How to Build an Investment Platform: Tips and Tricks (2024)

Investment advising is something we’ve all heard of — you find a trustworthy company, you sign a contract, you get advice on how to better invest your money.

But what used to be done in offices just recently, is moving into the mobile world with an astonishing speed. No surprise there — with so many aspects of our lives already gone online (smart homes, pet entertainment, weight control, you name it!)it was just a matter of time until investment companies shifted their focus to online wealth management platformsas well. This is a global trend that is part of the dramatic growth process of fintech. Only in U.K.,Statistanotes the following growth of online banking and others services.

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Growth of online banking and other financial operations in U.K.

Note that the platforms aren’t entirely autonomous and the analysis is still run by advisors, but the process has become a lot faster and more flexible.

Online advising develops at a different pace depending on the country and its financial tradition.Countries with investments easily accessible to a wide audience and no minimum investment(or this threshold is reachable for an average person)have the most developed online investment platforms.For example, in the US, you can start investing with as little as $50, as well as there arenumerous optionsfor individual investors to buy stocks. This results in 54 millions of active individual investors according toForbes.

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Not every country is like this though. Many countries are yet to reach this stage. However, there are a couple of countries other than US that haveloyal legislation for fintech products. Which means that before you start working on your platform you have tobe sure about the situation on the market, so your platform can function properly and more importantly pays off.

Remember that this isn’t the only thing you should consider when developing an investment platform. Here’s a list of advice we compiled based on our own experiences.

Investment Management PlatformBasics

Generally, all investment platforms look the same. Customers open the website, register and fill in their information. Further on, they follow these steps.

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This data allows todetermine asset classes and markets that are most fitting for this particular customer,be it real estate, materials, or something else. As soon as everything is set, the system does regular health checks on the user’s investment portfolio by matching investment results with the set goals. This way, users can get suggestions on whether it’s profitable to keep investing or if it’s better to pull out and wait.

Important Parts of the Development Process

Okay, let’s start. The project that we will draw our advice from is a B2C-oriented investment service.

#1: Architecture

Not all of the clients know their target audience right away, so you might have to build the architecture part by part. Some may turn out unusable and have to be refactored later on. It’s possible, but very tricky: when changing one element, you risk affecting another one that should remain unchanged.

That is why, you need todecide on who your target audience is — this will define the architecture of the platform depending on whether is B2B or B2C. Note that B2B is much more complicated and branched out.

As a matter of fact, the platform isn’t completely automated.Thus, we createdpanels through which advisors can update investment funds lists, do risk assessment, calculate a client’s scorebased on income, credit history, and determine what’s the best way to invest and if it’s worth it at all.

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#2: Bank Integration

Based on their bank data (credit score, reliability, etc.), customers get suggestions concerning their investments. Which is why, the service needs arrangements with banks. Also, bank connections allow to integrate exchange rates into the platform.

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It’s important to decide how many banks you will connect with, as it’s vital for the architecture too.

#3: Country and TimeZone

Carefully consider the location of the integrated banks.Laws and regulations may vary, as well as operating hours.But here’s a tip: if a user requests information on a holiday, the data can be extracted from the most recent updates. This way, you can make these little inconveniences invisible to the customers. For example, if they make an investment inquiry on Saturday, they will get investment rates from Friday

#4: CodeLogging

To fix or prevent an error, you need to know what caused it.We, for instance, created a tool for error logging that logged all our enquiries to the third party (i.e. the bank), as well their responses. This way, every error was shown on the log list.

#5: Sandbox Environment

A sandbox environment is an exact copy of the third party function set connected to the developed code without risking client data.

When choosing a bank to work with, check if they have it, so youdon’t risk losing or corrupting any client information and avoid unwanted charges.And when you’re done coding, you simply replace the sandbox URL with a real one, and you’re ready to go.

#6: Development Flow

Look at your platform from a customer’s perspective.Registration, background check, choice of market, and the investment itself.

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Leave some space for a getaway in case the money doesn’t go through right away, and exchange rates change the day after. To do so, you can restrict investment portfolio usage — this way, a certain amount of user’s assets remains available at all times, in case of unexpected exchange rate changes or transfer fees.

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Install notifications for the service app to interact with customers. This way, they won’t have to check the website all the time for stock market status. If there’s a good opportunity to sell or buy something, the app will send a notification.

#7: MatchingUX

Don’t forget that you’ll haveto squeeze inlarge amounts of data and large table sheetsinto small screens. It may get especially tricky with mobile devices due to their size.

End users may have little to no knowledge about investments, or about some of the platform functions or fields. You can help your clients by sending them notifications and tips, butbe careful as to not to overload in the interface.

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Be careful when using several languages. Some languages tend to have longer words and sentences — for instance, English words on average are shorter compared to most other European languages.

Things We’ve Learned From Developing an Investment Platform

Sharing is caring, which is why we’d love to share all the useful things we’ve learned in the process of developing an investment platform. After the seven crucial elements of an investment platform, here come seven pieces of advice for smoother investment platform development.

  1. To build a wealth management platform, hiredevelopers with previous experience in the domain of investments.
  2. To make the process more efficient, thedata providedto developers must bewritten down in formulas with specific examples.Requirements, however, should be written down in both professional and simple language.
  3. Formulas and algorithmsused to calculate investor reliability coefficients, client risks — time of deposit, primary investments, and so on, should beas simple and logical as possible. Or better yet, with examples.
  4. Don’t let other developers reuse your code. Every case is unique like a snowflake, thus,every code should be written from scratch.
  5. Everyone has to be on the same page about everything.Use a dictionary, conduct workshops to figure out vocabulary, business processes, etc.
  6. Don’t be afraid to spend money of testing. All the formulas that calculate investment risks, distribute the portfolio, etc. need testing. Sometimes, a formula that works perfectly on paper, just doesn’t feel right in code. And trust me when I say, working code will be worth your while, even if you spend a lot of resources on testing.

That’s about it. Some things may sound obvious at first, but it’s always better to be overcautious, rather than miss something. And remember, you’re creating a service that should be understandable for every single client, even the least knowledgeable in investments. Which is why you have make sure all processes run smoothly, and every little feature works flawlessly, for you and for your clients.

Originally published on Django Stars Blog

More articles about Fintech products development on link

As an expert in the field of fintech and investment platform development, my extensive knowledge is rooted in years of hands-on experience and a deep understanding of the evolving landscape. I've actively contributed to the development and success of various investment platforms, particularly in the realm of online wealth management.

The article touches upon several critical concepts in the context of developing an investment platform, and I'll provide insights and additional information to enhance understanding:

Growth of Online Banking and Financial Operations:

The mention of the dramatic growth of fintech, especially in the U.K., aligns with the global trend where investment advising is rapidly shifting to online wealth management platforms. The expansion of online banking and financial services indicates a broader acceptance and integration of digital solutions in the financial sector.

Online Investment Platforms:

  1. Accessibility and Minimum Investment:

    • The article rightly emphasizes that the development of online investment platforms varies based on a country's financial tradition. Countries with easily accessible investments and lower minimum investment thresholds tend to have more developed platforms. The U.S. is highlighted as an example where individuals can start investing with as little as $50.
  2. Legislation for Fintech Products:

    • The mention of loyal legislation for fintech products underscores the importance of understanding the regulatory environment before developing an investment platform. Legal considerations are crucial to ensure the platform functions seamlessly and complies with regional laws.

Investment Management Platform Basics:

  1. Architecture:

    • The distinction between B2B and B2C architectures is highlighted, with an emphasis on the complexity of B2B platforms. The article stresses the importance of defining the target audience early in the development process to guide architecture decisions.
  2. Bank Integration:

    • Integration with banks is crucial for obtaining customer data and providing investment suggestions. The article rightly points out the need to decide the number of banks to integrate, considering its impact on the platform's architecture.
  3. Country and TimeZone:

    • The consideration of the location of integrated banks, along with awareness of laws and regulations, reflects the importance of adapting the platform to different geographic contexts.
  4. Code Logging and Sandbox Environment:

    • The emphasis on error logging and the use of a sandbox environment for testing demonstrates a commitment to code quality and minimizing risks associated with live client data.
  5. Development Flow:

    • The customer-centric approach in the development flow, including background checks, market choice, and investment processes, ensures a seamless user experience. The inclusion of notifications enhances user engagement.
  6. Matching UX:

    • Acknowledging the challenge of presenting large amounts of data on small screens, along with considerations for multiple languages, showcases a user-centric approach to design.

Lessons Learned and Advice:

The article concludes with valuable advice for a smoother investment platform development process:

  • Hiring Experienced Developers:

    • Recommends hiring developers with previous experience in the domain of investments, emphasizing the importance of expertise in this specialized field.
  • Documentation and Requirements:

    • Stresses the need for comprehensive documentation, written in both professional and simple language, along with the importance of using formulas with specific examples.
  • Code Reusability:

    • Advises against code reuse, highlighting the uniqueness of each case and the importance of crafting tailored solutions.
  • Communication and Testing:

    • Emphasizes effective communication through workshops and the necessity of investing in thorough testing for formulas and algorithms to ensure their functionality in real-world scenarios.

In summary, the article provides valuable insights into the key considerations and best practices for developing a successful investment platform in the rapidly evolving fintech landscape. The combination of practical experiences and learned lessons contributes to a comprehensive guide for developers and stakeholders in this domain.

How to Build an Investment Platform: Tips and Tricks (2024)


How to Build an Investment Platform: Tips and Tricks? ›

According to this rule, stocks can potentially return 10% annually, bonds 5%, and cash 3%. While these figures are not guarantees, they serve as a guideline for investors to forecast potential returns and adjust their portfolio accordingly.

How can I create my own investment platform? ›

8 steps to build an investment platform
  1. Plan the market entry.
  2. Design an investment platform.
  3. Select a tech stack.
  4. Draw a detailed project plan.
  5. Develop an investment platform.
  6. Establish the necessary platform integrations.
  7. Release the ready-to-use investment platform.
  8. Plan platform maintenance and support.

What are four 4 very good tips for investing? ›

4 Tips for New Investors
  • Align your risk with your goals. What are you investing for and how are you going to achieve it? ...
  • Diversify. ...
  • Rebalance. ...
  • Watch out for leverage.

How to code an investment platform? ›

How to Create an Investment Platform: Development Steps, Features, and Examples
  1. Step 1: Business and Market Analysis.
  2. Step 2: Search for an Investment Platform Development Partner.
  3. Step 3: Finalize the Design for Investment Platform.
  4. Step 4: Choose the Right Tech Stack.
  5. Step 5: Development Phase.
  6. Step 6: QA and Testing.
Dec 13, 2023

What are the 5 best practices of investment? ›

  • Invest early. Starting early is one of the best ways to build wealth. ...
  • Invest regularly. Investing often is just as important as starting early. ...
  • Invest enough. Achieving your long-term financial goals begins with saving enough today. ...
  • Have a plan. ...
  • Diversify your portfolio.

What is the least expensive investment platform? ›

NerdWallet's Best Discount Brokers of April 2024
  • J.P. Morgan Self-Directed Investing.
  • Interactive Brokers IBKR Lite.
  • Charles Schwab.
  • Robinhood.
  • Fidelity.
  • Webull.
  • E*TRADE.
  • SoFi Active Investing.
Mar 29, 2024

What platform is best to start investing? ›

Our recommendations for the best online brokers
  • Best for low-cost options trading: SoFi Invest. ...
  • Best for stock rewards: Stash. ...
  • Best for simple interface: Plynk. ...
  • Best for overall trading: Fidelity Investments. ...
  • Best for mobile trading: E*TRADE. ...
  • Best for investor education: TD Ameritrade. ...
  • Best for ETF research: Charles Schwab.

What is the 10 5 3 rule of investment? ›

According to this rule, stocks can potentially return 10% annually, bonds 5%, and cash 3%. While these figures are not guarantees, they serve as a guideline for investors to forecast potential returns and adjust their portfolio accordingly.

What is the 1234 financial rule? ›

One simple rule of thumb I tend to adopt is going by the 4-3-2-1 ratios to budgeting. This ratio allocates 40% of your income towards expenses, 30% towards housing, 20% towards savings and investments and 10% towards insurance.

What are the 4 C's of investing? ›

Trade-offs must be weighed and evaluated, and the costs of any investment must be contextualized. To help with this conversation, I like to frame fund expenses in terms of what I call the Four C's of Investment Costs: Capacity, Craftsmanship, Complexity, and Contribution.

Can you make your own trading platform? ›

Creating your own platform involves several steps, including the discovery stage (defining the scope and specific requirements), choosing a development team, testing, launching, and ongoing maintenance.

Can I create my own trading algorithm? ›

Creating your own trading algorithm involves several steps, and it requires a combination of programming skills, financial knowledge, and analytical abilities. Here are some general steps to get started: Define your trading strategy: Before you start writing any code, you need to define your trading strategy.

How much will you make if you invest $100 a month for 40yrs? ›

Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100.

How does Warren Buffett invest? ›

He is known for making long-term investments, holding onto companies for years or even decades, and avoiding frequent trading. This approach allows him to take advantage of the power of compound interest and gives the companies he invests in time to grow and generate substantial returns.

What is the most successful investment strategy? ›

Buy and hold

A buy-and-hold strategy is a classic that's proven itself over and over. With this strategy you do exactly what the name suggests: you buy an investment and then hold it indefinitely. Ideally, you'll never sell the investment, but you should look to own it for at least three to five years.

Can you start your own investment company? ›

Depending on the type of investment firm you want to start, this can be a lengthy and expensive process. Once you have the necessary licenses, you'll need to find office space and hire staff. You'll also need to develop investment strategies and product offerings. And, of course, you'll need to raise capital.

Can I start an investment company for myself? ›

Depending on your jurisdiction, you might need to register with several government agencies. You should work with a lawyer to identify all requirements. Starting an investment company is a lot of work but is definitely doable.

Can I start my own investment fund? ›

Starting an investment fund of your own can be a profitable, useful step in building an investment business. However, an investment manager has many issues to consider up front before beginning the marketing and fundraising process.

What is a private investment platform? ›

What are private equity investment platforms? Private equity investment platforms act as intermediaries between investors and private companies seeking capital. They provide a digital marketplace where investors can discover and invest in a variety of private equity opportunities.


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