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 Two Free Stocks, Each Valued Between $3 - $300 | |||
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
- No 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 Two Free Stocks, Each Valued Between $3 - $300
Open a Webull brokerage account and get two free stocks, each valued between $3-$300
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 get started and no balance requirement for their regular trading account.
Webull also features:
- 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:[1]
- $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.[2]
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 6.99% 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.
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.[7]
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.[8] 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.
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[9]
- 50 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 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.[10]
Market Orders
A market order is an order to buy or sell a stock at the best available price.[11]
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.[12]
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.
|  | |
 | | |
Webull | Robinhood | |
|---|---|---|
Get Two Free Stocks, Each Valued Between $3 - $300 - | Get a Free Stock (worth between $2.50 and $225) - | |
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 |
| Fiat Currencies Supported | EUR, USD, GBP, JPY, CHF, AUD, CAD, HKD, CNY, INR, CNH | |
| Digital Wallet | ||
| Transaction Fee | ||
| Copy Trading | ||
| Limit Orders | ||
| Interest Accounts | ||
| Crypto Loans | ||
| Good For | Experienced investors; Active traders | |
| Inactivity Fee | ||
| Maintenance Fee | ||
| Bank Account Purchase Fee | ||
| Debit Card Purchase Fee | ||
| Banking | No service fees for Robinhood Cash Management account. Free debit card with no in-network ATM fees or foreign transaction fees | |
| 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 Two Free Stocks, Each Valued Between $3 - $300 - | Learn more about E*TRADE - | |
Benefits and Features | ||
| Stock Trading | ||
| Options Trading |
| |
| 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 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 Two Free Stocks, Each Valued Between $3 - $300 - | Commission Free Stock Trading - | |
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 12/10/2020
- ^ 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 Two Free Stocks, Each Valued Between $3 - $300
Open a Webull brokerage account and get two free stocks, each valued between $3-$300
Get $100,000 Virtual Portfolio to Experiment
eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.
USD $10 Sign Up Bonus
You will need to stake in $1000 CRO to earn USD $10 worth of CRO. Only the first amount of CRO you stake is used to calculate the sign-up bonus.
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
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