It’s not a secret that today the success of any trading activity heavily depends on the software a particular trader chose. That’s why the question of whether to use a stock trading application or not is no longer relevant. Traders and investors who want to make money investing in stocks just cannot ignore the advantages new technologies bring. Naturally, this state of affairs creates perfect conditions for new trading platforms to gain popularity.

According to the market research by IBIS World, the US e-Trading software developers industry hit $10.9 in 2018 and is expected to show the further upward trend in the future. No wonder there are hundreds of trading applications built by major players, as well as startups and new businesses. For those entrepreneurs who are just planning to create new software for traders, this means that the threshold for entering the market is nowadays higher than ever before.

Fortunately, building MVP before the launch of a final product makes this task easier by effectively mitigating some major risks traditionally associated with the development of a trading platform.

What is an app MVP and why do you need it?

MVP means a minimum viable product that is a product which has the least possible but sufficient amount of features to satisfy early customers and to provide its creators with user feedback. After the MVP is released, the development process usually goes on because there is still no full-bodied product one can sell. Yet, it is more cost-effective and safe in terms of probability to reach a product market fit.

Speaking about a stock trading application, the biggest problems most entrepreneurs face is that the uncertainty inherent to any software development project is combined with the level of costs and business risks which is much higher than average. This is because the industry standards are very high. Hence, any new trading platform has to be by default ‘stuffed’ with advanced features to be competitive on the market, and the development process of such an advanced product is usually both lengthy and expensive.

At the same time, MVP of a trading software handles all these problems. First, its creation needs much smaller initial investments, as well as much less time. Secondly, MVP allows its creators to better learn the needs real customers have and adjust the functionality of their product accordingly. As a result, the business risks are lower and the outcomes of the project are more predictable.

How to you build an MVP and how much it will cost you

The main idea behind MVP is to test the key functions of the product before spending too many resources on its complete development. There are many discussions around the topic what the word ‘minimum’ exactly means in terms of MVP. But, basically, the MVP of your trading application will perform its functions if users are able to use it as intended and give their feedback afterward.

In general, the costs required for the MVP development are calculated based on the time needed for the coding team to create it and hourly rates of software engineers. For example, if developers charge on average $50 per hour and they need 500 hours to complete the work, your budget for MVP will constitute $25,000.

However, since the rates depend on many factors such as the geographical region where programmers are located, their expertise, and status (freelancers or agency employees), the final price may vary from a few thousands US dollars to more than a million.  

Summing up, the easiest and the most cost-effective way to enter the e-trading market is to start with MVP. GBKSOFT has outstanding expertise in this regard so we are ready to help in case you need professional support.