I bought my first stock using Fidelity. It wasn’t the prettiest platform and commission fees were expensive, but it was the company my employer chose to be the service provide for managing our 401Ks and retirement accounts, so I tried it. While the user experience was not the most intuitive, I made a few trades and burned some money.
Be it a case of classic nostalgia, Fidelity will always have a special place in my heart, but I have since moved on to try other brokerage services that have been more rewarding to use. Webull is a unique broker that (along with Robinhood) has disrupted the financial services industry by offering commission-free trading on U.S. stocks, ETFs, and options. This Webull review will discuss the benefits and drawbacks of using Webull so you can determine if it is the right platform for you.
An Overview of Webull Financial
Webull is a US-based Fintech startup founded in 2017 that offers commission-free and discount brokerage services. Investing with Webull is simple: you can choose from over 5,000 stocks listed in the United States.
The platform was founded by Wang Anquan, who is also the founder and CEO of Fumi Technology. Webull Financial is an affiliate of Fumi Technology and is a licensed securities broker in the United States. Webull Financial also has close partnerships with 55 securities exchanges and index companies in over 40 countries worldwide.
As of 2020, the Webull mobile and P.C. apps support over ten languages, including Chinese (both traditional and simplified), English, French, Indonesian, Italian, Japanese, Malay, Portuguese and Spanish.
The technology that it deploys powers Webull from large data centers both in China and the United States. The Global Data System that Webull powers track real-time transactions in over 90 countries, over 100 exchanges, and millions of underlying assets, bonds, digital currencies, foreign exchange, and other categories.
The Webull platform boasts the following features:
- $0 Commission fees
- Real-Time quotes
- The ability to access the platform from the desktop or the Webull app
- Extended trading hours
- 24/7 Help Center
The Webull platform is intuitive and user-friendly, allowing both experienced and novice investors to buy and sell:
- Exchange-Traded Funds (ETFs)
While many users flock to Webull for their ease of use and flexibility in investing, there are certain restrictions when buying using the platform:
You cannot buy shares that are trading at less than 1 cent a share (sorry, risky penny stock investors)
Stocks trading between 1 cent and less than 10 cents must in purchased in lots of 1,000 shares or more
You must buy stocks trading between 10 cents but less than 1 dollar in lots of 100 shares or more
You can buy stocks trading over 1 dollar at any quantity with a minimum share count of 1
These rules prevent buyers from purchasing enormous amounts of risky stocks and be a safeguard for beginner investors. If you are a high-volume penny stock buyer, trading on the Webull platform may not be the best experience as these restrictions may affect some trading strategies.
Who owns Webull?
Webull is a private company and hence, does not have to disclose ownership terms to the public. If you go on their website and read about their history, you will see that the information is generic: https://www.webull.com/story.
For a company that has gained public approval so quickly and adoption in a problematic space (retail investing), there just is not much information out there on Webull regarding specifics on ownership. Here is what we know about Webull:
It is a private company that began in 2016.
Webull is venture-back, and as of 2020, their later-staged series C funding raised $36.3M
While the company has offices in New York City, its primary office is in Hangsha, Hunan.
The company’s Chief Executive Officer is Anthony Denier, initially founded by Anquan Wang.
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Where is Webull Headquarters?
While its customer service operations are in New York City, the company is a subsidiary of Fumi Technology, a global Chinese company. The technology that powers the platform operates from the Hunan offices in China. The brokerage has over 9 million users globally and reportedly has over $4 billion in assets under management.
Ok, so is Webull Legit?
We have gotten emails from our readers asking, “is Webull legit?” at least a dozen times. With so many new startups on the scene, it is normal for people to be skeptical of these new platforms considering the novelty yet lacking a verifiable historical track record.
While Webull has only been around for a few years, Webull Financial is legit. Within two years of launching their platform, Webull amassed over 9 million people globally using their retail trading app. After using their robust app that boasts impressive features, we are confident that this number will continue to grow exponentially over the next few years.
How does Webull Earn Revenue?
Many users often ask: “If Webull is allowing me to trade for free, how are they making money?”.
Webull monetizes its platform through its user base. By signing up for Webull and being an active member, you are contributing to their earned revenue. Here is how Webull makes money from its users:
Interest charged on cash balances: Like the interest you earn on the money you have sitting in the bank, Webull earns interest on any uninvested cash you have in your trading account while using their platform.
Fees for using margin: If you want to trade with margin on Webull, it will cost you. Margin traders will need to pay fees to Webull for the opportunity to use the leverage.
Order flow management: While trading on the Webull platform will be commission-free for users, Webull and Apex Clearing may receive a small fee to route trade orders in a specific market maker
Paid subscriptions: Webull offers paid plans for members that wish to access more advanced data sources
Is Webull safe to use?
Another common question we get is: “is Webull safe?”. Apex Clearing, a widely respected digital clearing and custody engine, is the company that manages the trades. Webull is safe to use.
The platform is regulated by top financial authorities, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FIRNA). These governing bodies provide a maximum of $500,000 investor protection, including a $250,000 cash limit as part of the Securities Investor Protection Corporation (SIPC) protection protocol. Apex Clearing also provides additional insurance covering up to $37.5 million per user, so unless you are managing tens of millions of dollars, you should feel secure using Webull.
Webull Review: So, how does Webull work?
To get started on Webull, you will need to open a free account using your email address or mobile number. Once your information is accepted, you will need to enter a verification code.
From here, you will need to complete an application for approval. Here is the information you will need to have on hand to complete your request.
- Country of Current Residence
- First, Middle, Last Name
- Date of Birth
- Marital Status
- Country of Citizenship
- Phone Number
- Residential Address
- Employment verification
- Social Security Number
- Personal Income Information
- yearly income
- total net worth
- the full value of cash and liquid investments
- Identity verification (as required by SEC and FIRNA customer identification rules)
- Driver’s license or state ID
Pros of using Webull
- Offers free stock, ETFs, and options trading (no fees!)
- No monthly deposit minimums or minimum balance requirement
- Fast and easy account sign up and approval (if you provide a state-issued photo I.D.)
- User-friendly trading platform with an intuitive interface
- After-hours trading (trade from 4 a.m. (EST) to 8 p.m. every session) available.
- Access to top investment resources (real-time market data along with the ability to add watch lists)
Cons of using Webull
- Limited trading asset
- No live chat and limited phone support
- Not great for investors who like directive personal management (Webull is a self-directed investment platform)
- Not best for international traders (Webull specializes in U.S. stocks)
How to find Webull phone number to contact customer support
As of this writing, Webull does have a contact phone number, but it goes right into a voicemail sequence, so your chances of getting an actual person on the phone are not likely on the first contact. Here is the most current Webull phone number we found and called to verify operation: (917) 725-2448.
The most reliable communication method we’ve found to get in contact with Webull support has been the help center. You can access it here: https://www.webull.com/hc
The following contact information is on the help center page:
+1 (888) 828-0618
Understanding Webull fees: Why the platform is not entirely free
While Webull offers commission-free trading, there are associated brokerage fees that users need to be aware of including:
Tiered margin interest rates: the interest charged on borrowed funds for margin trading that scale depending on the debit balance
Short selling fees: occur when you need to borrow shares of a company to sell them and accrue a payment for acquiring the stocks of the company. While the loan rate changes daily and hinges on overall market condition, the formula for deriving what you will pay is: Short position interest = market value of the stock you borrowed when the market closes * loan rate for that stock / 360
Regulatory Agency & Exchange fees: applied by regulating bodies such as the SEC, FIRNA, and OCC when stocks, ETFs, or options are traded. It is important to note that these fees are marginal and that Webull does not profit from them.
Deposit and Withdrawal fees: while it is entirely free to make ACH deposits and withdrawals on Webull, there are fees charged by Apex (The clearing firm) for the following actions:
Wire transfer for domestic transactions: up to $25 per transaction
Wire transfer for international transactions: up to $45 per transaction
Stock transfer fees: occur when you want to transfer securities to or from Webull
Postage fees: Webull offers electronic communication via email for statements, prospectus and account confirmations, but customers can elect to receive paper versions of these communications for an additional fee
Webull free stock: how to get the Webull sign up bonus
Similar to Robinhood, Webull gets users to promote their platform with the popular Webull sign up bonus: By opening a Webull brokerage account, you can receive a free stock worth anywhere between $2.50 to $250. And that’s not all, folks. If you make your initial deposit of $100 or more, you can receive a 2nd free stock valued anywhere between $12-$1400.
Stocks that are part of the Webull free stock incentive program are US-based companies listed on the NYSE or NASDAQ Stock Exchange that have a minimum market capitalization of $2.5 billion.
Besides these promotions, you can also receive the Webull free stock promotion by referring friends to the platform. Whenever you refer a friend to Webull, you get two free stocks with each stock valued between $12-$1400. For you to receive this Webull sign up bonus, the person you invite to the Webull platform must make an initial deposit of $100 or more into their Webull account.
Understanding the fine print of receiving the Webull free stock
While they design the Webull signs up bonus to encourage users to try out the platform, there are certain things you need to understand before signing up (if you’re just in it for the Webull free stock incentive). While these factors shouldn’t make or break your decision to try out Webull, they are worth noting, so there is no confusion regarding the terms of the promotion.
The Webull free stock Terms and Conditions are updated frequently.
Nearly every month, Webull updates their terms and conditions regarding the Webull sign up bonus. The updates mostly pertain to the duration of the promotion, which leads us to believe that Webull is reserving the right and could plan to make changes or completely stop their incentive program.
When we last checked their page, they updated the duration of the promotion to reflect the current month’s run time. Just keep that in mind if you try to sign up, and the Webull sign up bonus is drastically different or completely gone.
The Webull free stock is already purchased and is subject to market swings.
Stocks for the Webull sign up bonus have already been purchased and are part of the Webull free stock inventory. When the shares were initially purchased, Webull ensured that the stocks’ prices were within the promised price range.
As the market fluctuates, users have to understand that the stock’s value may fall from the original purchase price. If the Webull free stock incentive you receive is below the promised price range, this may (and probably is) the reason.
Once the Webull free stock incentive has settled, the stock proceeds are yours to keep!
If you do not want to hold the stock that you received from the Webull sign up bonus, you can sell them into the market. Once you sell your shares, the cash value that you receive from the sale is yours to keep but must be held in your account for at least 30 days before being withdrawn.
Understand your odds when playing the Webull free stock incentive game
If you open a Webull account with high expectations of the Webull sign up bonus, make sure you understand that the odds are like a raffle or lottery.
The chances of getting those high-priced stocks (while possible) will be much lower than the odds of landing a stock worth $2.50. If you are signing up for Webull, do so to try their impressive and feature-rich trading platform and not just to receive the Webull free stock incentive. The odds of landing a high-priced stock aren’t in your favor. The Webull sign up bonus is just that: a reward for trying the platform. Below are your odds of receiving each tier of free stock:
Webull signs up bonus odds:
- $2.50 stock–approximately 1:1.02 odds
- $10 to $50 stock–approximately 1:52.63 odds
- $80 to $100 stock–approximately 1:1111.11 odds
- $100 to $250 stock–approximately 1:10000 odds
- An initial deposit of $100 or more odds
- $12 to $30 stock–approximately 1:1.02
- $30 to $100 stock–approximately 1:52.63
- $100 to $200 stock–approximately 1:1111.11
- $1000 to $1400 stock–approximately 1:10000
Webull login page: how to access your account
Logging into Webull is easy to do once you have an account. If you have already registered in the Webull app, go to the Webull login page and use the same user I.D. (most likely your email address or mobile number.
If you are using the desktop platform, click on “log in.” If you do not yet have an account, you can select “sign up” to register for a new I.D.
Stocks Trading on Webull
In this section of our Webull review, we will discuss trading on the Webull platform. Trading stocks on Webull is easy to do, and investors may trade as soon as their account is approved and funded.
The stock trading interface is simple to navigate and offers the primary market, limit, stop, OTO (one-triggers-the-others), and conditional order types found in other brokerage services. While intuitively simplistic, experienced investors will enjoy Webull as it is advanced enough to make more complex trades, including stop-loss orders and take-profit conditions for stock trades.
Webull desktop platform
While Webull gained popularity through the app designed for mobile trading and the accessible web platform available for Chrome, Firefox, Safari, the company also offers a full desktop platform that originated for the native Windows Operating system and the Mac operating system.
Webull trading hours: Does it offer to extend hours for trading?
We were happy to find that Webull supports full extended-hours trading (from 4:00 a.m. to 9:30 a.m. EST and after-hours from 4:00 p.m. to 8:00 p.m).
Users should understand that price is more volatile during extended hour trading than regular market hours, so proceed with caution and use limits and stop orders when necessary.
Webull Paper Trading feature: how does it measure up?
Paper trading is simulated (or practice) trading in an account that has the same functionality as real trading except that paper trading is done with fake (or “paper”) money.
A lot of traders recommend this type of simulation for beginner investors who can sharpen their skills in the financial markets without losing real money. Webull paper trading is available to everyone who has a Webull account and is free of charge. Here is how the Webull paper trading feature works in your account:
How to access the Webull Paper Trading feature in your account
Accessing the Webull paper trading feature is simple; all you need to do is go to the menu tab and select “Paper Trading” to get started.
You will then go to the leading portal where you can see your Webull paper trading account. Here’s the cool thing: all Webull paper trading accounts start with 1 million dollars – congrats! You’re officially a paper trading millionaire.
In all seriousness, to gain the maximum benefit from this exercise, it is best to imagine that the money that is in your Webull paper trading account is real. Approaching it this way will help you execute trades that you believe are good trades rather than approaching this exercise as if you are playing an arcade.
The dashboard in your Webull paper trading account gives you an at-a-glance look at your current positions with a gain/loss view, exactly how you would expect a real trading account dashboard to look.
How to place a buy and sell stocks in your Webull Paper Trading account
You can buy or sell shares in your Webull paper trading account by clicking the “Trade” button and searching for the stock or ETF that you want to paper trade. You will then go to a screen that will prompt you to enter more details of the transaction:
- Whether you wish to buy or sell a security
- The number of shares and the type of order
- The specific price you want to execute the purchase
- The time frame that you want the order to be in effect for
How to close a position in your Webull Paper Trading account
To close out a position in your Webull paper trading account, you will need to use the same order ticket that you used to place the trade, but this time you will indicate that you wish to “sell” the position. After your order has completed, there will be a gain or loss reflected in your account.
Paper trading can be extremely beneficial for traders and investors, especially when using a new trading platform. The Webull paper trading feature is easy to use, and since it is a free feature, we recommend you take advantage of it before you fund your account with real money.
Webull Fractional Shares: Is it allowed?
Fractional shares are portions of an equity stock that is less than the full share. Fractional shares can result from stock splits, mergers, or acquisitions when companies combine to create new common stock, various corporate actions, and dividend reinvestment plans (DRIPs).
For example, imagine a company with a stock price that is trading at $3,000 per share. There may be a brokerage firm which has clients that want to own part of that company, but they cannot afford the shares at such a high price, so what the brokerage does is allows its clients to buy fractional shares which could equal half a stock for $1,500 or a quarter of a share for $750.,
Like the phenomenon we have seen with cryptocurrency, investors enjoy the flexibility of owning a part of a coin without having to make a hefty investment to hold the full entity for some high-priced coins.
Webull does not offer investors the opportunity to own fractional shares, but this may be something that changes as the platform continues to improve.
If there is a corporate event that occurs where you do should have Webull fractional shares in your account, the shares will either be:
- paid out as cash into the customer’s account and should typically show up within two to three weeks after the event has taken place.
- rounded up into a full share
- rounded down into nothing
An example of how this works is: imagine you own 100 shares of a company in your Webull account. The company has a 1:7 reverse stock split. Instead of 100 shares, you will now have 14.3 shares of that company in your account. Since Webull does not support fractional shares, the fractional shares that remain in your account will proceed via one of the above-list methods depending on what funds the company determines to allocate.
Webull Short Selling: How Does it Work?
Short selling is a speculative investment strategy used when traders believe that the price of a stock will fall. The idea is borrowing shares (that you do not own) from your broker to sell in the open market, hoping to repurchase them at a later date at a lower price and netting the difference. Webull allows short selling on their platform but has a few significant restrictions to keep in mind when using their platform.
Webull short-selling restrictions
To short stocks on Webull, you must meet the following criteria:
Have a Webull margin account
Keep a net account value of $2,000 or more
Options Trading on Webull
Trading options on Webull is simple and will remove the guesswork for beginner traders. To trade options, search for the security symbol that you want to trade and select “options” from the menu selection. You will then be able to view the stock’s option chain and select your strike prices and order types. While Webull does not offer sophisticated charting features for options like Think of Swim, beginner investors will enjoy the simplicity that comes from the clean interface.
Webull Options Trading Review
While Webull offers traders the opportunity to trade options, if you’ve never purchased options, you have to be very careful when making options trading part of your investing strategy. Trading options is not suited for everyone, and you should ensure that you understand how to use options as leverage and avoid risky practices that can result in significant losses.
Trading options with Webull is easy to do. You simply need to create an account and activate the ability to trade options in your account. When enabling this feature, you must be ready to answer several questions about your investing experience, which will determine what level of options trading Webull allows you to use.
How to open a Webull options account
As mentioned, there are four simple steps to getting approved for Webull options trading.
Step 1: Get your application approved.
While an application may sound intimidating, the process is straightforward. Here is the thing: brokers must ask you questions about your investing experience and respective risk tolerance. You cannot trade options without reviewing these disclosures and acknowledging that you understand the risk associated with this investment strategy.
Every Webull options approval is unique as every trader’s level of experience is different. Webull approves options trading on six degrees, here is what each level allows you to do:
Level 1: Covered Calls and Cash-Secured Puts
Level 2: Long Calls, Long Puts, Covered Puts, and Protective Puts
Level 3: Credit and Debit Spreads
Level 4: Write Naked Puts
Level 5: Write Naked Calls
Level 6: Write Naked Index Calls and Puts
How do you get approved for higher-level trading? As long as you acknowledge that you understand the risks of trading options with Webull and show that you have previous experience trading options, your account should be quickly approved. If you show beginner proficiency in options trading, your Webull options account is likely to be approved for beginner-level options trading. If you show expert skill in options trading, your Webull options account can receive approval for higher-level trading.
You will receive an email with your approved level once you have completed the application.
Step 2: Select the stock you want to trade options on
Congratulations, you have been approved for Webull options trading! Welcome to a whole new world of investing. Once your account has Webull options approval, you will see the options tab when you look at various stocks. Clicking on this tab will give you access to a new dashboard that shows the options available for a share (referred to as the options chain).
Market conditions and outlook will determine the stock or index you choose, and your options trading strategy. If you notice that you cannot use specific option trading strategies, it may mean that your account cannot execute this level of trading. If you have a lower level of options trading access, you can apply for an update to re-evaluate your application.
Step 3: Place your options trade
If you have gotten to this step, you probably have a good handle on what you are doing. Your options trading strategy should determine everything from this point forward. If you don’t have a strong understanding of what options strategies to use to be profitable in any market condition, it’s time to study!
What are the benefits of trading options on Webull?
While many brokers offer options trading, individuals may choose Webull options trading because:
Zero Commissions-Webull does not charge any commissions when buying or selling options
Zero Contract Fees–While many brokers charge you a fee for each option contract, similar to Robinhood, Webull does not charge fees for an options contract, which makes options trading on Webull virtually free of any fees.
Real-Time Quotes–When you sign up for Webull options trading, as a thank you from the platform, you get 30-days free OPRA Real-Time Quotes. The Options Price Reporting Authority (OPRA) give live data on the price of options based on the last sale. To continue receiving this data, you must maintain an active account and place at least one option trade every 30 days.
A final thought on Webull Options trading
While options trading is not suited for all investors, it can be a powerful leveraging tool to have in your arsenal. Understand that options trading is invariably risky and understand the risks associated with each strategy to use.
If you use Webull to trade options, the Webull options platform is an excellent product. Webull options traders will enjoy a full suite of the powerful technology that can test each potential option trade. With a commitment to offering zero commission and contract fees, coupled with the real-time pricing data from OPRA, Webull is a formidable platform to consider trading options.
Trading Exchange-Traded Funds (ETFs) on Webull
Webull offers over 5,000 ETFs and stocks on their platform. Like other significant brokers, Webull gives users access to a screener that helps narrow down the search for ETFs to attributes such as region, sector, and P/E ratio.
The ETFs that Webull offers range from a variety of famous ETF fund families, including iShares, Vanguard, and SPDR ETFs from State Street Global Advisors. Webull also offers ETFs that cover the primary asset class areas, including bond and commodity ETFs and the U.S., International, and Emerging Equities.
Trading Cryptocurrency on Webull
While Webull lists cryptocurrency trading as a feature, cryptocurrency is not yet available to trade. This currency will be added to a list to be among the first set of beta users once the platform rolls out this feature. If the current platform is any sign of future performance, once launched, Webull will offer an excellent interface to trade cryptocurrency with a significant number of tools and resources for advanced traders.
Webull Day Trading Capabilities
Day trading is the practice of buying and selling the same security on the same business day. For most brokers, you will need at least $25,000 in your trading account to day trade.
What is the Webull PDT rule?
If you have an account with less than $25,000, you will make a maximum of 3-day trades in 5 business days (this is a rolling count for most brokers) and traders who break this rule will be marked as a “pattern day trader” (PDT) and may have restrictions imposed on their trading accounts.
With Webull Day Trading is simple as the platform gives individuals the option to use leverage when trading. Trading with leverage occurs in a margin account, which offers investors the ability to buy with higher buying power than what is present in their accounts.
What is a Webull Cash Account?
A Webull cash account is exactly as the name suggests: an account that uses deposited cash where you must pay upfront the full amount for the stocks you buy.
Here is an example: if you have $500 in your Webull trading account, you can only trade stocks up to $500 in value. The cash you have on hand will be your maximum buying power because you cannot invest more than you have, right?
Now, imagine you have $2,000 in your Webull trading account. In a margin account, you can trade stocks and ETFs with a buying power that is 4x the cash that you have on hand ($8,000). Sound great? Here’s the thing about margin trading: if you are trading with money you don’t have, guess what? You can permanently also lose 4x your account value, so use trading leverage wisely.
How do I change my Webull Cash Account to a Webull Margin Account?
Changing your Webull cash account to margin is a simple application process that requires approval. To change from a Webull cash account to margin, follow these steps:
1.) Make sure you update to the latest version of the Webull App
2.) Go to the “Trade” tab and select “Account.”
3.) Scroll down and select “My Account” and look to where it reads “My Account Type.”
4.) Ensure that your account has a minimum of $2,000 and that your trades settle.
5.) Wait 3-5 business days for your application to be reviewed and approved
During the application process, you cannot place any new trades.
Webull margin account overview
Webull allows up to 4x buying power on day trading and 2x buying power on overnight trades with a margin account. To qualify for a Webull margin account, you must have a trading balance of at least $2,000.
- Margin trading is not free.
- Margin trading interest is calculated daily and paid out every month, and the size of the loan variably determines the rate of margin.
What is a margin account?
A margin account is a specific brokerage account where the broker lends the investor a certain amount of cash and uses the investor’s account as collateral. The money borrowed from the broker is to purchase securities. While a margin account allows investors to buy more by increasing purchasing power, it also exposes investors to an additional risk. There is now a chance for more significant losses on the account.
What is the difference between cash and the Webull margin account?
While cash accounts allow you to day trade with settled funds, a Webull margin account will allow you to borrow against the value of the securities in your account. Here’s how it works in practice: let’s say you have a Webull margin account with $5,000 and decide you want an additional $5,000 to invest. Webull will supply the extra $5,000 to bring your new account balance to $10,000, which you can use to purchase stock.
How do I apply for a Webull margin account?
It is simple to qualify for a Webull margin account. Here is how you apply:
1.) Go to the Webull homepage.
2.) Select Account Details.
3.) Scroll down and select Change Account type.
4.) Apply for approval.
Webull IRA account: is it worth it?
Webull offers a few free IRA accounts, depending on your financial goals. Let’s take a look at each one:
Webull Traditional IRA
You can open an IRA for free and fund the account with pre-tax money. Typically, deposits made into this account will serve a few essential benefits:
- Lower your taxable income
- Allow you to build your IRA balance quickly.
- Avoid tax penalty on all earnings and gains until retirement (upon retirement you will have to pay income tax on your withdrawals)
Webull Roth IRA
A Roth IRA is different from a traditional IRA. When you open a Webull Roth IRA, your contributions deposit to your account with post-tax money. Future withdrawals on the account will be made tax-free. The primary benefit of a Webull Roth IRA is that any accrued earnings have the opportunity to be withdrawn without any tax penalty in retirement.
Webull Rollover IRA
Suppose you have money in an old retirement plan sponsored by a previous employer, that money into a Webull Rollover IRA. When you transfer your payment using this method, they will not require you to pay taxes on these funds or not have them subject to early withdrawal penalties.
Webull head-to-head comparisons: how does Webull measure up to competitors?
There have been many Webull reviews outlining its pros and cons, but it is impossible to measure the strength of the Webull platform without comparing it to other retailing investing competitors. Considering the popularity of Webull, it is natural for comparisons to be made and competition to arise among other retail investing providers. How does our Webull review measure up when compared to traditional brokers? Here is what we found when analyzing Webull alternatives:
Webull vs Robinhood–Is Webull really better than Robinhood?
Robinhood’s meteoric rise in the trading world in 2016 was unlike anything else in the financial sector, trailblazing the way to commission-free trading for everyone. Quickly after Robinhood launched, Webull followed suit with a commitment to provide an enhanced, more comprehensive trading experience while still offering commission-free trading. When reading Robinhood reviews, many choose to use the platform because of the user-friendly interface and commitment to free trading, which is also offered by Webull.
While both Webull and Robinhood offer similar features, many things separate the two brokers. Let’s look at how these platforms are different.
Webull vs Robinhood: Margin Trading
With margin rates, Robinhood offers a fixed percentage rate while the Webull structure grants a sliding decrease depending on your account size.
The clear winner here is Robinhood. You really can’t beat the 5.00% margin rate that Robinhood offers (unless you have over $1,000,000 in your Webull account). Considering that the platform targets beginner traders, a flat-rate regardless of account size is beneficial.
What about Webull vs Robinhood fees and pricing?
Both Robinhood and Webull offer comparable fees for stock trading (equities) and options trading at $0 per trade.
Comparing Webull vs Robinhood stock research features
Both Webull and Robinhood offer stock research tools that help investors make a smarter investment decision, but Webull offers more substantial features for researching and analyzing trading opportunities, including:
- Stable charting features with technical indicators
- Robust stock screener
- Market analytics including relative stock and industry strength ratings and daily cash inflow into indexes
Robinhood provides a new aggregator and allows users to look into upcoming company earnings dates. Besides matching these features, Webull also looks at insider activity, company balance sheets, cash flows, and SEC filings.
For ETFs, both platforms give an in-depth look at performance analysis and strategy overview, but Webull also provides further insight on sector exposure and top 10 holdings.
In research options, while still underwhelming compared to larger platforms like Think or Swim, Webull gets the slight edge over Robinhood.
Webull vs TD Ameritrade
TD Ameritrade is one of the most popular brokerage platforms available and has recently joined the commission-free trading train. Many Webull and Robinhood traders are wondering if it is worth leaping over. At first glance, the TD Ameritrade platform can be a bit confusing for new traders. When comparing the two platforms, here is what you need to know:
Which trading platform is better?
Webull is a more comfortable platform to navigate for new traders, and beginners will find it less intimidating than TD Ameritrade’s Thinkofswim trading platform. The Webull platform is more uncomplicated and more straightforward for new investors. Keep in mind that Webull was built as a mobile application, only to have a full desktop platform added later. So while the interface is simpler to navigate, it also offers less in features.
TD Ameritrade (or the Thinkorswim trading platform) began as a desktop platform and offered a feature-rich experience. The fact is that TD Ameritrade is more comprehensive and offers enhanced trading tools such as advanced paper trading and educational videos on stocks, ETFs, options, mutual funds, and retirement planning options.
Experienced traders will appreciate TD Ameritrade’s extremely in-depth research tools, watch list integration, and stock screeners. Besides this, TD Ameritrade also offers a custom scripting language called Thinkscript, which enables traders to create custom indicators and trading strategies. Thinkorswim is a better platform when you consider the number of valuable trading resources available, and this isn’t a knock on Webull at all. Thinkorswim offers what is arguably the most comprehensive trading platform on the market today.
Paper trading: Webull vs TD Ameritrade
As mentioned above, Webull offers a paper trading simulator where new investors can practice selecting stocks and placing trades before any actual money is ever on the line. While this puts Webull ahead of other Fintech companies like Robinhood, it does not even compare to TD Ameritrade paperMoney virtual simulator. Also though the simulation publishes delayed data (by 20 minutes), it still gives investors a clear picture of the experience of trading with the Thinkorswim platform. While Webull starts each user out with a cool $1,000,000 to invest in the “paper” simulation, TD Ameritrade gives each account $100,000, which we believe is more realistic for a new trader. The neat thing is that you do not even need to be a TD Ameritrade customer to try the simulation. TD Ameritrade gives each person access to the simulator for a 60-day free trial, which offers prospective customers an excellent opportunity to try the platform before committing.
Comparing Webull vs TD Ameritrade pricing
Both Webull and TD Ameritrade offer zero commissions on stock and options trading. Still, TD Ameritrade charges fees on options contracts whereas Webull offers options trading with $0 in associated costs per contract, making trading on Webull free. On the surface, TD-Ameritrade touts commission-free trading, and while that is true, investors will pay fees of $0.65 per contract traded. Besides savings on trading fees, Webull also offers significantly cheaper rates on margin trading (i.e., Webull charges 6.99% for accounts up to $25,000 where TD Ameritrade charges up to 9.50%).
How does customer service measure up for Webull vs TD Ameritrade?
Webull’s most significant opportunity is its customer service. The company needs to focus more on getting more live agents to resolve issues that customers have with the platform. Considering the novelty of the service, Webull has time to improve in this area.TD Ameritrade offers a better customer service experience with a phone number available to speak with a live agent and a chat feature integrated into the Thinkorswim app. TD Ameritrade even offers a chatbot (“Ask Ted”) to help customers resolve and troubleshoot issues related to the platform. All you have to do is ask the chatbot a question, and it will send you the appropriate educational resources to meet your needs.
Summary for Webull vs TD Ameritrade
While both Webull and TD Ameritrade provides commission-free trading coupled with powerful tools for research and technical analysis, the differences are apparent. Webull offers a great mobile experience and charges less for comparable fees. TD Ameritrade delivers an excellent desktop platform with the finest research and analysis tools available on the market today. While the Thinkorswim platform is the clear winner for overall performance, Webull is geared more for beginner investors, while TD Ameritrade’s Thinkorswim is for savvy daytraders and experienced investors.
TD Ameritrade Advantages
- Robust suite of investment options, versatile research options
- Offers advanced Thinkorswim platform for experienced traders
- Best-in-class trading simulation for practice
- Education guides provided in written form, video content, presentations, and live webcasts
TD Ameritrade Disadvantages
- Fees can add up quickly, more expensive than many Webull
- The platform can be complicated and very overwhelming for new investors
Webull vs Schwab
Charles Schwab is a full-service brokerage that manages over $3 trillion in client assets. Like Webull, Schwab delivers a formidable platform for stock research and analysis but separates itself by offering the best-in-class service for IRA accounts. Eager to compete with Fintech disrupters, Schwab also offers $0 stock, ETF, and options commissions. When comparing Webull vs Schwab, here are the key things to analyze when choosing between the two platforms.
Which trading platform is better?
Like nearly every other full-service brokerage, Schwab offers a robust suite of core products and services. The trading platform and tools provided for stock research and analysis are sturdy and will keep even the most experienced investors satisfied. Unlike Webull, Schwab offers the ability to trade fractional shares and penny stocks with fairly no restrictions.
As mentioned before, where Schwab shines the most is in their retirement guidance and offerings. Schwab offers near every type of account you can consider, including Traditional, Individual, Joint, Roth, Rollover, Custodial, and Inherited IRAs, along with estate and trust accounts. And it doesn’t stop there; the list of their offerings is extensive, including self-directed retirement management through their Robo-Advisor service and Intelligent Portfolios. If you need a more guided approach, Schwab also offers unlimited one-on-one advisory sessions from a Certified Financial Planner for $30 per month (after a onetime $300 planning fee).
Schwab also does a fantastic job educating investors by proving on-demand learning videos for stocks, ETFs, options, mutual funds, fixed-income, and retirement savings. The brokerage also delivers month webinars, live seminars, and publishes a print magazine for investors.
With trading stocks, options, and ETFs on desktop, Schwab and Webull offer comparable service. Webull provides a better user experience for mobile trading as the Schwab mobile application lacks functionality with limitations in-stream quotes and alerts.
Paper trading: Webull vs Schwab
We’re big on allowing customers to adequately try and immerse themselves in the product before asking them to sign up, and this is an area where Schwab misses the mark. While Webull offers paper trading simulation, Schwab does not. While this may not be a deal-breaker for some, but the paper trading feature has become an integral part of the learning experience as younger investors enter the markets.
Comparing Webull vs Schwab pricing
Like TD Ameritrade and other traditional brokers, Schwab has joined the zero-commission bandwagon–but the platform is not entirely free of transaction fees. Schwab charges $0.65 per options contract (which can add up if you are trading large volumes) and additional fees for Mutual Fund trades and any trades that require help from their brokerage. Also, Charles Schwab charges significantly higher margin rates for accounts below $500,000. Individuals with accounts greater than half a million receive special margin rates by merely contacting the brokerage for current deals. For overall pricing, Webull gets the edge.
How does customer service measure up for Webull vs Schwab?
Schwab offers excellent customer service and makes it easy for customers to connect with a live agent via phone or live chat. The average connection time is less a one minute, which is better than what the Webull platform offers.
Summary for Webull vs Schwab
While both Webull and Schwab provide similar products, Webull edges out Schwab with accounting fees and a superior mobile application. For investor education, long-term investing, and retirement planning, Schwab provides a lot more value and resources than Webull.
- An impressive suite of investment options and top-tier retirement planning
- Great customer service experience
- Provides educational video content and live webcasts
- Discount margin fees for large (<$500,000) accounts
- Charges on services and account fees can add up quickly for high-volume investors
- The platform is dated and does not offer a mobile application or simulation experience
Summary of our Webull Review
Editorial StaffOption Beginner is a community of 30,000 option traders learning how to approach trading like a business. Join our free newsletter to get our latest research and trading ideas.
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