Webull review 2024: A comprehensive look

Webull is a commission-free stock and ETF trading platform, providing advanced charting tools and financial insights to help users make informed investment decisions.

Jun 1, 2024 - 12:55

Jun 1, 2024 - 12:56

Webull

Our Verdict

Webull is a mobile-focused brokerage platform designed to make stock trading, buying cryptocurrency, and options trading accessible to new investors. It offers a user-friendly interface, a thriving user community, and more features than its competitor, Robinhood. However, Webull lacks educational materials compared to other platforms, and users cannot buy mutual funds or bonds. The platform offers commission-free trading for stocks, ETFs, and options, but it receives payment for order flow.

Pros

Affordable fees
Advanced features
User-friendly platform
Cryptocurrency access
Competitive interest rates on uninvested cash

Cons

No availability of mutual funds
Limited educational resources

4.8

Fees

$0 per trade

Account minimum

Promotion

Receive up to 75 free fractional shares (valued up to $3,000) when you open and fund an account with Webull.

Who might find Webull a suitable choice?

Webull focuses on providing a mobile brokerage app that simplifies stock trading, cryptocurrency buying, and options trading for new investors. The platform includes a vibrant user community for learning about trading. It competes directly with Robinhood, offering more features like IRAs, watch lists, alerts, screeners, paper trading, and advanced charting options.

However, Webull lacks educational materials compared to the best online brokers for beginners, and it doesn't support mutual funds, bonds, futures, or forex trading. Customer service is also lacking. Webull offers 11 cryptocurrencies with competitive commissions, but transferring coins off the platform is challenging.

Intermediate investors might benefit most from Webull, especially those who prefer a mobile-first brokerage experience and are dissatisfied with Robinhood's limitations. Nonetheless, advanced features from other brokers may be more suitable for intermediate investors.

Webull commissions and fees

Webull, like many online brokers, doesn't charge commissions on stock and ETF trades, nor does it have inactivity or maintenance fees. However, unlike most others, it also doesn't charge commissions or contract fees for options trading. To trade options, you need approval after completing an application that assesses your options knowledge, risk tolerance, financial resources, and investment experience.

Webull's commission-free trading is possible because it receives payment for order flow. This means it routes orders through a third-party market maker that pays Webull for the order flow. While this can lead to better prices or faster trades, it's not guaranteed, and Webull gets compensated regardless of the trade's outcome. The "free" crypto trading also includes a 1% commission built into the displayed prices for Webull.

Margin interest rates

Webull offers competitive margin interest rates, with an average rate of 6.17% for customers. Margin interest is only charged on leveraged positions held overnight in margin accounts.

Deposit and withdrawal fees

To fund a Webull brokerage account from a U.S. bank account, you can use either ACH transfer or U.S. domestic wire transfer. ACH transfers are free, but limited to a maximum of $50,000 per day. Wire transfers have higher limits but come with fees. For users with non-U.S. bank accounts, only international wire transfers are accepted, with no fee-free options available.

Webull platform and technology

Webull's mobile app is designed with a clear, user-friendly interface that prevents charts, graphs, and data from overwhelming new investors. In addition to the mobile app, Webull offers a web-based platform and a downloadable desktop platform, all of which are easy to navigate.

Webull provides two levels of market data. All users have access to Level 1 trading data, which includes the highest bid information, while Level 2 data shows the range of bid/ask prices for a security. New users receive three months of complimentary Level 2 data access, after which it costs $1.99 per month.

One unique feature of Webull is its community aspect, which resembles a proprietary Twitter feed. Users can comment on stock news or individual stocks and post reactions to price changes. Webull also incentivizes users to make predictions about stock movements by awarding points for correct predictions. These points can be redeemed for entries into paper trading competitions, where users can win real money with fake portfolios. This combination of gamification and social media engagement keeps users interested without requiring them to actively trade.

Webull range of offerings

Webull offers a restricted selection of tradable assets, including stocks, ETFs, options, and cryptocurrency (although cryptocurrency cannot be transferred off-platform). Users can also engage in short selling of stocks and access various types of IRAs, such as traditional, Roth, and rollover IRAs, along with standard taxable investment accounts.

However, Webull does not provide a cash management account option, meaning users cannot earn interest on uninvested cash.

Webull research and education

Webull's educational resources for new investors are limited, with no instructional videos, interactive courses, or webinars. While the platform offers a news blog with multiple sources, there are no educational articles available. The Webull community may serve as a helpful educational tool, but it requires active engagement and relies on community members who post regularly.

Webull does offer access to Ticker Tocker, which connects new investors with mentors and trading coaches worldwide. However, Ticker Tocker's services come at a cost ranging from $10 to $1,000, and we have not evaluated the quality of advice or mentoring available through this service.

Webull customer service and security

Webull's customer service, while better than Robinhood's, still has room for improvement. Phone support is available during limited hours on weekdays, and representatives are polite and helpful but wait times can be long. Email support is relatively responsive, with replies usually within hours. However, there is no live chat option for immediate assistance.

In terms of security, Webull offers two-factor authentication, 128-bit encryption, mobile security features, and firewalls. They also provide the standard $500,000 of Securities Investor Protection Corporation (SIPC) insurance for clients. Additionally, Webull's clearing firm, Apex Clearing, provides additional insurance coverage, with maximum limits for securities and cash.