Investing Brokerages & Advisors

Webull Review: No-Commission Trading for Experienced Investors

Webull is a great option for experienced investors, especially thanks to its advanced charting tools, but it’s not a great starting point for beginners.

Updated Oct. 28, 2024
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Webull

Webull

OUR VIEW

Webull is a popular investment platform for commission-free trading on stocks, ETFs, and options.1 It particularly stands out for its technical analysis and advanced charting tools. If you’re an experienced investor or day trader, you’ll appreciate that these tools are both extensive and user-friendly.

However, Webull isn’t right for everyone. For example, if you’re a new investor just learning the ropes, Webull probably isn’t the place to start. It’s also not a good option for crypto investors since it no longer offers cryptocurrencies on its platform.

Pros

Commission-free trading
Offers both taxable and tax-advantaged accounts
User-friendly website and mobile app
Extensive features, including advanced charting and paper trading

Cons

Not ideal for new investors
Doesn’t offer mutual funds
Joint and custodial accounts not available
No longer offers cryptocurrency
How we evaluate products

What is Webull?

Webull, founded by Wang Anquan in 2017, is an investment trading platform that believes individual investors shouldn’t be ignored. It’s part of the newer generation of investing platforms that use technology to improve the investing experience. The company focuses on offering an all-in-one self-directed platform to trade investments with advanced research tools and services at lower costs. As of 2024, Webull has more than 20 million global users.

Webull
Minimum investment
  • None for brokerage accounts and IRAs
  • $2,000 for margin accounts
Management fees None
Asset classes
  • Stocks
  • Options
  • Futures
  • Exchange-traded funds (ETFs)
  • American depository receipts (ADRs)
Account types available
  • Taxable investment account
  • Roth IRA
  • Traditional IRA
  • Rollover IRA
  • Margin accounts
Features
  • Commission-free trading
  • Extended hours trading
  • Advanced charting tools
  • Paper trading
  • In-app community
  • Mobile app and desktop trading platforms
Best for... Active traders who want access to commission-free trading
Visit Webull

Who is Webull best for?

Webull is a great option for investors who want access to commission-free trades for various asset classes. Its advanced charting tools and Level 2 data make it an ideal option for more experienced investors who can fully take advantage of these features. Level 2 data comes at an additional cost, but it provides access to a more premium data feed that gives you more detailed price action information.

If you’re further along in your investing journey, some other features that might appeal to you include margin trading, fractional shares, and extended trading hours. I could see the extended trading hours being especially appealing for someone who works a traditional 9-5 job and trades in their free time before or after work.

While Webull is definitely user-friendly, it’s probably not right for all investors. First, Webull probably isn’t the best option for brand new investors. It doesn’t offer many educational materials to help new users beyond the company’s limited FAQ section. Other brokerage platforms have robust educational libraries to help new investors learn the ropes.

Webull also isn’t the right choice if you want any kind of assistance with your investments. For example, if the idea of a robo-advisor or any kind of financial advice appeals to you, Webull probably isn’t the right fit for you.

Trading with Webull

Opening a Webull account

If you want to open a Webull account, it's free and easy. You need to upload a copy of your driver’s license, passport, or an eligible visa with a valid Social Security Number or individual taxpayer identification number. You’ll also need basic information, such as your date of birth.

Webull will ask about your investing experience, your financial status, and some regulatory questions. Then, they’ll audit your application and approve your trading account if there are no issues. Approval can be automatic but may require additional verification in some cases. Webull might also require that you link a bank account to fund your investment account.

Account types

When opening your account, you can choose from either an individual cash account, a margin account, or an individual retirement account (IRA), including a Roth, traditional, or rollover version. One notable missing feature is joint accounts. If you’re investing with a partner and want a joint account, Webull probably isn’t for you. More established platforms like Charles Schwab do offer joint accounts.

As an added bonus, Webull doesn’t have a minimum deposit requirement for its taxable or tax-advantaged brokerage accounts. You can get started with as much or as little money as you want. The only account with a minimum is a margin account, which requires at least $2,000 to get started.

Asset types

When you’re ready to start trading on Webull, you have the option to invest in several asset classes:

  • Stocks
  • Options
  • Futures
  • Exchange-traded funds (ETFs)
  • American depository receipts (ADRs)

Webull also offers fractional shares of both stocks and ETFs.

One thing worth noting is that Webull no longer offers cryptocurrency. In 2023, Webull transitioned its cryptocurrency offerings to a separate platform, Webull Pay, which is an entirely separate business. If Webull was appealing to you specifically because of its crypto offerings, consider an alternative like Robinhood or Interactive Brokers that still offers digital assets.

Buying and selling

Webull is one of the most user-friendly brokerages on the market. When you’re ready to start trading, you’ll find that it’s easy to navigate the platform, find the assets you’re interested in, and place your buy or sell orders. You can place orders on the mobile app, website, or desktop app. All you have to do is log into your account and navigate to “My Positions.” From there, you can create a new order.

Webull doesn’t charge commissions on stocks, ETFs, or options. Commission-free trading has become fairly standard these days, but it’s not necessarily available from every brokerage firm. It’s definitely an added bonus if you really like Webull’s platform.

Advanced charting tools

Something that will make Webull an attractive choice for experienced investors is its technical analysis and advanced charting tools. Webull offers real-time data, dynamic charting, and robust analysis tools. One feature that stands out to me is these charting tools are available on your mobile app, not just on the desktop version.

Its charting tools are also fully customizable — you can see exactly the information you want to see from more than 60 indicators and more than 20 drawing tools. And if you’re using the charting tools and spot a trade you want to make, you can do it right from the chart. If you’re day trading, the time you’ll save not having to navigate to a different part of your account could be invaluable.

Webull’s charting tools are easy to navigate and, unlike some platforms, easy to understand. If you’re just making the transition from casual to serious investor and you’re diving into charting tools for the first time, Webull would be a good place to start.

Practicing trading

Webull offers a paper trading platform that allows you to practice trading without putting your real dollars at risk. There are a couple of situations where I think paper trading could be especially valuable:

  1. You’re ready to graduate from passive investing to active trading, but you want to get some practice in. I don’t necessarily think paper trading will be useful to brand new investors, but it could be a good option for people who have been investing for a while and want to up their game.
  2. You don’t have the money to start trading yet, but you want to practice Webull’s charting tools. Paper trading users have access to all of Webull’s technical analysis and charting tools. It’s a great way to learn the ropes before you have the money to get started.

Is Webull safe?

When you’re choosing an investment platform, safety should be a top priority. The short answer is that Webull is safe to use, but some of the responsibility falls on you, too.

First, the money in your Webull account is protected by both FDIC and SIPC insurance. Your cash deposits in Webull are FDIC-insured by Webull’s partner banks for up to $250,000 per bank — that’s up to $1.5 million in possible protection.

Additionally, like other brokerages, Webull investments are SIPC-insured for up to $500,000 (up to $250,000 of which can be cash). Webull also carries excess SIPC insurance with higher limits. Both the FDIC and SIPC coverages are designed to protect you in case Webull fails. However, it doesn’t protect you from your investments losing money.

Next, Webull has a number of security measures in place to keep your account safe from hackers. They protect your account using two-factor authentication, unique login and trading passwords, and a pattern lock for an extra layer of security. Webull also recommends that you take steps to protect your own account.

That being said, there are some things Webull can’t protect you from. First, investing is inherently risky, and you face the possibility of losing money. That’s the case with any brokerage firm, and Webull is no exception. It’s up to you to build an investment portfolio that fits your risk tolerance.

Webull alternatives

Webull’s platform may work for many investors, but it isn’t a good fit for everyone. Consider our picks for the best investment apps and best brokerage accounts if Webull doesn’t feel like the right choice for you.

Beginner investors who want help learning how to invest money and build a portfolio may prefer a robo-advisor. Many of the large brokerage firms like Fidelity and Charles Schwab offer robo-advisor services, as well as self-directed trading and educational tools. On the other hand, if you want a fully hands-off approach, consider a robo-advisor like Betterment.

On the other end of the spectrum, if you’re an experienced investor and want a self-directed trading option with more features than Webull, you also have plenty of options. Robinhood has a similar model to Webull, but with some features that Webull is missing, including cryptocurrency, but with less robust charting tools.2

If it’s the charting tools you want, consider a more feature-rich brokerage firm like E*TRADE or Charles Schwab (which recently acquired TD Ameritrade, known for its technical analysis tools).3

FAQs

Is Webull legit?

Webull is a legitimate brokerage you can use to invest in stocks, ETFs, options, futures, and ADRs. It is registered with the SEC and is a member of FINRA, SIPC, NYSE, NASDAQ, and Cboe EDGX. As a SIPC member, Webull’s customers get up to $500,000 of coverage in case the brokerage fails and your securities go missing. It does not protect you from the loss of value of your investments.

Which is better, Webull or Robinhood?

Whether Webull or Robinhood is a better fit for you depends on your experience, circumstances, and investing goals. Both brokerages offer the ability to invest with no minimum deposit.

Webull is generally a better fit for experienced investors with enough money to invest in a diversified portfolio. Webull’s advanced charting features may appeal to these investors.

Robinhood generally works better for new investors. Robinhood even dedicates a section of its website to helping new investors learn the ins and outs of investing. Robinhood also supports automatic dividend reinvestment.

Finally, because Webull moved its cryptocurrency offerings to a different platform, crypto investors may prefer Robinhood, which still offers cryptocurrency.

How does Webull make money?

Webull doesn’t make money from trade commissions, which makes many people wonder how the company makes money. Webull makes money from the following revenue streams:

  • Payment for order flow: A complicated system of routing transactions that results in Webull earning small amounts of money on each transaction.
  • Stock loans: Webull may lend securities and profit from lending those securities. Your securities are still available if you need them.
  • Interest on free credit balances: Cash sitting in your account doesn’t pay interest to you, but Webull can earn interest on it.
  • Margin rates: This represents interest paid to Webull when people borrow money to invest.

Is Webull good for beginners?

Webull could be a decent option for well-educated beginner investors who understand investing concepts but have not started trading yet. New investors who are learning how to invest money would likely be better suited by other platforms that offer more educational resources. Completely new investors may prefer robo-advisors to guide them through the investing process.

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