Understanding the Development Cost of Building Social Trading Apps like eToro
October 21, 2024
Today, more and more individuals are interested in investing in financial markets. However, the lack of expertise and complex trading requirements often limit their ability to do so. To resolve this challenge, social trading platforms are being developed at a humongous rate, which enables both new and expert traders to make informed decisions by learning insights and knowledge from successful traders.
Research says the market value of social trading platforms was $3.65Bn in 2021 and is estimated to reach up to $5.12Bn by 2030, expanding at a CAGR of 6.9%. This clearly shows the increasing demand for social trading apps. If you are planning to build such an app, you have come to the right place. In this blog, we will discuss everything about social trading platforms like eToro and the development cost of building a similar app to give you a good idea before hiring a mobile app development company.
What Makes Social Trading App eToro Successful?
eToro is a famous social trading app that has transformed the way people trade by mixing social media and finance into a single platform. This social trading app helps users to trade a wide range of assets like stocks, cryptocurrencies, and more.
The best feature of eToro is the copy trading feature, which enables users to replicate the trades of top investors, allowing new traders to learn and gain profits. With more than 30 million global users, eToro has some of the best features that you can keep in mind while building your social trading app.
These features are user profile creation, copy-trading capability, real-time market data, social news feed, multi-asset support, demo accounts for the trial without real money, push notifications, etc. Ensure that you consider these features while building your app, as they can help in delivering value and functionality that will attract both new and experienced traders.
Development Cost of Building Social Trading App and Factors Impacting Cost
As we can see, social trading is increasing tremendously as more and more youngsters prefer investing through collaboration and social interaction over traditional trading approaches. The average development cost of building such apps may range between £150k to £500k depending on factors like app complexity, features, design, etc. Ensure that you invest in a good app development company to create a competitive social trading app that attracts users and generates higher revenue.
Here are some of the main factors that will impact the development cost of apps like eToro-
- Platform of App
The development cost of the app may vary with the choice of platform you opt for building the social trading app, such as Android, iOS, etc. Building the app for a single platform can cost less, but it is advisable to target both iOS and Android users to reach a wider audience.
- App Design
Another factor that impacts the cost is the design, which plays a main role in the user experience. However, using advanced and intuitive design elements will also add up the cost. eToro app is known for its visually appealing and user-friendly design.
- Trading Features
The most important part that will contribute to the app’s success is the trading functionalities, such as real-time asset data, market analysis tools, seamless order execution, and more. The more advanced your app trading features are, the more costly it will be.
- Social Features
If you are planning to make a copy of eToro, you cannot avoid social features like the Copy Trading feature, which enables users to copy strategies from expert traders. Another important feature is a social feed that enables users of the app to interact with one another, share insights, and view each other’s trading activities.
- Multi-Asset Trading Capability
Another component that cannot be ignored while building social trading apps is the support for different asset types. Your app must be capable of dealing with assets like stocks, cryptocurrencies, commodities, etc. This means your app must be integrated with several APIs, which will increase the app development cost.
- API Integrations
If you are offering advanced features like real-time market insights, trading tools, etc., your app needs to be integrated with several third-party APIs. These integrations are important for building famous social trading apps like eToro but may add up the development cost. Your app needs to be connected with the latest market data providers, payment gateways, and more to make the integrations possible.
- Location of Development Team
Another factor that affects the development cost of your app is the location of your development team. For instance, if you are hiring developers from developed countries like the US, the UK, etc., the development charges will be relatively higher than hiring teams from regions like Asia, Eastern Europe, etc. Ensure that you take time to plan the budget before hiring app developers to build a successful social trading app.
Apart from the ones stated above, there are additional factors that may increase the app development cost, such as testing and QA services, which are essential to ensuring good app performance and meeting security standards. Another factor that adds cost is to ensure the app is compliant with stringent security protocols like KYC and AML regulations. The cost doesn’t end with development, as it needs to be regularly monitored and updated for bug fixes, customer support, and more.
Closing Statement
Building a renowned social trading app like eToro can unlock immense opportunities in the ever-evolving world of social trading and investments. However, it is crucial to build such apps with the right blend of features, a well-planned development strategy, and a monetization approach. Doing so will help in making your social trading app a successful one that helps traders and investors alike.
Clavax is a trusted Android and iOS app development company that enables businesses to build a wide range of apps across industry verticals. With years of expertise, our skilled app developers can help build promising social trading apps like eToro for both novel and expert traders. Connect with us to share your requirements and turn your app idea into a tangible business outcome at an affordable cost.