Webull Review – Are Free Trades Really Free?

About Webull

Webull is a mobile-friendly brokerage offering an enhanced trading platform and commission-free trading. Although Webull was launched as a direct competitor to Robinhood, this brokerage stands out with a suite of innovative platform improvements and distinct offerings. Webull can appeal to a much broader spectrum of experienced traders and self-directed investors than Robinhood, especially if you’re looking for more depth in terms of tools and data.

So, is this the right broker for you? Continue reading our Webull review to find out.

About Webull

Webull Financial LLC is a broker-dealer located in New York and licensed to operate in all 50 states.  The brokerage was established in May 2017 and received SEC registration status approval in January 2018. All Webull accounts are insured by the Securities Investor Protection Corporation (SIPC) up to $500,000. Webull is registered with the Financial Industry Regulatory Authority (FINRA).

CEO Anthony M. Denier brings 15 years of brokerage experience derived from eight firms including ING Financial and Credit Suisse.

Webull currently clears trades through Apex Clearing.

Webull Account Types & Assets

Webull offers both individual brokerage accounts and IRAs (Traditional and Roth). You can also rollover an IRA to Webull.

The broker offers commission-free trading on stocks, ETFs, options, and cryptocurrencies. It supports fractional share trading and enables you to trade OTC stocks in the US. Webull does not offer trading on mutual funds.

Webull recently introduced a free cash account. This offers 4.1% APY on your uninvested cash, plus an additional 1.7% APY for your first 30 days. You can withdraw cash from the cash account at any time.

Minimum Deposit

There is no minimum deposit to open an account for trading at Webull. Margin trading requires a minimum account balance of $2,000. If your account balance falls below $2,000, then Webull can liquidate your leveraged positions.

Webull Commissions and Fees

There are no charges to open and maintain an account at Webull. There are also no trading platform fees or fees for basic market data. Level 2 quotes cost $1.99 per month.

Stocks, ETFs, and options trades carry SEC and FINRA fees, which is typical for online brokers. These add up to a few cents for most trades.

Cryptocurrencies have a minimum markup of 1% built into the spread. This is effectively the same as a commission, although Webull doesn’t call it that.

Margin rates start at 9.49% APR for loans up to $25,000. Larger loans can qualify for discounted interest rates.

ACH deposits and withdrawals are free at Webull, but wire transfers carry fees up to $25 for domestic wires or $45 for international wires. Transferring stocks to Webull is free, but you’ll pay $75 per stock for outgoing transfers.

Free Stock Promotion

Webull has a free stock referral promotion where both the user and newly referred customers receive a free single share of stock valued up to $100 upon successful registratio

Webull Platforms

The Webull trading platform is packed with tools designed to improve insights and decision-making for traders and investors. It supports both fundamental and technical analysis with intuitively designed features. Overall, this is an outstanding trading platform for traders who want ease of use, but need something more robust than the line charts that Robinhood offers. 

Platform Details

Webull started out as a mobile-only platform before later introducing a desktop platform (which we will get to later in our Webull review). Most customers are likely to use the mobile version of the platform, which is surprisingly rich in features. While Webull’s mobile app is simple and easy to use, it packs more power than you would find in similar platforms from zero-commission brokers like Robinhood.

Charts and Indicators

The real-time candlestick, bar, and line charts can be set from 1-minute up to 60-minute time frames with data going back up to five years. Available price and momentum indicators include exponential moving averages, Bollinger Bands, Chaikin money flow index, MACD, and RSI oscillators. Level 2 Data is available for an additional data fee.

Compared to Robinhood, Webull’s selection of technical indicators is pretty impressive. This platform doesn’t offer the same level of customization as software like TradingView, but it has enough firepower to help you make trading decisions on the go. While a mobile trading platform isn’t ideal for highly active traders, Webull has done a great job of adding advanced technical indicators and tools to a simple, easy-to-use mobile app.

Research Tools

Webull offers a ton of tools for fundamental analysis. It provides a news stream with access to press releases, analyst recommendations, historical EPS data, revenue data, and details about insider transactions. This enables users to better understand an underlying company including its operations, catalysts, performance, and what’s moving the stock price. Users can also save articles and post comments on specific stocks.

Financial Calendar

Webull’s financial calendar shows upcoming earnings reports, IPOs, and financial events. While this information can be found online, it’s pretty convenient having it alongside all of Webull’s other technical and fundamental research tools.

Stock Screener

For users searching for fresh trade ideas, Webull’s stock screener is intuitive and powerful. The app has pre-built scans like “Biggest Movers in Past 5 Minutes” or “MA 5 Cross Over 10” available. Of course, you can also configure your own scans quickly and easily. What’s nice about this is that you can create scans using a mix of fundamental and technical metrics to generate ideas.

Watch Lists and Alerts

Users can create multiple watch lists in Webull. The platform offers customizable alerts based on price or technical indicators that can notify you via SMS or email when stocks trigger.

Demo Trading

Webull offers a free paper trading account, which is terrific for traders who want to test out this brokerage or try out a new trading strategy. The demo account includes real-time quotes and charts for US markets.

Order Types

Webull supports multiple order execution options including:

• Market orders
• Limit orders
• Stop loss orders
• One-cancels-the-other orders
• One-triggers-the-other orders
• Take profit orders

Desktop Trading Platform

Webull launched a desktop trading platform for Windows, Mac, and ChromeOS in 2019, after it had already built out its mobile app. The desktop platform offers many of the same features and has an outstanding layout. It’s very user-friendly and gives you more screen real estate so you can monitor multiple markets or watch lists at the same time.

The platform features advanced charting and screeners. Of course, it also supports integrated stock and ETF trading as well as trading for options and cryptocurrencies.

The platform runs smoothly and most of the features are pretty intuitive. Traders can also use the platform for paper trading, meaning Webull may be giving ThinkorSwim a run for its money.

Webull Trading Hours

Webull allows extended-hours trading pre-market from 4:00 am to 9:29 am EST and 4:01 pm to 8:00 pm EST.

Customer Service

Access to customer service is available via email, chat, and phone. We found that the brokerage’s support team is pretty responsive even though its user base has grown significantly in the past few years.

Platform Differentiators

At Day Trade Review, we have reviewed all of the major online stock brokers. It’s becoming more difficult for new brokers to differentiate themselves. That said, during our Webull review, we were impressed to find that the company offered a lot of advanced stock trading features in a way that’s really user-friendly.

Webull is clearly a step above Robinhood in terms of the type of trader it caters to. Traders can really dig into technical analysis using Webull’s mobile and desktop charting platforms. Active investors can dive into detailed fundamental analysis. There are also more order types available than on Robinhood, plus a demo account so traders can try out new strategies.

Webull has more in common with commission-free brokers like Etrade, TradeZero, and Moomoo. Compared to these platforms, we found Webull to be more user-friendly. The new high APY cash account is also a differentiating factor.

Still, if you want to trade international stocks, Moomoo might be a better option than Webull. If you want even more advanced charting features than what Webull offers, check out TD Ameritrade, which includes access to the powerful Thinkorswim trading platform.

What Type of Trader is Webull Best For?

Webull is often compared to Robinhood and Firstrade because of its free trades, but it caters to a more advanced class of traders and investors. However, Webull still prioritizes ease of use over really advanced features, so it’s a great in-between option for traders who want robust but user-friendly analysis tools.

Webull supports a wide range of assets, including cryptocurrencies, and the cash account helps it stand out from other brokers that offer low-interest money market funds. Overall, there’s a ton to like about Webull and very few places it falls short.

You can read our in-depth Webull comparisons below:

• Webull vs. Robinhood
• Webull vs. Moomoo
• Webull vs. TD Ameritrade

Webull vs. Robinhood

Webull is most often compared to Robinhood because they share a few main similarities:

1. They were both built as mobile apps (initially, neither had a desktop platform)
2. They both offer free trades
3. They are both built with simplicity in mind

The question is, which mobile broker is better?

In our opinion, Webull takes the cake in almost every category. Both apps offer free trades, so there’s not much of a comparison to be made there.

Robinhood is slightly easier to use, but this simplicity comes at a cost. It’s almost impossible to conduct a reasonbly detailed technical or fundamental analysis using Robinhood.

Webull offers far more advanced trading tools and a broader range of investing resources. Webull’s mobile app is easy to use without sacrificing important features. The charts offer more customization and the research tools are far more comprehensive. Webull also offers some advanced order types that can be helpful for traders who know how to use them.

Whereas Robinhood is ideal for casual investors, Webull provides an effective solution for both active investors and beginner to intermediate traders. Most active traders will quickly outgrow the Robinhood platform and seek out alternatives, and Webull is the perfect choice when that happens.

Webull FAQs

Many investors are curious about what Webull has to offer. Here are a few of the most common questions we’ve seen. If you still have more questions, just leave a comment on the post.

Can you trade options at Webull?

Webull offers commission-free options trading for US stocks.

Is Webull really free?

Yes, Webull is really free. There are no commissions and no fees for opening or maintaining an account.

How is Webull free?

Most paid brokers don’t make the bulk of their revenue from commissions. Brokers can make money from interest on accounts, payment for order flow, and other sources. While we cannot say exactly how Webull generates revenues, those are the most common sources.

How does Webull compare to discount brokers like Etrade and TD Ameritrade?

Webull is very comparable to brokers like Etrade and TD Ameritrade. All three offer commission-free trading on stocks, ETFs, and options. The exact tools differ somewhat, but Webull’s trading platform gives those at Etrade and TD Ameritrade a run for their money.

Is Webull good for beginners?

Webull is arguably one of the best brokers for beginner stock traders and investors. It is very easy to open an account and start trading right away. The company has zero commissions, meaning new traders don’t need to overspend on trading expenses.

The platform is simple for new investors but does not compromise in quality. The platform’s ease of use does not come at the cost of power. As you become a more experienced trader, the platform will also offer the analysis tools you need to execute your trading strategy.

The broker offers solid customer support if you have any questions along the way.

Can you make money on Webull?

You can definitely make money on Webull. It’s important to remember that Webull is just a stock broker that allows you to buy and sell stocks, ETFs, options, and cryptocurrencies. The success of your investments depends on your own abilities and what the market is doing.

Pros

• Zero-commission trading on stocks, ETFs, options, and crypto
• Free demo account trading and real-time U.S. stock and ETF quotes
• Powerful research tools including news streams, analyst guides, stock screens, and alerts
• Advanced charting with price and momentum indicators
• Short-selling available with margin brokerage accounts
• Multiple watch lists and article storage

Cons

• No Good-till-cancelled (GTC) limit orders
• Doesn’t offer mutual funds