Webull Review: Trade Stocks, ETFs, Options and Cryptos in 2022

Webull is an investing app that lets you buy and sell stocks, ETFs, fractional shares, options, and cryptos – with no commission and no minimum investment. Learn what Webull’s pros and cons are and if it’s the right investing app for you.

SustainFi   Updated December 20th, 2021

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Rating: Excellent (4.5 / 5)

Summary

  • Minimum: $0
  • Commission: $0 for stocks, ETFs, and options; 1% spread for crypto
  • Account types: individual investment accounts; traditional, Roth, and rollover IRAs
  • Investments: stocks, ETFs, fractional shares, options, crypto
  • Promotion: open a new account and get free stock

Pros

  • Commission-free trading for stocks, options, ETFs
  • Cryptos
  • Fractional shares
  • Great interface in mobile and desktop
  • Margin loans
  • Advanced tools for active traders
  • Free stock if you open an account
  • Paper trading supported

Cons

  • No OTC and foreign-listed stocks, futures, forex, mutual funds, bonds
  • No cash management product / no interest on uninvested cash
  • Not a lot of investor education or research
  • No way to move crypto off the platform
  • No DRIP

What is Webull?

Founded in 2017 and launched in 2018, New York City-based Webull is a broker that lets you trade more than 5,000 stocks and ETFs, as well as fractional shares, options, and cryptos. And you can get a margin loan with a 3.99%-6.99% rate.

The investing app also offers advanced charting and analytics capabilities. You can trade on the sleek mobile app or customize the desktop interface as you see fit. To sum up, Webull is like Robinhood built for more advanced investors.

Webull supports full extended hours trading, which includes pre-market (4 AM – 9:30 AM EST) and after hours (4 PM – 8 PM EST) windows, meaning that you can place orders any time between 4 AM and 8 PM.

However, Webull doesn’t support investing in mutual funds, bonds, futures, or forex. For stocks, you can’t use the platform to buy over-the-counter (OTC) stocks, most penny stocks, or stocks listed on exchanges outside the U.S.

Because Webull targets self-directed investors who know what they are doing, investor education resources and research options are also pretty limited.

If trades other than crypto are commission-free, how does Webull make money? In several ways. Webull makes money on margin loans, interest on the cash in your account, and payment for order flow (PFOF). 

Although most brokers take PFOF to keep trading free, this practice is controversial because the broker is selling your orders to market makers for execution. Your trades are the product they are selling, and trade execution may or may not get worse as a result. If you want a broker that does not accept PFOF, check out Public, another popular, commission-free investing app.

Webull account minimum

Webull doesn’t have an account minimum.

Webull fees and commissions

Webull doesn’t charge a commission for trading stocks, ETFs, and options listed in the U.S. Trades can still incur small fees charged by regulators such as the SEC and FINRA. But Webull doesn’t make money from these fees. And Webull is one of the few brokers not to charge commissions on options trades (though regulatory fees still apply.)

Webull doesn’t charge any fees to open, close or maintain an IRA. And there are no brokerage account-opening or inactivity fees, either.

Fees for short sales

If you decide to sell a stock you don’t own, you need to borrow it from someone else. Borrow is not free because you need to pay the person or institution you are borrowing the stock from. The borrow rate depends on the stock and the timing. Short sale fees are charged daily.

Fees for trading crypto

When you trade crypto, Webull charges a 100-basis point (that is, 1%) spread whether you buy or sell.

Wire transfer fees

Webull currently charges the following wire fees:

  • U.S. domestic wire deposit: $8
  • U.S. domestic wire withdrawal: $25
  • International wire deposit: $12.5
  • International wire withdrawal: $45

Though ACH is free, you can transfer a maximum of $50,000 from your bank account in a day. You can transfer larger amounts with a wire transfer.

Which account types does Webull support?

Webull currently supports:

  • Individual taxable investment accounts
  • Traditional, Roth, and rollover IRAs

(If you need other account types, SoFi, a Webull competitor, supports joint investment accounts and SEP IRAs, too.)

Webull order types

Webull offers all the common order types, including:

  • Limit orders
  • Market orders
  • Stop-loss orders
  • Stop-limit orders

It also offers specialty, conditional orders like one-cancel-the-other (OCO), one-triggers-an-OCO (OTOCO), and one-triggers-the-other (OTO) orders.

Note that during the pre-market (4 AM – 9:30 AM EST) and after hours (4 PM – 8 PM EST) sessions you can only place limit orders.

Webull investing tools

Aimed at active, self-directed investors, Webull is probably best known for its sleek design and intuitive analytics and investing tools, which include:

  • Charts, including bar, candlestick and line charts; also available on mobile
  • Stock screens and watchlists
  • Technical indicators
  • Real-time market data options (Nasdaq Basic, Nasdaq TotalView (paid) & NBBO)
  • A customizable layout
  • Virtual portfolio (paper trading) capabilities
  • Fundamental data like analyst ratings, news, and historical financials

There are mobile, web, and desktop versions.

However, Webull doesn’t offer research (external or in-house) or investor education materials. You will also need to pay for Level 2 market data (Nasdaq TotalView), which gives more detailed bid and offer data. Level 2 data it is currently offered for free to new users for the first three months. After that, Level 2 data costs $1.99/month.

Also, Environmental, Social and Governance (ESG) screens or scores are not supported.

Dividend Reinvestment Plan (DRIP) 

Webull does not currently offer a dividend reinvestment plan. (A DRIP is when you automatically reinvest the dividends paid by stock back into that stock.)

Cash Management 

Unlike brokers like SoFi or M1 Finance, Webull doesn’t have any cash management products. So any uninvested cash will just sit in your account, and Webull will earn interest on it (which is one of the ways they get paid and not charge you commissions on trades.)

Fractional shares

Fractional shares let you invest in a stock or ETF without having to buy the whole share. Some shares are very expensive, and fractional shares limit the amount of money sitting in your account unemployed. Webull offers fractional shares starting at $5.

Crypto

With a $1 minimum, you can buy or sell crypto through the Webull platform. Webull supports many cryptos including Bitcoin, Ethereum, Cardano, Dogecoin, and Shiba Inu. Here is the entire list:

  • Bitcoin (BTCUSD)
  • Bitcoin Cash (BCHUSD)
  • Ethereum (ETHUSD)
  • Litecoin (LTCUSD)
  • Dogecoin (DOGEUSD)
  • Zcash (ZECUSD)
  • Stella Lumens (XLMUSD)
  • Ethereum Classic (ETCUSD)
  • Cardano (ADAUSD)
  • Dash (DASHUSD)
  • Shiba Inu (SHIBUSD)
  • Basic Attention Token (BATUSD)
  • Chainlink (LINKUSD)
  • Uniswap Protocol Token (UNIUSD)
  • Algorand (ALGOUSD)
  • Polygon (MATICUSD)
  • Sushi (SUSHIUSD)
  • Avalanche (AVAXUSD)
  • Terra (LUNAUSD)
  • REN (RENUSD)
  • Solana (SOLUSD)

More cryptos should be added in the future. Crypto trading is not currently offered in New York State.

Importantly, Webull won’t let you transfer crypto in and out of your account. So if you need to get it out, you will have to sell it first.

Margin loans from Webull

Margin loans let you borrow against your investments. You can use margin to increase your trading power. To be eligible for a margin loan from Webull, you need to have at least $2,000 in your account. Interest on your loan is calculated daily and is payable monthly. How much you pay depends on the size of the loan. Here are the current rates:

Margin loanAnnual margin rate
<$25,0006.99%
$25,000-$100,0006.49%
$100,000-$250,0005.99%
$250,000-$500,0005.49%
$500,000-$1 million4.99%
$1 – $3 million4.49%
> $3 million3.99%

Note that if you day trade on margin, you need to have at least $25,000 in your account. Otherwise, FINRA, a regulatory body, limits you to less than four trades in a five business day period. (This regulation is called the Pattern Day Trader Rule.)

🔔 Interested in other options? Check out M1 Borrow, which offers margin loans at only 2.0-3.5%.

Promotion: Get free stock

Webull is currently offering free stock when you open an account. They pick stocks to give you from an inventory of U.S.-based and NYSE or NASDAQ-listed companies with at least $2.5 billion in market capitalization. You are free to sell it if you don’t like it and buy something else.

Is Webull safe?

Webull Financial LLC is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Besides, it is a member of the SIPC, which protects your money if your brokerage goes bankrupt. SIPC protection goes up to $500,000, including $250,000 in cash. (SIPC does not protect you if you make bad investments that lose value!)

Webull’s clearing firm, Apex Clearing, has extra insurance for up to $150 million in total. An individual investor can get back up to $37.5 million for securities and $900,000 for cash.

💰 Is Webull right for you?

  • Webull is a great choice if you are an active investor who likes a sleek interface and trades mostly U.S.-listed stocks, ETFs, options and cryptos. You can also place paper trades and learn that way, too.
  • Webull is not a great choice if you are a complete beginner and want access to a lot of educational materials and resources. In that case, a robo-advisor like Acorns may be the better choice.
  • Likewise, Webull is not the best broker if you want access to mutual funds and fixed income. In that case, a more traditional brokerage like Fidelity, could be a better fit.

🔔 Interested in other options? Check out the top 10 investing apps.

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NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.

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