Is Webull the best online brokerage platform for investors? Are there any risks involved with trading on this leading investment platform? Our Webull review gives you the ultimate lowdown.
Among the many available online brokerage platforms, Webull is one of the most popular. This comes as no surprise, thanks to its powerful, feature-packed mobile app that offers robust insights and zero-commission transactions.
Webull is Robinhood’s greatest competition when it comes to attracting millennial investors. Originally a research firm that branched out into brokerage, Webull trumps Robinhood with respect to its robust capabilities for research and analytics. It’s a good alternative to Robinhood if you are looking for one.
But among all the platforms that offer commission-free trading, is Webull really the best option? How do its features compare to what other brokerages offer?
What sets it apart from other app-based brokerages that offer free stocks and why is it such a great option for investors of all skill levels?
Finally, is Webull safe to use and completely legit?
This Webull review is an in-depth guide on Webull: its features, its pros and cons, and how it fares when compared to other investment apps. I also tell you how to get free stocks from the app!
Table of Contents
What is Webull?
Relatively new to the online stock trading world, Webull is a brokerage platform founded in 2017 which allows you to trade ETS, stocks, and options with absolutely zero fees.
Geared towards tech-savvy investors, Webull is designed to be mobile-first, with Android- and iPhone-optimized features and interface, but it does have a desktop version that offers the same features.
This commission-free investing platform also provides powerful tools for acquiring information about potential and future investments.
These include watchlists that help you keep your eye on important metrics, comprehensive stock charts and market tabs that monitor market activity in primary markets, and a screener that offers data monitoring.
Webull is a subsidiary of the multinational Chinese company Fumi Technology. It has more than 9 million worldwide users and estimated assets worth $4 billion across all its customer accounts. The company has a presence in New York and China.
How does Webull work?
Webull has a wealth of features that make it one of the most powerful mobile-friendly stock trading apps today.
Webull prides itself on offering an “all-in-one self-directed investment platform.” It provides not only advanced tools and services but also an exceptional user experience.
Here are some of the platform’s features.
Completely free stock and options trading
Based on Webull reviews I’ve read, this feature has garnered the most praise. Webull allows anyone to trade stocks without fees or commissions.
Do note, however, that stocks available on the platform are limited to those in major markets. There are no pink sheet stocks or OTC on Webull.
Options trading in Webull is void of fees as well. While options offer many advantages over trading ETFs or stocks, traders should take extra precautions as options trades are definitely riskier.
The platform supports both Level 1 and Level 2 options trading, with Level 3 poised launch in the future.
Study possible strategies with paper trading
Investors looking to test out strategies first before trading with real money can use virtual dollars to “invest” in stocks.
Paper trading is a type of simulated trade that allows investors to practice both buying and selling, before they invest money.
You can trade in Webull during extended hours including pre-market and after-hours sessions.
A wealth of live insights
Investors looking to study the market can log in at any time to get updates on the market and pricing. Webull allows you to customize the data displayed on your market homepage to show specific countries and regions, cryptocurrencies, global markets, and more.
An advanced quote subscription offers faster and more comprehensive quote details. Extensive data from most markets is available for less than $10 a month.
For advanced data from the Toronto, Hong Kong, and London stock exchanges, as well as advanced Nasdaq views, investors will have to pay a bit more.
Available on various platforms
Though primarily made for mobile phones with a mobile-friendly interface, Webull may also be accessed through a browser or on a desktop app available for Windows or Mac.
The Webull app offers all the functionality you need to manage your account, from basic account management to fund transfers and viewing account details.
Here’s everything you need to know about Webull’s selection of opportunities for trading.
Among the Webull reviews I’ve read, it’s the platform’s free and easy stock trading that got the most raves. Investors may begin trading as soon as they fund their account.
Once you’re on the stock trading screen, you select what type of trade you wish to enter. You can choose from market, limit, stop, and OTO conditional orders, among others.
Even experienced investors will find Webull’s features to be sophisticated enough to make complex trades.
Webull also allows extended-hours trading, as well as adding stop-loss or take-profit conditions for stocks.
It takes around one business day for Webull to approve all options trading offers. To trade options, search for the symbol of the security you wish to trade and tap on “options” in the menu selection.
Once you’re in the options screen, you’ll be able to view a stock’s option chain and a variety of important details including strike prices, calls and puts, bid or ask spreads, and data points.
You’ll find that Webull doesn’t offer sophisticated charting features for active trading like other larger brokers, but it gets the job done.
Cryptocurrency trading is currently in the works for Webull. It is expected to include litecoins, bitcoins, and other digital currencies.
Traders are already be able to view Webull’s crypto prices on the website.
If you’re interested in trading crypto via Webull, you can sign up on the website to get a notification once it goes live.
How to sign up for Webull and get free stocks
Webull offers two free stocks for new users. The first free stock is offered immediately after signing up.
Anyone who registers and completes the application will be offered a random stock valued between $5 and $500. You don’t need to complete a trade, deposit money, or link an account to get your first free stock.
To sign up for Webull, go to the Webull website and enter your phone number and email address.
You’ll also have to download the Webull app on your iOS or Android device.
There, you’ll provide general brokerage account information that includes name, social security, address, investing experience, and employment.
You will also have to upload an official ID such as a passport or a driver’s license.
The second free stock is a deposit bonus. You must deposit at least $100 within the first 30 days of your account being approved to get another random stock valued between $12 and $1,400.
Who is Webull for?
New active traders
Most Webull reviews would say that the platform is perfect for young, active, and undercapitalized investors.
These traders are usually millenials with less than $100k to invest and looking to invest small amounts of money.
Thanks to the advanced platform’s lack of commissions, both new and intermediate traders can test out strategies while learning how to actively trade.
The research-heavy, user-friendly interface makes it a great tool for young investors who just want to try out investing and are looking to learn.
Webull also has enough tools in its repertoire to make it a great option for various types of swing traders. Flawless execution isn’t really essential for these types of traders, as they plan to capture large market moves rather than small intraday fluctuations.
Swing traders also don’t sweat the analysis aspect too much. They are oftentimes satisfied with a screener and a good charting platform.
Who shouldn’t use Webull?
Investors looking for a more set-it-and-forget-it type of platform won’t find Webull to be the best option. As a self-directed platform, Webull is geared towards those who are ready to take a hands-on approach to managing and building their portfolios.
Webull is also not a great choice for investors with a traditional investing approach such as hiring brokers or international traders who want to invest in stocks outside of the U.S.
Full-time day traders
Full-time day traders will also have a hard time switching to Webull from a broker. Active traders require direct market access to have a trading edge. Anything these traders acquire in commissions would only be lost because of slower execution.
Investors outside Webull-supported countries
Wondering about Webull-supported countries? The platform is only available for users 18 years or older who have a valid SSN and a legal residential address in the United States as well as outlying U.S. territories.
Only those with U.S. citizenship, a valid U.S. visa, or a U.S. permanent residency card are eligible for opening an account.
How does Webull earn money?
How exactly does Webull earn? If you’re conducting research by reading Webull reviews before signing up for an account, you might be curious about how the platform makes money. Here’s how Webull earns revenue from all its accounts.
- Margin fees
All margin traders need to pay Webull fees in order to use leverage. This is a common practice among most brokers that offer margin accounts.
- Paid data subscriptions
Webull charges for its research with subscription prices that range from $2.99 per month to around $60 per month.
- Order flow management
Each time you enter an order, both Apex Clearing and Webull may subtract a very small fee in order to send the order through a specific market maker. This fee is usually just fractions of a cent.
- Cash balance interests
Similar to a savings account, the uninvested cash in your Webull account accrues interest for Webull.
Interested users may also check out Webull’s full pricing list.
Is Webull safe?
Both first time traders and experienced investors might feel unsure about signing up and sinking money into an online brokerage that’s only a few years old.
However, Webull doesn’t skimp in employing strong measures to protect both assets and investments.
Webull has employed Apex Clearing, one of the most popular players in investment account management, to handle their trades.
The platform is also registered with FINRA, the SEC, and SIPC. All accounts are safely insured by SIPC for up to $500,000, or $250,000 cash.
Apex Clearing offers even more insurance with limits that amount to $37.5 million for each customer. Unless you’re a user with more than tens of millions in your account, the insurance will be able to protect your entire account value.
The platform’s commission on ETF and stock trades is zero, which means there are no fees to pay when trading through Webull.
Webull’s mobile app offers a powerful charting feature, which offers information about German and UK stocks, a simulated trading mode, rates for cryptocurrency, a community forum, and a lot more.
Great platform variations
While Webull is mobile-first, Webull’s desktop version does not disappoint. On its desktop app, Webull offers full-screen charting, great security research, and an equity screener that allows users to search for stocks on both foreign and U.S. exchanges.
The search feature allows you to get results filtered by analyst sentiments and a variety of technical indicators.
Topnotch security research tools
Webull offers great bang for your buck with its excellent security research tools. The platform includes analyst ratings that offer detailed information from a stock’s financial statements.
Not all stocks can be traded
Though Webull’s ETF and stock commissions are virtually zero, this comes with a variety of conditions. Some stocks under $1 and those with market caps below $10 million may not be traded and are on a restricted list. For those that may be traded, there are minimum shares to buy.
Lacks certain investment vehicles
A common complaint among Webull reviews, Webull lacks some investment vehicles that are available through other brokerages. These include closed-end funds for ETFs, futures, warrants, OTC stocks, contracts for difference, bonds, and global stocks, among others.
Poor customer service
Among the Webull reviews I’ve read, customer service is one of the leading complaints. It’s possible to get customer support, but most users complain about delayed reply times and lack of guidance.
Missing technical indicators
Webull’s only offers ten of the most popular technical indicators, which may hamper your performance when trading. Notables like RSI and ADX are missing.
Other missing indicators include Simple Moving Average, Bollinger Bands, Ichimoku Cloud, SAR, Volume, VWAP, KDJ, MACD, Keltner Channels, Exponential Moving Average, and others.
See Related: Robinhood vs Acorns vs Stash
With a powerful mobile app and comprehensive research tools, Webull allows you to monitor the market just like the pros do.
While some investment vehicles are lacking and the platform’s technical indicators aren’t the most robust, Webull is still a solid online investment platform for both beginner and intermediate investors who are serious about trading and investing.
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