The modern trading and financial market is significantly different from what the world saw a decade ago. Every year, it becomes more accessible to a wider range of people and allows even those with minimal starting capital to join and earn. As a user of trading platforms, you probably know the pros and cons of such products and could think about creating your own app. Let’s look at the main trends within the trading industry to find out what will help you move successfully in this direction.

The Boom of Digital Assets

Modern traders are interested not only in securities, properties and commodities, but also in cryptocurrencies, NFTs, and various asset-backed tokens. Digital assets confidently move the market forward, resolving asset availability issues and simplifying cross-border transfers. Basically, any physical asset such as real estate, artwork, or any other product can be tokenized and created as a digital asset for trading.

Non-Fungible Tokens (NFTs)

As interest in the metaverse has grown, the importance of such assets has only increased. For example, NFTs can help ensure the uniqueness, ownership, and authenticity of virtual assets which makes them an integral part of the economy of metaverses. So it is not surprising that such a phenomenons as NFT trading appeared, the essence of which is to earn top NFT tokens or buy them at a low price, then sell them to someone at a higher price and make a profit. For example, the crypto exchange Binance has expanded the range of its services by creating an NFT marketplace that allows you to trade non-fungible tokens.

Crypto Trading

However, cryptocurrencies are still the most popular digital assets among traders. Due to their volatility, they can be an excellent source of quick profit, which is appreciated by traders. Despite its ups and downs, the cryptocurrency market grew to $2 trillion in 2021, when compared to around  $260 billion a year before, according to CoinMarketCup. Therefore, creating new cryptocurrency apps is still a justified step for fintech startups.

However, when discussing the strengths of digital assets, it is worth noting the challenges you may face. First of all,  is a lack of regulation, which can be both an opportunity and a problem. Regulations allow you to achieve certain stability in the market and prevent fraudulent activity. Understanding this, most countries have moved towards the creation of appropriate regulatory frameworks.

Applied Artificial Intelligence (AI)

Today’s trading platforms rely heavily on automation and AI-driven data. Being one of the latest trends in financial technology, AI allows you to find valuable patterns that help traders and investors make better financial decisions. Automation lowers barriers for new users by offering them a quick start. Also, customers expect to access information and execute trades quickly, while having the opportunity to analyze previous data to create effective trading strategies. Artificial intelligence meets all these needs by offering robo-advisory features, algorithmic trading, and predictive analytics.

Robo-advisors help users of trading platforms make bets by analyzing historical data and market trends. Unlike trading bots that simply run the same operations repeatedly, AI advisors learn from new data and become smarter, and therefore represent greater value for clients. Also, the commission for a robo-advisor is much lower than if you hired a human financial advisor. That’s why such AI-powered solutions are used both in crypto and stock trading markets.

In addition to robo-advisory features, AI helps improve trading performance. For example, using deep learning can allow you to copy the trading behavior of other users. This feature is offered by the multi-functional investment platform eToro.

Predictive analytics based on data, statistics and algorithms can help determine the probability of making profitable trading decisions. It is also an attractive addition for users of trading platforms. For example, the DataTrading platform uses advanced algorithms to provide valuable insights to traders in both stock markets and cryptocurrency exchanges.

The Rise of Neobrokers

Neobrokers, digital tools that provide brokerage services online, are a relatively new trend in trading. Although neobrokers offer fewer services than traditional brokerage firms, their popularity rises due to lower commissions and a focus on the individual investment experience. Often such platforms can partner with traditional banks or stock brokers which execute trades on their behalf.

Although neobrokers are very alike other similar services. Their main difference is in how they earn. For example, neobrokers may not charge you a brokerage fee, but instead, charge you interest on leverage for margin trading. Examples of non-broker platforms in the market include Bitpanda, Smartbroker, Trade Republic & Co, etc.

According to Million Insights, the global non-brokerage market will reach $12.55 billion by 2028, growing at a CAGR of 5% from 2021 to 2028, which opens a lot of opportunities for new startups.

Wrapping Up

As you can see, the trading market is very dynamic and open to innovation, therefore there’s always a place for new visionary trading app development. The more you focus on user needs, personalization and new, more user-friendly monetization models, the higher your chances of success. Follow key trends, invest in advanced technologies and disrupt trading with your progressive solutions.

Maksym Bieliai
BA Team Leader, Fintech Market Analyst at MobiDev

Leave a reply

Please enter your comment!
Please enter your name here