Webull is a zero commission, no minimum deposit stock market trading platform for intermediate and advanced self-directed investors and traders. The trading platform is available both on mobile and desktop platforms with informative tools easing profit-making.
Webull’s plethora of technical analysis tools topped with no money to open an account attracts more advanced traders on the platform. The fundamental analysis includes revenue and historical earnings per share data and analyst recommendations. Moreover, key statistical information such as insider trades, earning, dividends and stock split along with news feed keep you on the toes with your stock decisions.
For a free stock trading app, Webull has a lot to offer. It also offers intuitive stock charts and you get a wide range of technical indicators and tools for customizing your charts. They are SIPC insured and are registered with the SEC and a member of FINRA.
Paper trading is one of the features that can help budding investors to get used to the working of the application. The paper trading platform is advanced and Webull holds daily and weekly competitions. Monetary prizes are the attraction of these proceedings.
One of the key limitations of the Webull platform currently is its geographical restrictions to the 50 states of the United States. The trading hours follow the regular market trading hours in the USA, pre-market hours (4:00 AM to 9:30 AM) and after hours (4 PM to 8 PM), all times Eastern.
Even though Webull doesn’t charge any account maintenance fees or software platform fees, there is a USD 2,000 minimum for margin accounts to access leverage and shorting and USD 25,000 for unlimited day trading.
Webull entertains two different types of accounts, cash accounts, and margin accounts. The cash account is a regular trading account, whereas margin accounts allow you to borrow for the purpose of trading. Webull offers individual taxable accounts and IRAs, but they are yet to offer joint accounts, custodial accounts, or trust options.
Even though margin accounts are allowed to borrow for the purpose of investment, there are some limitations and benefits based on the amount of equity present in the account.
For account balances under $2,000:
You are allowed 3-day trades within five business days.
You are not permitted to use leverage or shorting with this account balance.
For account balances between $2,000 and $25,000:
You are allowed 3-day trades within five business days.
You can use 4X leverage on day trades, and up to 2X overnight borrowing power.
You are also permitted short sales.
For account balances over $25,000:
You are allowed unlimited day trading as well as short sales.
You can use 4X leverage on day trades, and up to 2X overnight borrowing power.
Webull pays heed to security and is a member of the Securities Investor Protection Corporation (SIPC). SIPC protects the securities of its members’ customers up to $500,000 (including up to $250,000 for claims for cash). They are also secured by Apex Clearing Corporation, which provides an additional insurance policy. Here’s a piece from their page –
“The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.”
Webull could be a perfect option for you if you are a U.S. citizen and only trade U.S. stocks and ETFs. Free commission trading isn’t currently supported by many platforms, which makes Webull a compelling choice for trades – add to that the charting abilities, information analysis, and technical analysis tools and you have a lucrative platform for serious traders.
The platform is designed to be user-friendly but one of the issues is the interface in itself. For certain things, you will have to navigate through more channels than an obvious way. Even with that, the platform’s stock market news feed and analyst evaluations provide you with considerable fundamental information for both investment and trading analysis.
Webull offers a free stock trading platform promotion, which is a win-win for you and the person you are referring the platform to, because both of you could receive one share of stock worth up to $1,000.
Pricing and Fees
One of the main selling factors of the platform is that it does not charge a commission on opening an account, maintaining the said account, and on the U.S. That being said, SEC and FINRA fees do apply to the traders. You’re also required to maintain a minimum of $2,000 in your account to trade on margin.
SEC fees: With a minimum of $0.01 that can be charged, a $13 charge for a total of $1,000,000 of principal on stock sales is charged.
FINRA fees: With a minimum of $0.01 and a maximum of $5.95 that can be charged, a trading activity fee (TAF) of $0.000119 per share on stock sales is charged.
Pros
Commission-free brokerage.
No account or software fees.
Offers margin without a subscription.
Supports day trading, margin trading, and short selling.
You can invest in foreign companies through American Depositary Receipts (ADRs).
Webull provides up to 4X leverage on day trades, and overnight borrowing power up to 2X.
They are currently providing a generous sign-up bonus that includes up to $1,000 in free stock, up to $1,500 on an Amazon gift card, and transfer fee reimbursement of up to $100.
Cons
Webull doesn’t offer account types, joint accounts, custodial accounts, or trust (but they are said to soon do it).
Webull doesn’t support options foreign stocks mutual funds, bonds, OTC Bulletin Board, forex, or Pink Sheets stocks.
Stocks that are under $1 are restricted and/or have a market cap of $10 million or less are restricted as well.
Limited to U.S. citizens, U.S. permanent residents, or a valid visa holder.
Download here: iOS | Android
Final Thoughts
If you have had some experience trading stocks, Webull is the perfect platform for you to explore. Although their high-tech analysis tools and over 22 technical indicators make the platform more attractive to seasoned players.
Webull, being a new app of 1.5 years since its launch in 2017, has managed to create a great impact and a place for itself in the market. By overcoming the shortcomings of its competitors and targeting the right audience, it has made a strong foothold.