Why Is My Webull Maintenance Requirement

Why Is My Webull Maintenance Requirement

Webull is one of the newer online brokers, forming in just 2017 and launching with just a mobile app 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. 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 won Investopedia’s Best Broker for Low Cost Options Trading, Best Day Trading Platform and Best Low Cost Options Broker in our 2021 Best Online Brokers Review.

KEY TAKEAWAYS

  • Webull doesn’t charge commissions on stock, ETF, or options trades and has no account minimums. 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 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 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. Customers at Webull are generally younger than customers at other brokerage firms. Active traders will be attracted to the broker’s free model. 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
  • 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 for execution to be halted by payment of order flow
  • Limited range of tools for portfolio management
  • Access to fixed income, mutual funds or foreign exchange is not available.

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. Lower implementation costs makes it easier for traders to profit off a trading strategy.
  • 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 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 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. 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 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 can choose whether they want their orders active during the non-regular trading day times.

Cons Explained

  • Customers of Webull do not receive interest on any cash balances. 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 can offer trading and all other services for free because it receives 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.
  • 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. Webull does not offer fixed income investments, mutual funds or international equities, options, or foreign currency offerings. 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 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. 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 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 is highly customizable, with templates available for trading stocks and ETFs, options trading, day trading, and for cryptocurrency trading. Trader can toggle between the different templates pages or create their own layouts using 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. 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.

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.

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. 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 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. The mobile app has the same basic features as the website and workstation, but there are design differences to handle the 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. 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. 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. Unlike many of the full service brokers, Webull offers trading in multiple cryptocurrencies for as little as $1. 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 with Bitcoin, Dodgecoin and Bitcoin Cash, Ethereum, Litecoins, ZEC, and XLM
  • Notable: Although New York State is the only US state to not have approved cryptocurrency trading on Webull yet, the company anticipates that it will soon be approved.

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. 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, and they do not charge a fee for account minimums or for their robust platforms and tools. Webull’s margin rates are also 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. These are Webull’s costs:

  • No commissions for online trades in equities, ETFs, or OTCBB trades
  • Exchange traded options are free of commissions
  • 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 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 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 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. 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 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. 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.

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

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. 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 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 webull trading app is based on the Java-based software platform that is used for desktop trading platforms. The webull platform provides access to stock and option prices in real-time, as well as fundamental data such market depth, price, volume and price. 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 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. 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. Once investors have created an account with webull, they can start depositing funds into their new account. Traders have the option to either hold a ‘buy or’sell’ option. They can also do transactions using cash or credit card transfers. Credit cards are recommended for smaller investments due to the higher transfer fees.

 

Many people asked us why they should use webull instead of traditional trading platforms. We can tell them that webull allows investors to conduct 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. 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.

 

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. 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. Webull is a great product for investors large and small because of all 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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