Updated February 8, 2022

Webull Review

Read more about Webull
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Webull offers $0 trades for stocks, ETFs, options, and cryptocurrencies. But it's not perfect. Find out if Webull fits your investing needs.

Webull
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
5-point scale (the higher, the better)

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.

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.

Is Webull good for beginners?
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.

How does Webull make money without commissions?
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.

Tip: Webull also allows you to get in early on IPOs with a financial calendar to show upcoming IPOs.

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.

Short selling is definitely for advanced stock traders. There is a lot of controversy surrounding this approach, but if this is something you may be interested in, Webull supports it.

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 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 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.

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

Webull

Get Two Free Stocks, Each Valued Between $3 - $300

Expires 6/9/2022

Open a Webull brokerage account and get two free stocks, each valued between $3-$300

eToro

Get $100,000 Virtual Portfolio to Experiment

eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.

Crypto.com

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.

Stash

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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Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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