Webull [2021 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.

If you are looking for a broker that offers a lot of options in commodities, stock and bonds try Capital.com. Moreover, Capital.com has one of the most robust educational repositories in the form of online tutorials, videos and courses, as well as a dedicated account manager that will help you out with any issues or questions about the platform, making it an aswesome way to go from zero to hero.

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

ProsCons
Free trades for US-based stocks, ETF’s and options.The financing rates are high and so are wire transfer fees( $25 for wire transfers in the US and $40 for transferring funds internationally)
There are no inactivity fees associated with your account.Portfolio only limited to the US market.
Safe and secure platform that is heavily regulated.You can’t use debit cards or credit cards to transfer money.
It offers a great signup bonus in the form of two free stocks that you get after signing up and making the first deposit.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.
Webull will reimburse up to $100 in transfer fees if your initial transfer is $2,000 or more. 

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. In the section below we cover the costs and what costs you will have to pay for deposits and withdrawals.

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

The wire transfer fees can be annoying for individuals who are small-time traders. The withdrawal fees though in general are quite expensive compared to withdrawals. This is because of brokers often incentivize depositing funds with them rather than withdrawing funds.

How We Rank Fees

At Yore Oyster, we rank fees based on both trading and non-trading fees. Non Trading fees consist of deposit, withdrawal and inactivity fees. The commissions and spreads associated with each asset type are also built in the score to determine the overall value.

Final Verdict On Fees

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 account opening process is simple and intuitive to use which means that you can try out Webull instantly without a lengthy, monotonous and tiring signup procedure.

How We Rank The Signup Procedue

We ranked the signup procedure based on how quick and easy it is to open an account and we base our score on the following criteria:

  • The speed with which the documents can be uploaded
  • Number of documents required
  • The time the verification process takes

The easier an account opening process is without unnecessary checks the higher the score is for this dimension.

Final Verdict On Fees

The easy and intuitive signup procedure means that the score for this dimension is a strong 9/10 for Webull and the only reason that the broker loses a point here is that there are brokers like Capital.com that allow for same-day verification of accounts.

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.

How We Rank Minimum Initial Deposit

The formula here is simple, the lower the minimum initial deposit the higher the score. We at Yore Oyster believe that everyone should be able to try out a broker without having to deposit thousands of dollars to get the opportunity to do so.

The Scoring Threshold For Minimum Initial Deposit

If a broker has a requirement for upto $100, the score here is a perfect 10, as most people can afford to invest. However, if a broker charges upto $500, it still scores a healthy 8 because most of our readers believe they can invest $500 to try out a broker’s services. However, as the minimum initial deposit requirements rise above $500 most of our readers feel a bit hesitant to try out a broker due to which the score decreases.

Final Verdict on Minimum Initial Deposit Fees For Webull

Webull only has pros for this dimension as the broker has no initial deposit requirements meaning that anyone willing to test out the platform can do so easily. If you want to look at other brokers with no minimum initial deposit requirements have a look at FXTM, IronFX , RBC Direct Investing as these brokers have no minimum initial deposit requirements and have good demo accounts and educational resources to get you started with trading.

Webull Minimum Initial Deposit Score: 10/10

#4 Ease Of Use

Webull offers the 3 main platforms offered by most brokers which include web, mobile and desktop platforms. Let’s delve further to see whats on offer for you.

Mobile Platform

The mobile platform is available on iOS and Playstore applications. The rating on appstore is 4.7 whereas, the rating on the Playstore is 3.3. The interface for both apps has similar usability however, performance issues such as the slow response time is one of the reasons for the low score for Android users. The usability for Apple users is seamless so far with no performance issues which is evident from the high score.

Web & Desktop Applications

The web and desktop applications are usually different with desktop platforms offering a lot of customisability and power to users. However, for Webull both paltforms are quite similar due to which we analysed them simultaneously.

The web and desktop applications have a similar interface. Both platforms allow you to customize your own dashboards and set price alerts for your chosen assets. Moreover, you can also view clear fee reports for various transactions and activities thus, lending you more control over how you run your trading account.

The Interface In General

The interface of Webull is very detailed.  As you can see from the picture below there are various trendlines to help you keep track of your asset prices. The box and whisker lines tell you about the spreads, quartiles and deviations associated with your asset. However, the view can be slightly cluttered, which may be a little too complicated for individuals that are not from a statistically savvy background.

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.

How We Rank Ease Of Use

Ease of use comprises of the overall user experience provided by a platform. We rank this dimension according to the following criteria:

  • Intuitive Interface Across All Platforms
  • Customizability Options Available To You
  • Advanced Research Tools For Analysis

Having an intuitive interface was ranked as the number one factor by most of our users in considering a broker with a good interface. The options available for customizing dashboards and statistical analysis were also very important factors according to our audience.

Final Verdict On Ease Of Use

The detailed interface coupled with advanced research tools and a whole lot of customizability options means that Webull scores a perfect 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.

How We Rank Deposit & Withdrawal Options

Having a lot of Deposit & Withdrawal options gives you the flexibility to deposit and withdraw fudns in the manner that best fits your needs. We rank this dimension according to the following criteria:

  • Ways in which you can deposit your funds
  • Ways in which you can withdraw your funds
  • Number of options within different Deposit and Withdrawal Types

We look at 3 main options that a broker needs to offer for a perfect score as these are the most commonly used by brokers:

  • Credit/Debit Cards
  • Bank Transfer & Wire Transfer
  • E-Wallets such as Paypal, Skrill and WebMoney

Final Verdict On Deposit & Withdrawal Options

The low number of deposit and withdrawal options plus the fact that you can use means that 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 [email protected]
  • Call them via the telephone
PlatformPros Cons
Live ChatQuick and 24/7 Availabilty None
Phone Detailed Response From Most Correspondents & 24/7 AvailabiltySlow Response
Email  Detailed Response From Most Correspondents & 24/7 AvailabiltySlow Response

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.

How We Rank Customer Support

Customer support plays an important role in getting much needed help. Our criteria takes into account the 3 most pivotal factors considered by our viewers which include:

  • Availabiltiy of Support via Live Chat, Phone & Email
  • Speed & Quality of Response Across Platforms
  • Availability of Customised Support Such as a Dedicated Account Mnager

The customer support dimension is a really important dimension for most of our readers. Hence, we not only take into account all the platforms that are used to provide support but the quality of the support provided and the consumer feedback.

Final Verdict On Customer Support

The broker loses a few points because the response via email and phone can be a bit slow at times. Moreover, the broker does not offer a dedicated account manager like some of the other brokers due to which it loses a few points.

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 in are:

Forex10+
Crypto10+
Stock & ETFs200 +

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.

Forex Options

The broker currently offers around 10 currency pairs, but is in the process of increasing its portfolio in forex. Some of the option that the broker offers include:

EURUSD
GBPUSD
USDJPY
USDCAD
USDCHF
AUDUSD
NZDUSD
USDCNH
USDRUB

All the major currencies such as EUR/USD and AUD/USD are offered which augers well for individuals looking to get started with trading. This is something that can be quite useful for traders who commonly trade these major currencies and want to use the Webull platform to access them.

Webull Stocks & ETFs

You can trade hundreds of stocks and ETFs listed on various stock exchanges. For instance, you could buy stocks listed in

  • NASDAQ
  • DOW Jones
  • S&P Composite Index
  • NSTE
  • NIKKEI
  • NSEI
  • BSESN
  • FTMC
  • T100C
  • TSX
  • HSI

Just to give you anexample of the stocks that are available for you to trade include:

  • Amazon
  • Ebay
  • Facebook
  • Home Depot
  • Intel
  • Microsoft
  • Netflix
  • Nvidia
  • Paypal
  • Walmart

If you are a stock trader you could trade in thousands of stocks then the options that the broker provides are truly wonderful and something worth looking into.

How We Rank Asset Classes

The criteria for ranking asset classes is pretty simple and as follows:

  • Number Of Asset Classes Offered, such as crypto, forex, stocks, ETFs and bonds.
  • Options Provided within each asset class

The more asset classes a broker provides, the more the chance to diversify your portfolio. Diversified portfolios often help in mitigating risk and long term profitability. This is the reason due to whch we give higher ranking and weightage to brokers who give you the option to hedge your risk.

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.

How We Rank Referral Programs

The more rewards a broker gives the higher the score for this dimension. Rewards are a good way for encouraging beginners to start trading with friends and family making the experience enjoyable, due to which we encourage brokers to offer more and more rewards. We also take into account how difficult it is to attain these rewards.

Final Verdict On Referral Programs

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 & Educational Resources At Webull

Demo Account

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.

Educational Resources

The broker has revamped its educational resources to a large extent. For instance, it did not have a lot of resources in lieu of educational books and webinars but it has recently launched quite a few educational resources. The broker offers:

  • Trading Tutorials
  • Articles
  • Webinars

The educational resources mainly consisted of articles that you can read to get an idea of the market and what’s working in 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. This can be slightly disadvantageous for individuals looking to get started with trading.

How We Rank Demo Account & Educational Resources

The purpose of a demo account and educational resources is to train users to make informed decisions. Our crtiteria marks every broker on the quality of training that they provide beginners with. Our criteria is as follows.

  • The demo account should not have a time limit or a paper trading limit to get a perfect score
  • Educational Resources should include tutorials, webinars and online courses to ensure that anyone new to trading can quickly learn and trade profitably

Final Verdict On Demo Account & Educational Resources

The broker covers all the dimensions but misses out on offering online courses for individuals looking to get indepth knowledge due to which it loses a couple of points.

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.

How We Rank Safety & Regulation

If a broker is regulated by a tier 1 broker like the Financial Conduct Authority of UK (FCA), Securities Exchange Commission (SEC), or Australia Securities & Exchange Commission (ASIC) it scores a perfect score. However, if it is regulated from a tier-2 broker like the Cyprus Securities & Exchange it scores an 8. The score for most tier 3 brokers is a 6 and the score for no regulation is 0. Regulation is an important factor for brokers as non-regulated entities can engage in harmful practices for investors that can be detrimental for them.

Is Webull Safe?

Regulation from SEC followed by the insurance from SIPC means that the broker scores a perfect score here because it has to comply with strict rules and regulations to ensure the safety of its users.

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.

Moreover, the email, live chat and phone support are very quick at Capital.com and it only takes a couple of minutes to get a response via phone or live chat whereas, emails usually take an average of 20 minutes to solicit a response from the broker.

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.

Educational Resources

Capital.com has a lot of educational resources to train any kind of trader looking to deal in any kind of asset. Often brokers offer a few basic educational resources for traders but Capital.com does a good job in this regard and it is with you in helping you learn to trade savvily and efficiently. Some of the resources offered are as below:

  • Tutorial videos on using the platform
  • Educational videos on trading different assets
  • Webinars
  • Educational articles

The resources offered to teach you everything from learning how the platform works to educational videos and webinars. Capital.com also offers asset trading training guides.

Training Guides

  • CFD training guides
  • Commodities training guides
  • Indices trading guides
  • Trading psychology guides
  • Shares trading guides
  • Forex trading guides

Capital.com has you covered if you want to start trading an asset that you have not traded before. They also offer 5 courses that are aimed at training beginners and refreshing the knowledge of experienced traders.

Capital.com Online Courses

  • Introduction to financial markets
  • ABC of derivatives
  • Financial instruments
  • Derivatives and risks of trading
  • What are leverage and margin

The online courses are designed for beginners but anyone can benefit from them in learning the basics and good practices and knowledge of the industry.

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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