Luis Pazos 
{With most investing apps now offering commission-free trading, online brokers need to find more creative ways to stand out. Robinhood, for example, now offers a 1% match on IRA contributions. Webull focuses on customer value by providing free stocks, fractional share investing, a user-friendly trading platform, extended hours trading, and 24/7 support. But is Webull suitable for beginner investors? In this review, I’ll cover Webull’s trading platform, key features, pros and cons, and more.
About Webull
Launched in 2017 and based in New York City, Webull is a self-directed investment platform offering commission-free trading. You can trade stocks, options, exchange-traded funds (ETFs), and cryptocurrencies. Unlike many newer brokers, Webull also allows trading over-the-counter (OTC) stocks. Webull describes itself as a company with the customer at heart, the Internet as its foundation, and technology as its lifeblood. They deliver on this by providing a user-friendly investment platform, free real-time quotes, multiplatform accessibility, full extended hours trading, and 24/7 online support.
Key Features
- Zero commissions
- No deposit minimums
- Hold crypto alongside stocks and ETFs
- Taxable or IRA accounts available
- Supports margin trading
- Paper trading option
- Access to initial public offerings (IPOs)
- Webull Community for sharing strategies with other investors
- 24/7 online customer support
- Free stock bonus and referral bonus program
Is Webull Legit?
Yes, Webull is 100% legitimate. It is a US-based broker-dealer and a member of FINRA, SIPC, NYSE, and NASDAQ. Webull has over 12 million users and more than $42 billion in assets under management. It has high ratings on Google Play (4.3 out of 5 stars) and the App Store (4.7 out of 5 stars). However, it scores poorly with other major rating agencies, holding an “F” rating from the Better Business Bureau and low scores on Trustpilot based on limited reviews.
Webull Account Types
Webull offers two taxable account types: cash and margin. A cash account limits buying power to deposited funds. A margin account allows you to leverage for purchasing securities exceeding the cash value. For margin accounts, a minimum of $2,000 must always be maintained. You can also open a Traditional, Rollover, or Roth IRA. Each user can have one IRA account but must have an individual account before opening an IRA.
Day Trading Rules
According to FINRA rules, you can make no more than four-day trades in a margin account within five business days. Exceeding this will flag you as a pattern day trader, requiring a $25,000 minimum balance. Margin accounts are also available for LLCs, C-Corps, and S-Corps with 2X overnight and 4X day trading leverage.
Webull Trading Platform
The platform offers intuitive tools and extended trading hours. Features include real-time quotes, customizable screens, stock market trading ideas, over 50 technical indicators, and 12 charting tools. You can analyze past trading performance and set real-time stock alerts for price actions. Webull supports various order types, including limit, market, stop, stop-limit, trailing stop, stop-loss/take-profit, OTO, OCO, and OTOCO orders.
Margin Trading
Webull requires a minimum of $2,000 in your margin account for long- and short-positions margin trading. The account offers up to 4X buying power for day trades and 2X for overnight trades.
Webull Paper Trading
Webull’s Paper Trading feature allows you to practice trading with unlimited virtual cash, offering over 50 technical indicators and 12 charting tools.
Initial Public Offerings (IPOs)
Webull makes IPOs available to investors. You can find IPOs on the Market page and subscribe to notifications for upcoming offerings.
Cryptocurrency
Webull offers commission-free cryptocurrency trading on 44 cryptos, including Bitcoin, Ethereum, and Dogecoin, with a $1 minimum. The trading hours are 5:30 p.m. to 6:30 p.m. EST, seven days a week. Webull also provides a crypto wallet for buying, selling, storing, and transferring crypto.
Stock Lending Income Program
This program allows you to earn extra income by lending out fully paid stocks in your account. You’ll earn 15% of the interest Apex Clearing, Webull’s clearing agency, makes on the loaned stock.
Webull Community
Webull’s social component lets you participate with other investors to discuss market strategies and ideas.
How Does Webull Make Money?
Webull makes money through payment for order flow (PFOF), securities lending through Apex Clearing, interest on cash balances and margin trades, deposit and withdrawal fees, and the basis point spread on crypto trades.
Other Features
Income Tax Reporting: Webull provides a consolidated Form 1099 for tax reporting.
Account Protection: Your account is protected by SIPC insurance for up to $500,000, including $250,000 in cash. Two-factor authentication adds extra security.
Free Stock Bonus and Referral Bonus: Webull offers new users free stock bonuses and referral bonuses for referring friends.
How to Sign Up for a Webull Account
You can sign up on the website or mobile app. Webull will require personal information, and identity verification may take up to 24 hours. A soft credit check is performed, which does not affect your credit score.
Funding Your Account
Connecting a bank account allows you to fund your Webull account. ACH transfers are free, providing instant buying power. You can also transfer securities from another broker.
Webull Alternatives
Before signing up, consider checking Webull alternatives such as Robinhood, which offers zero-commission trades and a 1% IRA match, Public, which is geared towards new investors, and Interactive Brokers (IBKR), which provides access to global markets but may be overwhelming for beginners.
Final Thoughts on Webull
Webull is a solid trading app with many investment tools for intermediate and advanced traders. Its intuitive platform and free stock bonus programs make it appealing. However, beginner investors might also want to consider Robinhood and Public before deciding.
Webull Review
Webull is an online brokerage offering commission-free trading on stocks, options, and ETFs. It stands out with its no-fee structure and broad trading options, providing robust analytical tools and a user-friendly interface, making it accessible even to those new to trading. The mobile-first design ensures seamless trading on the go, and the desktop version offers in-depth analysis and customization for serious traders.
Pros:
- No minimum initial investment
- Commission-free trading
- Free stock rewards for opening an account and making a deposit
- Crypto wallet management integrated
- Social platform to connect with other investors
- 24/7 online support
Cons:
- No joint taxable, custodial, or trust accounts
- No mutual fund, penny stock, or bond investing
- Requires a taxable account to open an IRA
- No dividend reinvestment option
- No interest on uninvested cash
- Fees for wire deposits and withdrawals
Summary of Webull
Webull stands out in the online brokerage space with its no-fee structure and diverse trading options. It offers users the ability to trade stocks, options, ETFs, and cryptocurrencies without worrying about commission fees, making it an appealing choice for budget-conscious traders. Robust analytical tools and a user-friendly interface provide a seamless trading experience, even for beginners.
