Webull offers online trading that is commission-free on stocks, ETFs, and options. The platform includes real-time data, advanced charts, and a customizable feed.
Online brokers are now forced to find creative ways to differentiate themselves, as most investment apps offer commission-free trading. Robinhood is offering a 1% matching on IRA contributions. Webull tries to put the focus on customers by offering fractional shares and a user-friendly platform.
Is Webull suitable for beginners? This Webull Review covers Webull’s platform for trading, its key features, the pros and cons and more.
Webull, based in New York City, is a self directed investment platform offering commission-free trading. You can trade stocks, options and exchange-traded fund (ETFs) as well as cryptocurrencies. Webull allows you to trade OTC stocks, unlike other online brokers.
Webull describes themselves as a financial company that puts the customer first, with technology at its core. This is achieved by offering a user-friendly platform for investing, real-time quotes free of charge, accessibility across multiple platforms, extended trading hours, and 24/7 online support.What is the best platform for a Robo-Advisor? Betterment Review and Tutorial
- Zero Commissions
- No deposit minimums
- Crypto alongside stocks, ETFs and other assets
- Accounts that are tax-deductible or IRAs
- Supports Margin Trading
- Paper trading option
- Access to Initial Public Offerings (IPOs).
- Webull Community lets you share your investment strategies with other investors.
- Online customer service is available 24/7
- Stock bonus and referral program.
Is Webull Legit or Scam?
Webull is legitimate. They are a US based broker-dealer and a member of FINRA SIPC NYSE and NASDAQ. Webull is estimated to have over 12 million users, and more than $40 billion in assets under management (AUM).
The company currently has a rating out of 5 stars of 4.4 from over 174,000 Android reviews on Google Play, and 4.7 stars out of 5 stars from the more than 275,000 iOS reviews on The App Store.
They are rated poorly by other major rating agencies.
Webull is rated “F” by the Better Business Bureau, which is the lowest possible rating from A+ to F. This rating was based on 54 reviews.
Trustpilot rates the company 1.3 stars out of 5 or “Bad”. It’s important to note that the Trustpilot score is based only on 137 reviews.
Webull Account Types
Webull provides two types of taxable accounts: Cash and Margin. Cash accounts limit your purchasing power to the amount you deposit. Margin accounts allow you to buy securities that are worth more than the value of your cash account.
A margin account must have a balance of at least $2,000 in it. Due to the leverage involved in a margin account, you will need to maintain a balance of at least $25,000 per day for all trades.
You can open a Traditional IRA, a Rollover IRA, or a Roth IRA through Webull. You can only have one IRA per user, and you need to have a personal account in order to open an IRA.
Day Trading Rules
In accordance with FINRA rules you are not allowed to make more than four day trades on a margin account in a period of five business days. Otherwise, you may be flagged as a “pattern day trader” (PDT). This will trigger the requirement for the minimum balance of $25,000.
There are also margin accounts available for LLCs and C-Corps. These come with a 2X overnight and 4X trading leverage.
Webull Trading Platform
The platform provides intuitive tools and support to traders. It also allows extended trading hours, before and after market closing.The Webull trading platform allows you to do the following:
- Real-time quotes
- Customizable screens
- Top traders share their stock market trading strategies
- Sort stocks by top gainers and losers and the most active and best performing industries.
- There are more than 50 technical indicators, and 12 charts tools.
- Quant Ratings provides an overall rating of each stock using objective data.
- Ability to analyse your trading history to find areas for improvement.
- Stock alerts in real-time to inform you of technical and price conditions.
You can also execute the following commands:
- Limit order
- Market Order
- Stop Order
- Stop-Limit order
- Order for a Trailing Stop
- Stop-Loss/Take-Profit orders (Bracket orders)
- One-Triggers-the-Other order (OTO)
- One-Cancels-the-Other order (OCO)
- One-Triggers-a-One-Cancels-the-Other order (OTOCO).
Webull allows for margin trading on both long and short positions. To be eligible for margin trading, you must have a balance of at least $2,000 on your margin account. The account can provide 4X purchasing power for day trades, and 2X overnight trades.
Webull Paper Trading
Webull’s Paper Trading allows you to learn to trade, or become a more successful trader, without having to risk real money. Webull Paper Trading offers unlimited virtual money, unlike other paper trading accounts.
The same as live trading, you can use real-time quotes and explore charts that include indicators. You can also set up price alerts. This feature includes more than 12 charting tools and 50 technical indicators. Options trading can be practiced using paper trading.
Initial Public Offerings
A private corporation will offer its stock for the first ever time to the public. Stocks are registered and waiting to be listed on the secondary market. Registration allows issuing companies to raise capital by selling stock to public investors. These will be the first people to own the stock on the date of listing. The registration phase is an opportunity for public investors to invest in a newly-listed company at the time it goes public.
Webull offers IPOs to investors. You can find IPOs on the Market page, and then go to the IPO Centre to see a list of offerings. You can subscribe to receive notifications about upcoming IPOs.
Webull offers commission-free cryptocurrency trading. Webull offers commission-free trading on all cryptocurrency. Cryptocurrency exchanges Webull charges 100 basis points for the sale and purchase of crypto. To start trading crypto, you will need at least $1.
You can only trade cryptos with a margin or cash account (no IRAs). You can trade 44 different cryptos including Bitcoin, Ethereum, Litecoin, Dogecoin, Stella Lumens, Ethereum Classic, Cardano, Tazos, USD Coin, and more.
The crypto trading hours are between 5:30 PM and 6:30 PM Eastern Time, seven days a week (23 hour per day).
Crypto wallet. With Webull’s crypto wallet, you can store, buy, sell and transfer cryptocurrency to and from your wallet.
Stock Lending Income Program
You can earn additional income by investing in fully paid stock on your account. You will receive interest if you let Webull borrow stocks.
Webull’s clearing agent, Apex Clearing will identify the fully paid stock on your account that is “in demand” according to the market. Apex Clearing will pay you 15% of its interest on the stock loaned.
If Apex earns 10% a year, for example, you will earn 1.5%. The program pays interest daily.
Webull has added a social component into its platform for investing. You can join millions of Webull investors in a discussion about the market, exchange strategies and share ideas.
How does Webull make money if it doesn’t charge fees?
Webull does charge fees. They can’t survive without revenue. Webull’s revenue sources are listed below:
- Payment for Order Flow. This is a practice that retail brokers who do not charge commissions use. Webull receives rebates when it sends trades out to market makers. Brokers can offer commission-free trading because of this income stream.
- Securities lending. Another common practice in the brokerage business is securities lending. Webull uses Apex Clearing to serve as its clearing agent. Apex’s Stock Lending Income Program allows it to lend out shares of investors to other investors or institutions, typically for short sales. These borrowers pay Apex interest, and a portion is rebated back to Webull.
- Interest on cash balances. Webull does not pay interest on cash balances held by investors. Therefore, any interest that is earned from external sources on these funds will be retained by the company.
- Interest charged on margin transactions. Webull charges you interest when you use margin to buy securities. This represents income for the company.
- Fees for deposits and withdrawals Webull charges between $8 and $45, per wire transfer, for both deposit and withdrawals.
- Basis point spreads on crypto trades. Webull makes a 100 basis point spread when it buys and sells cryptocurrency.
Webull offers a Form 1099 that includes information on 1099B (transactions), as well as 1099DIV (dividends), 1099INT (interest), and the 1099MISC (other information and income). Download the form from the Webull App.
Webull is fully regulated and offers SIPC protection for your cash and securities up to $500,000. This includes $250,000 cash. Webull provides two-factor authentication as an extra layer of protection to access your account. This will prevent unintentional parties from entering the account.
Free Stock Bonuses and Referral Bonuses
Webull offers a bonus on stock that includes free fractional shares of two stocks. The stock could be worth anywhere between $3 and $3,000; this would make the bonus up to $6,000 total. You must be a new Webull customer and meet all other eligibility requirements.Deposit any amount in your new account and you will receive free fractional shares of four, eight or ten stocks. Each fractional shares will have a value between $3 and $300. You can earn as many as 12 fractional shares, with a value as high as $9,000! The offer expires if you do not claim your stock rewards within 30 days.
You can earn three shares for referring friends and family to Webull. Refer three friends and you will receive nine shares. Each successful referral after you have received nine shares will give you two additional free shares. Each share will be valued between $12 and $1400.
The referral must use the unique link you provide, and the stock will only be given to the new user when they open a brokerage with a minimum deposit of $100.
How to sign up for a Webull account
Click “SIGN-UP” in the upper right corner of the screen to sign up for the Webull mobile app or website. Enter your phone number, and a referral code (if applicable) if you’ve got one.
Webull requires that you provide your name, US address, date of Birth, taxpayer identification number (Social Security Number or Individual Taxpayer ID number), phone number, citizenship, and taxpayer identification number.
Webull will ask you for your passport, driver’s licence, or any other necessary information to verify your identity.
Webull’s review procedure will require a minimum 24 hours for your account to be opened. Manual verification may require more time. Webull will run a soft check on your credit, which won’t affect your score.
How to Fund Your Account
To fund your Webull Account, you’ll have to connect a bank. Webull will deposit two micro-deposits into your account in order to verify a valid connection. After verification, you can begin to transfer funds to and away from Webull.
Transferring funds to your account via ACH is the easiest and most convenient way. Webull charges wire transfer fees for domestic and international transfers.
ACH deposits made before 4:00 PM Eastern Time will grant you instant purchasing power. This allows you to start trading immediately. Instant buying power is only a provisional credit that represents a portion. ACH deposits will be available in full on the fourth or five business days after initiating the ACH.
You can also transfer securities to your Webull account from another broker. Transfer securities must be the same as those offered by Webull.
Webull Pros & Cons
Webull has many positives, but it also has some limitations. Here is my list of Webull’s pros and cons.
- No minimum initial investment
- Commission-free Trading
- Stocks are free when you open a new account and deposit.
- Crypto wallets are available to manage your cryptocurrency.
- Join the Webull Community and connect with millions of investors
- Online support is available 24/7
- No joint taxable, custodial, or trust accounts
- Mutual funds, penny stock, bonds, and other securities are not allowed.
- You must have a taxable bank account in order to open an IRA
- No dividend reinvesting option
- Cash Invested – No Interest
- Fees for domestic and International Wire Deposits and Withdrawals
Check out these alternative services that offer many of Webull’s features.
Robinhood offers no-commission trading of stocks, options and ETFs. It also allows cryptocurrency trades. Robinhood does not have a minimum deposit, but unlike Webull it doesn’t offer bond or mutual funds trades. Robinhood is the first online broker to offer IRA accounts that are matched 1%.
Robinhood says that the IRA Match is 1% extra on top of your eligible contributions. This money is not included in your annual contribution limit and can be invested immediately.
Public, an easy to use trading app geared towards new investors. Public, like Webull and Robinhood does not charge trading fees. Public also allows you to buy fractional shares, and connect with users through its social community. Public is not a good option for intermediate traders because they lack advanced trading tools and don’t provide IRA accounts.
Interactive Brokers offers investors access to over 150 markets across 33 countries. You can trade in over 24 currencies. There are no commissions on stock or ETF trading. Interactive Brokers offers a powerful platform that is ideal for experienced traders who want to access global markets. However, it can be intimidating for novice and intermediate investors.