Webull® review 2022
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Webull: Best for
- No-commission trading
- Cryptocurrency trading
- Mobile trading
Though Webull doesn’t get the attention of its fellow no-fee trading app Robinhood, on-the-go investors will find the broker to be a more than capable option to trade at low costs. Webull offers commission-free trading in stocks, ETFs and options, and you won’t pay a direct fee on cryptocurrency trades. The app also comes with charting and other tools, but its limited offering of research is a notable shortcoming.
Fractional shares were added in 2021, allowing investors to purchase certain stocks and ETFs for as little as $5. Adding more types of accounts would be an improvement, but Webull offers investors interested in mobile trading at least as good of an option as its more famous competitor.
Webull: In the details
Top features you’ll love
Feature-rich mobile app
Webull brings a solid mobile app with a feature set that’s richer than key rival Robinhood’s offering. The app’s overall presentation feels impressive, and you’ll be able to use charting tools to analyze the trading action (more below). Each stock has a comprehensive page that links out to third-party news articles and a company’s press releases, while a comments page shows what Webull members are saying about the stock, so you can get a feel for sentiment there.
The app also offers high-level financials, and you’ll be able to access a detailed look at the order book and order flow distribution. A trade button sits at the bottom of the screen and a quick click pulls up the trading screen where you can input the trade details and go. If you’re trading options, hit the link at the bottom of the page and you’re inundated with options quotes. Click the options strategy and setup you want, and you’re ready to trade.
Finally, you’ll be able to place trades using your voice with the AI-enabled voice feature. It all feels really sci-fi, even if you’ll want to double-check to make sure you’re making the right order.
Pros: Where Webull stands out
Free trading and no account minimum
Webull’s top feature might be its ability to trade stocks and ETFs without a commission. Admittedly, that’s nothing out of the ordinary these days, since the whole industry has gone to commission-free trading, but it’s still important to have. You’ll get full extended hours trading and three complimentary months of Nasdaq Level 2 quotes when you sign up.
But Webull does the industry one better, with no-cost options trading, which was added to its capabilities in early 2020. And it’s truly free – no base commission nor a per-contract fee. That’s as good as it gets, and of the major players only Robinhood offers a similar proposition.
Webull makes it easy to get started too, as there’s no account minimum — which is similarly standard for the industry nowadays.
If you’re looking for another differentiator between Webull and most brokers, crypto is one place. Webull allows you to trade cryptocurrencies directly, rather than as futures as some of the top brokers require. You won’t pay an explicit commission for this service, but you will pay a spread markup of 100 basis points (i.e. 1 percent of your purchase price) on either side of a trade.
You’ll be able to trade cryptocurrencies such as Bitcoin, Ethereum, Cardano and Solana with a $1 minimum, and you’ll be able to do so around the clock, seven days a week. You can get price quotes on other cryptos as well, even if you’re not able to trade all of them. The broker added this feature in late 2020, so it’s a relatively new entrant to the space. Webull says it’s working on adding more cryptocurrencies to trade.
Whether you’re using the web-based client or the mobile app, Webull provides you with a set of charting tools that will help you analyze the price action. You’ll be able to use your preferred charting method (candlesticks, for example), and you’ll also get a detailed look at the day’s trading action (volume analysis and Nasdaq Level 2 quotes, if you have the service). In total, you’ll have access to a few dozen indicators or technical studies.
Webull offers a paper trading account that you can click into quickly, so quickly in fact that you might not realize you’re in it. On the web-based platform, for example, the real money trading platform may have nearly the same layout as the paper trading account. It’s a cool feature that mimics the real process and starts you off with $1 million in virtual money.
Webull offers instant funding on deposits up to $1,000, something that rival Robinhood also offers. It’s a cool feature that gets you in the game immediately, though the funds might not actually clear until four or five days later. For longer-term investors, instant funding won’t make a difference, but many traders want the funds to be there now and it’s a “nice to have” anyhow.
Webull joined the ranks of brokers offering fractional shares in July 2021. It had been a notable and surprising shortcoming for the tech-focused broker, so the addition is an improvement. For a minimum of $5, investors can purchase fractional shares in stocks and ETFs, but be sure to check that the companies you’re interested in are available because Webull says the list of available investments is subject to change. One thing still lacking in the offering is that fractional shares are only available for new purchases and not on reinvested dividends.
Cons: Where Webull could improve
Lack of educational content
Webull’s lack of educational materials is a considerable oversight for the platform that largely caters to young and inexperienced investors. Being able to trade options with a few clicks for free is a nice feature, but can be disastrous if you don’t know what you’re doing. If Webull is going to target new investors, they owe it to them to provide educational content that can help them navigate the often confusing financial world. Other top brokers including Schwab and Fidelity offer vastly superior educational materials for their customers.
Limited account types and tradable securities
Webull gives you access to only individual accounts, whether that’s the basic taxable account or a traditional IRA, Roth IRA or rollover IRA. It lacks many account types typically found at other brokers: joint accounts, custodial accounts or self-employed accounts, such as a SEP IRA or solo 401(k). That makes it a better option for solo traders rather than longer-term investors.
Along the same lines, the broker does not offer mutual funds, which may make it a deal-breaker for some investors, but likely won’t be a detriment to short-term traders. Nor does it offer bonds, forex or futures. These elements may not matter to certain investors, but they’re worth noting.
Limited free research
Webull doesn’t provide a lot of free fundamental research, a place where its major broker rivals excel. That’s not exactly a surprise given the low-cost nature of the app, but that doesn’t mean you’re completely left out with what the broker does provide. You will get tons of detailed trading data, some basic financials and key statistics as well as news feeds on your specific tickers.
Again, the available information is solid for what it is, but it won’t supplant the analytical work you’ll want to do if you’re investing in individual stocks. On that front, Webull (like Robinhood) makes a better fit for traders who know what they want to do rather than truly new investors.