Webull Review 2022 – is this a good option? That will be the topic of today’s article.
Discover Webull’s offerings and decide if it’s the right fit, comparing it with insights from the Dominion Capital Strategies Guernsey Review.
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Webull:
Webull is an online brokerage firm that primarily concentrates on commission-free trading. Most people might already have been familiar with their marketing campaigns from YouTube and Facebook.
Webull is said to have the lowest fees when compared to most other online brokers in the respective category. It is also known for having an availability of advanced trading tools in its platform.
Regardless of the low costs, it offers to the investors, Webull is considered an ideal brokerage form for beginner-level investors.
Being a fintech startup company based in the United States, Webull was originally founded in the year 2017.
Webull is one of the safe online brokerage firms available as it is regulated by the United States Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA).
Adding to that, another aspect that makes it become a safe brokerage firm is that Webull offers up to $500,000 as investor protection, while $250,000 is specifically for cash under the protection of Securities Investor Protection Corporation (SIPC).
Let us take a look at each of the individual aspects of Webull and get to know about it in a more detailed way.
Ratings:
BROKERCHOOSER – 4.4 out of 5
StockBrokers.com – 3.5 out of 5
Nerd Wallet – 4 out of 5
Warrior Trading – 4.8 out of 5
Benzinga – 4.5 out of 5
The College Investor – 4 out of 5
Money under 30 – 4 out of 5
Fool – 4 out of 5
Account:
Opening an account – Opening an account with Webull is considered a hassle-free process, which is fully digital. The account verification process at Webull takes less than a day.
Adding to that, there is no minimum deposit amount required to be deposited in order to create an account at Webull.
In the majority of the cases (almost all cases), the account can only be opened by a person residing in the US and China.
Account Types – There are two account types offered by Webull namely Cash and Margin Accounts. There is no availability of Joint Accounts, IRAs, Custodian Accounts, or Corporate Accounts.
Cash Accounts at Webullrequire $0 as a minimum deposit. The details regarding leverage, short sale, and day trading for this account are not known.
Margin Accounts with short sale and limited day trading require $2,000 as a minimum deposit. The leverage is up to 2:1 for the positions that have been held overnight and for day trading, the leverage is 4:1.
Only 3 trades per week are allowed if you choose to have a Margin Account with short sale and limited day trading.
Margin Accounts with short sale and unlimited day trading require $25,000 as a minimum deposit. The leverage is up to 2:1 for the positions that have been held overnight and for day trading, the leverage is 4:1.
Unlike the former type of margin account, this account offers unlimited trades. For both types of margin accounts, short positions are allowed.
Procedure – Accounts can be opened at Webull within a short timespan as low as 1 day.
An account can be opened with the help of Webull’s web-based platform, desktop trading platform, or mobile trading platform. The procedure is given below:
- First install the Webull application. After that, you can start registering for an account using the account menu in the Webull app/platform.
- By clicking on the ‘Login’ screen, you get the option for signing up.
- During the process, Webull requires you to provide your personal information such as your name, date of birth, social security number, residential address, etc.
- You would also be needed to fill in the information related to your employment, financial experience, and financial situation.
- You can verify your account by submitting a photo of your national ID or your passport.
- Then, you would be asked to choose the type of account you desire to have (cash account or margin account).
- After completion of these steps, review your application and then submit it.
Deposits and Withdrawals at Webull:
The only base currency that can be used for either making a deposit or a withdrawal is the US Dollar. This is a little bit of a disappointment as online brokerages like Fidelity have the availability of various base currencies.
When you fund your account with the same currency as the base currency, you won’t be needed to pay the currency conversion fees.
You can also avoid the currency conversion fee if you trade with assets using the same currency as your base currency.
We suggest that it would be better if you choose to have a multi-currency bank account, which is generally offered by a digital bank such as Revolut.
Deposits:
There are no deposit fees when you make a deposit using an ACH transfer. However, a fee of $8 will be charged in the case of domestic wire transfers and $12.5 in the case of international wire deposits.
People who are not from the United States can only be able to deposit money using wire transfer only.
Adding to that, there is not even availability of credit/debit card or e-wallet option for depositing money.
The time taken for ACH transfer is usually around 5 days depending on certain conditions. Wire transfers are said to be completed within 1 day as reported by Webull itself.
ACH transfer has a limit of $50,000 per transaction, while there is no limit for wire transfers.
Depositing funds into your account at Webull is an easy process, however, it can only be done with the help of their mobile application. Webull states that it is currently working on adding this feature to the web and desktop platforms as well.
Money can only be deposited from your account if that account has been linked with your online brokerage account.
Withdrawals:
Similar to the deposits, withdrawals also charge no fees when it has been done with the help of ACH transfer.
The domestic wire transfer fee for withdrawal is $25 and international wire transfers generally incur a fee of $45.
It takes 2 days for withdrawing your funds from a Webull account. Apart from that, there is a holding period of 7 days for ACH transfers and 1 day for wire transfers.
Another major issue here is that the funds should be withdrawn to an account that is under your name. In case it has been withdrawn to another account, there will be a 60-day holding period because of the regulatory compliance.
Trading Platforms:
We already discussed that all the three trading platforms (mobile, web-based, and desktop) are available at Webull.
The mobile trading platform was the first platform that was launched by Webull, after which the web and desktop trading platforms were added.
Web-based Trading Platform:
The web trading platform of Webull is simple and very easy to use. Some of the beginner-level traders, as well as advanced traders, can use it easily while having unique features.
The web trading platform of Webull is available in English and Chinese languages only. The workspace of this web trading platform is highly customizable.
However, the web platform does not have a two-step login feature, which would have been a great additional feature for security if it was added.
The search functionality is good, where you can find the relevant details by typing the company’s name or asset’s ticker. To make it better, there is an autosuggestion feature as well.
There are a wide variety of order types within the web platform namely:
- Market
- Limit
- Stop
- Stop limit
- Bracket orders (take profit, stop-loss)
Additional order types including Good ‘til canceled (GTC) and Day are also available.
The portfolio and fee reports are very clear and can be accessed from the Account menu. Alerts and notifications can be set for a price or any other financial indicator.
Mobile Trading Platform:
As we mentioned already, the mobile trading platform was the first trading platform of Webull. The mobile app of Webull is known to the best of its kind among other competitors.
Webull’s mobile app is available on both ‘Google Play Store’ as well as ‘App Store’. Similar to the web platform, the mobile platform is also available only in the languages of English and Chinese.
The design of the mobile platform is exceptional and very easy to use. A two-step login feature is available, which can be accessed from the Settings/Account & Security. Once you opt for this, you will get a security code via text message every time you log in.
The search function of Webull’s mobile app is also quite good, while the order types and alerts are the same as the web platform.
Desktop Trading Platform:
The desktop trading platform of Webull is the same as that of the web trading platform.
Markets and Products:
Markets and Products on Webull are limited and we can’t be able to invest in assets such as funds, bonds, forex, CFDs, etc.
Even though Webull offers stocks and ETFs, which are the investment vehicles that most US brokers prefer to trade, rival firms such as Interactive Brokers and Fidelity offer access to international stock exchanges.
3 stock markets and 2,300 ETFs in the US could be accessed with Webull. People can only trade stocks listed on NASDAQ, AMEX, and NYSE. They can’t trade with low priced stocks (also called penny stocks) or OTC products.
There is no specific information related to the options exchanges that can be accessed using Webull.
Research:
The research tools are provided by Webull on all three trading platforms. Webull even offers trading ideas for convenient trading.
These trading ideas are available when you click on the ‘Analysis’ tab. By doing so, you can watch the opinions of analysts that are related to buying, holding, or selling an asset.
Fundamental data is also presented by Webull to make it a bit more convenient. This fundamental data includes fundamental ratios as well as EPS or EBIT for the past 5 years.
The charting tools of Webull are just average. Charts can be edited easily, however, only 10 technical indicators are made available.
The news feed is also just average because it does not provide prioritized crucial news updates, which could be more helpful for the traders.
The stock screener tool of Webull is a good one, with the help of which, you can use filters such as basic company information to financial indicators.
Another interesting aspect of this stock screener tool is that it can be used for some non-US stock markets such as stocks on the Indian Stock Exchanges and Chinese Stock Exchanges.
Webull consists of some other advantageous tools as well. The social ‘Newsfeed’ tool available on the mobile app lets you post updates and trading tips.
The ‘Rewind’ button gives a flashback of price movements for a period of the past 30 days. There is also a feature called contests, with which Webull provides offer stock prizes along with some other incentives.
Education:
Webull provides a demo account and some educational content. Apart from that, there are no additional educational tools.
It would have been great if educational tools like trading platform tutorial videos, educational videos, and webinars were provided. The presence of such toll would come in handy for beginner-level traders.
The demo account provides almost all the features that a person can access with the help of a real-time account of Webull.
Even though the educational content is provided, it doesn’t get updated on a frequent basis. People who have doubts concerning the brokerage services can find relevant information via the FAQ section.
Customer Support:
The customer service of Webull is not as efficient as the support provided by some other online trading platforms. To put it simply for you, one of the huge drawbacks of Webull is its customer support.
Webull’s customer service representatives could be approached with the help of their email, phone number, or message center. It would have been better if there was a live support option in Webull’s trading platforms.
Moreover, many customers were dissatisfied with the phone and email support of Webull. The phone support is usually slow, and the emails didn’t often get a response from the support team.
When opted for phone support, the traders would still have to wait for another 5 minutes to get connected with a representative.
Safety:
We have already discussed the safety of Webull in the beginning. However, as far as we are concerned, Webull doesn’t have negative balance protection or a banking license. Adding to that, Webull is not even listed on a stock exchange.
Fees:
When it comes to online brokerage firms, fees are the most important aspect. Webull is definitely a good option based on that aspect because it offers commission-free trading for US-based stocks, ETFs, and Options.
Adding to that, there is no withdrawal fee for ACH transfers and no inactivity fees. Anyhow, wire transfers incur a higher amount of fees.
To find out more details about the fees charged by Webull, let us have a general understanding of the types of fees.
There are two types of fees when it comes to trading with the help of an online brokerage firm, i.e., Trading fees and Non-Trading fees.
Trading fees are the fees that are associated with the trading activity within an account. Examples of trading fees are commissions, spreads, conversion fees, financing rates, etc.
On the other hand, non-trading fees are the type of fees that are not linked with the trading activity, such as withdrawal fees and inactivity fees.
Trading Fees:
Stock and ETF fees – Webull does not charge commissions on the trading activity related to stocks and ETFs. Some other competitors like Robinhood do not charge commissions on stock trades and ETF trades as well.
Margin Rates – When you are trading on margin, it generally means that you are borrowing from your online broker for buying more shares than that of what can be bought with just the money you have in your account.
For this borrowed money, you will be required to pay an interest rate that is known by the name of Margin Rate. This rate can sum up to a considerable amount of your trading fees.
The margin rate at Webull is 7%, which is higher than the margin rate at many other online trading platforms. The margin rate is generally determined on the basis of the margin loan amount.
Given below is a table that demonstrates the margin rates for the respective margin loan bracket.
| Debit Balance | Margin Rate |
| Below $25,000 | 6.99% |
| $25,000 to $100,000 | 6.49% |
| $100,000.01 to $250,000 | 5.99% |
| $250,000.01 to $500,000 | 5.49% |
| $500,000.01 to $1million | 4.99% |
| $1,000,000.01 to $3 million | 4.49% |
| More than $3 million | 3.99% |
Options fees – To trade with options, Webull does not charge any commission.
Non-Trading Fees:
Account fee – $0
Inactivity fee – $0
Deposit fee – $0
Withdrawal fee – $0
Wire Transfer fees – The wire transfer fees while trading with the help of Webull are as follows:
| Type | Fees per transaction |
| US domestic deposit | $8 |
| US domestic withdrawal | $25 |
| Non-US deposit | $12.5 |
| Non–US withdrawal | $45 |
In case you wanted to transfer securities out of your account, Webull charges you a fee of $75.
Advantages and Disadvantages:
By keeping all the aspects in mind, let us take a look at the advantages and disadvantages of Webull.
Pros:
- Commission-free trades for ETFs, Options, and Stocks.
- Easy account opening process.
- Excellent trading platforms.
- ACH transfers are free, whether it is for funding or for payouts.
- No minimum deposit required.
- Availability of trading ideas as well as other fundamental data.
- Message center is an effective way to communicate with the customer service representatives and get the necessary information.
- Demo Account and Education Content.
- High-level investor protection.
- Most of the clients of Webull belong to a top-tier financial authority.
Cons:
- The products and markets at Webull are limited.
- No live chat
- Poor phone support.
- Poor email support.
- No credit card/debit card option for making deposits or withdrawals from a Webull account.
- No availability of using e-wallets for deposits or withdrawals from a Webull account.
- Higher amount of wire transfer fees per each transaction.
- Mostly convenient for the US-based traders, Chinese traders might also find it useful.
- Only one base currency, which is the United States Dollar (USD).
- No two-step login feature for web trading platform or the desktop trading platform.
- Interactive charting is limited.
- Newsfeed is poor.
- No availability of trading platform tutorials, webinars, or videos containing educational content.
- Negative balance protection is not offered to people who trade using Webull.
- Doesn’t hold a banking license and isn’t listed on a stock exchange.
- Even though educational content is provided, it is of poor quality.
- People cannot trade with certain types of investment vehicles such as mutual funds, bonds, etc.
Our Verdict:
First of all, if you are a beginner-level trader with minimum to no experience in trading, Webull might be a little bit complicated for you due to la ack of good educational tools.
Webull is mostly suitable for active traders or traders with intermediate to advanced-level knowledge of trading. Unless you have a diversified portfolio with long-term assets, you might not be able to benefit much from it.
Intermediate traders can pick up the pace with their trading skills with the help of advanced orders and technical analysis offered by Webull.
Just like Robinhood, Webull has gained a lot of following among traders over the recent period. The major reason for this is them being one of the best online brokers that offer commission-free trades.
When compared to online trading platforms such as Robinhood, Webull is definitely advantageous. When compared to some other players in this category, we can say that Webull is outmatched.
It still has to improvise a lot and offer many useful features in order to compete with the main players in the online brokerage firm industry.
Webull is just a young brokerage firm that started in 2017. One of the main aspects that determine the ability of a trading platform is its presence. The longer a firm operates, the more financial crises it sustains.
Keeping that in mind, we still have to figure out whether Webull will be able to compete with other major online trading platforms.
Finally, what we have to say is that Webull is excellent in certain aspects while it still needs improvement in some aspects.
By reading this article, you might have understood whether or not you find Webull advantageous for you. Our verdict might also come in handy for you while you are thinking about choosing Webull or not.
That being said, if you need a financial planner/wealth management advisor to handle your assets or manage your investments, you can get access to the best financial services that we offer, by just clicking below.
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