Webull Review
Webull offers $0 trades for stocks, ETFs, and options. But it's not perfect. Find out if Webull fits your investing needs.
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| © CreditDonkey |
A relative newcomer coming onto the scene in 2017, Webull is already one of the most popular online brokerages. It is the biggest competitor to Robinhood for Millennial investors.
A major difference is the more advanced tools and analytics that Webull offers. However, it does have some downsides that may not make it ideal for certain types of investors.
Is it the best choice for you? And how does Webull compare to other free investing apps? Read on in the full review.
What Is Webull?
Webull is a self-directed discount brokerage. Its mission is to combine finance with technology to provide a better investing experience.
Webull is the broker-dealer arm of a leading Chinese fintech company called Fumi Technology, which provides real-time market data and analysis tools. Therefore, it has a strong emphasis on providing data and analytics to help users make smart decisions.
You can trade stocks, ETFs, and options on Webull for no trade fees.
Free Stock for An Initial Deposit of $100 or More
Free stock valued from $8 to $1,600
Who Webull Is Good For
Webull is designed for more experienced stock traders. The amount of analytics may be overwhelming for beginners. Webull is ideal for:
- Active traders: The zero trade commissions mean you won't be losing any profits to trading fees.
- Swing traders: Webull offers enough research to help you make decisions.
- Short sellers and margin traders.
Webull has no minimum requirement and offers a practice trading account, which beginners may like. However, the trading platform is more advanced, so new investors may find it hard to use. And it doesn't support fractional shares, so it's not good for those with just a little bit of money to invest.
PROS & CONS
PROS:
- Completely commission-free trades
- Free stock bonus offer
- No account minimums
- Free extended trading accounts
- Free margin account with $2,000 minimum
- Free paper trading account (trading simulator)
- Advanced research tools and charting
CONS:
- No fractional shares
- No dividend reinvestment
- No mutual funds
Account Minimums & Fees
Webull has no minimum investment to get started. And there is no account balance requirement to maintain a regular trading account.
It charges:
- No trade commission fees
- No account maintenance fees
- No inactivity fee
- No bank transfer fees (incoming or outgoing)
- No account transfer fee (incoming)
Some account fees you may encounter are:
- $75 per outgoing stock transfer fee
- $8 deposit via wire transfer (domestic)
- $25 withdrawal via wire transfer (domestic)
- $5 paper statements
All users are also allowed to open a margin trading account for free. The margin account requires a $2,000 minimum.
Webull makes money through their margin trading loan service, which charges interest up to 6.99%. It also has a paid subscription service for advanced real-time market quotes. In addition, Webull earns interest on uninvested cash in your account.
Investments & Account Options
Webull allows you to trade stocks, ETFs, and options with no trading fees. Webull does not yet offer cryptocurrencies, but it's coming soon. It does not offer mutual funds, bonds, futures, or forex.
It also allows you to get in early on IPOs. It has a financial calendar to show upcoming IPOs.
You are able to open these account types:
- Individual taxable
- Traditional IRA
- Roth IRA
- Rollover IRA
Webull does not offer joint, custodial, trust, or 529 college savings accounts.
Is Webull Safe?
Webull is safe. Your investments are covered by the Securities Investor Protection Corporation (SIPC). The SIPC insures the stocks and options investments in your account for up to $500,000 (including $250,000 for claims for cash) if Webull fails.
In addition, its clearing firm Apex Clearing has additional insurance protection, up to $37.5 million for securities and $900,000 for cash for each customer.
Note that the SIPC does not protect against investment losses due to market conditions.
Even though Webull is a subsidiary of a Chinese company, it is headquartered in New York City. Webull is registered with the U.S. Securities and Exchange Commission (SEC), and is a member of the Financial Industry Regulatory Authority (FINRA).
Webull Account Features
Extended Trading Hours
Webull offer free extended trading hours from 4:00 am to 8:00 pm.
Paper Trading
You get a virtual trading account with $1,000,000 in fake money. You get access to all the full features of the platform, so you can practice trading strategies before committing real money.
Margin Trading
Margin trading is when you borrow funds from the broker to purchase stocks. Webull offers up to 4x buying power.
Webull offers everyone access to a margin account at no extra cost. You need a $2,000 minimum to qualify. Webull's margin rates start at 6.99% for up to a $25,000 loan, and decrease with higher margin loans.
Day Trading
Webull allows you to perform up to 3 day trades in a five-trading day period. For investors with a $25,000 account balance or more, you can make unlimited day trades.
Options Strategies
Webull supports Level 1 and Level 2 options trading. Level 1 supports covered calls and cash-secured puts. You must have a margin account. Level 2 supports long calls and long puts in all accounts.
Short Selling
Webull supports short selling in its margin accounts. This is a trading strategy where an investor borrows shares and sells it to the market, with the bet that the stock price will drop. Then they buy it back at the lower price and return it to the lender, thus making a profit.
Research and Tools (Webull)
Despite being a discount brokerage, Webull has a strong trading platform with advanced research offerings and technical analysis that experienced users will appreciate. There will be a learning curve for new investors.
Features include:
- Real-time market quotes (Nasdaq Last Sale)
- Price alerts for stocks in your watchlists
- Stock screeners
- Market data from 5 categories and 100+ exchanges
- 45 technical indicators and 12 charting tools
- Analyst ratings for buying or selling an asset
- Video replay for historical stock price action
Advanced Quotes Paid Subscriptions
Webull also offers a paid subscription service for users who want to access more advanced real-time market data. Users can subscribe to the advanced quote they want.
Subscription options include:
- Nasdaq Basic Level 1
- National Best Bid and Offer (NBBO)
- Nasdaq Total View Level 2
- OPRA Real-Time Data
- Toronto Stock Exchange Last Sale
- Hong Kong Stock Exchange Level 2
- London Stock Exchange Level 1
Quote subscriptions start from $2.99 per month. But some markets could be quite pricey. You have a 7-day free trial after subscribing.
Market Orders
Webull allow you to execute the following orders:
- Market orders
- Limit orders
- Stop orders (stop loss order)
- Stop limit orders
- Stop-loss/take-profit orders (bracket orders)
- OCO (one cancels the other)
- OTO (one triggers the other)
- OTOCO (one triggers one cancels the other)
Webull allows you to execute more advanced orders, so it's better for the more experienced trader looking to limit their losses when trading stocks.
Customer Support
Webull's customer support team is available 24/7 via email, phone, and its in-app message center. However, there are reports of slow response times and being really hard to reach someone on the phone. Generally, Webull customer service does not have good reviews.
It also offers a large help center on the website, so you may be able to find the answer to your questions on your own.
How It Compares
Webull vs Robinhood
Webull and Robinhood both offer free investing with zero commissions. The main difference is that Robinhood offers cryptocurrencies while Webull has a more advanced platform. Robinhood's trading platform is very barebones. More advanced investors will need to get their research elsewhere.
One advantage Robinhood has over Webull is that it supports fractional shares. This makes Robinhood a better choice for beginners without a lot of money to invest. On the other hand, Webull has a paper account for beginners to practice.
For more advanced traders, Webull offers more options. It has a free margin account and supports short selling and more advanced market orders.
|  | |
 | | |
Webull | Robinhood | |
|---|---|---|
Free Stock for An Initial Deposit of $100 or More - | Get a Free Stock (worth between $2.50 and $200) - | |
Benefits and Features | ||
| Stock Trading | ||
| Annual Fee | All trades are commission-free. No platform fees. | All trades are commission-free. No platform fees. |
| Minimum Deposit | ||
| Commission Free ETFs | All U.S. listed ETFs | All U.S. listed ETFs |
| Phone Support | ||
| Customer Service | ||
| Good For | Experienced investors; Active traders | |
| Inactivity Fee | ||
| Maintenance Fee | ||
| Banking | ||
| Mobile App | ||
| Desktop App | ||
| Virtual Trading | Yes. Free paper trading account with $1,000,000 in fake money | |
| Fractional Shares | ||
| Taxable Accounts | ||
| IRA Accounts | ||
| | |
Robinhood: Pricing information from published websites as of 04/18/2020. | ||
Webull vs E*Trade
E*Trade is one of the most popular full-service brokerages. It offers a wide variety of account types and investment products, including mutual funds, bonds, and futures.
It offers comprehensive research tools, including real-time market streaming and interactive charts. It's a great choice for investors of all experience levels who want everything in one place.
| ||
|  | |
Webull | E*TRADE | |
|---|---|---|
Free Stock for An Initial Deposit of $100 or More - | Learn more about E*TRADE - | |
Benefits and Features | ||
| Stock Trading | ||
| Options Trading | $0 per trade + $0.65 per contract $0 per trade + $0.50 per contract if you make 30+ trades a quarter | |
| Minimum Deposit | $500 for brokerage accounts No account minimum for retirement accounts | |
| Mutual Fund Trading | $0 for no-load, no-transaction-fee funds $19.99 for transaction-fee funds | |
| Commission Free ETFs | All U.S. listed ETFs | |
| Customer Service | ||
| Inactivity Fee | ||
| Maintenance Fee | ||
| Banking | Checking account offers no minimum balance requirements, free online bill pay, and unlimited debit card and check transactions. | |
| Mobile App |  | |
| Desktop App | E*TRADE Pro (requires you execute at least 30 trades during a calendar quarter or maintain brokerage account balance of at least $250,000) | |
| Futures Trading | $1.50 per contract, per side + fees (excluding bitcoin futures) | |
| | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. E*TRADE: Pricing information from published website as of 07/17//2020. | ||
Webull vs M1 Finance
M1 Finance is a hybrid DIY brokerage and robo-advisor. You build your own portfolio, and M1 will automatically make trades and manage it for you. It only offers stocks and ETFs. There are no trading commissions and no management fees.
Beginners may also want to consider M1 because you don't have to worry about managing it yourself. The minimum to start is just $100 and the platform supports fractional shares. And if you're not sure what to invest in, there are 80+ pre-built portfolios created by their experts.
|  | |
| | |
Webull | M1 Finance | |
|---|---|---|
Free Stock for An Initial Deposit of $100 or More - | Commission Free Stock Trading - | |
Benefits and Features | ||
| Stock Trading | ||
| Annual Fee | All trades are commission-free. No platform fees. | |
| Minimum Deposit | ||
| Phone Support | Monday - Friday 9:30 am to 4 pm EST | |
| Good For | Experienced investors; Active traders | DIY investing with passive portfolio management |
| Banking | All users can open a M1 Spend account with free debit card. No monthly service fees and no balance requirements. | |
| Mobile App | ||
| Fractional Shares | ||
| Taxable Accounts | ||
| IRA Accounts | ||
| | |
M1 Finance: Pricing information from published website as of 02/28/2020 | ||
Bottom Line
Webull is worth considering for experienced, active traders who are comfortable investing on their own. The robust trading platform offers enough research and tools to satisfy most serious investors. It also offers some great features for more advanced investors, such as margin trading and short selling.
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