As a vetted software development company specializing in fintech solutions, DICEUS sees the following advantages of investment apps. 

• Foolproof usage. An investment app is a great product for novices in the field. Its intuitive interface and straightforward user experience allow greenhorns to take their first steps in the investment domain with little to-do.  
• Access to resources. No matter how user-friendly the app might be, rookies in the field still have much to learn. Thanks to the educational material investment apps made available, they can master the basics of the niche, discover the industry’s best practices, and find out how to develop a viable investment strategy. 
• Low entrance barrier. As a rule, such apps don’t require any minimum deposit to open an investment account. Also, they allow customers to buy fractional shares, so you can begin investing as little as $1 and move on at your convenience.  
• Low or even no fees. If you are involved in conventional online stock operations, you are to pay a commission (anything between $5 and $30). Plus, brokers assisting with the trades may charge an additional fee. With an investment app, trading stocks or exchange-traded funds will cost you nothing. However, some apps charge a fee for option contracts.  

Some bottlenecks can hamper your financial success as an investment app user. 

• No expert assistance. You will have to handle everything yourself. You must learn the ropes of the domain, make buying or selling decisions, diversify your portfolio, and devise a sound investment strategy. 
• No advanced tools and options. As soon as you move beyond the rookie level, you will find that most investment apps aren’t geared toward professional users. Thus, you may find that you lack extensive charts and analytics tools, premium market research reports, or access to some asset classes (such as real estate trusts or mutual funds). 
• Gamification-driven risks. When CX design experts create an investment app, they prioritize gamification engagement techniques (rewards, achievement badges, animations, etc.) to encourage usage. They push susceptible people to make riskier decisions (particularly with securities) that may land an inexperienced investor in the red. 

On balance, a cautious beginner eager to excel will find investment apps a superb instrument for earning a pretty penny. And the statistics on the dynamics of the investment app user number prove this statement.  

What about app owners? How does this software benefit them? 

Why should you build a mobile investment platform? 

Our decade-long experience delivering fintech products shows that investing in an investment app (the pun is intentional) offers many perks to its owners.  

• Greater customer reach. Like any digital product, an app expands your market horizons and allows you to win clients worldwide, thus increasing your customer base and revenue sources. 
• Augmented customer engagement. The app’s real-time updates, investment recommendations, and broad personalization opportunities enable companies to forge strong relationships with their clientele and engage each customer individually. 
• Enhanced brand visibility. Your app showcases your logo, business name, and unique UI, thus becoming a powerful branding tool that strengthens your market presence and creates a positive image of your organization. 
• Customer empowerment. Thanks to the app, customers learn to take control of their investments, improve their awareness of the field, and become self-dependent players in the investment industry. 
• Source of customer data. The app collects valuable information concerning its users’ investment preferences, behavior, and difficulties they face. By analyzing this data, you obtain actionable insights to refine your marketing strategies and issue tailored recommendations. 
• Streamlined pipeline. When properly built, a professional investment app enables organizations to reduce manual effort, facilitate workflows, and automate various shop floor processes, including client onboarding, report generation, portfolio management, and more.  
• Cost savings. Although investment app development is never a chump-change issue, it can benefit you financially in the long run. Since it allows you to cut down on extensive physical infrastructure, improve workforce efficiency, and reduce OPEX, such software is an investment that pays off with a vengeance. 
• Competitive edge. Launching a user-friendly, feature-rich, and seamlessly functioning investment app will let you stand out among competitors and position your brand as a forward-thinking, tech-savvy company that taps all possible fintech product niches and misses no opportunity to capitalize on its high-tech expertise.  

It sounds enticing, doesn’t it? Then, it is time to consider building such a product. How do you create an investment app, you may ask? You should start by identifying the type of solution you would like to develop. 

Investment app types

Below are the four classes of investment apps. 

Banking apps 

Such products are all-in-one mobile banking applications whose feature roster includes an integrated investment capability. The investment functionality is a pleasant bonus to their core features (such as money transfers, bill payments, check depositing, personal finance management, etc.). Consequently, their users can hardly be called avid traders. They just dabble in investments and may buy a couple of shares a month. Or they may not. 

Dedicated investment apps 

These products’ major mission is investment. Here are the key groups of dedicated investment apps. 

• Do-it-yourself (DIY) apps. They are honed for users who make their own investment decisions. Such a focus narrows their target audience to seasoned experts in the field.  
• Human advisor app. In them, professional staff provides financial and investment consultations online.  
• Robo-advisor apps are the fastest-growing type, and their total transaction value is predicted to reach $1,802 billion this year. These apps leverage AI-powered algorithms to offer personalized recommendations based on the user’s financial goals and risk preferences, manage their portfolios, and discover potential investment opportunities. 
• Hybrid apps. As the name suggests, they combine human and robo-advising. By blending the best of the two worlds, such apps can cater to the needs of both fresh and vetted traders. For the former, they have a user-friendly interface and numerous educational resources. The latter will enjoy advanced analytics and research tools as well as broad customization options.  

Exchange investment platforms 

Such solutions are geared toward people who would like to capitalize on the fluctuations in currency exchange rates. Some of them also offer other assets to deal with (securities, commodities, or stocks).  

Cryptocurrency platforms 

Although some exchange apps enable operations with crypto, there exist specialized platforms for purchasing, selling, storing, and transferring digital money.  

No matter what type of investment app you opt for, most offer a similar roster of capabilities to users. 

Must-have investment app features

If you go for custom mobile app development, you can equip your investment solution with unique features that dovetail into your company’s business goals and target audience peculiarities. However, any investment app can’t do without the following functionalities. 

Registration  

Here, users sign in via various registration options (user name, email address, phone number, social media, etc.). The major challenge in developing this feature is ensuring its security. This can be achieved by harnessing two-factor authentication combined with innovative biometric techniques (like face or touch ID). 

User profile 

In it, people can enter personal information details (name, age, etc.) together with some additional facts like trading experience or financial goals. The latter will allow the app to provide relevant options and tailored recommendations.  

Trading management 

It is the core capability of the app, thanks to which users can conclude deals, monitor stocks, view their transaction history, check account balances, and generally manage their finances. 

Market analytics 

This functionality provides insightful tools and access to essential niche data in real-time, allowing traders to make knowledgeable decisions. Moreover, this feature can offer portfolio insights and recommendations regarding current market trends and the customer’s goals.  

Funds withdrawal 

It enables users to convert their investments into cash at any time. After that, they may consider relocating funds or withdrawing profits.  

News feed 

By integrating market news and investment option ranking, you enable the user to keep abreast of the latest developments in the sector and give them a chance to communicate with other traders on the topical issues they are interested in.  

Customer support 

This is an indispensable capability for novices in the field. They are likely to have many questions or issues concerning investments or the app’s operation, and you should provide them with instant assistance via live chats, direct contact with the support personnel, and a callback option. The efficiency of customer support can be drastically boosted by integrating an AI-powered chatbot. 

Push notifications 

They serve to keep users tuned in to emerging trends, price fluctuations, essential updates, or new feature releases. Push notifications can also be used as alerts concerning take-profit and stop-loss orders.  

With the feature roster determined, you can proceed to the creation of your investment app.  

Key guidelines for investment app development

While offering mobile app consulting services, we recommend following the 11-step SDLC roadmap DICEUS has devised.  

Step 1. Ideation  

We kick off by holding a meeting with the customer’s representatives. During the session, we learn everything we can about the customer, their nearest and strategic business goals, and the vision of the future app’s functionality roster and design peculiarities. 

Step 2. Research 

Being aware of all the project requirements, we get the exhaustive lay of the land. Our specialists study the industry and the niche, view the current market conditions, and discover the dominating trends. They check on the competitor solutions and weigh their pros and cons, focusing on the latter. Then, they identify the target audiences underserved by the existing products and create a user persona with their demographics, income level, user habits, cultural characteristics, pain points, and expectations. 

Step 3. Envisaging the monetization strategy 

If you aim to generate a stable revenue stream from the app, the right monetization strategy is vital. Fintech products like investment apps usually rely on one of three approaches: in-app advertising and partnership, transaction fees, or a subscription model. Our specialists will pinpoint the most suitable strategy in your particular case or suggest a balanced combination of several methods.  

Step 4. Taking care of compliance 

The financial industry conforms to stringent regulations, and any software in the sector must comply with them. We see to it that the future investment app’s security is on an appropriate level to exclude data leakage and minimize the chances for the system to be compromised. Also, we ensure the app’s compliance with FINRA, GDPR, SEC, PCI DSS, and other legislative norms relevant to the industry.  

Step 5. Choosing a tech stack 

With the technical requirements laid out fair and square, we can select the technology roster for the app-to-be. Depending on the envisaged operating system (Android, iOS, or cross-platform), we determine frameworks, tools, and programming languages for SDLC. Besides, we identify the innovative know-how (AI, ML, Big Data, etc.) and third-party integrations the project’s implementation will require. 

Step 6. Determining the Team Roster 

The tech stack of the project relies on conditions and the choice of professionals who will wield it. The team to build an investment app includes a PM, several front-end and back-end developers, a UI/UX designer, and a QA specialist. This crew can be expanded if the scope of the project or the urgency of its completion necessitates reinforcements.  

Step 7. Creating a prototype and MVP 

This is the first practical step that yields tangible deliverables. First, the development team builds a clickable prototype reflecting the product’s structure, logic, and design. If they see that it holds water technically, it is upgraded and amplified to become a minimum viable product, which is submitted to the pilot audience for trial usage.  

Step 8. Performing UX/UI design 

The feedback of the pilot audience serves as actionable insights for creating the client side of the solution. To implement it, designers develop customer journey maps, devise app and user flows, and handle the color scheme, buttons, layout, and other visual interface elements.  

Step 9. Coding 

This is the most time- and effort-consuming stage. Developers create the server side of the product, provide its alignment with the front-end components, and build a system of APIs to enable third-party integrations. On completing each phase of this work, test engineers test the created functionalities and their interplay with other elements.  

Step 10. Testing and deployment 

Now, the QA team steps in. They commit the app for an out-and-out checking procedure consisting of various kinds of tests (compatibility, accessibility, usability, performance, stress, functional, penetration, and more). Once the product is bug-free and safe to use, it is deployed and put into operation.  

Step 11. Maintenance and support 

We don’t let the delivered solution out of sight. Our specialists stay in touch with the customer to ensure its seamless performance and provide advice on different aspects of the app’s operation. If the app owner finds it necessary to introduce some post-launch changes or upgrade the product, we are always ready to lend a helping hand. 

When you know what you have to do to see the project through, the final issue is the question of cost.  

Getting to grips with the cost of investment app development

Like any other software product, an investment app is a big-ticket item. Still, the budget you must allocate for building is not a fixed sum you can bear in mind while planning your expenditures. It depends on multiple factors, such as the scope and complexity of the project, the technologies (especially the cutting-edge ones), the project deadlines, the size of the team, the level of design sophistication, the engagement model you will opt for, the hourly rate the vendor charges for its services, etc.  

Given the number of variables, the cost of each project is calculated individually and is a subject for discussion between the customer and the developer. As our experience in the custom app development field shows, an average-size investment app can cost between $30,000 and $60,000. So, the approximate benchmark figure would be around $45,000. 

As you can see, developing a high-quality investment app is a complicated process with many niceties to pay attention to. That is why it is wise to entrust the endeavor to a seasoned team of high-profile professionals. The qualified and certified experts of DICEUS possess the necessary niche expertise and command of relevant tech skills to deliver a first-rate investment app within time and budget. Contact us to obtain a smoothly functioning and visually appealing investment app that will generate substantial revenues for your company.  

To sum it up

Investment apps are wealthtech products that allow average people to participate in stock trading having just a smartphone. The investment app market is on a steady rise. So it makes perfect sense for entrepreneurs in the finance sphere to launch such a product as a source of extra revenues and a superb customer engagement instrument.  

To make the most of an investment app, you should opt for the right app type, choose its monetization model properly, fill it with relevant features, and hire a team of seasoned IT professionals who will follow a straightforward roadmap during its development. 

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