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Investing can be intimidating for beginners. Luckily, getting started has become easier thanks to new tools and platforms. Among these platforms is Webull, a service designed for stock traders. In this Webull review, we will go over what Webull is; then, we will delve deeper into the service and discuss the platform’s pros and cons.
Quick Summary: Webull is a mobile app-based broker offering commission-free ETF and stock trading. Webull provides full extended hour trading, real-time market data, in-depth analysis tools, margin trading and short selling.
What Is Webull?
Founded in 2017, Webull is a mobile brokerage for stocks and ETFs. You can trade stocks on the Webull platform without paying commissions. Webull is now regulated by the SEC and the Financial Industry Regulatory Authority (FINRA).
Webull has many features, but the core of what they offer is individual cash and margin accounts. These accounts can be opened easily, and then used for stock, ETF, and even IPO trading. Because there are no inactivity fees, you are not obliged to use your account actively all the time.
If there’s one standout benefit to using Webull, it’s easy and convenient trading. It also offers users many different additional features, which we will cover in this article.
How Does Webull Work?
Opening An Account
The first thing you need to do to use Webull is to open an account. Opening a Webull account online only takes a few minutes.
Unfortunately, Webull doesn’t offer a wide variety of account types. You can only open margin accounts or individual cash accounts. Once you open an account, it should only take a few business days for the account to be fully accessible. Account-holders can start trading as soon as they’ve made a deposit.
Making a Deposit to Trade On Webull
There is no minimum account balance required to start trading, but you will need to deposit money into your account by bank transfer. (Bank transfer is your only option.)
One (potential) problem is that you can only transfer money from your mobile phone.
Getting Started Using Webull
At this point, you only need to access Webull’s user-friendly trading platform. The trading platform is one of Webull’s greatest strengths. It’s suitable for beginners, but it offers many customization options, making it useful for advanced traders. Also, you can use the platform’s search functions to find the asset or ticker you are looking for.
Where is Webull Available?
One of the biggest drawbacks of Webull is that it’s only available in a few countries. Right now, you can only access Webull in the U.S. and China.
Webull’s Feature Set
Webull comes with all the typical features you would expect from a mobile brokerage. The program comes with real-time market data, making it easy to keep up with movements in the markets.
You can customize the interfaces you use on Webull. Perhaps more importantly, you can set customized alerts and notifications.
You can set an alert easily. You just need to search for the stock you want to set an alert for, and then click the bell icon, which is at the top right of the screen. From here, you can customize alerts for specific prices or other factors.
With Webull, you get live data on technical indicators, including:
- Bollinger bands
- Exponential moving averages
- Money flow index
Webull offers a live news service dedicated to news relevant to stock and ETF traders. This allows you to keep up with the news you need to know, on the same platform you do your trading on.
Webull uses the most recent data from the companies they list. This way, you can make educated decisions without having to use different platforms and resources.
Stock screeners allow you to filter your stocks based on the metrics you choose. If you want to search for new stocks, you can use the screeners to set the parameters.
Virtual Trading Pool
Webull offers you an opportunity to make mock trades. This way, beginners can use virtual money to invest in real stocks.
With this feature, you will still see the real-life results of that trade. The only difference is that you won’t gain or lose money. You will be able to practice trading with fake money on the real market until you feel you’re ready to make a real investment.
Webull Features You Typically Find On Larger Trading Platforms
You can’t always trade on extended hours with small, commission-free platforms like Webull. Yet, Webull allows you to trade from 04:00 to 09:29. After hours, you can trade from 16:00 to 21:29.
You can engage in margin trading (within reason) on Webull. The platform allows you to 4x your day-trade buying power, or 2x your off-hours buying power.
It should be mentioned that your ability to trade margins does come with restrictions. Trading on Webull is free, but margin trading requires at least $2,000. The margin rates you can get will depend on your debit balance with Webull.
If you’d like, you can short stocks on Webull. When you place a short order, Webull will be your intermediary. They will borrow the shares you want from an investor and sell them on your behalf.
Being able to short stocks offers a lot more freedom. It doubles your investing options. This is a great benefit to have from a commission-free mobile trading platform.
Webull Account Types
Webull doesn’t have a wide scope of account types to choose from. Still, the account types you can choose from offer different benefits and levels of service.
Webull offers only one account that serves as a generically useful investment account. The Webull Standard account is, as the name suggests, their standard taxable trading/investment account.
The Standard account allows you to conduct your normal trading activities. However, the account comes in two forms: a standard cash account and a margin account.
A standard cash account can handle most amateur and intermediate traders’ needs. With this option, you can invest in or short any available stock. So the standard cash account is the best option for an investor or trader who doesn’t need constant access to capital or leveraged positions. If you need leveraged trading access, they have other options for you.
With Webull’s standard margin account, you may short stocks and employ leverage. You can even increase your exposure beyond your cash balance with this option. Therefore, margin accounts are a great option for intermediate or advanced investors who want more freedom. The account is almost as easily accessible as the standard cash account. The only requirement is that you maintain a minimum balance of $2,000 in your margin account.
Webull also offers several free IRA accounts.
You can open a free traditional IRA account if you want to fund an account with pre-tax funds. Deposits into these accounts lower your taxable income and allow you to grow your total IRA balance faster. Once you reach retirement, you can make withdrawals from a traditional IRA account.
A Roth IRA account is a bit different from the traditional option. You pay taxes on all deposits into the account, but future withdrawals are tax-free. If you think your retirement-age tax rates will be higher than your current rates, this is a good option for you.
A rollover IRA is an account for when you want to move money into an IRA. If you have an old retirement plan under a previous employer, you can rollover the funds into an IRA.
Webull Fees, Limitations and Commissions
Webull doesn’t charge commissions. Any stock or ETF transactions will take place 100% free of commissions. This rule stands regardless of how much you buy and for how long you hold.
Webull doesn’t charge any fees for having an account. There are also no hidden fees for trading.
While Webull doesn’t charge its own fees for trading or holding an account, investors may still have to pay regulatory fees. These are fees levied by the SEC and FINRA. The fees these regulators levy are fairly small and are typically passed down from the broker to investors.
You will only pay one kind of fee when using Webull. Webull accounts are charged about $8 for a domestic transfer. International transfers cost about $12.50. High-value incoming wire transfers of over $25,000 come at no cost. Keep in mind that these fees come in addition to the bank fees you must pay.
In all, Webull fees are not very significant. The only downside is that most other brokers only charge wire transfer fees for outgoing transfers, but Webull charges you for any wire transfer you send or receive.
Webull comes with a few noticeable limitations.
- For a standard account with a balance of less than $2,000, you can only engage in 3-day trades per 5 business days.
- If your account balance is between $2,000 and $25,000, the same limit applies.
- If your account balance is between $2,000 and $25,000, you are limited to 4x leverage on day trades.
- For margin accounts with over $25,000, you can trade as much as you want. Day trades can have 4x margins, and off-hours trades can have 2x margins.
What Can You Trade?
Webull is very limited in the kinds of trades you can make on their platform. As we mentioned, Webull only facilitates trades of stocks and ETFs. Webull carries over 5,000 stocks and ETFs on its platform at any given moment, so if you are interested in stocks and ETFs, Webull will have everything you need. But, if you want to invest in mutual funds, options, bonds, forex, or futures, you will need to look elsewhere.
You can also trade penny stocks on Webull. However, there are limitations for the number of shares you can buy:
- Purchases of single shares worth under $0.01 are not permitted.
- If the share price is $0.01 to $0.099, you must purchase at least 1,000 shares.
- If the share price is $0.10 to $0.999, you must purchase at least 100 shares.
- If the share price is over $0.999, you can purchase as few shares as you want.
Available Order Types
The diversity in order types that Webull offers gives investors plenty of freedom. Webull’s platform accommodates the following order types:
- Market orders
- Stop orders
- Limit orders
- Stop limit orders
- Bracket orders
- Take profit orders
- One-cancels-the-other orders
Pros of Webull
- Beginner trader-friendly
- Easy-to-use interfaces
- Useful indicators
Cons of Webull
- Only ETF and stock trading
- No credit or debit cards
- No live chat support
- No telephone support
Who is Webull for?
Webull is a great option for many investors because of the low cost of use. Advanced investors are the best-served group.
Beginner traders who don’t want to risk too much but want to get their skin in the investing game can benefit from Webull’s services. The low-cost, easy-to-use interfaces and overall setup of the platform are beginner-friendly.
Intermediate investors can also gain a lot from Webull. If investing is more than a side-income or a hobby for you, you can still benefit from Webull. The company still charges very little, but its advanced options and accounts are meant for those who have already gained investing experience.
Experienced traders can benefit from the real-time market data and many customizable indicators available on Webull.
Who is Webull not for?
Professional, full-time investors may feel chained down if they use Webull for all their investing activities.
Webull’s tools and interfaces are still very good for experienced investors. However, if you have a lot of experience, you may still find more use from other investing tools — It’s just a question of personal preference. It’s easy to try the app for free and find out if you like what it has to offer.
Webull is a good potential option for investors of all experience levels. The only investors Webull isn’t for are those who want access to investments other than stocks and ETFs.
How does Webull stack up with competitors?
Let’s compare Webull to other low-cost, mobile-friendly investment platforms.
Webull is stronger than its competition when it comes to the beginner-friendly tools they offer. If you’re new to trading, you can learn about investing through Webull’s detailed but simple platform. You can practice with the virtual trading pool, a tool that serves as a good bridge for new investors.
The other area Webull excels in is its interface. The interface is good for investors of multiple levels of experience and gives Webull an edge over its competition.
The biggest drawback of Webull is that you can conduct trades on Webull, but options are limited. This is true of both trading types and the limits on the trades you can make. You’ll need to go to Webull’s competitors for low-cost trading options apart from stocks and ETFs. In addition, there are no automated investing options.
The other major drawback of Webull is its limited customer service. There are no phone lines or voice chats available. You can get support through their support email, but reps are slow to respond and not always monitored. The message center will provide needed support faster. Also,
If Webull isn’t exactly what you’re looking for, there are some similar alternatives you can consider.
Robinhood also allows you to trade stocks and ETFs for free, and you can also trade options and cryptocurrencies on Robinhood.
You will often find Webull compared to Robinhood online. They are similar. They both offer stock and ETF trading on straightforward interfaces, and without commissions. However, Webull offers more interfaces and customization.
Unlike Webull, Robinhood does not offer retirement accounts on its platform. The main area where Robinhood beats out Webull and most of its competitors is its free cryptocurrency trading option. While investing in cryptocurrencies is risky and less popular than other investments, if you trade crypto, Robinhood is a good alternative to Webull.
M1 Finance offers free automated investment accounts. The platform is also very customizable. You simply punch in your inputs, and M1 Finance manages your investments for you.
The core services that M1 Finance offers are free. Trading and asset management are available at no cost.
Robo-advisors like M1 Finance function differently than non-automated investment platforms. If you want to take advantage of M1 Finance, you should learn more about robo-advisors first.
Webull Frequently Asked Questions
Is Webull Legit?
Yes, Webull is a legitimate company.
Webull is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). You can find the company’s SEC filing online.
How does Webull make money?
Webull and similar non-commission investing platforms make money through back-end revenue streams. Normally, brokerages make most of their money from commissions. With Webull and some other modern platforms, they can keep the lights on by optimizing back-end revenue streams like:
- Interest on free credit balances
- Margin interest
- Order flow payments
- Stock loans
Is Webull really free?
The core services that Webull offers are indeed free. However, as discussed, wire transfers cost you money. Unlike many other brokerages, Webull charges you for both incoming and outgoing wire transfers.
Is Webull safe to use?
Webull is safe to use, as far as brokerages go. There is always risk in investing, but Webull places low limits on transactions unless you are investing a lot of money (over $25,000). If you invest responsibly, Webull is no less safe than other brokerages.
How do you withdraw your money?
Withdrawing money from Webull is easy. First, you need to link your Webull account with a bank account. Then, if you have funds available, you just need to click the “trade” icon at the bottom of the screen. The screen that pops up will have a withdrawal option in clear sight.
No, Webull does not currently accommodate fractional shares.
An online brokerage platform offering commission-free stock trading. Webull provides full extended hour trading, real-time market quotes and in-depth analysis tools.
Webull Review Summary
Webull is a tool with a lot of value. Given that it is free to use (apart from wire transfer fees), it serves as a good option for beginners. The interfaces and features are simple enough, and they serve as a learning tool for those getting started.
You don’t need to spend a lot of money to use Webull. Because they have no minimum balance requirements, costs are less of a concern. And you can even use their free virtual investment feature to dip your toes into the investment world. Webull may not be the ultimate investment app, but it is certainly a good option, and it’s free to try.
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