What Id Number Is Webull Asking For
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 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 is more geared towards self-directed investors and offers a smaller range of services than its full-service competitors. That said, Webull customers get a lot of bang without the buck: a nice platform with a wide range of helpful tools and features, along with 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.
- Webull doesn’t charge commissions on stock, ETF, or options trades and has no account minimums. Margin trading is available to accounts of $2000 and higher.
- 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 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 for people looking for a broader range of products, such as fixed income, mutual funds, or managed accounts. Investors who prefer working with an investment advisor and want access to live trading assistance should look elsewhere.
- Fractional cryptocurrency trading in multiple cryptocurrencies, including Bitcoin, Dodgecoin, Bitcoin Cash, Ethereum, Litecoin, ZEC, and XLM commission free.
Who is Webull for?
Webull is for investors who want to get into financial markets with no minimum account sizes and commission free 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. Active traders will be attracted to the broker’s free model. 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.
- No commissions on stocks/ETFs, options, or cryptocurrencies
- No minimums or fees, easy account setup
- Free real-time streaming quotes
- Simple to use platforms that provide excellent content and tools
- Access to trading hours that are extended and pre-market
- No income on excess cash
- Potential for execution to be halted by payment of order flow
- Portfolio management tools are limited in number
- No access to fixed income, mutual funds, foreign exchange, or futures markets
- Everyone wants something for free, and that is exactly what Webull delivers. There is no commission stock or ETF option. Cryptocurrency trading is especially appealing for traders who don’t want their hands tied. Trading strategies are easier to profit from because they have lower implementation costs.
- The account opening process only takes a few minutes. 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 provides free streaming quotes and three-month free access 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. There is also auction crossing information for all NASDAQ-NYSE and regional listed stocks on NASDAQ Market 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 the information density, all of this is set up to work effectively in a streamlined way.
- 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 have the option to make their orders available during non-regular trading hours.
- 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. This may not be too much of an issue in today’s ultra-low short term interest rate environment, but the lost opportunity for generating interest on excess cash might be more noticeable if rates move higher.
- Webull is able to offer free trading and all its other services because it is receiving payment for order flow (PFOF). This may affect Webull’s execution quality. The speed and precision that orders are generally filled at today somewhat lessens this as a significant issue for most traders, but day traders and those using other strategies highly dependent on execution quality may be at a disadvantage.
- 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 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). Currently, Webull doesn’t offer fractional equity shares, although the broker has expressed that they plan to add fractional stock shares soon.
- Stocks, ETFs, options and cryptocurrencies make up the entire menu at Webull. There are no fixed income investments, mutual funds, international equities, futures, or foreign exchange offerings at Webull. You get what you see.
Webull is simple to use with intuitive navigation. Webull offers a website, desktop workstation and mobile app. They are all well-designed. Because they were built so recently, the platforms have a modern look.
The desktop workstation and website are nearly identical, with the same menu and window setup that focuses on a primary set of buttons down the left side of the screen. These buttons allow you to launch customizable quote boards. A stock page that provides a wealth information about a single stock, ETF or stock, as well as a market overview page and stock screener. An account tab shows balances, positions and buying power. You can also access bank transfers to and from your account. There is also a dedicated paper trading area. The website has some differences from the workstation. It only supports single-leg options.
Although the mobile app has the same primary features as the website and workstation websites, there are design differences that allow for smaller screens. The app screen’s menu buttons are updated to reflect the current content. An example of this is the options button, which appears at the bottom to show an individual stock/ETF.
Watchlists can be easily created across all platforms directly 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.
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. 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.
Webull makes it easy to place an order. 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. 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 possible directly from the charting program. The chart shows active positions and orders.
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’s charting also shows your open positions and allows trading directly from the chart. Webull’s drawing tools are also much easier than many other brokers’ mobile charting software. The mobile app doesn’t allow access to Webull’s stock screener, but you can convert search results done on the website or workstation into a watchlist that will sync to the mobile 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. Webull’s product offerings may not be a match for the breadth of offerings available at full service brokers, but they meet the needs of their younger customer base less interested in fixed income. Unlike many of the full service brokers, Webull offers trading in multiple cryptocurrencies for as little as $1. Webull does not offer traditional forex trading, fixed income, mutual funds, futures or traditional foreign currency trading. Webull investors can trade the following:
- US Stocks/ETFs, long and short (2,0005 stocks) are currently listed on Webull’s easy-to-borrow list for short sales
- Stocks and ETFs Listed in the USA
- 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 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 does not offer traders the ability to control tax lots for sales to close long stock positions. Instead, they use the first in and first out (FIFO), methodology. Webull does not offer automated trading, backtesting strategies or the ability to place orders.
Although Webull’s trading technology may be basic, it can get the job done. Webull reports a net price increase of 0.0056 per share and $1 for each option 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.
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 are also 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. Webull’s costs are as follows:
- No commissions for online trades in equities, ETFs, or OTCBB trades
- 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: No charge for ACH Deposits and withdrawals; Wire Transfers are $8 for deposits in the US and $12.5 if international, and $25 for withdrawals in the US and $40 if international
- 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: Webull’s ability to generate income through cash in its traders’ accounts is another important revenue stream. The company doesn’t 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 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 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.
Webull has a stock screener, available on the workstation and website but not 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. You can select from the United States, China, and Canada only; Webull provides data and charting for US, Honk Kong, Canada, China, and India markets, but it appears U.S. account holders are limited to trading in U.S. markets. For the U.S., you can select the exchanges to include (NYSE, AMEX, NASDAQ), and can filter by more than 25 industry sectors, financial information such as EPS, P/E, Dividends, and by nine pre-set technical indicators including overbought/oversold and moving average crosses.
Although the technical indicators are simple to use, they are not very comprehensive. 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 can’t be screened for socially responsible investing (SRI). A customized search can be saved and converted 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 doesn’t offer ETF screens and does not offer mutual funds.
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.). using a drop-down menu on the option chain table to select the strategy. You can then bring up the payout graph at maturity for the strategy, and use tools to further customize the strategy through different order types or adjusting the width between strike prices in multi-leg strategies.
Fixed Income Screener
Webull doesn’t offer fixed income through their platform.
Webull developed 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. Again, it seems odd that neither the 50, 100, or 200 period MA was included in the set of six defaults in the program.
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. Investors will need to open a demo account to see how the system works and determine if it is suitable for them.
The webull trading app is based on the Java-based software platform that is used for desktop trading platforms. 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!
Webull allows traders to buy and sell securities with real money. Webull trading doesn’t require any special knowledge to execute trades. The app uses sophisticated algorithms and mathematical algorithms to detect good opportunities and prevent losses by analyzing market signals and actions. 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 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.
Trading with webull requires a minimum deposit of just $500, and the maximum 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. 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. Traditional trading requires that you wait until the end to complete a transaction. This will be reflected in 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.
Another reason why webull is superior to other systems is that the webull financial trading platform provides investors with real-time protection from third parties. 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. 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. For instance, some brokers provide webull trading as a free service to their clients. Some webull brokers may charge a small fee for this service. Regardless, webull is an excellent product for all investors, both large and small, because of the benefits it offers.
Webull is a great platform for both new and experienced traders. It offers a low-cost, hands free, transparent way to trade on an equity market. Because there are no commissions or fees to pay, the investor has complete control over how much he/she trades. Overall, it is hard to beat webull.