Webull Review: A Great Trading Platform To Maximise Your Wealth?

July 18, 2020
Brokers
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Webull has gained a lot of attention since it’s inception in 2017. It is a trading platform where you can trade options, stocks, ETF’s and cryptocurrencies without paying commissions. The platform has a great referral system that can rewards you with 2 free stocks valued between $12 and $400. Besides no commissions, there are also no minimum deposit requirements. The only option for deposits or withdrawals is via a bank transfer or wire transfer. It also has a demo account where you can practice trading before you risk your money, and there are some great usability features as well that advise you on how to trade. Webull is also regulated by the SEC and insured by the SIPC meaning that your investments are safe with the broker.

If you’re looking for a no-commission, no-nonsense broker, join the platform today and maximize your investments.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with Webull and scored our findings on a 10-point scale across 10 distinct categories.
Fees 8
Signup Process 9
Minimum Deposit 10
Ease of Use 10
Deposit & Withdrawal Options 5
Customer Support 6
Asset Classes 3
Referral Program 8
Demo Account & Educational Resources 8
Safety & Regulation 10
Total 77

Introduction

Webull is a US-based fintech start-up company and one of the many coming in the brokerage services categories. The broker was founded in 2017 and it is regulated by two of the most important institutions in the country, while also being covered by the Securities Investor Protection Corporation (SIPC). Moreover, Webull currently operates in United States, India, Brazil, Turkey, the Philippines, Malaysia, Japan, China, and Korea.

Webull provides commission-free trading of various asset classes, a simple account opening process and a versatile mobile application for both iOS and Android. There are no commissions or minimum deposit requirements which makes it a great choice for beginners.

Pros & Cons

Pros

  • Free trades for US-based stocks, ETF’s and options.
  • There are no inactivity fees associated with your account.
  • Safe and secure platform that is heavily regulated.
  • It offers a great signup bonus in the form of two free stocks that you get after signing up and making the first deposit.
  • Webull will reimburse up to $100 in transfer fees if your initial transfer is $2,000 or more.

Cons

  • The financing rates are high and so are wire transfer fees( $25 for wire transfers in the US and $40 for transferring funds internationally)
  • Portfolio only limited to the US market.
  • You can’t use debit cards or credit cards to transfer money.
  • Customer service has poor reviews. There are limited options for online support and a slow system for telephone support that can often take a lot of time.

Account Types

There are 3 types of accounts namely, Cash accounts, margin trading with limited day trading and margin trading with unlimited trading accounts.

Webull Cash Accounts

Cash accounts are the basic trading accounts in Webull, and they allow you to trade all the assets they offer. They only have one distinctive feature that sets them apart from other types of accounts, which is that you cannot trade on margin. Other than that, there are no major differences.

Webull Margin Account With Limited Day Trading

With a margin account, you can obviously start to trade with leverage. The minimum deposit requirements change in this account as well. The main features you get with this account are:

  • You can take leverage of up to 2:1 for positions held overnight
  • 4:1 for day trading positions
  • It has a minimum deposit of $2,000
  • You’re limited to 3 day trades per week

Webull Margin Account With Unlimited Day Trading

The unlimited margin account is similar to the limited one, with a few key differences:

  • You can take leverage of up to 2:1 for positions held overnight
  • 4:1 for day trading positions
  • There is a minimum deposit of $25,000
  • You are allowed unlimited day trades.
Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Webull Fees

Webull offers commission-free trades for US-based stocks, ETFs, and options. It charges no inactivity fee which is a good feature to have since many brokers charge inactivity fees and sort of bound you to use their platform.

The financing rates for trading on margins are 7% which is pretty average compared to other brokers such as Fidelity (9.3%) and Robinhood at (5%). However, the financing rate drops significantly to 5.99% once you start to trade above $100,000 and below $250,000. The lowest margin financing rates are for trading more than $3 million where the financing rate is 3.99%.

Deposit & Withdrawal Fees

There are a few costs associated with using wire transfers for depositing and withdrawing your funds.

Wire Transfer TypeFees
US domestic deposit$8
US domestic withdrawal$25
Non-US deposit$12.5
Non-US withdrawal$45

The fact that there are no commission or inactivity fees, coupled with reasonable margin rates is a pretty good deal, but the deposit and withdrawal fees make this broker lose a couple of points in this category.

Webull Fees Score: 8/10

#2 Webull Sign Up Process

In order to open your account you need to follow a few simple steps on the Webull website:

  • Go to the Webull website and click on the signup option
  • To verify your identity through an issued ID card from the government which contains your photo, name, and date of birth. You should try and have the documents ready ahead of time so that they can be used to register you quickly and you can open your account.
  • You can deposit money and get started with trading.

The easy and intuitive sign up procedure means that the score for this dimension is a strong 9/10 for Webull.

Webull Signup Process Score: 9/10

#3 Minimum Initial Deposit At Webull

Minimum deposits are $0 to use the Webull application’s Cash Account. So you can instantaneously open an account and check out the platform to see if it is right for you. In the case that you decide that you like the platform, you can deposit and start using the platform today. For this section, the application scores 10/10 because you can get started right away and test it out without putting a cent upfront.

However, the minimum deposits for the Margin Account with limited day trading and the margin account with unlimited day trading are $2,000 and $25,000 respectively. You can obviously opt for a cash account to test the platform and then opt for a margin account.

Webull Minimum Initial Deposit Score: 10/10

#4 Ease Of Use

The interface of Webull is very detailed.  As you may can see from the picture below you can see trend lines. The box and whisker lines tell you about the spread, quartiles and deviations associated with the stock. However, the view can be slightly cluttered, which may be a little too complicated for individuals that are not from a statistically savvy background. Even so, there is plenty of information to help you make the right decisions.

Webull review hope you like it

There are several other features that can help you in improving your analysis of different financial instruments. This adds to the usability of the app and helps you in making a profit. Let’s have a look at Webull’s research tools.

Webull Research Tools

Webull offers research tools on all platforms. You can use the research tools to look for trends and financial ratios. The financial ratios and their historic trend can give you guidelines on what you need to do. Financial ratios can be a very strong indicator of the way in which a stock is going to swing. They can help one find out the volatility or risk associated with a stock.

You will find the research tools on the right-hand side after you click on a particular asset you are interested in. A couple of the more useful are Trading Ideas and News Feed:

Trading ideas In Webull

Webull offers trading ideas for a select number of stocks. Using these options you can get the feeling of the kind of trend that there is going to be for a particular stock, it can help you in taking a long term or short term position depending on the forecasted trend. Obviously, one must be cognizant that trends are forecasted using algorithms and you must have your own opinions as well that you can take from understanding what is happening in the market and factor that in your decision-making process.

News Feed Feature In Webull

Webull also has a news feed function that can really help you out. It can help you in getting information from credible sources such as CNBC & Seeking Alpha to get a proper feel for the kind of trends that are going around in the market. Because, after all, the market is based a lot on the psychographics of people as well and not just numbers. For instance, a lot of the stocks in the market have become overvalued or undervalued based on positive or negative views regarding a company. Hence, it is always important to keep an eye out for news so that you can factor it in your decision making regarding your assets. The detailed interface means that Webull scores a complete 10 for ease of use.

Webull Ease of Use Score: 10/10

#5 Deposit & Withdrawal Options At Webull

The only options to deposit and withdraw funds is via bank and wire transfers. Wire transfers can take up to a day to take place.  Wire withdrawals have a charge of $25 for local and $45 for international transactions. If you are a small-time trader then these charges can be a significant amount for you if you want to use wire transfer for funds. The main problem comes with the fact that customers outside the United States can only use wire transfer for trading. This makes it difficult for small investors internationally to invest in the application. This can definitely be a hindrance for you if you are someone outside the US interested in using the Webull application.

There is a 7 day ACH and a 1-day wire transfer holding period before you can use your withdrawn funds. This limit can be cumbersome in case you need to quickly retrieve your finds.

Base Currency

The base currency is basically the currency that you effectively trade with. In other words, it is the type of currency you pay when you go long or receive when you go short. It is important to know the currency that you trade in because you will be charged a currency conversion fees when trading in currencies apart from it. In the case of Webull, the only base currency they offer is the US dollar. This sort of binds you to use the dollar for trading, otherwise you will have to pay conversion fees that can really eat into your profits.

The low number of deposit and withdrawal options plus the fact that you can only trade in a single base currency let Webull score only a 5 in this category.

Webull Deposit & Withdrawal Options Score: 5/10

#6 Customer Service At Webull

There are a few ways in which you can contact the Webull.

  • Message them through the trading platform
  • Send them an email on customerservice@webull-us.com
  • Call them via the telephone

However, messaging Webull through the app seems to be the most popular way of getting your queries answered. Most app users have negative reviews with respect to customer service, complaining about long wait times for queries to be answered via the phone. On the other hand, the wait time for emails is generally variable, and there are mixed reviews with respect to the wait time for customers to email the company. Hence, the score is 6/10 for customer support.

Webull Customer Support Score: 6/10

#7 Assets Classes On Webull

There are several types of Assets available on Webull. A few of the assets that you can trade are:

  • Stocks
  • Options
  • ETF’s
  • Cryptocurrency

You can invest in different types of stocks and make your own diversified portfolio. An interesting strategy that I liked doing in my days as a finance student was to build a portfolio with stocks with different characteristics. So some stocks would fluctuate with the market and some stocks would be such that they would fluctuate against the tide of the market. This allows you to hedge risk and build sound portfolios that will probably not completely sway with market fluctuations.

If you are an experienced trader, then you can also invest in options to grow your funds. Diversification is also possible by investing in digital currencies like Ethereum, Bitcoin and Litecoin. However, like all investments be sure that when you are investing in cryptocurrencies you are aware of the market trends. Try and make sure that you do not purchase cryptos when there is an optimistic upswing in the market.

Related: Read Our Review on How To Trade ETFs

Webull Asset Classes Score: 3/10

#8 Referral Program

If you refer a friend to Webull and they join the platform you will get 2 stocks valued between $12 and $ 400. The stocks that you get are randomly allotted to you using an algorithm and the process is totally random. Every successful referral consists of your friend depositing a $100 within 30 days of joining Webull.  Referring your friends is a good way of getting free stocks and getting to learn how the platform works especially if you are a beginner and new to the platform. You can trade with friends on a regular basis and make different strategies to learn the art of trading.

The referral program gets an 8/10 because it can offer significant value for referring friends. Similarly, the program does not have any limits so you can continue to refer a lot of friends while reaping the rewards for each referral.

Webull Referral Program Score: 8/10

#9 Demo Account At Webull

You can get free access to a demo account at Webull. You will get most of the features of a real account. A demo account starts with a paper money value of 1 million dollars that can allow you to develop different portfolios and see how they perform on the market. However, there are no training videos that you get with a brokerage account and you will mainly have to learn by interacting with the app.

Webull Demo Account & Educational Resources Score: 8/10

#10 Webull Safety & Regulation

The fact that Webull is regulated adds to the security element for the application. As mentioned before, Webull is regulated by the US Securities and Exchange Commission, or SEC, and by the Financial Industry Regulatory Authority or FINRA. Regulation means that the SEC and the FINRA are monitoring how the application is being run and ensuring that all practices are safe for investors. Your funds in Webull are also insured by the Securities Investor Protection Corporation (SIPC) with maximum protection of $500,000 for investors and a $250,000 limit for cash related transactions. In case you are wondering what SIPC does, it is a non-profit organization developed by Congress over 50 years ago. The purpose of SIPC to provide protection in case your brokerage firm runs into financial problems. This means that SIPC will help get your funds back in the case that your broker goes bust. The fact that Webull is a part of SIPC and that it is regulated by the country’s two top authorities makes this a very safe broker to invest in.

Webull Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

Webull Vs. Capital.com

Webull has an overall score of 75, which is a really good score in our guidelines. It is very safe and easy yo use, and offers a fairly good choice of assets to trave. However, it is not the best option out there, and there are a few dimensions where Capital.com, our top-scoring broker, scores more than Webull. Let’s compare these two brokers in regard to those dimensions and see which Webull can improve upon.

Customer Support

Capital.com allows you to have a dedicated account manager who keeps a record of your portfolio. So you do not get lost in a customer support loop because often availing customer service can be a problem because lots of brokers are slow in providing customer service and you have to explain your problem to different representatives to get it sorted. Keeping in mind the low score for customer support for Webull in this attribute i think Capital.com does well in terms of providing timely and useful support for customers

Demo Account

Webull offers a demo account with paper money and so does Capital.com. However, Capital.com also provides you with many educational resources to train you. Some features offered by Capital.com includes:

  • Free financial webinars.
  • Educational courses for traders.
  • Extensive market glossary.
  • Comprehensive CFD trading guide.
  • Cryptocurrency trading tutorial.
  • Investmate, Capital.com’s investor education app.

As you can see there are quite a few resources to train you to trade profitably. Similarly, with these resources you can develop capablities to train different types of assets. For instance, if you are a good trader of stocks, you could use Capital.com’s resources to train yourself in trading CFDs.

Deposit & Withdrawal Options

Webull relies on wire transfers and bank transfers for depositing and withdrawal of funds. The process can be cumbersome and expensive at times depending on the amount that you intend to withdraw or deposit. However, Capital.com also allows the option to deposit and withdraw funds from credit cards, debit cards, electronic wallets and wire transfers so you have the option to choose the medium that suits your needs the best. And that’s not to mention the fact that they don’t charge any deposit or withdrawal fees.

As you can decipher by now that Capital.com is a more comprehensive broker that can help you in building diversified portfolios and provide you with some really good customer support along the way. Click the link below to join now and trade profitably.

Related: Check out our in-depth review of Capital.com

Final Verdict On Webull

If you are someone who is looking for a secure and regulated platform then Webull fits the bill. The fact that it is regulated is a promising sign that your investments are secure and the trading platform is not likely to engage in risky activities. The fact that there are no commissions augers well for traders who are just looking to get started in the trading game. Research tools such as News Feed and Trading Ideas are interesting analytical features that can help you invest smartly. So if you are someone looking to get into the trading game, open a demo or brokerage account today to get started.

However, if you are looking for a platform that offers a plethora of trading options that also provides you with the option to get quick customer support and plenty of educational resources click the link below to join Capital.com now.

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