What is an investment platform and how promising such a startup will be in 2023?

An investment platform is an online service that allows investors to buy and sell stocks, bonds, funds, and other assets. Therefore, many people are interested in the question of how to create an investment platform. There are several types of such projects, including:

• Brokers: this is the most common type. They allow trading in financial markets, including buying and selling stocks, bonds, funds, and other assets. They may be licensed and regulated by financial institutions.
• Funds: Specialize in providing access to investment funds such as mutual funds, ETFs, and other products. They often offer a wide range of funds managed by different companies and fund managers.
• P2P loans: allow you to lend to other people or companies while receiving interest on the loan. Users can choose which borrowers they want to invest in and set their own lending terms.
• Crowdfunding: allows investing money in various projects, such as real estate, startups, and other businesses. You can choose projects and get a share of the profits made by the project.
• Robo-advisors: use algorithms and artificial intelligence to provide advice and portfolio management. Clients answer questions about their financial goals and risk preferences, and then a robo-advisor creates a portfolio that meets those criteria.

How do investment platforms work and what are their benefits? 

Such a project works as an intermediary between the investor and the financial markets. The former can use the platform to open accounts, deposit money into their accounts, buy and sell products, and manage their portfolios. Advantages:

• Accessibility and convenience: they are available online, allowing you to trade and manage your investments at any time and from anywhere in the world. This makes the process more convenient and accessible to a wider audience.
• Low fees: usually have lower fees than traditional services such as asset management. This can significantly reduce costs and increase portfolio returns.
• Availability of a wide range of choices: access to a wide range of products including stocks, bonds, ETFs, and other assets. This allows you to diversify your portfolio and reduce risk.
• Tools and Analytics: a variety of tools and analytics to help you make decisions about buying and selling assets. This includes charts and graphs, news and analytical reports.
• Regulation and security: this gives confidence that their funds are protected and that they are working with a reliable and trusted service.

Investment platforms have become very popular in recent years because of their accessibility and convenience. They allow you to manage your money more efficiently.

Important features for investment platforms

These features make the portfolio management process easier. Let’s take a look at some of the most common features:

• Automated investing: This feature allows you to automatically invest money in a portfolio of pre-selected products. Clients can customize their portfolio, set parameters, and automatically add to it as needed.
• Portfolio rebalancing: The portfolio rebalancing feature automatically adjusts the balance of the assets in the portfolio according to the parameters set. This allows you to maintain your original risk level and achieve more consistent returns.
• Analytics tools that help you make more informed decisions about buying and selling assets. This can include charts, graphs, news, and analyst reports.
• Social investing allows you to learn from other users, copy their portfolios and follow their trading actions.
• Algorithm and artificial intelligence-based recommendations that help make decisions about buying and selling assets.
• Tax tools: This can include income statements, tax forms, and other tools that help you keep track of your tax obligations. Certain platforms may also offer access to tools for handling your crypto taxes.

Overall, investment platforms that offer these features can provide a more streamlined and efficient investment experience for users. By automating and simplifying many of the portfolio management tasks, these platforms can save investors time and effort while also helping them make more informed decisions about their investments. Additionally, the availability of tax tools and other resources can help users stay on top of their financial obligations and make more informed decisions about their overall financial strategy.

The most successful examples 

There are many investment platforms on the market. The most famous is Robinhood. It allows users to trade stocks, ETFs, options and cryptocurrencies. Robinhood has quickly become popular due to its ease of use, lack of commissions, and accessibility. Here are a few more of the most successful and popular examples:

• eToro – allows you to trade stocks, ETFs, cryptocurrencies, currencies and other assets. eToro is known for its social investing features.
• Betterment – specializes in portfolio management using algorithms and artificial intelligence. 
• Wealthfront – provides portfolio management services using algorithms. Wealthfront also provides access to free advice, tax optimization tools, and other features.
• Vanguard – access to a wide range of products, including index funds, ETFs, and other products. 
• Interactive Brokers is an international investment platform that allows users to trade a wide range of assets, including stocks, options, futures, currencies and others. 

These investment platforms have proven to be successful due to their innovative features and user-friendly interfaces. Whether you are an experienced investor or just getting started, these platforms provide a wide range of options and resources to help you make informed investment decisions. As technology continues to evolve, we can expect to see even more exciting developments in the investment industry, with new platforms emerging to meet the needs of investors in a rapidly changing market.

Relevance of investment platform development in 2023

Developing investment platforms remains relevant in 2023. The investment market continues to grow and more and more people are interested in the opportunities. As technology advances, the usability of such online platforms is only increasing, and it are becoming more and more attractive to new users.

Such projects continue to evolve and add new features to meet the needs of different types. For example, social investing, automatic portfolio management, and cryptocurrency buying are all features that can attract new users.

Today, most people are looking for new ways to grow capital, opportunities for diversification and protection of their assets. Thus, such platforms will remain relevant and in demand in 2023, and we can expect this trend to continue in the future.

Nuances to watch out for about the project development process

Development is a long and multi-step process that requires significant resources. Determine the target audience, do a competitor analysis, and a demand assessment. Further key steps:

• Design the interface and functionality.
• Creating the core platform, integrating third-party applications and technologies, testing and debugging.
• Providing security and privacy of user data and financial transactions, implementing measures to protect against cyber-attacks.
• Preparing for the launch, marketing campaigns and advertising, support and maintenance.

The relative cost of the project can vary significantly depending on scale, functionality, complexity, and technology. For example, in the U.S. the development cost can start from $50,000 to $100,000, while implementing a more complex and functional platform can cost several million dollars.

Factors that affect the cost of implementing your idea include the choice of technology and tools, interface design, various functionalities, integration with other systems, complexity of security, and code quality. The cost of development may also depend on the specialization of the development company and the geographic location in which it is located.

Conclusions

An investment platform can be a reliable tool. The requirements of users, competitors, legislation and technological requirements must be considered. Also, security and privacy are important aspects to pay attention to.

However, development can have a high cost, and the entrepreneur needs to be prepared to spend money on technology and specialists. Despite this, such a startup can make a significant profit by providing users with access to a wide range of products and services.

With the rapid growth of technology and the increasing number of people looking to add capital, such a project remains relevant in 2023 and could become even more popular in the future. Key success factors will be functionality and security; attractive design and usability, and customer satisfaction.