Updated December 26, 2022

Webull Review

Read more about Webull
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links. (read more)

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 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
5-point scale (the higher, the better)

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.

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

© CreditDonkey

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]

FeesAmount
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 LoanAnnual Margin Rate
$0-$25,0009.49%
$25,000.01-$100,0008.99%
$100,000.01-$250,0008.49%
$250,000.01-$500,0007.99%
$500,000.01-$1,000,0006.99%
$1,000,000.01-$3,000,0006.49%
More than $3,000,000.005.49%

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.

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 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.

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.

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.

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

  1. ^ "Pricing": Webull, 2022.
  2. ^ Webull. Zero Commission Brokerages - How Do They Make Money?
  3. ^ Webull. What types of accounts can I open with Webull?, Retrieved 2/8/2022
  4. ^ Webull. Can I open a custodian/trust/joint account on Webull?, Retrieved 2/8/2022
  5. ^ Webull - Is my brokerage account insured and protected?, Retrieved 12/10/2020
  6. ^ Webull Financial Fee Schedule, Retrieved 12/26/2022
  7. ^ Webull. Fractional Trading, Retrieved 10/28/2022
  8. ^ Webull. Instant Buying Power, Retrieved 10/28/2022
  9. ^ Webull. What are the option trading levels and their terms and conditions?, Retrieved 2/8/2022
  10. ^ Webull. Can I short stocks on Webull?, Retrieved 2/8/2022
  11. ^ Webull. What market data can I use for free with Webull?, Retrieved 2/8/2022
  12. ^ Webull. Get Complimentary Quotes, Retrieved 2/8/2022
  13. ^ "Market Order": SEC.gov, 2011.
  14. ^ "Market Order": Webull, 2022.
Webull

Get up to 12 free fractional shares

Expires 2/28/2023
Get up to 12 free fractional shares (at least 6 shares) by opening and funding ANY AMOUNT for a new account.
  • Open a brokerage account to get 2 free stocks each valued at $3 - $300
  • Deposit any amount to get up to 10 free stocks each valued at $7 - $3000
eToro

Deposit $100 and Get $10

Expires 12/31/2023
For a limited time, you can get $10 when you deposit $100 in your eToro account. Here's how:
  1. Sign up for an eToro account
  2. Deposit $100
  3. Explore stocks, ETFs, and crypto
You'll automatically receive $10 directly to your account balance. eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.
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
M1 Finance

Commission Free Stock Trading

M1 Finance allows investors the choice of ETFs and stocks. M1 charges no management fees or commission.

Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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.

Read Next:

How to Start Investing

How to Start Investing

10 Smart Ways to Invest $1,000

10 Smart Ways to Invest $1,000

How to Invest Money

How to Invest Money

Best Money Making Apps to Make Extra Money

Best Money Making Apps

Robinhood Review: Is it Safe?

Robinhood Review

M1 Finance Review: Pros and Cons

M1 Finance Review

Compare:

Leave a comment about Webull Review?



American Hartford Gold Review

American Hartford Gold Review

American Hartford Gold is one of the top precious metals IRA providers. But how high are the fees? Are they right for you? Read on to learn more.

About CreditDonkey
CreditDonkey is a personal finance comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2023 CreditDonkey Inc. All Rights Reserved.