Webull vs Robinhood
Investing Simple is affiliated with Webull. This relationship does not influence our opinion of this platform.
Over the last decade or more, the commission costs for trading stocks have tremendously decreased. Now, we are at a point where commission free trading is available on many different platforms. For the average retail investor, there has never been a better time to invest with these free cutting edge platform. These advances in technology and systems have allowed platforms such as Webull and Robinhood to thrive. These are two of the most popular free investing platforms out there today. In this article, we are going to compare the Webull and Robinhood investing platforms. We will be identifying where each platform shines as well as where each platform could improve.
What Is Webull?
Webull is a commission-free stock and ETF trading platform. Webull is designed for the active trader who is looking for a more dynamic user interface. This platform has a variety of features that benefit traders such as technical indicators, research agency ratings, financial calendars and free margin trading as well as short selling. With easy access to margin, research tools, and live data, Webull has built an ideal platform for active traders. Check out our detailed review of Webull here.
Webull is a platform that is designed for the intermediate trader who already has some experience with the stock market. If you are a complete beginner, you might experience information overload. If you are a somewhat experienced trader, Webull will give you all of the data you will likely need.
Webull Free Stock Promotion!
If you sign up via our link below, you will get a FREE stock! You don’t need to fund the account to get the Free stock, you just have to open it.
Real-Time Market Data: Webull offers real-time market data for all US markets. This ensures you are viewing consistent real prices in real time, making sure you are making the right investment decisions based on accurate data. This feature is extremely important for active traders who need price accuracy down to the penny.
You may also have access to real time global market data on the Webull platform. There is a monthly fee for this feature. This is charged on a monthly subscription basis and the fee differs by market. This is one of the ways that Webull is making money from this free trading service they are offering.
Technical Indicators: Webull has a variety of technical indicators available on the platform. You can choose from up to 22 technical indicators such as moving averages, relative strength indexes and more. Here is the full list in our complete Webull review.
Virtual Trading Simulator: Webull has a useful feature called the virtual trading simulator. This feature lets you create a virtual portfolio with fake money to test out strategies before risking real money. This is an ideal feature for someone just starting out, who may need to gain more investing knowledge and know how before investing real money.
Smart Alerts: Webull lets you set a variety of alerts for different holdings. You can be alerted when a price level is hit, or a rate of change has hit a defined level. There are also alerts for volume levels or changes, this can be useful for traders get a sense of where the stock may be headed in the short term.
Financial Calendar: The financial calendar feature keeps you informed on all the latest and upcoming financial news. Important events such as upcoming IPOs, dividend payouts, and earnings releases are all provided to you in a calendar format on the Webull platform.
Margin Trading: Webull allows margin trading on its platform to certain users. You must have a minimum account balance of $2,000 to be approved for margin trading. Below are the margin interest rates charged by Webull.
Commission Free Short Selling: There are no trading commissions to short a stock in Webull. Short selling occurs in a margin account, but all trades are completely free.
Agency Ratings: Another feature offered by Webull is the ability to track and see professional analyst ratings on certain stocks. Rated stocks will have a number of ratings by professional rating agencies and firms. They will rank the company as a buy, sell, or hold and sometimes ratings in between.
The screenshot below shows a company with 40 analyst ratings as well as the trend over time. Institutional analyst ratings can give you an idea of what Wall Street is saying about a certain company or fund.
After Hours Trading: Webull offers after hours and premarket trading. You can trade securities from 4 am to 8 pm on the Webull platform offering more flexibility in placing trades.
News Stream: Webull offers real-time financial news through the news stream feature. Articles from Reuters and Bloomberg and other financial institutions are available through this feature. This can be extremely helpful in getting the most up to date news articles and possibly making important trades on breaking news for specific companies. This feature provides a single location to view financial news as well as providing a mixed collection of high-quality content giving you a variety of different points of view on specific topics.
- New investors can get a free stock just for signing up
- Sophisticated charting and research tools for the intermediate to advanced trader
- Webull offers a trading simulator built in
- Commission free short selling
- Free after hours and extended trading
- Wide array of order types available
- No options, crypto, mutual funds, bonds or OTC stocks
- Only one account available which is the taxable account
- Limited customer support
What Is Robinhood?
Robinhood is one of the most well-known commission free trading platforms. It is easy to use and targets the beginner investor who is looking to save money by avoiding commission costs. Robinhood allows you to trade stocks, ETFs, cryptocurrencies and options commission free. The Robinhood user interface is simple and digestible and provides a good user experience.
What you will find after using Robinhood for a while is that the platform becomes very limiting. While it is easy for a beginner to use, you will probably outgrow it in a few months. The lack of sophisticated charting and technical/fundamental metrics is a common complaint among Robinhood users. On the other hand, Robinhood is a beginner friendly platform.
Commission Free Trading: Robinhood allows users to trade stocks, ETFs, options, and cryptocurrency completely free. All investors benefit from saving money on fees. This is specifically useful for active traders who make frequent day to day trades.
Simple Interface: We all know Robinhood for its user friendly interface. Its application is easy to use and not overwhelming like other platforms can be. This may be a benefit for certain investors who are just starting out and would like a simple and easy to use platform. For investors looking to conduct more research and build trading strategies, you may find the Robinhood platform is fairly limited.
Robinhood Gold: Robinhood offers a subscription service called Robinhood Gold. In the Robinhood Gold platform you have the ability to trade pre and post market starting at 9 am and ending at 6 pm. Robinhood Gold lets you trade on margin once your account has a $2,000 minimum balance. They charge $10 to $15 per month for this service.
- Robinhood has a very simple user interface making it 100% beginner friendly
- Since trades are commission free, you can keep more of your hard earned money invested
- Robinhood offers free options trading
- Commission free cryptocurrency trading in some states
- The beginner friendly interface is a con for some, as the platform is lacking in research tools
- Only a few basic order types are supported by Robinhood
- Robinhood is notorious for having very limited customer service
- No mutual funds or bonds available
- Robinhood does not offer any educational components
- Only one account type which is the taxable account
- No OTC stocks
Webull vs Robinhood
|Commission Free Trading||Yes||Yes|
|Margin Trading||Yes||Offered on Robinhood Gold subscription $10-$15 per month|
|Account Types||Individual Taxable||Individual Taxable|
|Virtual Trading Simulator||Yes||No|
|Trading Platform||App based, Desktop coming in 2019||App and Desktop|
|Investment Research||Yes||Basic, No|
|Investments||Stocks, ETFs||Stocks, ETFs, Crypto, Options|
|After Hours Trading||4am to 8pm EST||Offered on Robinhood Gold subscription $10-$15 per month|
Webull and Robinhood have a similar approach to a commission-free brokerage, but both have a variety of different features. Webull is still relatively small with just over a million downloads on Android, but is growing significantly. That being said, we believe Webull has a stronger platform than Robinhood for the active trader. The variety of features such as research tools, technical indicators, and free after/pre market trading puts it above Robinhood in user experience. Robinhood may be a good platform for someone who is a beginner investor and wants a simple and easy to use platform. Both platforms are free so you can give both a try and see which one meets your needs.
Webull Free Stock Promotion!
If you sign up via our link, you will get a free stock! You don’t need to fund the account to get the stock, you just have to open it.