Webull Review 2022: Pros, Cons and How It Compares

Webull at a glance

About Webull

Webull is a commission-free online stock trading platform. Webull offers advanced trading tools and charting that allows you to easily trade the markets.

Webull was founded in 2017, which makes it a very new trading platform. However, they already have more features and a better platform than many other trading platforms that have been on the market.

Webull has over 115,000 reviews on the App Store and Google Play combined with a total rating of 4.5 out of 5 stars. The app is highly praised for its intuitive features and remarkably easy interface.

How Webull works

The basics

When you think of Webull and how it works, do not compare it to services like Acorns. With Acorns, your money is being invested in the stock market, but you do not have control over how it is being invested. Everything is automatically done for you.

That is not the case with Webull. Webull is an online trading platform designed for experienced investors and active traders.

With Webull, you have 100% control over your portfolio and what you are buying and selling.

Webull can be used by active day traders who buy and sell stocks intraday, or it can be used by long term investors who are building their portfolios for retirement.

When you open your Webull account, there are two types of accounts you can choose from: a margin account and a cash account.

These are two very different types of investing accounts, and it’s important to know the difference before investing with Webull.

Let’s go over both

Margin account trading

A margin account is quite literally an account that trades with margin. But what is margin?

Margin is essentially borrowed money that allows you to buy more securities, such as stocks and ETFs.

Brokers offer different amounts of margin, some more than others. For example, Webull offers 4x margin on margin trading accounts. This gives you 4x the buying power.

Say you have $2,000 cash to trade. With a 4x margin account, you now actually have $8,000 worth of buying power.

This means any money that you earn (if using the full margin) will basically be multiplied by 4.

You can see how trading with margin can be quite advantageous. However, it can also be very risky.

Just like you can increase your returns, you can also magnify your losses. It works both ways.

It’s also important to mention that Webull has a $2,000 account minimum for margin accounts. This means if you only have $100 to invest, you cannot open a margin account. You’ll instead be required to open a cash account.

Additionally, if you are trading with a margin account under $25,000, you’ll be subject to the pattern day trading rule. This simply means that you can only take 3 day trades in a 5 day period. If you take more trades, you’ll be penalized and run the risk of getting your account closed.

Cash account trading

Unlike a margin account, with a cash account, you can only trade and invest with the money you have in your account.

If you deposit $500, you can only trade with that $500. Additionally, there is a settlement period after you sell a position.

For example, if you buy $300 worth of stocks and then sell, that $300 won’t be available to use again immediately. It will take 2 business days for the cash to settle.

Cash accounts are not subject to the pattern day trading rule. 

Unlike a margin account which only allows you to take 3 day trades in a 5 day period for accounts under $25,000, cash accounts are different. You can take as many trades as you want, as long as the cash is settled and available for use.

Webull fees and pricing

For starters, Webull is 100% free. That’s right, you can use the Webull trading platform completely free, forever.

They have $0 commission on all trades and $0 fees on options.

So how do they make money? Here are the exact words by Webull:

“We make money the same way every other broker makes money, but with one less revenue line item: commissions…”

In other words, Webull makes money on everything except commissions. The margin that they offer on margin accounts is charged interest daily.

Here’s a table showing how much interest is charged on your margin account—the rate decreases with larger accounts.

It’s important to mention that this interest is only charged on margin accounts. If you are using Webull with a cash account, you will not be charged any interest.

Also, fees are still applied by the SEC, FINRA, and OCC. However, Webull is not profiting off these fees, they are simply required by the regulatory agencies. For more details on this, go to Webull’s pricing page.

Webull features

Webull has a handful of features that makes it stand out from the competition. Let’s go over each individually so that you can better understand what to expect when using Webull.

Stock trading

Webull allows you to invest in thousands of companies using their state-of-the-art tools and analytics.

Unlike services like Acorns, Webull is a full-fledged trading platform. This means you can actively day trade stocks on the stock market down to the penny.

If you aren’t an active day trader, you can still use Webull to build your long term stock portfolio.

Webull offers free access to its fully customizable trading platform, which includes features such as a watchlist, charts, time and sales, Level 2, and more.

Execute market, limit, and stop loss orders. Go long or short on a stock. Even trade penny stocks if that’s your thing.

Options trading

Webull allows you to trade options with $0 commissions, $0 contract fees, and $0 assignment or exercise fees.

Most trading platforms, including Fidelity, Charles Schwab, and Merrill Edge, will charge you contract fees and options commission. These costs can cut into your profit.

With Webull, you can keep all of your profits.

Options are a powerful investment tool that gives you the ability to leverage the extreme risks of trading the markets.

ETF trading

ETFs provide instant diversification to your portfolio by investing in a group of stocks instead of a single stock.

They are especially great to add to your portfolio or IRA for long term investments.

With Webull, you have access to trade hundreds of ETFs, including popular funds like the SPDR S&P 500 ETF (SPY), Vanguard S&P 500 ETF (VOO), and the Invesco QQQ ETF (QQQ).

Cryptocurrency trading

Webull allows you to trade digital currencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

They are certainly not the first trading platform to offer this. However, if you are already using Webull to trade stocks and manage your portfolio, it’s nice to have the option available.

IRA accounts

Webull offers three different IRAs:

• Roth IRA
• Traditional IRA
• Rollover IRA

An individual retirement account (IRA) is a specific type of investment account that allows you to invest for retirement.

It’s virtually the same as an investment account. The major difference is that an IRA has huge tax advantages that aren’t present with a regular investment account.

For example, with a Roth IRA, any interest that you earn on your investments in the account are not taxed. This means you could make $1 million in your Roth IRA, and none of it would be taxed.

Extended trading hours

Webull offers extended trading hours, which includes full pre-market (4:00 AM – 9:30 AM ET) and after hours (4:00 PM – 8:00 PM ET).

If you are an active trader, it’s a nice bonus to have extended trading hours.

Sometimes a company won’t release news until after 4:00 PM when the market closes or before 9:30 AM when the market opens. Having the advantage to trade a stock immediately after a news release can help you get a good position before the market opens.

Paper trading

Webull offers free paper trading. Paper trading is basically real trading, except with fake money. This means you can practice trading on the real markets, without the risk of losing real money.

Paper trading should be a prerequisite for any new traders. You should not trade on the stock market with real money until you have proven that you can make money using fake money.

When I first started trading on the markets a few years ago, there were no free paper trading services. I had to pay a premium each month to practice trading.

However, with Webull, you can do it 100% free.

Webull alternatives

You’re considering using Webull, but you still want to explore some other options. Here’s a list of Webull alternatives that you can look into.

Robinhood

Sign up for Robinhood today.

Sign Up

M1 Finance

See our full M1 Finance review here.

Sign Up

Stash

See our full Stash review here.

Sign Up

How to sign up for Webull

Webull is available on both Apple iOS and Android devices and can be downloaded from the App Store and Google Play. You can also use it on your computer’s browser and download it as a desktop platform on your computer.

For me, unless I’m checking my positions or absolutely have to make trades on-the-go, I’ll typically use the desktop application on my Mac to manage my positions.

Signing up for Webull is easy. Here are the steps you need to take to get started.

Create your Webull account

Creating your Webull account is easy and shouldn’t take you more than 10 minutes to complete. 

Whether you are signing up for Webull via a mobile app or on your computer, both processes are the same.

Here are the exact steps you need to take.

Step 1: From the Webull signup page, you can either sign up using your email or phone number.

You’ll need to confirm your email or phone number, so be sure to use real information.

Step 2: After you confirm your email or phone number, you’ll be taken to a page with a button that says Open Account. Hit this button to continue.

Remember, you’ll receive 2 stocks when you sign up—one for opening your Webull brokerage account and another for making an initial $100 deposit.

The first stock is valued between $2.50–$250. The second stock is valued between $12–$1400.

Step 3: Continue through the application process. The entire process should take you about 10 minutes. Webull will ask you for personal information, including your social security number.

You shouldn’t be alarmed by this. Webull is required by law to get this information from you to legally open a brokerage account in the US.

You’ll also be required to upload an image of your driver’s license or a form of valid identification. Again, this is for your own safety to verify your identity.

Step 4: Once you’ve completed the registration process, you’ll have to wait for Webull to approve your account.

Again, because Webull is a brokerage account, there are additional steps that need to be taken to ensure that you are who you say you are.

Account approvals usually take about an hour on business days. If you apply for an account after hours or on the weekend, it can take longer.

Step 5: Once your account has been approved, you’ll need to connect your bank account to fund your Webull account. This can also take a couple of days.

Who is Webull best for?

Active stock traders

Active traders will appreciate Webull’s intuitive trading platform, fast execution times, free trading tools, and feature-rich charting.

If you actively trade stocks—that is, day trade, swing trade, trade penny stocks, etc—then Webull is perfect for you.

As an active trader, you need a trading platform that is fast, easy to use, and stable. Nothing is worse than your trading platform freezing on you mid-trade during a breakout.

Webull, although relatively new, has very stable software that can be used anywhere. Download the mobile app and trade on-the-go. Download the Webull desktop application or open the Webull web platform and trade from your favorite browser.

You’ll also get access to extended trading hours, which means you won’t ever miss out on early morning or late evening opportunities.

Experienced investors

As an experienced investor, you already know how to pick your investments, diversify your portfolio, rebalance it, and manage it.

You aren’t interested in paying for unnecessary subscription fees for services that automatically manage your portfolio on your behalf.

Because of that, Webull is perfect for you. With Webull, you aren’t paying any subscription fees or hidden costs. Webull even offers $0 commission trades.

Manage your portfolio from Webull’s intuitive online web platform. Trade stocks, options, ETFs, and crypto-currencies. And manage your portfolio anywhere with Webull’s mobile app.

Who should not use Webull?

New investors

If you are a new investor, Webull may not be the best option for you. As a new investor, you aren’t experienced in the markets yet. Therefore, you don’t need to risk losing any money by managing your own portfolio.

Instead, you should use a service like M1 Finance or Stash. With those services, you can choose from pre-built expert portfolios and have your investments automatically rebalance themselves.

Once you are more experienced and have had enough time to learn, then you can switch to a brokerage like Webull.

Investors wanting a robo-advisor or automation

If you want to invest your money, but would prefer to have someone else (or something else) manage it for you, then Webull is not the service for you.

Webull is built for investors who need maximum control and flexibility. There is no automation or robo-advisory services. For that, you should look at services like M1 Finance or Stash.

Is Webull worth it?

Yes, Webull is definitely worth it.

If you are seeking a new trading platform to manage your investments or day trade, Webull is one of the best options.

With $0 commissions on trades, and $0 fees, and the option to trade basically any kind of security, using Webull is a no-brainer.

Plus, when you sign up using any link in this review, you’ll get 2 free stocks valued between $2.50–$1400.