Webull Review

Is Webull the go-to platform to invest your hard-earned money? Here's the ultimate Webull review and how it compares to Robinhood.

Bottom Line

If you are looking to invest in individual stocks, Webull is an excellent platform to start with. It is user-friendly with some exceptionally fair offers.
It also allows you to invest 5-10% of your total investment assets in companies you trust and believe in.

4

The Pros:

  • No minimum account requirement
  • Excellent and professional customer support
  • Offers a desktop platform and mobile app

The Cons:

  • Lack of access to common securities like bonds and mutual funds
  • No interest on uninvested cash

A few years back, commission-free trading seemed almost unthinkable and impossible.

Online brokers exploited this opportunity by charging their investors a fee every time a trade was executed.

However, with fee-free trading platforms, you can now buy and sell assets without paying any fee.

One of the recent additions to these platforms is Webull, which hosts thousands of US stocks and ETF (Exchange Traded Funds) from several industries.

What Is Webull?

Recently launched in 2018, Webull is a US-based investment platform that allows users to buy, trade, and sell several popular assets.

This industry has many trading platforms, and Webull tries to stand out from the other platforms by offering zero-commission trades.

While other platforms still allow fee-free trading, Webull has some of the most extensive offers in various departments, such as ETFs.

However, it also fails in some areas since it does not support bonds, mutual funds, options, and futures.

You can access Webull by downloading the mobile app, using the trading interface, or traditional web setting.

Additionally:

Its interface is suitable for both new and advanced traders.

Webull Tools And Features

Most of the processes on Webull are similar to most brokerage companies. However, the following are some of the standout tools and features that make it stand out:

● Stock Screener

Webull provides thousands of stocks, and having a good stock screener helps narrow down your available investment options.

It helps you manage your stocks by allowing you to filter basic information and complex technical indicators.

● Full Extended Hours Trading

Investors can enjoy full extended hours trading, which puts them at an advantage of reacting instantly to news and events outside regular trading hours.

● Trading Simulator?Paper Trading

This feature helps investors practice buying and selling without risking any actual money. It is an excellent way for new Webull users to gain experience.

Paper trading may not involve actual money, but you can win real prizes if you choose to participate.

● Webull Margin Leverage

Webull has two margin levels including:

  1. 4 means that if you have at least $2,000, which is the minimum for a margin account, you can buy stock up to 4 that amount, i.e., $8,000 for day trading.
  2. 2 is the overnight leverage meaning that if you have invested $2,000 of your money, you can buy stocks up to 2that amount, i.e., $4,000.

● Webull Options Trading

Since 2010, Webull users can trade options with 0 commission and 0 contract fees, unlike other brokerage companies that charge a $0.65 commission per contract.

To trade options, users must manually request the ability and wait for approval by Webull.

Open Webull and go to Home > More > Options Trading to access this feature and provide the required information.

Types Of Webull Accounts

1. Cash Account

It is a brokerage account where the investor must pay the total amount for purchased securities. It generally means that you need the total cash in your account to place trades.

When operating a cash account, you need to keep a lookout for both settled and unsettled funds.

Unsettled money includes the cash you get from liquidating securities, and once cleared, it is considered settled.

2. Margin Accounts

Margin trading is a lot riskier than cash since it relies on the value of your portfolio at the time of the trade.

To make a point:

A margin account helps you boost your return on investments but can also increase your losses.

It allows you to leverage your money and securities to invest in additional securities.

Webull also offers Individual Retirement Accounts (IRA), which include Roth, Traditional, and Rollover.

Every user is restricted to opening one IRA account. Additionally, you need to have an individual account before opening an IRA.

Who Can Join Webull?

Webull is US-based therefore being only available for US residents. If you are a non-US citizen, you cannot open an account.

The requirements for a US citizen to open a Webull account include:

  • Be at least 18 years of age
  • Identity and residency verification requires you to provide your Social Security Number (SSN) and a copy of your government-issued ID.

Webull Commission And Fees

There is no minimum requirement for opening or maintaining a Webull account. However, investors incur charges from the SEC (Securities Exchange Commission) and FINRA (Financial Industry Regulatory Authority).

When using a margin account, you will be charged a fee ranging from 3.99% to 6.99%

How To Open A Webull Account

If you meet the above requirements, you can open a Webull account in the following steps:

Step 1

Sign up for free on Webull through the mobile app or browser. Fill in the required details and remember to claim your free stock.

But here is the catch:

You need to deposit at least $100 to claim your free stock worth $1,600.

Step 2

Once registered, you can open an individual cash or individual margin trading account.

Opening a Webull account takes around five minutes, and if you have the exact requirements, approval takes approximately 1 hour.

Is Webull Safe To Use?

Webull is a reliable trading company with rules and regulations investors need to adhere to.

It is based in China, and its data protection measures have been exposed to vigorous testing and scrutiny.

When investing, some Webull features such as the 4leverage on margin accounts and the option to short sell carry some risks.

Webull vs. Robinhood

Webull (4) Robinhood (3.6)
Free registrationFree registration
Free stock and options tradingFree stock and options trading
Margin cash minimum $2,000Margin cash minimum $2,000
Margin leverage: 4for day and 2for nightMargin leverage: 4for all trades
Stock ScreenerNo Stock Screener

Conclusion

Overall, Webull is an excellent platform with unique features that make your operations smooth and more manageable.

It is ideal for beginners and advanced investors due to the stock screener that helps in preparation for buying and selling.

Related Reads

Robinhood Review

Matt Castillo Bennet is a former banker and restaurant worker. After paying off $30K of student loan debt and saving up for a couple of years, he left his job to manage Cash Math full-time and help others achieve financial freedom.