Webull Review
Webull offers $0 trades for stocks, ETFs, options, and cryptocurrencies. But it's not perfect. Find out if Webull fits your investing needs.
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Get up to 12 free fractional shares | |||
Overall Score | 4.2 | ||
Stock Trading | 4.0 | ||
Options Trading | 4.5 | ||
Mobile App | 4.5 | ||
Commissions and Fees | 5.0 | ||
Ease of Use | 3.0 | ||
Research | 4.0 | ||
Pros and Cons
- No trade fees
- Advanced research tools
- Extended trading hours
- Offers fractional shares
- Not beginner friendly
Bottom Line
Good free trading app for more experienced investors
Webull is Robinhood's biggest competitor.
It offers the same commission-free trading, and more advanced tools and analytics.
But Webull does have some drawbacks that may not be right for some 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 a subsidiary of the Chinese fintech company Fumi Technology, which provides real-time market data and analysis tools. This gives Webull a strong emphasis on providing data and analytics to help you make smart investing decisions.
You can trade stocks, ETFs, options, and cryptocurrencies on Webull for no trade fees.
Get up to 12 free fractional shares
- Register and open a new account.
- Then, deposit any amount to get 6-12 free fractional shares.
Who is Webull Good For?
Webull is designed for more experienced stock traders because the 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 may be good for beginners because it has no minimum requirement and offers a practice trading account. You can also buy just a fraction of a stock starting from $5. However, the trading platform is more advanced, so new investors may find it hard to use.
PROS & CONS
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PROS:
- Completely commission-free trades
- No account minimums
- Fractional shares from $5
- Free extended trading accounts
- Free margin account with $2,000 minimum
- Free paper trading account (trading simulator)
- Advanced research tools and charting
CONS:
- No dividend reinvestment
- No mutual funds
Account Minimums & Fees
Webull has no minimum investment to start and no balance requirement for their regular trading account.
Webull has many other free features, but you also may encounter some fees:[1]
| Fees | Amount |
|---|---|
| Trade commission | $0 |
| Account maintenance | $0 |
| Inactivity | $0 |
| Bank transfer (incoming or outgoing) | $0 |
| Account transfer (incoming) | $0 |
| Outgoing stock transfer | $75 |
| Deposit via wire transfer (domestic) | $8 |
| Withdrawal via wire transfer (domestic) | $25 |
| Paper statements | $5 |
All users can also open a free margin trading account ($2,000 minimum), although you will be charged interest if you hold the leveraged positions overnight.
| Margin Loan | Annual Margin Rate |
|---|---|
| $0-$25,000 | 9.49% |
| $25,000.01-$100,000 | 8.99% |
| $100,000.01-$250,000 | 8.49% |
| $250,000.01-$500,000 | 7.99% |
| $500,000.01-$1,000,000 | 6.99% |
| $1,000,000.01-$3,000,000 | 6.49% |
| More than $3,000,000.00 | 5.49% |
How Webull Makes Money
More and more brokerage platforms offer trading without commissions, but they still need to make money. Some platforms are less-than-transparent about how they make money (cough, Robinhood), but Webull is open about how they monetize their platform.[2]
- Payment From Order Flow: Webull earns money for the trades they send to market makers. This is how most brokerages keep their business afloat.
- Interest on Free Credit Balances: Webull earns interest on the uninvested cash in your account.
- Stock and Margin Loans: Webull makes money through their margin trading loan service, which charges interest up to
9.49%.
Investments & Account Options
Webull lets you trade the following with no trading fees:
- Stocks
- ETFs
- Options
- Cryptocurrencies (new as of November 2020)
However, it does not offer mutual funds, bonds, futures, or forex.
Webull also offers these account types:[3]
- Individual taxable
- Traditional IRA
- Roth IRA
- Rollover IRA
Webull does not offer joint, custodial, trust, or 529 college savings accounts.[4]
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.[5]
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 offers 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 9.49% for up to a $25,000 loan, and decrease with higher margin loans.[6]
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.
Fractional Shares
In July 2021, Webull started letting you buy stock for as little as $5. This is especially useful for new investors without a lot of cash lying around. Instead of having to save up to buy $50 or $100 shares, you can start buying asap with most stocks.
But there are some limitations. First, only certain stocks and ETFs will qualify, and you can only use market orders. You also can't buy outside of normal trading hours or short sell fractional shares. [7]
Instant Funding
You can buy a stock right after making a deposit to Webull. ACH transfers usually take 4 days to hit your account, which means you might miss out on a great stock price.
But Webull will give you instant buying power by letting you trade with some of your deposited money.[8] If your deposit starts before 4 pm EST, then you could get access to part of your funds that same day. If your deposit starts after 4 pm EST, it would be the next day at 7 am EST.
Webull is essentially offering you provisional credit. How much you get depends on factors such as:
- Deposit amount
- Account type
- Cash balance
- Market value of your positions
- Total deposit amount
- Your credit scores
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.[9]
Webull Crypto (new)
All users can also open a crypto portfolio and trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. You can buy and sell fractions of cryptos starting from $1. Crypto trading has instant settlement, so you get your funds back right away.
Short Selling
Webull supports short selling in its margin accounts.[10] 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
Despite being a discount brokerage, Webull has a strong trading platform with advanced research offerings and technical analysis that experienced users will appreciate.
Keep in mind, there may be a learning curve for new investors.
Tools include:
- Real-time market quotes (Nasdaq Last Sale): An in-depth data feed giving you real-time last sale data and more.
- Price alerts for stocks in your watchlist: You can get notified of your target prices of your favorite stocks.
- Stock screeners: You can input filters that fit your preferences to help you find your next investment.
- Market data from 5 categories and 100+ exchanges[11]: You can get plenty of data from your favorite sources.
- 50 technical indicators and 12 charting tools: Webull has some of the most advanced tools out of the fee-free apps.
- Analyst ratings for buying or selling an asset: You can see what the pros are saying about each stock.
- Video replay for historical stock price action: You can watch how your stock has performed over time.
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 TotalView 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 $1.99 per month. But some markets could be quite pricey. You have a 3-month free trial after subscribing.[12]
Market Orders
A market order is an order to buy or sell a stock at the best available price.[13]
It's filled at the current market price, not the last sale price. The fill price may be different from the market price you saw when placing the order due to low liquidity and/or bid/ask spreads of certain stocks.[14]
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, some users report slow response times and have had difficulties reaching someone on the phone.
For DIY assistance, Webull does offer 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. Both offer stocks, ETFs, options, and cryptos. However, Robinhood's trading platform is very barebones. More advanced investors will need to get their research elsewhere.
Robinhood also supports fractional shares (starting at just $1). The user-friendly platform may be easier for beginners. 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.
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Webull | Robinhood | |
|---|---|---|
Get up to 12 free fractional shares - | Get a Free Stock (worth between $5 and $200) - | |
Benefits and Features | ||
| Stock Trading | ||
| Options Trading | ||
| Annual Fee | ||
| Cryptocurrency Trading |  | |
| Minimum Deposit | ||
| Mutual Fund Trading | ||
| Commission Free ETFs | All U.S. listed ETFs | All U.S. listed ETFs |
| Phone Support | ||
| Cryptocurrencies Supported | Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin, Zcash, Stellar Lumens, Ethereum Classic, Cardano, Dash | ETC, ETH, BSV, BCH, BTC, DOGE, LTC, COMP, MATIC, SOL, SHIB, AVAX, ADA, LINK, XLM, UNI, USDC |
| Fiat Currencies Supported | EUR, USD, GBP, JPY, CHF, AUD, CAD, HKD, CNY, INR, CNH | |
| Digital Wallet | ||
| Transaction Fee | ||
| Copy Trading | ||
| Limit Orders | ||
| Crypto Loans | ||
| Good For | Experienced investors; Active traders | |
| Inactivity Fee | ||
| Maintenance Fee | ||
| Bank Account Purchase Fee | ||
| Debit Card Purchase Fee | ||
| Banking | ||
| Mobile App | ||
| ACH Transfer Fee | ||
| Wire Transfer Fee | $8 domestic deposit, $25 domestic withdrawal, $12.50 international deposit, $45 international withdrawal | |
| Crypto Conversion Fee | ||
| Anonymity | ||
| Biometric Login | ||
| Cold Storage | ||
| Maximum Trading Amount |
| |
| Two-Factor Authentication | ||
| Withdrawal Limit | ||
| Virtual Trading | Yes. Free paper trading account with $1,000,000 in fake money | |
| Fractional Shares | ||
| Taxable Accounts | ||
| IRA Accounts | ||
| | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. 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.
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|  | |
Webull | E*TRADE | |
|---|---|---|
Get up to 12 free fractional shares - | Learn more about E*TRADE - | |
Benefits and Features | ||
| Stock Trading | ||
| Options Trading |
| |
| Minimum Deposit | $0 for self-directed brokerage accounts; Managed portfolios start at $500 minimum | |
| 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 to 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 12/05//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 | |
|---|---|---|
Get up to 12 free fractional shares - | M1 Investment Account - Up to $500 Bonus - | |
Benefits and Features | ||
| Stock Trading | ||
| Options Trading | ||
| Annual Fee | ||
| Cryptocurrency Trading | ||
| Minimum Deposit | ||
| Mutual Fund Trading | ||
| Commission Free ETFs | All U.S. listed ETFs | All U.S. listed ETFs |
| Phone Support | Monday - Friday 9:30 am to 4 pm EST | |
| Good For | Experienced investors; Active traders | DIY investing with passive portfolio management |
| Inactivity Fee | $20 (for accounts with less than $20 and no activity for 90+ days) | |
| Maintenance Fee | ||
| Banking | All users can open a M1 Spend account with free debit card. No monthly service fees and no balance requirements. | |
| Mobile App | | |
| Two-Factor Authentication | ||
| Virtual Trading | Yes. Free paper trading account with $1,000,000 in fake money | |
| Fractional Shares | ||
| Taxable Accounts | ||
| IRA Accounts | ||
| | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. 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.
References
- ^ "Pricing": Webull, 2022.
- ^ Webull. Zero Commission Brokerages - How Do They Make Money?
- ^ Webull. What types of accounts can I open with Webull?, Retrieved 2/8/2022
- ^ Webull. Can I open a custodian/trust/joint account on Webull?, Retrieved 2/8/2022
- ^ Webull - Is my brokerage account insured and protected?, Retrieved 12/10/2020
- ^ Webull Financial Fee Schedule, Retrieved 12/26/2022
- ^ Webull. Fractional Trading, Retrieved 10/28/2022
- ^ Webull. Instant Buying Power, Retrieved 10/28/2022
- ^ Webull. What are the option trading levels and their terms and conditions?, Retrieved 2/8/2022
- ^ Webull. Can I short stocks on Webull?, Retrieved 2/8/2022
- ^ Webull. What market data can I use for free with Webull?, Retrieved 2/8/2022
- ^ Webull. Get Complimentary Quotes, Retrieved 2/8/2022
- ^ "Market Order": SEC.gov, 2011.
- ^ "Market Order": Webull, 2022.
Get up to 12 free fractional shares
- Register and open a new account.
- Then, deposit any amount to get 6-12 free fractional shares.
Deposit $100 and Get $10 from eToro USA LLC
- Sign up for an eToro account
- Deposit $100
Sign Up and Get $5
- Sign up, add at least $5 to your account and get a $5 bonus.
- Invest with fractional shares
- Get portfolio recommendations
M1 Investment Account - Up to $500 Bonus
Open a new M1 investment account. Deposit $10,000 or more into the account within 14 calendar days of account opening. Promotional credit will depend on the deposited value made into the account.
| Deposited Value | Promotional Credit |
|---|---|
| $10,000 - $29,999.99 | $75 |
| $30,000 - $49,999.99 | $150 |
| $50,000 - $99,999.99 | $250 |
| $100,000+ | $500 |
This offer is only for customers who have never registered for an M1 user account.
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