Webull review

By   |   Verified by Andrew Boyd   |   Updated 5th August 2021

Webull review
  • Webull is a commission-free trading platform accessible via native mobile and desktop app.
  • Trade and HODL stocks, options, ETFs, ADRs, and cryptocurrencies, with two free shares of stock allocated to new accounts.
  • Advanced trading tools including stock screeners, research, charting tools, and a demo account for new traders.

Webull offers commission-free trading, real-time market data, analytical tools, and trading platforms. Notable features include technical indicators, economic calendars, research agency ratings, margin trading, and short-selling to active traders. Its trading platform is geared toward intermediate and advanced traders, though newcomers can benefit as well.

Webull is a subsidiary of Fumi Technology, a Chinese fintech firm established in 2017. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), and while the engineering team is based in Hunan, China, the customer service and brokerage activities are centered in New York City.

Its popularity went to the moon after the controversy surrounding Gamestop in early 2021, with many traders moving to Webull from Robinhood. Should you join them too?

Who Webull is designed for

Webull is a smart alternative for active investors looking for commission-free investing, professional market data, and cryptocurrency trading.

Because of its user-friendly platforms, the app could be a good fit for newbie active investors and options/cryptocurrency traders.

How it works

Webull operates similarly to other investment applications.

  1. To begin, choose the type of account you want to open (i.e. individual investing account or IRA).
  2. Then, either online or through the Webull app, create a Webull account.
  3. Make a first deposit into your account.
  4. Make your first trade. To pick your trade, follow the following steps:
    • On the main page, select the “Watchlists” tab;
    • Choose your stock;
    • Go to the quote page for stocks; and
    • Choose a trade and place your order.

Tradable assets

  • Stocks and ETFs. Webull offers commission-free trading on over 5,000 stocks and ETFs in the United States, including fractional shares. Webull also offers margin trading and short selling. To own a portion of the stock or ETF, you must order a minimum of 0.00001 shares and a purchase quantity of $5. When you sign up and utilize a referral link, you get two free stocks, and when you deposit at least $100, you earn another two free stocks valued up to $3,700.
  • Options. Webull provides access to some US options markets while charging $0 in fees or contract charges. As option trading entails significant risk and is not appropriate for all investors, only basic options purchases or sales are available to all users with approval required by Webull for trading more complex or high-risk strategies.
  • Cryptocurrencies. Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and other cryptocurrencies are available for trading for as low as $1. Real-time crypto data, customisable charts, and indicators are all provided for free through their partner Apex Crypto.
  • ADRs. If a stock is issued outside of the United States and traded in the United States through an ADR, the ADR depositary bank will levy ADR fees. ADR Fees are custody fees, also known as Depositary Services Fees, that depositary banks charge to compensate them for inventorying non-US shares and providing registration, compliance, dividend payment, communication, and record-keeping services.

Tradable markets

Stocks can be traded on the NYSE, NASDAQ, and AMEX stock exchanges.

Commissions and fees

As a brokerage, Webull does not impose a minimum account balance or annual subscription fee.

The commission-free model that many investment apps are embracing is reflected in Webull's fee schedule, though SEC and FINRA transaction fees will apply. Annual margin interest rates apply if you trade on margin.

Other costs that you might have to pay include:

  • The deposit charge for funds made via wire transfer is $8.
  • The fee for wire transfer withdrawal is $25.
  • The deposit charge for international wire transfers is $12.50.
  • The fee for withdrawing funds through international wire transfer is $45.

Choosing ACH transfers for deposits and withdrawals is an easy way to avoid wire transfer costs. There are no fees associated with these transactions.

Useful trading tools and features

  • Free stock bonus. When you establish an account using a referral link and deposit $5, you'll be allocated two free stocks valued up to $2,300 selected “randomly by algorithm from Webull's Reward Program Inventory of settled shares”. The stock will have a minimum market cap of $2.5 billion and a NYSE or NASDAQ listing and must be claimed within 30 days of account opening.
  • Charting tools. Webull's charting tools are simple, but you may customize them and add up to 20 technical indicators. Candlesticks, Heiken Ashi, bar charts, and line charts are among the several chart types available. The capital flow analytics tool is a unique feature which allows you to see where large money is headed in the short term.
  • Stock screener. Webull's stock screener tool is the most useful tool. Using financial metrics such as PE ratios or EPS, you may utilize the filters to discover the best stock trends. With Webull's stock screener, you can quickly and easily sift through the market and create a diverse investment portfolio that meets your investing objectives.
  • Fractional shares. Stock fractions can be purchased for as little as $5. Webull’s fractional share trading allows you to invest in your favorite businesses and ETFs without having to buy a whole share.
  • Demo account. If you've been considering creating a Webull account but haven't yet, you should take advantage of the broker's simulated trading service. The demo platform, which is available for free, allows you to simulate actual trading with the brokerage business.

Pros and cons

Pros

  • No trading commission fees or minimum balance requirements.
  • Wide range of tradable assets including stocks, ETFs, options, and cryptocurrencies to build a diversified portfolio.
  • Use a taxable brokerage account or an IRA to invest towards your retirement.
  • Trade with cash or on margin at low margin rates.
  • Easy to use online platform or mobile app.
  • Cutting-edge research and analytical tools in their native mobile and desktop apps.

Cons

  • Mutual funds and forex and futures trading are not available.
  • Scarcity of instructional resources for investors.
  • Lack of access to trade international markets, with the focus on the US.

Alternatives

These are some alternatives to Webull with similar features, tradable assets and markets.

  • Robinhood. Like Webull, Robinhood provides commission-free stock, ETF, and options transactions, as well as a simplified trading platform and free cryptocurrency trading. However, the broker's client service is poor, and it has run afoul of authorities. Only taxable investment accounts are allowed, and no mutual funds or bonds are available.
  • eToro. Famed for its simple copy-trading platform, which allows users to mimic the trades of other investors across over 2300 instruments, including ETFs, FX, CFDs, and popular cryptocurrencies. Retail traders looking to crowdsource investment ideas using the power of copy trading, as well as highly experienced active traders wanting to get paid for sharing their ideas with other traders, will be attracted to eToro.
  • Moomoo. Its offerings appear to be highly competitive with plenty of research options, though it may be overwhelming for a beginner. Paper trading is a major benefit since it allows you to try out the platform completely risk-free. Extremely generous bonuses for signing up.
  • Interactive Brokers. With cheap per-share pricing, a subscription fee-based advanced trading platform, a broad variety of tradable assets—including international equities—and absurdly low margin rates, Interactive Brokers draws active traders. IBKR Lite, the company's newest product, allows users to trade stocks and ETFs without paying a fee.

Comparisons

Side-by-side comparisons of Webull against competitors.

FAQs

Is Webull safe?

Webull is generally safe because it is regulated by top-tier financial authorities and offers up to $500,000 in investor protection, with a $250,000 cash limit under the Securities Investor Protection Corporation (SIPC) protection program. Note that crypto assets do not benefit from SIPC protection.

Is Webull FDIC insured?

No. Because Webull is not a bank, it is not covered by the FDIC. Webull also doesn't have a bank sweep program that is FDIC-insured.

Is Webull a Chinese company?

No. Webull is a US-based brokerage that is FINRA-regulated. Webull is the broker-dealer arm of parent company Hunan Fumi Information Technology Co, a Chinese firm that was formed in early 2016 funded by Xiaomi, a mobile electronics company.

What is the minimum deposit?

For a cash account, there is no minimum deposit, but it is higher if you wish to trade on leverage, prefer short positions, use complex options strategies, or do unrestricted day trading.

How do I deposit funds in Webull?

To begin, log in to your previously established trading account and locate the depositing interface. After that, choose one of the deposit methods supported by the broker, input the deposit amount, and complete the transaction.

Does Webull have short selling?

Yes. Webull gives traders the option of shorting stocks. However, Webull has short selling limits and procedures that traders must follow before shorting a stock on the platform. Traders must comply the following requirements:

  • Must have a Webull margin account; and
  • Maintain a net account worth of at least $2,000.

Does Webull do fractional shares?

Yes. Fractional shares can be as low as 1/100000 of a share, or $5.

Can you trade OTC on Webull?

No. Webull currently does not allow users to trade OTC stocks on the platform. If a stock you purchased on Webull is delisted from major exchanges, try to terminate your trade on the app manually. You may seek assistance via the Help Center if it does not work or if you moved OTC stocks from another broker to Webull.

Is Webull good for day trading?

Yes, but it requires an account value of $25,000 in order to day trade on Webull, though some account holders indicate that you may day trade with less.

How do I withdraw money from Webull?

To make an ACH withdrawal, follow these steps:

  1. Tap the Webull logo in the lower middle of your screen to get to the mobile app's homepage.
  2. At the top of the screen, select the "Transfers" tab.
  3. Select "Withdraw" from the drop-down menu.
  4. Enter a figure that is less than or equal to the amount you can withdraw.

An ACH withdrawal generally takes 1-2 working days to complete.

Verdict

Webull is suitable for traders of all experience levels. WIth commission-free trading in stocks, options, ETFs, ADRs, and even crypto, along with free stock screeners, charting tools and a demo account, you can practice your strategy and build a diverse portfolio suitable to your risk level. Access to fractional shares means you don’t need a large account balance to start investing.

Though the desktop platform and mobile app are fairly intuitive, the lack of instructional resources for Webull’s many tools may be frustrating for newer investors.