What Time Can You Start Trading On Webull

What Time Can You Start Trading On Webull

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 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’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 for accounts with a minimum of $2000.
  • 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. 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 is Webull 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

  • No commissions on stocks/ETFs, options, or cryptocurrencies
  • 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 for execution to be halted by payment of order flow
  • Limited range of tools for portfolio management
  • No access to fixed income, mutual funds, foreign exchange, or futures markets

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.
  • 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. Once the transfer is set up, you can receive buying power on the account even though the fund transfer may not be complete for a few days.
  • 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. 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. The applications are packed with helpful tools for trading, especially considering all the tools are free to the user. 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.
  • 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

  • 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 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). Currently, Webull doesn’t offer fractional equity shares, although the broker has expressed that they plan to add fractional stock shares soon.
  • 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 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 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 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. There are some minor differences between the website and the workstation, and the website 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 menu buttons on the bottom of the app screen change to be relevant to the content shown at the time. 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. Watchlists also remain consistent between the desktop, web, mobile app, so you don’t need to set these up on multiple platforms. It’s easy to order and traders can customize the trading ticket information, such as share amounts and order type.

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. To save screen space, the widgets can be combined. The different widgets are accessible via marked tabs at 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. 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.

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

As mentioned, although there are some minor differences between the website and the workstation, there is a basic consistency across all the platforms. The mobile app has the same basic features as the website and workstation, but there are design differences to handle the smaller screens. The menu buttons adjust to the content screen, so you can access the most important functions you need. Mobile’s charting also shows your open positions and allows trading directly from the chart. Webull’s drawing tools were also easier to use than the mobile charting software of many other brokers. 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. 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 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.

Order Types

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

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

Prices

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. 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:

  • 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 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
  • 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 for you and from 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 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 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. 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 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. However, Webull does not provide the types of tools and information available at full-service brokers, such as daily market reports or individual analyst reports or in-depth 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. 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 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 does not offer an ETF screener, and they do not offer mutual funds on their platform at all.

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. 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 does not offer fixed income on their platform.

Charting

Webull developed 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. Order tickets and alerts can be created directly from charts, and analysis like Bollinger Bands(r), moving and exponential moving averages (MA/EMA), relative strength index (RSI), average trading range (ATR), multiple stochastics variations, and other commonly used analysis can be easily added to a 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. 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 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. First, download the free trial web edition and then install the webull trading app 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. 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 thing about trades is their ability to be customized. 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. 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. 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. 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. Trading with webull allows you to set a limit on how much money you are willing and able to lose. This gives you more control over your investments and accountability.

 

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. Because webull has a counterparty protection feature, it is impossible for anyone but the authorized user to modify, change or close your accounts. 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.

 

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. 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.

 

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. Overall, it is hard to beat webull.

 

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