What is an algorithmic trading app?
An algorithmic trading application is a web, mobile, or desktop application that enables users to program complex trading strategies. The app may offer a library of pre-built strategies and algorithms for users to experiment with. Alternatively, the app may offer tools that enable users to compose their own custom strategies in an IDE environment.
Algorithmic trading apps are similar to most other financial trading apps. However, algorithmic trading apps have unique design considerations that differentiate their functionality from many other finance and trading apps. Quantopian is a good example of an algorithmic trading app.
Examples of algorithmic trading apps built with Crowdbotics:
- Data analysis, algotrading, and trade execution app.
What is the typical cost to build an algorithmic trading app?
An algorithmic trading app usually costs about $125,000 to build. However, the total cost can be as low as $100,000 or as high as $150,000. An algorithmic trading app with a low number of features (also known as a minimum viable product, or MVP) will be more affordable than an app that includes all intended functionality.
For example, here are some previous algorithmic trading app price quotes from Crowdbotics:
How long does it take to build an algorithmic trading app?
An algorithmic trading app usually takes 1667 hours to build. However, an algorithmic trading app can be built in as few as 1333 hours, or in as many as 2000 hours. The exact timeline mostly depends on how complicated your specific app is. As a general rule, it will take longer if you require highly custom designs, niche features, complex logic, or non-standard release platforms.
For example, some previous algorithmic trading apps build with Crowdbotics received the following hourly estimates:
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Crowdbotics has quoted and built hundreds of applications for teams of all sizes. Browse our historical estimates by industry and app type to understand possible costs and considerations.
How to successfully grow your algorithmic trading application
Algorithmic trading apps allow advanced traders to trade stocks and options from their smartphones. These apps also provide a level of transparency that is important for algorithmic trading, because users can select which strategies they want to trade and then monitor their performance in real-time. These apps can also enhance the user experience by providing analytics on how algorithms are performing, and by offering a simple way to test new algorithms.
Risks and challenges of building an algorithmic trading application
An algorithmic trading app faces risks related to the handling of personal financial information and regulatory compliance. How your app handles user input data should be carefully audited to ensure compliance with the latest securities regulations, including SEC Rule 611 (as amended in 2015). It is highly recommended that algorithmic trading apps use strong encryption to protect data at rest, as well as data in transit. You will also want to review which APIs you can leverage for payment processing and how this might impact user privacy.
