Webull Review 2019: Best Platform For Active Traders?

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Webull Review 2019

Disclaimer
    Investing Simple is affiliated with Webull. This relationship does not influence our opinion on this platform.

    Many online brokerages and investing apps have popped up over the last few years. As a result, it has become more and more difficult for investors to decide which one is best for them. Some of them offer great platforms to their users while others being frustrating and unbearable to use.

    Webull is a new platform that has excellent potential for being the next big free trading platform. Since the app offers a lot of features above and beyond Robinhood, it is growing in popularity quickly. This app has not been talked about as much as platforms like Robinhood, but it should not be overlooked. In this review, we will outline our experience with Webull as well as the strengths and weaknesses of this platform. We have found that Webull is one of the best free investing platforms available to investors today.

    Webull Review: Platform Highlights

    •  100% commission free trading. 
    •  Free short selling. 
    •  Free after-hours/extended hours trading. 
    •  Easy access to margin. 
    •  Research oriented platform with many advanced features. 

    If you sign up via our link, you will get a free stock!

    What Is Webull?

    webull

    Webull is a new commission-free stock trading app that launched in May of 2018. After Robinhood paved the way for these commission-free trading platforms, Webull saw an opportunity to offer users a more robust trading platform. Most people are familiar with Robinhood, but this new trading platform should not be overlooked. They really pick up where Robinhood leaves off in terms of the features and data available to traders.

    If you are a complete beginner, Webull is probably going to overwhelm you. There is a lot of data available right at your fingertips. However, for intermediate to advanced traders, this will be a breath of fresh air. Most of the free platforms out there, including Robinhood, are very watered down with limited features. Webull packs in all of the data and research tools you will likely need in an easy to navigate platform.

    At the end of the day, when you are comparing these free trading platforms, what sets them apart is the features offered. Some of the unique features of Webull are a built-in stock trading simulator, commission free short selling, free extended hours trading and access to a lot more data and research tools. This makes for an ideal platform for active traders.

    The best part is, Investing Simple readers have the opportunity to get a free stock for opening and funding an account with them! You just have to use our link to get them.

    If you download Webull from the app store, you will not get the free stocks!

    How Does Webull Make Money?

    webull app

    A lot of people are wondering how Webull makes money, and for a good reason! There are many free trading apps out there these days. I am here to tell you that they are not, in fact, operating a charity. Webull makes money in several different ways outside of charging customers fees or collecting commissions.

    1. They offer paid subscriptions if you are looking for real-time global market data.
    2. Webull offers margin accounts, allowing them to earn margin interest.
    3. They can earn interest on all the idle cash held within brokerage accounts.
    4. By directing order flow, they earn fractions of a cent on every trade placed.

    Just to be clear, they do not charge any fees or commissions to customers!

    Webull Features

    Real-Time Data

    webull real time data

     

    Webull is most well known for the data. In fact, they were initially just an app for investment research before they added the trading feature! Webull offers real-time market data on US markets to all users for free. If you are looking for data on global markets, it is available for a monthly subscription.

    You do not need to pay for any subscriptions to get access to real-time US market data. Real-time data is essential when you are using it to make trading decisions. As a trader, you are often looking to capitalize on micro-trends that can happen at the blink of an eye. Delayed reporting of price data could be very costly for an active trader.

    Trading Simulator

    One of our favorite features is the onboard trading simulator. Investing or trading stocks for the first time can be very nerve-racking, especially if it is with a trading platform that you are not familiar with! The trading simulator allows you to practice in “sandbox mode” with fake money to hone your skills, familiarize yourself with the trading platform, and understand how each of the different order types of work.

    Commission Free Short Selling

    For those who are interested in short selling, Webull offers this commission free. Short sales must take place within a margin account, and you must have a minimum balance of $2,000 to open one with Webull. In a short sale, you are betting against a stock by borrowing shares with the plan to repurchase them at a later point in time. This is a complicated subject, but you essentially make money when a stock or asset goes down in value. Most free trading platforms do not offer short selling. Webull offers this commission free within a margin account.

    Extended Trading Hours

    The stock market, like any other business out there, has hours of operation. Those hours are Monday through Friday, 9:30am to 4:00pm EST. Most trading platforms only allow you to place trades within that window. Webull offers all users the ability to place trades pre-market and after-market. You can place trades anywhere from 4:00am to 8:00pm EST Monday through Friday. This is especially important if you are trading stock during earnings and want to sell right after the bell, or you want to get in on a stock that is reporting earnings pre-market.

    Webull Research Tools

    Fundamental Data

    webull fundamental data

    Fundamental investors study the financial health of a company to make a long term bet. They look at key financial documents like the balance sheet, cash flow statement, and income statements. They also look at key metrics like earnings per share, PE ratio, and more!

    Webull places all of this data at your fingertips. You can view the numbers from the key financial documents as well as see visual graphs of the overall trends. They also offer helpful comparison tools that compare the metrics of one company to another in the same industry.

    You will be able to answer questions like:

    • Is the company beating earnings expectations?
    • Are profits and revenue increasing?
    • What are the assets compared to the liabilities?
    • How does the overall valuation compare to peer companies?

    Technical Data

    Not everyone follows a fundamental approach when making investment decisions. Many rely on something called technical analysis, which is reading the charts and following the trends. Webull offers over 20 different technical indicators on the platform. These charts are used by traders to identify microtrends to capitalize on. You will not find this many indicators on other free trading platforms out there. This includes popular indicators like moving averages, Bollinger bands, volume, candlestick charts, MACD, RSI, and more!

    Financial Calendars

    Another useful feature for users is the financial calendar. This calendar shows you important upcoming dates for a company, including dividend payments and earnings reports. Beyond that, there are also calendars that show what companies are reporting earnings each week as well as what are the up and coming IPOs or initial public offerings.

    Watchlists And Alerts

    Webull allows you to create watchlists of stocks that you want to keep an eye on! You can also set price alerts that will allow you to get notifications from Webull when the price reaches a certain level. For example, if you were looking to buy a stock for under $100, you could set a price alert for when it reaches that level and receive a notification from Webull.

    Webull Fees

    All buys and sells on Webull are 100% free, including short selling!

    There are fees charged by the SEC and FINRA for each trade. These fees are charged on every trade across all brokerages. It is important to understand that these fees are passed directly to these regulatory agencies, and Webull does not receive any of the money. You will pay these fees regardless of what brokerage you use.

    There is a $0 fee for incoming ACATS stock transfers and $75 fee for outgoing transfers. For those funding the account with a wire transfer, the initial transfer in is free. After that, there may be fees associated with this wire transfer.

    ACH or Automated Clearing House transfers are completely free. This a direct electronic transfer from your bank account to Webull. You can electronically transfer money to and from Webull at any time fee-free.

    Order Types

    Webull offers the core order types, which are market orders, limit orders, stop orders, and stop limit orders. They also support some more complicated order types like OCO (one cancels the other), OTO (one triggers the other) and OC, which is a combination of the two.

    Account Types

    Currently, Webull only offers individual taxable accounts. You can open a cash account with a $0 minimum balance or a margin account with a minimum balance of $2,000. They do not offer joint accounts or any retirement accounts.

    Customer Service & Paperless Statements

    One area where all of these free trading apps fall short is customer service. To cut costs down, which allows them to offer free trades, they have to eliminate phone support. Webull only provides email support.

    If you are looking for a brokerage where you can call and talk to a live person or place trades over the phone, these free options will not be a good fit for you. Your best bet is to find an online discount broker where you pay a small commission for each trade.

    Another important factor to note is that all communications between you and Webull will be handled electronically. This includes monthly statements as well as year-end tax documents. If you are looking for paper statements, these free trading platforms are not a good fit for you. You will receive all statements and tax forms via email.

    Is Webull Safe/Legit?

    investment returns

    Your brokerage account with Webull is covered by SIPC insurance. This type of insurance protects investors up to $500,000 of securities or $250,000 cash. This type of insurance does not ensure you against potential losses within your account.

    Beyond that, investors have additional protection through their clearing firm Apex Clearing. According to the Webull website, the coverage limits provide protection for securities and cash up to a total 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.

    Your personal information is fully encrypted with Webull and never shared.

    In a nutshell, Webull is just as safe as any other brokerage out there. In fact, the additional insurance offered through Apex Clearing gives investors additional protection above and beyond the SIPC insurance. Your data is not shared with anyone else and is fully encrypted. Webull does not sell your information to other companies.

    Pros Of Using Webull

    • 100% commission free, including short selling.
    • Free extended hours trading for all users.
    • Basic order types supported as well as a few advanced ones.
    • Research data for both fundamental and technical strategies.
    • Trading simulator to learn the basics and familiarize yourself with the platform.
    • Investing Simple readers are eligible for a free stock when you use this link.
    • Additional insurance through Apex Clearing.
    • Mobile and desktop applications.

    Cons Of Using Webull

    • Might be overwhelming for a complete beginner.
    • Customer service is email only.
    • Only individual taxable accounts are available.

    The Verdict

    Overall, Webull has great features for both the fundamental and technical oriented trader or investor. The offerings might be a little overwhelming for complete beginners.  This is not a watered down app like some of the competitors. This free trading app packs in the features and the data of a full-blown brokerage while maintaining great functionality. 

     Webull takes steps to protect customer data through encryption, and the additional insurance policy through Apex Clearing is a huge plus.  Investors should be comfortable with the paperless business, understanding that they will not be receiving any paper statements or tax forms in the mail. All communications are handled electronically, including email support.

     The best part is, Investing Simple readers have the opportunity to get a free stock for opening and funding an account with them! You just have to use our link to get them. 

    If you download Webull from the app store, you will not get the free stocks!

    webull free stock offer
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5 COMMENTS

  1. Thanks for the informative review.
    A few questions:
    1. Does Webull have a desktop platform (eg Windows 10), or only an app (iphone or such)?
    2. Is electronic transfer from and TO a bank free of charge?
    3. Do they offer trailing conditional orders?
    4. Can lots be specified on sell orders?

    ab

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