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Among the free or almost-free trading platforms out there, Webull is one of the most popular.
Let’s take a deep look at this broker app in our Webull Review and see if it can help you start investing.
Webull Overview
| Features: | Details |
|---|---|
| Account Minimum: | $0 minimum balance to open an account. |
| Commissions: | $0 |
| Management Fee(s): | $0 |
| Account Types | Standard and Joint Taxable Accounts, Roth IRA |
| Automatic Rebalancing: | No |
| Customer Support: | |
| Human Advisor(s): | No |
| Mobile App: | Yes |
| Tax Strategy: | No |
| Tradeable Securities: | Stocks, ETFs, Options |
| SIPC Insured | Yes |
| Live Market Data | Yes |
What is Webull?
Webull is an accessible online brokerage and trading platform for mobile and desktop users. Compared to many other trading platforms that charge commission fees, Webull is totally free to use; no commissions are incurred if you want to buy or sell stocks, options, or ETFs.
It’s the primary competitor of the also-free trading platform Robinhood. At the time of this writing, Webull has over 9 million users and offers unique and community-focused features.
While it doesn’t have as many research or educational tools compared to full-service brokers like Fidelity or TD Ameritrade, it does have more than Robinhood.
>> More: Best Online Stock Brokers
How Does Webull Work?
Getting started with Webull is relatively simple. You can sign up for an account by either downloading the mobile app or visiting the web platform on a desktop or laptop computer.
You’ll need to be 18 years of age or older, as well as provide some personal identifying information to finish the registration process.
After creating an account, you’ll be able to place trades on stocks, options, and ETFs. Webull is currently looking to provide cryptocurrency trading, though this feature has not yet rolled out.
Webull does provide some research and educational tools for its users. Furthermore, all users will be able to access quote data so they can make more informed trades by paying a monthly fee. Level 2 quotes are relatively affordable at just $1.99 per month, and the data comes from NASDAQ Totalview.
Perhaps more important is the Webull community. This acts as a kind of inbuilt messaging feed where you can communicate or comment on stocks alongside other Webull users. This allows traders to help one another or ask for assistance or valuable information.
If you make correct predictions, you’ll get special “Webull points”, which are redeemable for certain products or even real money.
Webull does not require a minimum deposit or account balance unless you want to short stocks and open a margin account. This requires a minimum deposit of $2000, which is industry-standard.
Though it offers its primary services for free, Webull still manages to make money through various sources including:
- cash balances
- payment for your order flow
- margin lending
That last method is pretty common for trading platforms across the industry, especially for ones that offer trading without commissions.
Webull Features:
Here is where Webull shines. These features enable investors to make clear decisions and stay informed.
Commission-Free Trading
Like many other free stock trading platforms, Webull allows you to place trades without any commission fees. Small costs are spread around otherwise.
Real-Time Market Data
Webull offers a pretty decent collection of trading information right on the main desktop or mobile platform screen.
A high-level overview for markets and news headlines is available for all users, plus consolidated analyst rankings and ratings. You’ll also benefit from a few extra research tools, like the Net Order Imbalance Indicator or NOII.
>> More: Best Websites to Research Stocks
Paper Trade
Webull is one of the few mobile stock trading platforms that allow you to practice paper trading. This feature essentially allows you to practice trading using virtual dollars with your stock market account.
You can safely try out different strategies or learn the basics of this stock trading app before using your actual hard-earned cash for real.
Robust Mobile App
The Webull mobile app is extremely sleek and intuitive. All of the graphs and charts you’ll need to make accurate trades and be successful on the stock market are easy to digest and manipulate. Even newcomers should be able to navigate through the app relatively easily.
The app also offers many more features compared to Webull’s primary competitor, Robinhood, even if it doesn’t quite reach the depth of features of paid stock trading apps.
>> More: Best Investing Apps
Cryptocurrency
At this time, Webull doesn’t offer cryptocurrency trading (though Robinhood does). However, Webull is looking to add this trading option sometime in the near future.
Options
Webull also allows you to trade options for free. However, only trade options if you are know what you are doing. Options is one of the easiest ways to lose your money.
On the flip side, it is also a tool the best investors use to protect their positions.
>> More: How to Trade Options
Individual Stocks
Webull allows you to trade individual stocks for free.
Webull Review: Pros & Cons
Pros:
- Webull offers accessible free stock, ETF, and options trading. This makes it a great app for newcomers to the stock market who may not have enough cash to use other trading platforms
- It’s easy to swap from platform to platform using the same account. You can jump from a mobile device to a Windows or Mac computer relatively seamlessly
- Level 1 and 2 options trading is supported
- Webull offers live market data, plus additional research options. You can even get quote details with advance quote subscriptions you can pay for à la carte
- Paper trading is available as a kind of practice trading type for new stock market traders
- There’s no minimum investment amount before you can get started trading
Cons:
- Webull is relatively limited in terms of its investment choices, as you aren’t able to invest in mutual funds, OTC stocks, or cryptocurrencies at this time
- Webull doesn’t have tons of customer support options
Who Is Webull Best For?
- Beginner Investors
- Young Adults
- College Students
- High School Students
Webull is a fantastic platform for new investors that want to cut their teeth on an easy-to-use platform that includes some research resources so they can become better traders over time.
It’s an excellent platform if you want to learn the market and take more direct control over your trading success.
It’s also a good choice for more active investors, especially since the dashboard and research tools are perfect for users that spend lots of time managing and planning their portfolios.
Want to Learn How to Pick Winning Stocks? Check out ourMotley Fool Review.
Who Shouldn’t Use Webull?
On the flip side, Webull isn’t a very good choice for traders who want more direction or advice. The educational or tutorial resources leave a little to be desired.
Furthermore, the platform requires you to take an active role in the management of your portfolio. A traditional brokerage is a better idea if you just want to put money on the stock market and have a professional decide where it goes.
Lastly, Webull specializes in United States stocks. Therefore, international traders might, want to look elsewhere.
Webull Alternatives
Webull operates in a relatively competitive market. Competitors such as Robinhood, M1 Finance, and Acorns all offer affordable or free trading alternatives.
However, Webull is generally superior to its primary competitor, Robinhood, due to the extra educational and research amenities available to all account holders.
The only downside is that Webull doesn’t offer cryptocurrency trading at this time, but this feature is due to roll out sometime in 2021.
Compare:
How Does Webull Make Money?
Webull makes money with a few different strategies:
- It offers paid data subscriptions that range in price from as low as $2.99 per month to over $60 per month depending on the data source
- Any on investing cash in your account will earn interest that Webull then takes for itself
- Any margin traders will pay Webull to use the leverage – this is a common profit strategy for free stock trading platforms
- Webull also routes any of your orders through a specific market maker, which earns them a fraction of a cent. This all adds up over time
All this means that users won’t need to pay Webull a dime if they don’t want to. However, you can spend a little extra money and get advanced quotes on certain stocks or assets – some of these prices are as low as a few dollars per month, while others can be quite pricey.
Is Webull Safe to Use?
Yes. Webull is a safe platform overall, both because of its insurance and its digital security. The platform doesn’t have the same history of downtime or hacking issues as many of its competitors.
Is Webull SIPIC Insured?
Yes. Webull is insured by the SIPC for up to $500,000 in total or $250,000 in cash. Accounts are also protected through Apex Clearing insurance, which has limits of up to $37.5 million per customer.
Ultimately, Webull users will be pretty well insured and protected compared to other free stock trading platforms.
Bottom Line: Webull Review
All in all, Webull is a comparatively robust free stock trading app compared to many others on the market.
While it doesn’t have as many educational or research resources as true stock brokerages, it’s still an excellent alternative for those on a really tight budget for traders who don’t mind doing their own research from time to time.
Even better, it’s a rewarding app for traders that want to take hold of their portfolio and really go all-in with their strategies. It demands constant interaction, which will be attractive for some and less interesting for others.
It’s arguably the best free stock trading app for advanced investors since it has more analysis and educational tools compared to apps like Robinhood.
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