How Much Does Webull Level 2 Cost

How Much Does Webull Level 2 Cost

Webull is one of the newer online brokers, forming in just 2017 and launching with just a mobile app in May 2018. This mobile first launch was reflective of Webull’s most important target market: millennials. Webull is positioning itself to serve newer and more active traders, and others drawn to a platform offering a broad range of services for free, including no account minimums, commission free trading of stocks/ETFs and their options, and multiple cryptocurrencies. Webull does skew towards the self-directed investor, with a less comprehensive offering than full service competitors. Webull customers still get a lot for their money. Webull offers a great platform with many useful tools and features as well as competitive margin rates. We will take a detailed look at Webull in order to help you determine if it is the right broker.

Webull was Investopedia’s winner for Best Broker for Low-Cost Options Trading, Best Low-Cost Day Trading Platform, and Best Low-Cost Options Broker in our 2021 Best Online Brokers Review.

KEY TAKEAWAYS

  • Webull does not charge commissions for stock, ETF or option trades. There are no minimum account requirements. Margin trading is available for accounts with a minimum of $2000.
  • Webull offers stocks, ETFs, options, and cryptocurrencies. This smaller selection of assets is meant to serve a client base that skews towards younger, self-directed customers comfortable with technology and wanting information on the go.
  • Webull is simple to use and offers excellent trading functionality. It also has a wide range of tools and functionality, including news and fundamental analysis and stock screeners.
  • Webull is not the broker that people should use if they are looking for more products such as managed accounts, mutual funds, fixed income, and mutual funds. Investors who prefer working with an investment advisor and want access to live trading assistance should look elsewhere.
  • Fractional cryptocurrency trading is possible in multiple cryptocurrencies including Bitcoin, Dodgecoin and Bitcoin Cash.

Who Webull Is For

Webull is an investment platform that allows investors to trade without commissions and open up new avenues for trading. Webull is not a full-services broker, so its customers need a bit of a DIY approach on some aspects of portfolio management. Webull customers have skewed younger than at other brokerage companies. The broker’s no cost model will also appeal to active traders. In particular, Webull’s free options trading will catch the attention of active options traders because other brokers, even those that have gone to free stock and ETF trades like Schwab, continue to charge commission on each leg of options trades.

Pros

  • There are no commissions for stocks/ETFs, options or cryptocurrency
  • No minimums or fees, easy account setup
  • Free real-time streaming quotes
  • Simple to use platforms that provide excellent content and tools
  • Access to extended hours and pre-market trading

Cons

  • Excess cash does not earn you any income
  • Potential give up on execution due to payment for order flow (PFOF)
  • Limited range of tools for portfolio management
  • Access to fixed income, mutual funds or foreign exchange is not available.

Pros Explained

  • Everyone wants something for free, and that is exactly what Webull delivers. No commission stock, ETF, option, and cryptocurrency trading is particularly appealing to traders that don’t need their hands held. Trading strategies are easier to profit from because they have lower implementation costs.
  • It takes only a few minutes to open an account. It takes only a few minutes to get approval for account and options trading. You can also add your bank account or set up an ACH transfer free of charge in a matter of minutes. Even though the transfer might not be completed for several days, you will receive purchasing power.
  • Webull offers free real-time streaming quotes, and a three month free subscription to Level 2 Advance quotes. This service is Nasdaq TotalView and provides more information about market depth as well as a deeper range of bids and questions on security. There is also auction crossing information for all NASDAQ-NYSE and regional listed stocks on NASDAQ Market Center.
  • Webull’s desktop and mobile application platforms are relatively new, so it has a fresh, intuitive design and is easy to use. All the tools available are free and packed with useful tools to trade. You can access news and fundamental information about companies through the customizable workstation platform. Charting is available, as well as watchlists, stock screeners, charts, aggregate ratings and aggregate ratings from multiple analyst. Despite all the information, it is organized in a way that makes it easy to use.
  • Many active traders like to trade the market in the pre and/or extended hour trading periods, and Webull customers have the ability to access these hours. Traders can choose whether they want their orders active during the non-regular trading day times.

The Cons

  • Webull customers receive no interest on cash balances in their account. As Webull doesn’t support mutual fund trading, customers can’t proactively invest their unused cash in a money market fund. In today’s low short-term interest rates, this may not seem to be a problem. However, the potential loss of interest on cash could be more apparent if rates rise.
  • Webull can offer trading and all other services for free because it receives payment for order flow (PFOF). This fact may reduce Webull’s price execution quality. This is not a major issue for most traders today, but it may be a problem for day traders or those who rely on execution quality to fill orders quickly and accurately.
  • While Webull provides a lot of helpful tools for traders on its platform, the portfolio management tools are lacking. Customers of Webull are expected to be able to make their own trading and investing decisions. There are no intra-day or daily market letters and no analyst reports or research on stocks other than aggregated analyst statistics. Webull does not offer financial advisors, recommended portfolios for rebalancing, control of tax lots on sales, or offer a dividend reinvestment program (DRIP). Webull currently doesn’t offer fractional shares. However, the broker stated that they are working on adding fractional stock shares.
  • Webull offers a wide range of stock, ETFs and options, as well as cryptocurrencies. There are no fixed income investments, mutual funds, international equities, futures, or foreign exchange offerings at Webull. You get what you see.

Useability

Webull is easy to use, with clean and intuitive navigation. Webull has a website, a desktop workstation, and a mobile app that are all similarly well designed. Because they were built so recently, the platforms have a modern look.

The website and desktop workstation are almost identical. They share the same menu and window layout. This main set of buttons is located on the left side of your screen. These buttons launch customizable quote boards, a stock page with a wealth of information on a single stock or ETF, a broad market overview page, a stock screener, a trading screen that is highly customizable on the desktop platform, an account tab showing balances, positions, buying power, performance, risk level related to margin leverage, access to bank transfers into and out of the account, and a dedicated paper trading area. The website has some differences from the workstation. It only supports single-leg options.

The mobile app uses primary features in a way consistent with the website and workstation, but there are design differences to handle the smaller screens the app is used on. The app screen’s menu buttons are updated to reflect the current content. For example, an options button appears as a choice at the bottom of the stock screen showing an individual stock/ETF.

You can easily create watchlists across all platforms from stock screener results. Watchlists also remain consistent between the desktop, web, mobile app, so you don’t need to set these up on multiple platforms. Order entry is straightforward, and traders can even customize trading ticket information such as order type and share amounts they most commonly use.

Trade Experience

Webull’s workstation can be customized to suit your needs. There are templates for day trading, stock trading, ETF trading, options trading and cryptocurrency trading. Traders can switch between these different template pages, and can build their own page layouts from scratch through widgets. Each widget contains different information such as news, basics, options, order entry, sales, time, and so forth. The widgets can be combined to save screen space, with the different widgets accessible through marked tabs at the top of the window. Widget windows can also be grouped together so a stock entered in one of the widgets will automatically update in the other widgets in the group.

Trading setups allow for highly customizable user experiences, such as hot keys, home page loaded at startup, default stock, option orders and commonly used share quantities. You can do the most customization and flexibility on your workstation. The website did not have all of the trading page templates available on the workstation, and the learning center was not accessible from the website. When necessary, the system will direct you to other pages, such as the stocks window, which allows you to view stock-specific information, news and charting.

It is easy to enter an order through Webull. The order screen can be added to different screens, and the stock order entry screen includes contingency orders for stop loss and/or profit taking levels. You can also create order tickets directly from the account holdings, and clicking on the bid or offer of a market will automatically enter that information into the trade order widget. Trading was also available directly from the charting program, with active positions and orders clearly shown on the chart.

Mobile Trade Experience

Although there are minor differences between the workstation and the website, there is an overall consistency across all platforms. Although the mobile app offers the same basic features of the website and the workstation, there are some design differences that allow for smaller screens. Menu buttons adapt along with the content screen you are on, serving up the main functions that you are likely to need. Mobile charting allows you to trade directly from the chart and shows you your open positions. Webull’s drawing tools are also much easier than many other brokers’ mobile charting software. Although the Webull stock screener is not available on the mobile app, you can convert search results from the website or at work into a watchlist which will be synced to the app.

A wide range of offerings

Webull focuses on U.S. Stock and ETF trading, and U.S. listed options and offers only personal and IRA accounts in the United States. Although Webull’s product offerings are not as extensive as full-service brokers, they can meet the needs for younger customers who are less interested in fixed income. Webull allows trading in multiple cryptocurrency for as low as $1, which is a departure from many full-service brokers. There is no fixed income, mutual fund, futures, or traditional foreign exchange trading available. Webull investors can trade the following:

  • US listed Stocks/ETFs long and short (2,085 stocks are currently on Webull’s easy to borrow list for short sales
  • US Listed Options on stocks and ETFs
  • Cryptocurrency trading with Bitcoin, Dodgecoin and Bitcoin Cash, Ethereum, Litecoins, ZEC, and XLM
  • Note: NY State is the only US state that has not yet approved cryptocurrency trading on Webull, but the company expects the approval shortly.

Types of Order

Webull offers the most commonly used order types, including market, limit, stop, stop limit, and trailing stops. There are also specialty orders such as one-cancel-the-other (OCO), one-triggers-an-OCO (OTOCO), and one-triggers-the-other (OTO), allowing traders to setup a conditional order where a filled limit order establishes an OCO attaching both a stop loss and a profit taking level order once the initial position is established. Webull does not offer market-if-touched, market-on-close, or similar orders.

Webull doesn’t offer traders control over tax lots on sales to close a long stock position; they use the first in, first out (FIFO) methodology. Webull also lacks automated trading, backtesting of strategies, and the ability to stage orders.

Trading Technology

Webull’s trading technology is basic, although it does get the job done. Webull reports net price improvement of 0.0056 a share and $1 per options contract. No smart order routing, trading automation, backtesting, or route control are available. This is in line with the broker’s basic approach to keeping costs low.

Prices

Webull is a no cost broker, not a low cost broker. They offer commission-free trading in stocks, ETFs and listed options. There is no fee for minimum account requirements or access to their powerful platforms and tools. Webull’s margin rates also are competitive. Webull’s commission-free trading means that we don’t charge for trades. However, they must pay Securities and Exchange Commission (SEC), transaction fees and other regulatory fees. These fees are usually pennies to fractional pennies per contract. Webull’s costs are as follows:

  • Online trades in equities or ETFs are free of commissions
  • No commissions on exchange traded options
  • No commission on cryptocurrency trading
  • Margin is available for both leverage and short sales, and margin rates are based on account size. By breakpoint: Under $25K 6.99%; $100K 6.49%; $250K 5.99%; $500K 5.49%; $1MM 4.99%; $3MM 4.49%; and >$3MM 3.99%
  • Money transfers: There is no charge for ACH deposits and withdrawals. Wire Transfers cost $8 for US deposits and $12.5 if you are international. $25 for withdrawals within the US, and $25 for international withdrawals.
  • Paper statements charges: Confirmations are $2 per confirm, account statements $5 per statement, and prospectus fees $2.5 per mailing

How This Broker Makes Money From You and for You

It has become harder to understand how brokerage firms generate revenue in the age of no commission trading. Webull is not afraid to tell investors how they make their money, which allows them provide sophisticated trading platforms and zero-fee trading.

  • Payment From Order Flow: Webull is clearly all-in on the continuing race towards no commission trading – even options are free to trade on Webull now – and they are very transparent in stating at the top of its pricing page that PFOF is the primary reason they can offer no commission trading and no fees for access to their well-built platforms. Webull gets an average $0.00024 per share from its order flow and $0.525 per option contract. Webull’s average price execution improvements are $0.0056 per shares and $1 per option contract.
  • Interest on Cash: Another important revenue stream for Webull is its ability to generate income from cash in its traders’ accounts, as the company does not pay interest on cash balances. Webull keeps the interest earned by Webull if you have cash in your bank account.
  • Stock Lending Program: Webull offers a stock lending program. The investor who lends the securities shares the revenue. The market demand for your securities determines the interest rate.

Account and Research Amenities

Webull offers a broad array of account information and research amenities, including fundamental data, news, and charting to help traders make informed investment decisions and identify stocks to trade. Webull doesn’t offer the same tools and information as full-service brokers such as individual analyst reports, daily market reports, or portfolio analysis tools.

Stock Screener

Webull offers a stock screener. It is available on the website and at the workstation, but not in the mobile app. The screener is limited to stocks and is easy enough to use, but it does not offer all the functionality that rival broker screeners offer. Only the United States, China and Canada can be selected; Webull offers data and charts for US, Honk Kong and Canada markets. However, U.S. account holders have limited access to trading in U.S. market markets. You can choose to filter the U.S. exchanges (NYSE, AMEX and NASDAQ) and you can filter by more that 25 industry sectors, financial data such as EPS and P/E, Dividends and nine pre-set technical indicators, including overbought/oversold, moving average crosses, and overbought/oversold.

The technical indicators are easy to use, but somewhat limited. We could not screen for stocks that moved beyond 200. Additional filters include a consensus analyst rating of five grades (strong buy/buy, hold/underperform, sell), and whether the stock can be traded with margin. Stocks cannot be screened for SRI (socially responsible investing). A customized search can be saved and converted to a watchlist. Choosing any of the stocks on the search results provides key statistics and financial information and an order window for that stock on the same page.

ETF and Mutual Fund Screener

Webull doesn’t offer ETF screens and does not offer mutual funds.

Option Screener

Webull doesn’t have a screener that can identify potential option trade opportunities. However, they have tools to help you construct the most popular one, two and four leg options strategies (vertical spreads. Straddles/strangles. Butterflies/condors etc.). Select the strategy by using the drop-down menu in the option chain table. The strategy’s payout graph will be displayed at maturity. You can also customize it by choosing different order types and adjusting the strike price ranges in multi-leg strategies.

Fixed Income Screener

Webull does not offer fixed income on their platform.

Charting

Webull built its own charting functionality, and it is a solid offering. The mobile app charting interface is smaller than the web and works well on small screens. Charts can be used to create alerts and order tickets. You can also add analysis such as Bollinger bands(r), moving or exponential moving averages, relative strength index (RSI), average trade range (ATR), multiple stochastics variants, and other commonly-used analysis to your chart. It seems strange that the 50, 100, and 200-period MAs were not included in the six defaults.

Webull is a new web-based trading platform that has made waves in the Forex market. Fumi Technology, a Chinese online holding company, operates Webull. It allows clients to buy and sell a variety of virtual assets such as shares, ETFs and derivatives as well as commodities like gold, dogecoin, and shiba coin. It also offers trade alerts and market commentary from industry experts, so that traders can be assured of their investment decisions. A demo account with the webull trading app is required for investors to get a feel of how the system works and to determine its suitability for their investment goals.

 

The Java-based software platform used for desktop trading platforms is the basis of the webull trading app. The webull platform allows access to real time quotes of stocks and options as well as to fundamental data such as market depth, price and volume. The webull desktop trading platform is designed for both iOS and android devices and comes loaded with over one million product images and a large variety of media files. First, download the free trial web edition and then install the webull trading app on your phone. In less than five minutes you are all set and ready to trade from anywhere in the world!

 

With webull, traders can buy and sell securities using real money. This means that webull trading does not require any particular expertise in order to execute trades. The app uses mathematical algorithms and sophisticated algorithms to identify good opportunities and prevent losses. It analyzes market signals and actions and then makes trades. For example, once the app identifies that the peak volume for a given security may be on the rise, it immediately alerts traders so that they can take action before the price starts to move. The best part is that all trades are fully customizable. Trades can be customized to allow traders to set investment limits, strike amounts, and stop loss types. This allows them to set custom or automatic limits at the time they feel the investment is at risk.

 

Webull requires a minimum deposit to trade. The maximum amount is unlimited. Once investors have created an account with webull, they can start depositing funds into their new account. Traders can start either holding a ‘buy’ or’sell’ option, and they are able to do transactions in two ways – using cash transactions or using credit card transfers. Credit cards are recommended for smaller investments due to the higher transfer fees.

 

Many people have asked us why webull is better than traditional trading platforms. We can tell them that webull allows investors to conduct two types of transactions – buying and selling. In traditional trading, you need to wait until the end of the day to complete a transaction, and this will be reflected on your profit or loss statement. With webull, you can determine the time when you want to do a transaction, and this will be reflected in your trading Profit and Loss Statement. Additionally, trading with webull will allow you to set a limit to the amount of money you are willing to spend or lose, thereby providing you more control and accountability for the money you are investing.

 

Webull’s financial trading platform offers investors real-time protection against third parties. This is another reason why webull is superior than other systems. Because webull has a counterparty protection feature, it is impossible for anyone but the authorized user to modify, change or close your accounts. Webull offers true asset protection. This is far better than any other system that doesn’t offer this level of protection. We can also tell investors that by using webull, they will not be legally obligated to pay taxes on the gains from their investments in the U.S., as webull contracts and investment deals are not considered income for the taxable year.

 

Many traders use webull as their main trading platform, but there are many others who also use it for back-testing, fundamental tests, and even for their margin calls and transactions. Webull can also be used by investors for their custom trading needs. Some brokers offer webull trading as an optional service to their clients. This service may be offered by some webull brokers for a small fee. Regardless, webull is an excellent product for all investors, both large and small, because of the benefits it offers.

 

Overall, webull is an excellent platform for new traders, as well as experienced ones, because it provides a low-cost, hands-free, transparent way to trade on the equity market. Because there are no commissions or fees to pay, the investor has complete control over how much he/she trades. Webull is hard to beat.

 

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