In this Webull review, we are going to explore deep into the benefits of using Webull to invest as well as the significant drawbacks. In addition, we will discuss the information investors need to know before opening an account. Therefore, we have created an in-depth review of the company to assist you in determining whether or not Webull is the broker that best meets the requirements of your portfolio.
List of Contents
Webull: Website
Minimum Balance: $0
Cost per stock trade: $0
Cost per options trade: $0
Promotion: Free stock shares
Commission-free ETFs: All
No-transaction-fee mutual funds: None
Securities: Stocks, ETFs, options, cryptocurrency
Customer service: By phone and email support 24/7, chat in mobile app
Account fees: $75 transfer out fee
Mobile applications: Webull has mobile apps available on the Apple App Store, Google Play, and Amazon devices.
Company’s Overview
Webull is one of the most recent members of the online brokerage industry. The company was established in 2017 and launched in May 2018 with only a mobile app. This mobile-first debut was a reflection of the millennial generation, who is Webull’s most important target customer. Moreover, Webull is positioning itself to serve newer and more active traders and others drawn to a platform offering a broad range of services for free. These free services include trading of stocks and ETFs and their options, as well as multiple cryptocurrencies, with no account minimums required.
Besides, Webull’s product is less comprehensive than its full-service competitors, reflecting the company’s orientation on the self-directed investor. Consumers of Webull receive a lot of value for their money in the shape of a good platform that includes a wide variety of helpful tools and services, in addition to attractive profit rates.
Customer Service
The limited scope of Webull’s customer service offering is a direct outcome of the company’s restricted emphasis on younger, more digital, and more self-directed clients who are primarily interested in the possibility to trade for free. Although Webull does not employ financial advisers, the company does allow its consumers to speak with a live broker if they are willing to wait on hold for more than two hours on average. The following is the additional customer services.
- Phone available during trading hours.
- During business hours, you can talk with a live representative online.
Products
Genuinely, Webull specializes in U.S. stock and ETF trading, as well as U.S. listed options, and exclusively accepts personal, and IRA accounts in the U.S. Nevertheless, Webull’s product offers may not equal the variety of options available from full-service brokers. However, they satisfy the needs of their younger consumer base, who is less interested in fixed income. Unlike many full-service brokers, It allows you to trade various cryptocurrencies for as little as $1. Fixed income, mutual funds, futures, and traditional foreign exchange trading are unavailable. Importantly, it allows investors to trade the following:
- Long and short U.S.-listed stocks and ETFs (2,085 stocks are currently on Webull’s easy-to-borrow list for short sales).
- Options on stocks and ETFs that are listed in the U.S.
- Trading in Bitcoin, Dogecoin, Bitcoin Cash, Ethereum, Litecoin, ZEC, XLM, Shiba Inu, Chiliz, Synthetix, Gala, and other cryptocurrencies.
Pricing
Webull is a no-cost broker rather than a low-cost broker. They provide commission-free trading in stocks, ETFs, and listed options. Notably, there are no fees for account minimums or their powerful platforms and tools. In addition, Webull’s margin rates are competitive as well. It does not charge commissions on trades, but it does pass along Securities and Exchange Commission (SEC) transaction fees and different exchange and regulatory costs, typically pennies or fractional pennies per contract. The following are Webull’s expenses:
- Paper statement fees are as follows: confirmations are $2 per confirmation, account statements are $5 per statement, and the prospectus cost is $2.5 per mailing.
- Money transfers: There is no fee for ACH deposits and withdrawals. However, wire transfers are $8 for domestic deposits and $12.5 for international transfers, $25 for domestic withdrawals, and $40 for international withdrawals.
- Margin is offered for leveraged and short sales, with rates determined by account size. 6.99% up to $25,000; 6.49% up to $100,000; 5.99% up to $250K; 5.49% up to $500K; 4.99% up to $1 million; 4.49% up to $3 million; and 3.99%.
- There is no commission on cryptocurrency trading.
- There is no commission on exchange-traded options.
- There is no commission for online equity, ETF, or OTCBB trading.
Order Types
Webull supports the most popular order types such as market, limit, stop, stop limit, and trailing stops. There are also specialty orders such as one-cancels-the-other (OCO), one-triggers-an-OCO (OTOCO), and one-triggers-the-other (OTO). All of them allow traders to set up a conditional order in which a filled limit order establishes an OCO with both a stop loss and a profit-taking level order attached once the initial position is based.
However, Webull does not provide market-on-close, market-if-touched, or similar orders. Besides, Webull does not give the traders control over tax lots on sales to terminate a long stock position. Instead, they employ the first in and first out (FIFO) system. It also lacks automated trading, strategy backtesting, and order staging.
Usability
Webull’s design is simplified and precise. Thus, this makes it simpler to use. Moreover, it offers a desktop workstation, a website, and a mobile app, all of which have designs on par with one another in terms of quality. Since they were created recently, the platforms have a modern design and feel.
Both the desktop workstation and the website have a menu and window layout that emphasizes a major set of buttons running down the left side of the screen. These two interfaces are virtually indistinguishable from one another. Importantly, these buttons bring up quote boards, a stock page, a stock screener, an account tab, access to bank transfers, and a specialized paper trading area. In addition, there are a few minute distinctions between the website and the workstation, the most notable of which is that the website only offers options for a single leg.
Besides, the main functionalities of the mobile app are implemented in a manner that is similar to the way they are implemented on the website and the workstation. However, the mobile app’s design differs to accommodate the smaller displays that it is utilized. The buttons that make up the app’s navigation menu move around. Therefore, they are always relevant to the material that is currently being displayed on the screen. For instance, a choice in the form of a button labeled “options” appears at the bottom of the stock screen that displays a particular stock or ETF.
Additionally, watchlists can be simply generated across all platforms directly from stock screener results. They are also constant throughout the desktop, online, and mobile apps. Thus, you don’t need to configure them on various devices. Order entry is simple, and traders can even personalize trading ticket information such as order type and share quantities that they frequently employ.
Trade Experience
First of all, Webull’s workstation is extensively customizable, with templates for trading equities and ETFs, options, day trading, and cryptocurrency trading available. Thus, traders can choose between these template sites and create their own page layouts from scratch using widgets. The widgets contain many types of information such as news, fundamentals, options, order input, time and sales, etc. To reduce screen space, the widgets can be consolidated, with the separate widgets accessible via indicated tabs at the top of the window. Widget windows can also be grouped together, so a stock input in one of the widgets updates the other widgets in the group.
In addition, the trading configuration also allows for a highly customizable user experience such as hot buttons, a home page loaded on startup, default stock, option orders, and commonly used share numbers. The workstation provides maximum freedom and customization. The website did not feature all of the trade page layouts available on the workstation. Moreover, there was no way to access the learning center from the website. When appropriate, the system will direct you to different sites such as the stocks window, news, options, charting, and an analyst rating summary.
Furthermore, Webull makes it simple to place an order. The order screen is customizable, and the stock order entry screen contains contingency orders for stop loss and profit-taking levels. You can also generate order tickets directly from your account holdings. Clicking on a market’s bid or offer will automatically enter that data into the trade order widget. Trading could also be done directly from the charting program, with active positions and orders clearly visible on the chart.
Security and Reliability
- Webull has obtained extra insurance coverage offering an aggregate sum of $150 million of protection, with maximum limits per individual of $37.5 million for losses sustained unrelated to account losses relating to the value of securities.
- In the last four years, Webull has not experienced a data breach.
- There were no serious platform interruptions on Webull.
- A unique six-digit number passcode is required for trade access, offering an extra degree of security.
- Mobile allows for biometric authentication using fingerprint or face recognition.
- All platforms support two-factor authentication.
Transparency
Webull’s pricing is clear and completely transparent. The company has payment for order flow (PFOF). It is the major generator of revenue. Thus, this allows customers on its platform to trade commission free. Other fees are clearly stated on the website’s plainly visible pricing page. Moreover, Webull describes how they pay SEC, exchange, and regulatory fees, which are often fractions of a penny per volume traded.
In addition, its tiered margin rates and accompanying purchasing power are clearly shown on the price page. However, it was more difficult to find warnings about margin trading hazards on the website. On the other hand, it offers a useful account risk metric that visibly alerts a trader whether they are at a higher risk of a margin call.
Besides, Webull has adopted an innovative approach, with transparency about paying for order flow being critical to its free business model. Unlike some other brokers that bury it in the tiny print, the company is essentially telling clients up front that they either have a free platform or no payment for order flow.
News & Educations
News
The Benzinga Newswire, which functions as a basic scrolling window and includes information on economic releases, is the source of news that is made available to all clients free of charge. Simply clicking on the interesting news item will bring up the relevant stories. The information displayed on the news screen will be unique to the particular stock that has been chosen for analysis within the stocks tab.
Education
Webull’s learning center does not offer investor education in portfolio management and trading. Therefore, its traders are on their own when it comes to learning how to manage an account and trade. Instead, Webull provides a series of educational materials on how to use Webull’s platforms and features, largely in the form of text and screenshots. There are sections that introduce the workstation, discuss frequently used features, demonstrate how to alter layouts, and showcase the available trading tools.
Additionally, Webull does not provide a dedicated trading journal. However, traders can review their order history. It is also unsurprising that a free platform at a 0% commission broker does not provide advanced strategy backtesting. While it has a paper trading function to help users become acquainted with how to place orders and trade, the features are extremely limited. In contrast to trading on the actual platform, you cannot enter a limit order with conditional stop loss and profit-taking orders. Furthermore, Webull’s paper trading does not provide options trading.
As a result, you may be unable to imitate what you would actually do in the market. Having said that, the paper trading function serves its objective of acquainting a new trader with the platform and the fundamentals of order entry.
Pros & Cons
Pros
- There is no account minimum and trading fees.
- It lets you directly trade cryptocurrencies.
- It provides you with a set of charting tools.
- It offers a paper trading account.
- It offers instant funding.
Cons
- The educational content is quite insufficient.
- The account types and tradable securities are limited.
Pros Clarified
- There is no account minimum and trading fees.
Webull’s most notable feature is the opportunity to trade stocks and ETFs without paying a commission. Genuinely, that is nothing out of the norm these days as the entire industry has moved to commission-free trading, but it is still useful. Importantly, when you sign up, you will enjoy complete extended hours of trading as well as three months of free Nasdaq Level 2 quotations.
On the other hand, it outperforms the industry with no-cost options trading, which was added to its capabilities in early 2020. Moreover, there is no base commission or per-contract fee. Webull also makes it simple to get started, as there is no account minimum, which is now typical in the market.
- It lets you directly trade cryptocurrencies.
Crypto is one spot to look for differentiation between Webull and most brokers. Webull enables you to trade cryptocurrencies directly rather than via futures contracts, as some of the leading brokers do. Importantly, you will not be charged an explicit commission for this service. However, you will be charged a spread markup of 100 basis points on both sides of a trade.
Furthermore, you will be able to trade cryptocurrencies like Bitcoin, Ethereum, Cardano, and Solana for as little as $1. In addition, you will be able to do it 24 hours a day, seven days a week. You can get price quotes on other cryptocurrencies as well, even if you cannot trade them all. This feature was added by the broker in late 2020, making it a relatively fresh entry in the space. Webull claims to be working on introducing more cryptocurrencies to its trading platform.
- It provides you with a set of charting tools.
Webull includes a collection of charting tools to assist you in examining price activity, whether you are using the web-based client or the mobile app. You will be able to utilize your favorite charting approach. Moreover, you will also receive a detailed look at the trade movement for the day. You will also have access to a few dozen indicators or technical studies in total.
- It offers a paper trading account.
Webull provides a paper trading account that you may access instantly. For example, on a web-based platform, the real money trading platform may have nearly the same layout as the paper trading account. It is a great feature that replicates the actual thing and gives you $1 million in virtual money, to begin with.
- It offers instant funding.
Webull provides fast funding on deposits of up to $1,000. It is a clever feature that gets you in the game right away, although the cash may not actually clear for another four or five days. Long-term investors will not benefit from rapid funding, but many traders want the funds now.
Cons Clarified
- The educational content is quite insufficient.
Webull is a platform that primarily serves novice and younger investors, but it does not provide any educational resources for its users. This is a significant oversight on the part of Webull.
- The account types and tradable securities are limited.
Webull only allows you to access individual accounts, whether they are basic taxable accounts, traditional IRAs, Roth IRAs, or rollover IRAs. It does not offer numerous types of accounts that other brokers do, including joint accounts, custodial accounts, or self-employed accounts such as a SEP IRA or solo 401k (k). As a result, it is a better choice for day traders rather than long-term investors.
Similarly, the broker does not provide mutual funds, which may be a deal breaker for certain investors but is unlikely to be a drawback to short-term traders. It also does not provide bonds, currencies, or futures. These factors may not be important to all investors, but they are worth mentioning.
Is Webull a Worth Broker to Get?
If you are a genuine beginner or if you have not yet built a well-diversified, long-term portfolio, it is possible that there are alternative brokers who are better suited for you than Webull is. On the other hand, it could be a good fit for you if you have a moderate amount of experience or are hoping to improve your trading skills through advanced orders and technical analysis. This is especially true when you consider the broker’s low price point in comparison to other brokers that offer services that are comparable.
Conclusion
Webull is an excellent choice for the trader or active investor who doesn’t want constant guidance and support. The fact that there are no additional fees to pay makes it an attractive option for anyone who is interested in trading. There is no minimum account size requirement, the margin rates are highly competitive, and there are no commissions charged on stocks, ETFs, options, or cryptocurrencies. In addition, you will have access, at no additional charge, to trading platforms that are both well-designed and easy to use. Importantly, they are available for both desktop computers and mobile devices.
FAQs
Webull is a commission-free online trading platform that allows investors to trade stocks, options, and exchange-traded funds (ETFs) for free. It was created in 2016 and has earned favor with investors because to its user-friendly interface, excellent charting tools, and affordable costs.
Yes, Webull is a secure and reliable trading site. It is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation, and it is registered with the Securities and Exchange Commission (SEC). (SIPC). Webull also employs sophisticated security techniques to safeguard consumers’ data and transactions.
Yes, Webull users can make trades on margin. Margin trading allows customers to borrow money from their broker in order to invest in stocks, options, and exchange-traded funds (ETFs). It does, however, include significant dangers, including the prospect of losing more than the initial investment.
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Source: Investopedia, Bankrate