How To Switch Webull Cash Account To Margin

How To Switch Webull Cash Account To Margin

Webull, one of the newest online brokers, was founded in 2017 and launched with a mobile app only in May 2018. Webull’s primary target market, the millennials, was reflected in this mobile launch. Webull is positioning itself as a platform that can serve active traders and other people who are drawn to a platform that offers a wide range of services at no cost, including commission-free trading of stocks/ETFs or 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’ll take an in-depth look at Webull to help you decide if it is the right broker for your portfolio needs.

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 to accounts of $2000 and higher.
  • Webull offers options, stocks, ETFs and cryptocurrencies. This is a smaller selection of assets that Webull offers to better serve younger customers who are more tech-savvy and want information on the move.
  • Webull is easy to use, providing good trading functionality and a broad package of tools and functionality including news, fundamental and technical 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. If you are looking for live trading assistance and prefer to work with an investment advisor, then 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 isn’t a full-service broker. Its customers require a DIY approach to some aspects of portfolio management. Customers at Webull are generally younger than customers at other brokerage firms. The broker’s no cost model will also appeal to active traders. Webull’s no-cost options trading will be particularly appealing to active traders. This is because all other brokers, including those that offer free stock and ETF trades such as Schwab, still charge commissions for each leg.

Pros

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

Cons

  • No income on excess cash
  • Potential give up on execution due to payment for order flow (PFOF)
  • Limited range of tools for portfolio management
  • No access to fixed income, mutual funds, foreign exchange, or futures markets

Pros Explained

  • Webull offers something free of charge. 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.
  • The account opening process only takes a few minutes. You will receive account and options trading approval very quickly and it only takes a couple of additional minutes to add your bank account and set up a free ACH transfer. 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. The service is Nasdaq TotalView, and it provides a greater depth of bids and asks on a security as well as information showing market depth. You can also find auction crossing information for all NASDAQ NYSE stocks and regionally listed stocks on NASDAQ Marketplace Center.
  • Webull’s mobile and desktop applications platforms are both relatively new. It has an intuitive design, is simple to use, and it is fresh. All the tools available are free and packed with useful tools to trade. The customizable workstation platform provides news, fundamental information on companies, and has watchlists, a stock screener, charting, and aggregate ratings from multiple analysts. Despite all the information, it is organized in a way that makes it easy to use.
  • Webull customers have access to these hours, which is a popular choice for active traders who trade the market during the pre- and/or extended trading hours. Traders have the option to make their orders available during non-regular trading hours.

Cons Explained

  • Customers of Webull do not receive interest on any cash balances. Webull does not support mutual fund trading so customers cannot proactively invest any 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 may affect Webull’s 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.
  • Webull offers a number of useful tools for traders, but the portfolio management tools are not as good. Customers of Webull are expected to be able to make their own trading and investing decisions. There are no daily or intra-day market letters, and no research or analyst reports on stocks outside of aggregated analyst statistics. Webull does NOT offer financial advisors, recommend portfolios for rebalancing, control over 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. What you see is what you get.

Useability

Webull is simple to use with intuitive navigation. Webull offers a website, desktop workstation and mobile app. They are all well-designed. The platforms share a modern look and feel because of having been built so recently.

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 menu buttons on the bottom of the app screen change to be relevant to the content shown at the time. 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. You don’t have to create watchlists on different platforms. Watchlists are also consistent across all platforms, including the web, mobile, and desktop. 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 is highly customizable, with templates available for trading stocks and ETFs, options trading, day trading, and for cryptocurrency trading. Traders can switch between these different template pages, and can build their own page layouts from scratch through widgets. The widgets contain different information, such as news, fundamentals, options, as well as order entry, time & sales, and so on. The widgets can be combined to save screen space, with the different widgets accessible through marked tabs at the top of the window. You can group widget windows together to ensure that stock entries in one widget will update in all other widgets.

The trading setup also allows for a highly customized user experience, including hot keys, home page loaded on startup, default stock and option orders, and frequently used share quantities. The most flexibility and customization is available on the workstation. Website did not include all the templates for trading pages on the workstation. The learning center was also not accessible via the website. The system will guide you to different pages when appropriate, such as taking you to the stocks window to see stock-specific information, news, options, charting, and an analyst ratings overview.

It is easy to enter an order through Webull. You can add the order screen to other screens. The stock order entry screen also includes contingency orders that allow for profit taking and stop loss levels. Order tickets can be created directly from your account holdings. Simply click on the market bid or offer to automatically add that information to 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 were also easier to use than the mobile charting software of many other brokers. 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.

Range of Offerings

Webull focuses exclusively on U.S. Stock, ETF and U.S.-listed options. Webull offers only personal and IRA accounts within 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 in Bitcoin, Dodgecoin, Bitcoin Cash, Ethereum, Litecoin, 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 most of the most popular order types such as market, limit and stop, stop limit, stop limit, trailing stops, and stop limit. 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.

Trade 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. That said, this is in keeping with the broker’s bare bones approach to keep costs down.

Costs

Webull is not a low-cost broker but a free broker. They offer commission free trading in stocks, ETFs, and listed options, and they do not charge a fee for account minimums or for their robust platforms and tools. Webull’s margin rates also are competitive. When we talk about commission free trading, that means Webull does not charge for trades, but they do pass through Securities and Exchange Commission (SEC) transaction fees and various exchange and regulatory fees, which are typically pennies or fractional pennies per contract. These are Webull’s costs:

  • No commissions for online trades in equities, ETFs, or OTCBB trades
  • No commissions on exchange traded options
  • There is no commission for cryptocurrency trading
  • Margin can be used for leverage or short sales. Margin rates vary depending 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.
  • Charges for paper statements: confirmations are $2 for each confirm, account statements are $5 a statement; and the prospectus fee is $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 unabashed in telling investors how they make money that allows them to provide a sophisticated platform and zero fee trading.

  • Payment from Order Flow: Webull clearly wants to be the first to offer no commission trading. Options are now free to trade on Webull. Webull’s pricing page is very clear and states that PFOF is the reason they are able to offer no commission trading. Webull receives an average of $0.00024 per share for its order flow, and an average of $0.525 per options contract; Webull’s price execution improvement averages are $0.0056 per share, 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. When you have cash in your account, the interest generated by Webull is kept by Webull.
  • Stock Lending Program: Webull does offer a stock lending program, sharing the revenue generated with the investor lending the securities. The interest paid through the lending program depends entirely on the market demand for your securities.

Account and Research Amenities

Webull provides a wide range of account information and research facilities, including news and fundamental data. This helps traders make informed investment decisions as well as 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 has a stock screener, available on the workstation and website but not the mobile app. Although the screener can only be used for stocks, it is simple enough and offers some functionality not offered by other broker screeners. 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.

Although the technical indicators are simple to use, they are not very comprehensive. We were unable to screen for stocks above their 200 moving. Other filters available include a consensus analyst rating with five grades (strong buy, buy, hold, underperform, sell) and if the stock can be traded on margin. Stocks can’t be screened for socially responsible investing (SRI). You can save a customized search and convert it to a watchlist. You can choose any stock from the search results to view key financial and technical information, as well as an order window.

ETF and Mutual Fund Screener

Webull does not offer an ETF screener, and they do not offer mutual funds on their platform at all.

Options Screener

Webull does not have a screener to identify specific option trade opportunities, but they do have tools to help construct the most common one, two, and four leg option strategies (vertical spreads, straddles/strangles, butterflies/condors, etc.) using a drop-down menu on the option chain table to select the strategy. 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 doesn’t offer fixed income through their platform.

Charting

Webull built its own charting functionality, and it is a solid offering. Mobile app charting is a bit different than on the web and workstation because of the smaller screen size, but it is very intuitive. 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. Again, it seems odd that neither the 50, 100, or 200 period MA was included in the set of six defaults in the program.

If you have heard about Webull before, it is the new web based trading system that has just made waves in the Forex market. Webull, which is operated by Chinese online holding business Fumi Technology, enables clients to purchase and sell an assortment of virtual assets, such as shares, ETFs, derivatives and commodities such as gold, dogecoin and shiba inu coin. You can also get market commentary and trade alerts from industry experts to help you make informed investment decisions. Investors will need to open a demo account to see how the system works and determine if it is suitable for them.

 

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. To use the webull app, first download the free trial web version and install the webull trading platform on your phone. You can trade anywhere in the world in less than five minutes!

 

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. The app alerts traders immediately if it detects that a security’s peak volume is rising. This allows them to take immediate action before the price moves. The best thing about trades is their ability to be customized. This means that traders can set limits on how much they would like to invest, the maximum strike amount, and also what type of stop loss they want to use – a custom, or an automatic, limit set at the time the investor thinks the investment is under risk.

 

Webull requires a minimum deposit to trade. The maximum amount is unlimited. After investors have created an account at webull, they are able to deposit funds into that account. Traders have the option to either hold a ‘buy or’sell’ option. They can also do transactions using cash or credit card transfers. Using credit cards is recommended for smaller investments because there are more transfer fees.

 

Many people asked us why they should use webull instead of traditional trading platforms. Webull allows investors to do 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. You can choose the time you want to make a transaction with webull. This will be reflected on 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. Webull’s counterparty protection feature makes it impossible for anyone to modify, change, or close your accounts except the authorized user. Therefore, webull provides you with true asset protection, which is much better than any system that does not provide this type of protection. Webull can also inform investors that they are not legally required to pay taxes on gains from investments in the U.S. as webull contracts or investment deals are not considered income.

 

Webull is used by many traders as their main trading platform. However, there are many others who use it for back testing, fundamental tests, margin calls, and transactions. In addition, investors can also use webull 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. The investor can decide how much he/she trades because there are no fees or commissions to pay. Webull is hard to beat.

 

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