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Gone are those days when investors had to only rely on a broker or mediator to buy and sell their stocks. And without in-depth background knowledge about the market-scape of the shares that they were pooling their money in.

With the influence of the latest technology, investors have an option to draw valuable information and conduct thorough research before they trade their stocks online.  Moreover, by signing up for some of these trading apps, the purchase and selling of stocks can be carried out entirely without any added cost.

Currently, Robinhood is the best trading platform. However, with the emergence of Webull, it appears like the former company has serious competition. A competition that is here to stay.

What Is Webull?

Webull Financial LLC, or more commonly known as Webull, is the latest member of the group of mobile applications. The company allows free stock trading. It is essentially a private company that came into being in 2017. Moreover, Webull is cushioned by Venture Capital.

However, they introduced their app in May 2018. Further, the company is being superintended by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

The primary aim of Webull is to ensure that everyone has equal opportunities to take a stronghold over their finances. Moreover, Webull helps in updating the users with:

  • analytic tools
  • economic calendars
  • technical indicators
  • real-time market data
  • news
  • trading commissions without any hidden cost

Target audience

If you are new in the world of investment, then Webull might not be the most suitable option for you. Its already-flourished pattern is not suitable for inexperienced investors. However, the app is directed at accommodating investors and traders who have intermediate to transparent experience and knowledge in this field.

Moreover, the app has been granted a commission-free structure. Active online traders are bound to save a lot while browsing through these options compared to the other brokers.

Market Data

Webull provides market data from over 90 countries to create a robust comparative ground with over 106 trading products like:

  • Cryptocurrencies
  • Forex
  • Bonds
  • Stocks and a lot more

Also, with 22 indicators and charting tools, the user interface is simplified to enhance the procedure and experience of investment.

How Does Webull Work?

webull app

The Webull app is available on both platforms (mobile and desktop). It is full of information that traders will benefit from it over time through technical and informative studies. Moreover, investors can install the Webull app for free. It also has a free paper trading account included for its latest users.

Webull provides users with a list of over 5,000 stocks in the USA. Users can find trade information backing each of the stocks. This way, one can choose the perfect company to buy or sell their shares. Even though the user can exercise great privilege while selling his stocks, the process of buying comes with certain limitations.

  • Firstly, you will be abstained from buying shares that cost less than 1% per share.
  • Secondly, if the price window of each share ranges from 10 to 99.9 cents, then you must buy a minimum of 100 shares.
  • Thirdly, if the price range of each share falls between 1 to 9.9 cents, then you will have to purchase at least 1000 shares at a time.
  • And lastly, if the shares cost 1 dollar or more than that, then the minimum purchase will be limited only to one.

If you analyze deeply, you will find that this, in a way, discourages you from buying shares that cost too little owing to the tumultuous prospects of the stocks. Also, Webull functions on the T+2 policy.

So, it doesn’t allow the user more than two days to settle the trading transactions. If the time extends this threshold, then it can take the company more than three days to allow its shareholders to withdraw their funds.

Three Different Kinds of Trading

  • Swing Trading– Webull allows swing trading at any time throughout the day.

However, if your net account value is lower than $2,000, you will be allowed only ETF’s (on the long side) and swing trades. But, if the value is more than $2,000, you can hold short sell for the stocks.

  • Day Trading– For being a day trader on Webull, you must have at least $25,000 in your account.

Otherwise, you will have restrictions for everyday use. For example, if you are willing to trade on only three days out of the five business days a week, having less than $25,000 will make it possible.

  • Penny Stock– Penny stocks are accompanied by the same buying restrictions mentioned earlier. However, users can sell penny stocks in any number at any time.

Pricing And Fees

Because Webull functions in a way similar to Robinhood, it does not charge commissions on the U.S. stock trades. Nor before opening or while maintaining a new account except for the SEC and FINRA fees.

  • FINRA Fees– The trading activity fees for FINRA barely amounts to $0.00019 per share. It applies to stock shares only, which come with a limit of $0.01 as the minimum and $5.95 as maximum.
  • SEC Fees– With a minimum fee of $0.01, a charge of only $13 is levied on a total principal of $1,000,000 on stock sales only.

Along with this, margin fees also exist. They range from 3.99% to 6.99% with a policy that says the more extensive the Dollar range, the lesser these fees are. Coming to the wire transfer fees, transferring funds through the Automated Clearing House (ACH) is free of cost.

On the other hand, the domestic wires will cost you a bit. Deposits made via the domestic wire will cost $8 per national and $12.25 for international transfers — also, $25 for national withdrawals and $45 for international withdrawals.

Advantages and Disadvantages of Webull

Coming to the advantages and disadvantages associated with Webull, here are a few arguments that will help you decide.

Advantages

  • The app functions best when used by active, intermediate, or advanced traders
  • Great app designs, organization, and fundamental analysis tools
  • The app provides an opportunity for commission-free trading for over 5,000 stocks of US-based companies
  • There are no hidden charges in the form of account opening and maintenance
  • The leverage on overnight trades is 2:1. The ones made on the same day come with a ratio of 4:1
  • An integrated learning platform for virtual traders
  • The best alternative for long-term investment and swing trading with free stock offerings

Disadvantages

  • Webull doesn’t offer variable forms of investments like mutual funds, OTC stocks, or bonds.
  • International wires for deposit and withdrawal are comparatively expensive
  • Mobile apps do not facilitate professional day trading
  • Webull hasn’t yet developed options trading

Summary: Is Webull the Best Robinhood Alternative?

Basing our opinion on the analysis mentioned above, Webull does qualify for the best alternative of Robinhood. Webull offers tools and techniques that will assist users in forming a more calculated and well-informed decision regarding their stock investment.

Also, Webull allows their users to get access to the trading simulator, while Robinhood does not. With extended trading hours along with analyst rating, fundamental, and technical data, it’s about time that investors don’t limit their options to a single company – Robinhood.

It’s time for investors to explore the prospects and services that Robinhoods’ contemporaries have to offer.

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