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How Stock Trading Apps like Robinhood are Disrupting The Financial Markets?

The financial sector has undergone a major transformation with the advent of applications such as Robinhood, which is a renowned American financial services company that provides people the ability to invest in exchange-traded funds (ETFs) and stocks for free. It also enables them to do crypto trading via Robinhood Crypto without paying a commission.

When the company was launched seven years ago, only a few people thought that it would make any change to the industry. But, the company raising a whopping $320 million in funding, recently, from the existing and new (TSG Consumer Partners and IVP) investors is proof that it has totally disrupted the financial markets.

With this funding round, Robinhood is planning to lift its financial platform and improve customer experience by building and offering new products to its users. Some of the other key highlights of the app are:

  • Robinhood allows its users to create an investment portfolio
  • Users can check updated market data
  • Users receive timely notifications of their upcoming dividends

Here Is How Robinhood Is Disrupting the Financial Market:

Modern Robinhood-like apps are a result of the market demand of investors who want to make small investments. Everyone can now instantly start investing by downloading a stock advisor app. The zero-fee investing trend has made the entire investment process easier and more accessible.

As a result, existing trading companies have a viable option to spend money on developing stock trading apps, enhancing their offerings, and growing their clientele.

According to the Market Study Report, the market for stockbroker apps is anticipated to reach $4497.9 million by 2025. However, there are currently only a handful of significant players on the market for investment software, with Robinhood standing out as one of the most promising. Since its debut in 2014, Robinhood has been able to attract 22.5 million active users, according to Statista. The Robinhood web app, despite its enormous popularity, is heavily criticized in the finance industry for its gamified approach to trading and a number of other factors.


Zero commission promise

There is no commission fee for buying or selling stocks. The account users create facilitates instant trading. However, if you are willing to take bigger investment risks, then you might need to pay for enrolling in the Robinhood Gold subscription.

No monthly or annual charges

To access Robinhood services, users don’t have to pay any monthly or annual charges for membership. All they have to do is to create an account, set up an investor profile, and start availing of the services. No base fees, no exercise and assignment fees, and no per-contract commission.

No commission cryptocurrency investment

Robinhood also facilitates commission-free cryptocurrency trading. You can trade or invest using Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Dogecoin, Litecoin, and other cryptocurrencies.

Wider presence

Robinhood is currently serving its investment and trading services in more than 45 states in the United States of America. These states include Virginia, Wisconsin, North Dakota, Montana, Michigan, Missouri, District of Columbia, Arizona, Alaska, Lowa, Indiana, Illinois, Mississippi, Washington, and others.

Referral programs

This financial investment and trading app offers amazing referral programs using which users can get a chance to earn free stocks. All they have to do is to invite their friends to use this app. A user can get a maximum of $500 in reward stock each calendar year.


Robinhood, which is SEC-regulated and is a member of the Financial Industry Regulatory Authority (FINRA), allows users to set up watchlists to monitor the stock market and for hassle-free trading. Moreover, it also keeps its users updated with the latest market data.

Types of accounts

To suit every user’s investing requirements, Robinhood offers three types of accounts:

  • Instant
  • Gold
  • Cash

Some of the other reasons behind the disruption Robinhood has brought to the finance sector include easy cash management, simple documentation, secure bank linking, and fund transfers, and hassle-free taxation.

Read More: 11 Unique Finance App Ideas to Consider for your Startup

If you are impressed with the continuously rising demand of applications such as Robinhood and want to build a similar stock trading app for your startup, then here is what you need to know:

Important Features A Stock Trading App Should Have

Selecting the best stock market app for you is difficult if you are unaware of the features that are available. Each platform has a unique set of tools, so it’s crucial to do your research and pick the one that will work for you and your needs. Your stock market app should allow you to access real-time information about the financial markets, not make decisions for you.

A stock trading app should have these essential features:

  • Sign up/Sign in
  • Dashboard
  • Investment portfolio
  • Updated market  data
  • Push notification
  • Data protection
  • Fund transfer
  • Stock trading functionality
  • Auto sync
  • Watchlist

To make your app stand out, you can think of adding some exceptional features, such as educational elements, research capabilities, discussion forums, and more.

Monetization Strategy

While building a stock trading or any other mobile application, it is imperative to build the monetization strategy beforehand to get maximum ROI. Since Robinhood doesn’t charge any commission from its users, you must be thinking about how it makes money. The main source of Robinhood’s income is its premium service, known as Robinhood Gold.

The service is dedicated to experienced investors who want to invest big. With this membership plan, those users can get extended trading hours and additional buying power. They can also borrow money to purchase stocks and ETFs.

Cost of Development – Stock Trading App Like Robinhood

Roughly, you might need to pay for stock trading app development costs somewhere between $75,000 to $1,50,000. The price may change depending on your specific app requirements. The cost of developing a stock trading application depends on various factors:

  • Design of the app
  • Complexity and features of the app
  • The platform where you want to release the app
  • Backend and frontend of the app
  • Size and location of the development team or company
  • Tools and technologies to be used for developing the app

To know the exact pricing, reach out to a reliable mobile app development company, or hire mobile app developers now.

Build A Powerful Stock Trading App like Robinhood with Quytech

Startups are free to create applications that allow users to trade assets without restrictions because the banking and finance sectors are currently more open to non-banking institutions. They are widely available, and more keep coming onto the market. Really, it shouldn’t be a surprise given that more and more users are interested in this type of trading and that there is an increasing need for new apps that make it possible. Each app has its own niche and way of working. Quytech assists you in

  • Choosing your market segment,
  • Identifying the app’s features that will best serve your users,
  • Acquiring a trading license,
  • Creating an application that is user-friendly, reliable, and secure
  • Promoting the application.

Final words

Robinhood is a well-recognized stock trading application, with more than six million customers, that allows users to invest in stocks and ETFs sans any commission or fee. This article covers how mobile apps like Robinhood are creating disruption in the finance industry.

stock trading app cta

Besides this, we have also provided important points required to keep in mind while building a stock trading application such as Robinhood. For further queries on stock trading app development, contact an experienced fintech app development company.