Building Trading Platform: Comprehensive Guide is how Build Trading Platform

147

Money-seekers have a lot of enthusiasm for the currency trading profession. In order to assess currency pair data quickly and efficiently, traders throughout the world resort to software developers.

A worldwide trading group made such a request, and Inoxoft agreed to fulfill it. In this piece, we presented our experiences in developing a stock trading platform, including the difficulties we encountered and the methods we used as a team.

The recent decade has seen tremendous advances in the fields of software engineering, science, and mathematics, which have all contributed to an increase in man’s general understanding.

Picture a large group of traders spending a lot of time on Excel spreadsheets doing manual labor to determine the best time of day to sell or purchase currency. Traders can make a decent living by analyzing 25 different currency pairs, putting their technique to work, and closing a profitable trade with their broker in a matter of seconds.

An increasing amount of a trader’s day-to-day tasks, including research on currency pairs, the identification of optimal trading methods, and the management of deals, must be automated. So, there has been a lot of work done on developing online European API trading platforms due to the competitive drive to speed up trading procedures through the use of technology.

Concept of Trading Platform

Did you ever ponder the mechanics of a trading platform or how to build one? Let’s get down to the first principles. Web and mobile apps known as “online trading platforms” give investors and traders access to real-time B2B Email marketing data in the form of quotations, charts, and diagrams. It provides a “buy” and “sell” indicator, determines the bid-ask spread, facilitates the management of broker relationships and trade execution, and more.

Developing a trading platform is clearly not something that can be completed in a few quick hours. Building a trading platform that includes extensive computation tools, a unified interface, and pre-programmed strategies and algorithms might take anything from a few months to a year.

The features available on a platform are reliant on the method and strategy employed by traders.

A trader’s experience and requirements will determine whether a trading platform is made more sophisticated or simplified. Inefficiencies in the market provide opportunities for day traders.

This is why it’s important to monitor pricing changes on a frequent basis. In order to engage in binary options trading, you will need charts displaying quotes for various currency rates, ideally with the flexibility to select a time frame that best suits your needs. Trading methods vary in terms of the operating tools and data analysis and presentation schemes they require.

Essential Features in a Trading Program

The best software solution will meet all of the needs of the stakeholders. Key non-functional necessity for trading software include scalability (the ability to handle a growing number of requests & workload), high performance and multiprocessing, safety and security (the ability to recover quickly from system failures or attacks and prevent unauthorized access), interoperability (the ease with which one system can communicate with another), and reliability (capability to run with problems and resolve them).

It takes a lot of time and care to develop effective solutions for algorithmic trading. The quality of the system’s functionality can be better understood with clear non-functional requirements. They are standards that development teams use to define and specify the quality of their software.

How about some specifics on what a trading platform ought to be capable of doing?

Key features must include reliable support for various payment systems, safe cloud hosting services, robust data analysis tools, precise quotes, risk management, and the appropriate kinds of charts. All traders place a premium on some fundamental aspects of automated trading platforms, including:

• Statistical data visualization dashboard

For real-time, simultaneous examination of currency rates across multiple time zones, the platform must run regular updates and information from numerous charts and pricing sheets.

• Authentication

In the first place, the perception of a safe platform and professional engineering work is conveyed by a verification process that is both straightforward and trustworthy. Like open-source trading platforms, trading software can offer access from multiple accounts with two-factor authentication (via SMS or Google Authenticator, for example). Though, it’s still preferable to have a system with access activated via email, phone number, or other ways for only a select group of traders.

• Facilitated CRM and Admin/User features

Customer requests, order enlistment and status indicators, individual accounts, access permission, transaction management, pending and submitted orders, and more must all be easily managed with a single click in such a system. This paves the way for quick decision-making and guarantees that all relevant data is always within reach.

• Effortless searching and filtration

Traders should be able to easily search and filter information on rates, orders, currencies, indices, and commodities in the system in real-time.

• Alerts sent immediately

Users have come to rely on trading platforms, which means you should be aware of any important upgrades or security issues and available at all hours. Notifications can be set to update you on your stock position, economic events, market development, price changes, technical indicators, etc., on the trading platform, which you can use to stay informed.

• Newsfeed

Prior to making any fiscal moves, it is crucial to acquire as much information as possible. Mistakes caused by a lack of knowledge can be avoided by using the stock trading platform’s real-time news, pertinent overviews, and insights into the world’s currency markets.

• Payments and withdrawals

Trading operations, monitoring cash movements, and withdrawing monies from your own account via credit card, PayPal or simple Bank transfer all necessitate this functionality. Once your withdrawal request has been processed, you will be notified.

• Extremely stringent safety measures

Following the guidelines of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), the trading platform must encrypt all sensitive user data.

When creating a trading platform, there are 5 main steps:

• Legalities

If you’re building a trading platform from scratch and handling sensitive information like users’ personal information, SSNs, and credit card details, you need to take care of the legal part first. You must adhere to SEC regulations if you do business in the United States. The European Union’s General Data Protection Regulation (GDPR) sets minimum requirements for trading platform implementations, which developers in the region must ensure are met (GDPR).

The Financial Industry Regulatory Authority (FINRA) is another example of a regulatory body and investor protection scheme.

• In-depth market analysis

To gain a clearer picture of who you’re trying to reach and how they behave in the market, a Discovery Phase service may be useful. By conducting a discovery, you may guarantee your project’s usability for its target audience, calculate its likely length of time and cost, and clarify and record its requirements. The completed solution vision and scope document will comprise the following sections:

Concerning the Needs of Enterprises. The group considers your company’s requirements, history, and potential threats.

Also Read: How to cash a foriegn cheque in Australia 2022?

Both functional and non-functional criteria must be met. The team develops a functional breakdown of the solution to ensure that all necessary business processes are covered.

Expertise in technology. The section discusses the solution’s technical aspects, such as its architecture, entity-relationship models, technology stack, and technical risks.

Wireframes. Interface Layout Diagram (low fidelity wireframes, that usually reflect main screens, & user flows).

• Picking a Service Provider

Next, you’ll need to make a call on whether your trading system will be a streamlined mobile website replicating your existing stock market website or a standalone app. The responsive design of a website’s mobile version makes it suitable for use on a wide variety of mobile devices.

There would be no need to develop several versions of the app for various platforms and hardware configurations. Features that can only be partially implemented on the website can be incorporated into the fully functional mobile app.

Afterward, decide whether to develop for Android, iOS, or both. According to market research, Android is the most popular mobile OS, used by 74.6% of mobile devices, while iOS is used by 24.8%. The use of a cross-platform application development strategy is another option. That’s great news because it indicates the app is platform-agnostic (iOS, Android, Windows, etc.) 

React Native and Flutter are the most widely used mobile app development frameworks that work across multiple platforms. Client-focused user interface and user experience development are made possible with React Native for mobile platforms other than iOS and Android. 

Moreover, Flutter enables developers to create for both iOS and Android using the same code base. Because it is written in the dart programming language, it is lightning quick and extremely efficient.

• Changes in progress

Building a trading platform from the ground up is a challenging endeavor. Included in this is the creation of the back end of the system.

To create a trading platform, we collaborated with experts in a wide range of fields, including Python (Django), Celery, ElastiCache (Redis), EC2 instances (Linux and Windows), FIX Pandas, RabbitMRDS (PostgreSQL), Quickfix, Redis 3.0.6 Sockettage, etc. Additionally, throughout this phase.

• Rear-End Programming

If you’re serious about protecting your platform, you should look into cutting-edge methods and solutions like bank-grade encryption, multi-factor authentication, next-generation firewalls, etc.

Building application programming interfaces (APIs) to power the essential functions.

Incorporating non-essential features requires registering for third-party APIs, such as access to niche markets like stocks, currencies, and futures.

During front-end development, a platform’s UI and design are built. In the app development lifecycle, prototyping is a quick technique to sketch the initial designs. It should lead you and your client to an agreement on how the app ought to feel and how many revisions will be necessary. Then, UI/UX designers can sketch the app’s UI with the best animations, transitions, and styles to make the app feel intuitive in usage, convenient for navigation, and have an intuitive UI.

• Validation and assurance of quality

Because testing involves looking for problems in a program, it’s hard to undervalue it, especially in the financial technology industry. Because of the potential for financial loss, financial technologies cannot tolerate bugs. A well-functioning product is more likely the more problems quality assurance engineers can detect in it. 

The framework of the testing procedure may contain, but is not limited to the following, depending on the trading platform development business or the needs of the client:

Input and output are the bedrock of functional testing. Fake cards are used in the testing of financial apps. The purpose of these cards is to research payment quality, speed, and accuracy.

The goal of performance testing is to ascertain the system’s responsiveness, scalability, and reliability. 

The speed metric is used to get a feel for how quickly the app responds, while the scalability metric reveals how many people may use the app concurrently without causing it to fail. In addition, stability reveals whether the software crashes or crashes appropriately when subjected to varying loads.

After software engineers have finished their last rounds of testing and addressing any bugs, they will release the product to the public. From the moment an app is published, the developer is responsible for keeping it up-to-date to fix any issues introduced by changes to third-party APIs and add any desired new features.

The advantages of outsourcing far outweigh those of developing in-house.

Obviously, the time and money constraints will determine the course of action. While the expense of in-house development is substantially higher, the ability to collaborate closely with the programmers is a major perk. Despite obstacles like time zone differences, online communication, etc., outsourcing continues to grow in popularity and prove to be highly efficient. 

Fortunately, modern software development firms employ cutting-edge project management techniques and an agile strategy to tackle problems like this head-on. We live in the 21st century, where regular communication is not a major issue.

Using the Agile methodology and the Atlassian software apps Jira, HipChat, Gliffy, and Trello, we are able to see the entire process and be in constant, open communication with the team. From what we’ve seen, the most difficult parts of developing trading software are figuring out the business logic, fixing the system’s vulnerabilities, and addressing the technical problems that arise.

• Skillsets of the group

How can software developers get the knowledge necessary to create a trading platform? Do not assume that they are instantly fluent in every aspect of stock and indices trading. Investing the time to learn the domain inside and out is necessary. True specialists, on the other hand, will require copious amounts of data and put a premium on customer participation in the implementation procedures. While each project has its own unique set of technical requirements, software engineers are generally sought after with the following skillsets.

• maintain a high degree of adaptability and speed of response;

• time shifts during the day and night can be adjusted to certain times;

• be concerned with maintaining open lines of communication and negotiating the finer points of agreements;

• realise where your customers are coming from and how you might help them.