Webull Review: Zero Commissions & Deposit Minimums Broker
As one of the newest online brokers that focuses on commission-free trading, Webull is differentiating itself by targeting technical traders. It prides itself in providing a lot of research and no commissions for people looking to trade stocks.
Not sure if this brokerage is for you? Keep reading for your comprehensive Webull review to see how it compares to other online stock brokers.
What is Webull?
Webull, officially called Webull Financial LLC, is a mobile app offering free stock trading. Founded in 2016, it’s a privately held company that’s a registered broker-deal with the SEC. The company is also a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
The app was released in May of 2018 and claims to offer professional-level research and a trading platform that rivals ones that the ultra-wealthy or professionals use. Webull offers free trading commissions, real-time market data and other types of analysis tools.
Users can set up an account through Webull’s app–you may be approved as soon as one hour after you submit your information. However, approval times will depend on whether the company needs additional information to verify your identity.
Once approved, you can transfer money to your Webull account using ACH transfer. While there’s no minimum deposit, you need a $2,000 minimum if you want to switch to a margin account or use leverage or short positions in margin accounts.
Webull offers analysis tools, real-time market data and news for free. If you want to take a look at how the app works, you can open an account that doesn’t require you to use your actual money, called a paper trading account.
You’ll be able to do research on investment tools such as revenue data, press releases, news, insider holdings and transactions, analyst recommendations, stock screeners, financial calendars, watchlists and alerts.
As for watchlists, you can review data for any stock Webull offers, including separate lists for ones which you’re actively investing in. You can monitor various key metrics for selected stocks–market movement, volume, price and more. You can also search for stocks by name or symbol.
If you’re using charts in your trading strategy, you can do so by clicking on a stock in your watchlist. You can view data such as a candle, hollow candle, line, area, bar, colored bar graph or Heikin Ashi–you can set time interviews from a minute up to one year. The drawing tool can give you access to rays, polylines, trendlines, Fibonacci retracement, parallels, polylines and more.
There are also other tools such as extended-hours trading, the ability to sell short, and margin trading. For those who geek out on technical indicators, there are features such as money flow index, MACD, Bollinger bands, exponential moving averages and RSI.
There are plenty of free features of Webull, but the company does charge a few fees. You’ll be charged for trades from FINRA and the SEC (they’re pretty small). You’ll also be charged margin fees, ranging from 3.99% to 6.99%–smaller margin fees are charged for larger trade amounts.
Webull also charges for transfers, as is standard on all brokerage platforms. Wire transfers will set you back $25 for domestic and $45 for international, whereas ACH transfers are free. However, your bank may charge you a fee.
Is Webull Safe?
The short answer is yes, Webull is safe to use. The company is a member of the SIPC, an organization that protects your securities up to $500,000, including up to $250,000 for cash claims.
Webull also has an additional insurance policy from Apex Clearing Corporation. Their coverage offers protection for your securities and up to $150 million aggregate, though there’s a maximum of $900,000 for cash and $37.5 million for your securities. Remember, neither the SIPC or Apex Clearing Corporation offers insurance that protects against the loss of your securities’ market value.
Their app uses encryption technology and has powerful charting features, making it easy to do research on the go.
Pros and Cons
Before signing up for Webull and putting real money into your account, consider the advantages and disadvantages of this app.
- Convenience – Webull make its easy to trade and manage your portfolio via their app.
- Powerful research tools – You can use the app to analyze, research, make trades and manage your portfolio. Tools include stock screeners, market data insights, a trading simulator, trading instruments, trading charts and indicators.
- Free commissions – There are zero fees from Webull for making trades.
- No minimum deposit – There are no fees to open an account and you don’t need to make a minimum deposit to trade ETFs or stocks.
- Options trading – You can now trade options, but you may be subjected to an application fee.
- Limited options – Currently, you won’t be able to trade bonds, mutual funds or OTC stocks. Plus, if you want to trade stocks, you can’t trade amounts less than a dollar and more than $10 million.
- Fees from third parties – While Webull doesn’t charge a fee, FINRA and SEC have mandatory ones.
- Requirements for margins – You need to have at least $2,000 in your account to borrow money to trade. Those fees are high, as much as 6.99%.
- Limited account options – Customers can’t open retirement accounts nor joint ones.
Webull is a pretty powerful trading platform you can use via your mobile device. It’s a convenient tool that is useful for all types of investors. You can make trades for free (not including mandatory fees) and there aren’t any minimum deposit requirements, making it great for those who aren’t sure whether to commit a lot of money to the platform.
Plus, there are paper trading options so beginners can practice. The research tools can also help investors make smarter and more informed decisions. If you’re only after more passive investment tools, then Webull doesn’t make sense for you. However, if you’re an active trader looking for a close-to-free option to make multiple trades, then it’s worth a try.