Futures Trading Platform Development: From Basics to Complete

Technological advancement is disrupting futures trading. Now traders prefer futures trading software rather than relying on outdated trading instruments.

Using futures trading software, they can be more adept at:

Ensuring workflow remains fast and transparent demands constant work on trading system development software.

Software developers help traders switch between all targeted types of assets and maintain a perfect workflow.

Below we discuss core requirements, costs, and key aspects of trading system development.

Futures trading software is a specific, primarily online solution traders use to buy and sell futures, i.e., exchange assets for fixed parameters (price, size, currency, etc.), at a future date.

It helps manage principal risks and differences between futures and other trading types, e.g., stock or options trading. Traders can then operate with a specific feature set that is best tailored to their routine.

Every trading platform must provide its users with a friendly environment for fast and flexible trade execution. Futures trading software is no exception.

Because trading conditions vary wildly, planning becomes the cornerstone for successful product delivery.

Make sure you too prepare a plan before trading system development starts.

Compose a list of questions. Include these critical aspects and more:

Your answers affect both requirements, including feature list, user flow, infrastructure configuration, etc. and the scope of work and project costs.

The guide below will help you form expectations.

Software for futures trading platforms has complex requirements, which it shares with other types of FinTech projects.

This means futures trading apps must be fast, reliable, secure, and user-friendly.

End users value the following features:

Asset coverage – Choose one or several priority markets, depending on end users’ operational needs. Consider white-labeling options for major market players.

UX – Software must streamline the futures trading process, ensuring users can work in the system with minimum onboarding.

Interface – Futures trading software look & feel must be impeccable. All elements remain distinctive and visible to eliminate confusion. Any confusion might eventually lead to losses.

Customization – Provide traders with tools for setting up their own original style.

App speed – The app must work perfectly on most end-user devices. Users have no tolerance for glitches or freezes.

Software response – Real-time trade updates are critical. Ensure your platform’s back end responds fast under user influx during peak trades.

Balancing and optimization – Retain high performance under constant user growth. Do not wait until your growing user base surpasses software capabilities. See above: users have no tolerance for glitches or freezes.

All futures trading solutions share basic functionality, including:

System-related aspects remain invisible to regular users. However, they are crucial for the system:

Administration panel – App owners need to monitor system state, manage users, and update various information.

User verification – It is essential to set up correct verification. It can be a simple email verification for everyone, followed by uploading verification documents. Or invitation-only access can be granted to those who qualify.

Mobile vs. web – Both are good. Futures trading software does not require access to specific smartphone hardware. It is possible to start cost-saving, cross-platform app development.

Account synchronization – Users might want to use several devices for trades. User data must synchronize automatically between devices each time users log in.

API development – Consider API development when traders require integrations of your software with their system.

Here is what the futures trading lifecycle looks like:

1. Choose a platform. Open a new account.

2. Provide verification details and wait for approval. This step can take from several seconds to several business days.

3. Launch a mobile or desktop app (or both) for your convenience.

4. Log in to your account. Enter key information. Customize your profile for instant recognition.

5. Add assets or money to your account.

6. Decide on types of futures and trading strategies.

7. Place and manage your orders. Keep platform commissions in mind.

8. Set up your alerts and notifications.

9. Set up trading bots to automate your trading strategy.

10. Keep your account credentials secret.

An important note. App owners must adjust the trading environment to the exact user needs:

• New users benefit from simple functionality.
• Experienced traders require maximum customization. They fine-tune the software to their trading habits.

Security risks are high for futures trading platforms. Trading platforms must be hypervigilant to avoid cyberattacks. They must comply with the latest security standards and regulations, e.g., set up multi-factor authentication, enhanced data encryption, connection via allowed ports, and more.

As a result, limitations apply to the tech stack and software infrastructure. Trading software developers cannot use shortcuts or unproven third-party services. They need a special focus on security testing during the QA stage.

Software architecture must reflect the industry’s best practices.

Also, add regular security audits to the list to pass legal regulations on leading markets such as the EU, USA, Canada, and Australia.

Every trading software requires regular maintenance. Users will not tolerate slowdowns or crashes. Degraded software leads to user churn.

Make sure calculation algorithms are accurately updated. Even a minimal error could lead to colossal business losses fast: high-load platforms perform millions of transactions every second.

Extended 24/7 software monitoring and logging for futures trading software make detecting and eliminating malicious activities possible. Regular server updates close vulnerabilities. To prevent emergencies, update software regularly and carefully.

A product owner must request project modernization when software technologies or infrastructure stop supporting business needs, e.g., database does not support the growing number of users or technology becomes obsolete.

IT Craft is a leading derivative trading software development company offering deep expertise in modern technologies, flexible engagement terms, and a pool of 330+ in-house engineers, 80% of whom are middle- and senior-level. Our trading platform developers have been successfully meeting different business needs, from startups’ to enterprises’, during 25 years of operations.

The clients highlight IT Craft’s capabilities in developing native integrations with third-party platforms and delivering complex functionality on tight deadlines, all resulting in clients’ business growth. The company is also praised for building robust infrastructures that enable clients to meet regulatory requirements.

TradingSoft specializes in different types of trading platforms and offers derivatives trading software development services as one of its core areas of expertise. The company’s trading development specialists emphasize low latency, connectivity, use of advanced technologies, and comprehensive 24/7 support.

TradingSoft clients praise the company’s engineering capabilities in building order routing solutions, live trading apps, and hedging systems. The company also offers a number of pre-made products for traders that allow businesses to build robust and secure systems in less time.

Founded in 2001, Derivicom is a niche company from Chicago with core expertise in derivatives modeling and analytics. Still, it also helps with custom trading solutions development, back-office systems, FASB compliance, and more. The range of clients varies from individual investors to large financial corporations and investment funds.

Derivicom technology expertise centers around the Microsoft technology stack, which can be a plus for the corporate clients. The company offers its own products for efficient analytics, including price calculation, hedging, and implied values. Those cover many derivative products: futures, exotics, bond options, and beyond.

Not a purely development service provider but a software vendor, FX Bridge Technologies provides a white-label, turnkey platform offering and can help traders with its seamless integration. Its software is particularly adapted to institutional trading.

FX Bridge Technologies’ solutions deliver a complete suite of instruments needed for different types of derivatives trading. The company’s products can be used to trade options, swaps, forwards, and NDFs. They also contain functionality for risk management, data aggregation, analytics, and other.

A reliable service provider, Geniusee can build secure trading solutions for companies of all sizes, from new startups and midsize financial firms to large hedge funds. The company’s end-to-end services can support many goals, including development from scratch, modernization, enhancements, optimization, expansions, and more.

The company is recognized for its strong engineering capabilities and project management, confirmed by five-star reviews on leading platforms. It also holds ISO certifications in quality management and information security management as proof of its expertise.

Miquido excels at top-quality services for financial and trading businesses. The company has high-profile clients in its portfolio, boasting extensive expertise in the financial industry. It can efficiently handle projects of any complexity, helping with all project parts: web, mobile, back end, infrastructure, integrations, and AI. 

Product research and UX/UI design capabilities are among the company’s strongest sides. As part of added value, the company offers Google certification. It also provides packaged software modules to help businesses decrease time to market and overcome budget limitations.

A long line of services for financial companies and expertise in handling software projects for the finance industry make Jappware a dependable option for a derivatives trading software development project. The company’s capabilities include architecture, front- and backend development, QA, DevOps, and security.

The clients note Jappware’s good value for cost, as the company can deliver solutions for constrained budgets on time without dropping quality. Scalable engagement models provide clients with flexibility in terms of the scope of work and the roles they want to delegate.

Futures trading systems require the same or similar investment amount as other trading platforms.

On average, developers need 1,880 – 3,467 working hours to complete and launch futures trading software.

Based on the Central/Eastern-European hourly rate ($50), costs to build a futures trading system vary between $94,000 and $173,350.

When working with a software development company, costs include the entire team on the project:

• project manager and business analyst
• front-end and mobile developers
• back-end developers
• QAs
• DevOps

At IT Craft, costs also include the post-launch guarantee period. The team fixes bugs and eliminates flaws at no extra charge.

Please note that estimated costs for your project might be different. It depends on the number of features, complexity, and expected number of future users.

Is futures trading software worth your investment?
Definitely. As with any other type of trade, discipline and reaction time remain essential factors. A finely tuned piece of software enhances both.

Should your business decide on an existing platform or start building a new one?
It all depends on the list of goals. New businesses only starting in digital trades might benefit from already-built software.

Growing businesses trading with multiple counterparties might need a unique solution that intensifies their processes. They save on operational costs.

When focusing on a custom trading solution, select a software development team capable of:

• suggesting UX and UI improvements
• delivering quality source code
• concentrating on regular security enhancements
• updating and optimizing codebase and infrastructure