Webull vs Robinhood: Best Free Investing Platform?

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Webull vs Robinhood

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

    Over the last decade, 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 platforms. We will be identifying where each platform shines as well as where each platform could improve.

    Robinhood vs Webull: Summary

    •  Robinhood is a better choice for complete beginners. 
    •  Webull offers research tools above and beyond Robinhood, making it a better choice for intermediate to advanced traders. 
    • Webull offers a trading simulator and Robinhood does not. We feel this is a very useful feature, especially for beginners.
    • Both platforms fall short when it comes to customer service, which is to be expected among free trading apps.
    •  Webull offers new users a free stock if they sign up here. 

    Are Free Trades Legit?

    Webull and Robinhood are offering a very similar platform for investors. Both are leveraging technology and operating paperless businesses to be able to offer investors a commission-free and fee free investing experience. Instead of charging a commission on trades like a traditional brokerage, they make money in a few different ways:

    1. They earn interest on the uninvested cash held within brokerage accounts.
    2. They both offer paid subscriptions (Robinhood Gold, Webull Global Market Data).
    3. By lending shares out to short sellers, they can earn interest in the process.
    4. By directing order flow, they can earn a fraction of a cent on each trade placed.
    5. Both offer margin trading, allowing them to earn margin interest.

    The old saying goes, if it seems too good to be true it probably is. The good news is that is just not the case with these free investing platforms! They carry the same SIPC insurance as the mainstream brokerages. They simply found creative ways to make money outside of charging customers fees and commissions. Both Robinhood and Webull use Apex Clearing to process orders for customers.

    Webull vs Robinhood investing platform review. In this article we compare two of the most popular commission free stock trading platforms.

    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 than most free platforms are offering. This platform has features specifically for traders such as technical indicators, research agency ratings, financial calendars and more. 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.

    Since Webull is putting so much in front of you at your fingertips, it can be like taking a drink from a firehose if you are a complete beginner. Robinhood has created a truly beginner friendly platform, but most intermediate to advanced traders agree that it is lacking in many areas. Despite the fact that there is so much information and data packed into this app, Webull still maintains an excellent user interface. The app itself has a great design and it is very easy to navigate.

    Webull review investing simple

    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 Free stock, you just have to open it.

    Webull Features

    Real Time Market Data

    Webull offers real time market data for all US markets. This is particularly important when it comes to trading, as you are looking to capitalize on very quick moves in the market. Unlike many trading platforms that have delayed quotation, Webull is sharing this data with traders through the app in real time. For those looking for real time data for global markets, Webull offers this for a monthly subscription. It is important to remember that you do not need to pay for any subscriptions to access real time data on US markets.

    webull real time market data. The webull app shows real time pricing of securities.
    Webull Real-Time Data

    Technical Indicators & Order Types

    Traders rely on technical analysis or chart patterns. Webull offers close to two dozen technical indicators available at the click of a button. They also offer a number of advanced order types that you do not see on other free platforms. This includes OCO, OTO and OTOCO.

    Trading Simulator

    This is one of the features that is totally unique to Webull. To be honest, we are surprised other trading apps have not followed suit. For beginner’s entering the stock market, paper trading is a very important step in the process. The trading simulator allows traders to practice without using real money. Instead, you are using fake money and placing trades just like you would with real money. This allows you to test out trading strategies and familiarize yourself with the platform risk free.

    Commission Free Short Selling

    Most free brokerage accounts do not offer short selling. This is an advanced trading strategy where you bet against a particular stock. Not only does Webull offer short selling, it is also available commission free. Short selling must take place in a margin account. In order to open a margin account, your account balance needs to be $2,000 or more.

    Analyst Ratings

    One of our favorite features was the analyst ratings. Webull offers a variety of research tools for both the technical trader and fundamental investor. This includes press releases, earnings reports, earnings dates, dividend dates, key financial documents, analyst ratings and more.

    Analysts make buy, sell and hold recommendations about stocks. This can be a very useful metric to look at when making buying or selling decisions. The information is presented in a very organized fashion, and it is possible to get a good overview of a particular company in a matter of seconds through the app.

    The Webull app gives you access to agency ratings. Check what the institutional investors think of a company on the webull agency rating feature.
    Webull Agency Ratings

    Extended Trading Hours

    Most free trading platforms do not offer extended hours trading. Instead, you can only place trades during market hours which are 9:30am to 4:00pm EST from Monday to Friday. Those that do offer extended trading hours often charge a fee for this service. Webull offers free extended hours trading to all users. You can place trades during pre-market (4:00am to 9:30am EST) or after-market (4:00pm to 8:00pm EST) by placing a limit order.

    Webull Minimum & Fees

    As mentioned earlier, this is a 100% free trading platform. They do not charge any hidden fees and there are no strings attached. There is no minimum balance to open an account, however you do need to have $2,000 to open a margin account.

    Pros Of Investing With Webull

    • Free stock if you sign up here.
    • Trades are 100% commission free, including short selling.
    • Research tools for both technical traders and fundamental investors.
    • Trading simulator lets you practice trading risk free.
    • Free extended hours trading pre-market and after-market.
    • Real time data available on US markets for free.

    Cons Of Investing With Webull

    • Might be “information overload” for complete beginners.
    • No retirement accounts, just the taxable accounts.
    • No cryptos or options.
    • Only one account type available.

    If you sign up via our link 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.

    What Is Robinhood?

    Robinhood is known as the app that pioneered the commission free trading. They have once again changed the game by offering commission free trades on cryptocurrency and options trades. This platform is designed with beginner’s in mind. It is meant to be the simplest trading platform out there. As a result, intermediate to advanced traders often find this platform to be lacking when it comes to research tools, order types and technical indicators. Still, if you are looking for a simple platform to trade commission free, it is an excellent option.

    Robinhood Features

    Zero Commissions

    Robinhood allows users to trade stocks, ETFs, options and cryptocurrency completely free. There are no strings attached or hidden fees of any kind.

    Simple App Design

    They have the most simple user interface of any investing app we have tested. This is a pro for some and a con for others. We can 100% say that Robinhood is a beginner friendly app.

    Robinhood Gold

    Robinhood Gold allows you to take advantage of a number of different features. First of all, you can increase your buying power by trading on margin. Robinhood extends you a loan to purchase stocks relative to your account value. You need to have at least $2,000 in your account to open a margin account. Margin trading is very risky, and beginner investors should not be using it. It also allows you to have instant deposits from your bank and professional research reports from Morningstar.

    Robinhood Minimum & Fees

    Just like with Webull, this is a 100% free trading platform. They do not charge any hidden fees and there are no strings attached. There is no minimum balance to open an account, however you do need to have $2,000 to open a margin account.

    Pros Of Investing With Robinhood

    • Easy to use, beginner friendly platform.
    • Ability to trade stocks, ETFs, cryptos and options.
    • Access to margin through Robinhood Gold.
    • Free pre-market and extended-hours trading.

    Cons Of Investing With Robinhood

    • Only basic order types are supported.
    • Very limited research tools and data available.
    • No trading simulator.
    • No sign up incentive.
    • Do not offer retirement accounts.

    Webull vs Robinhood

     WebullRobinhood
    Commission Free TradingYesYes
    Margin TradingYesOffered on Robinhood Gold subscription $10-$15 per month
    Account TypesIndividual TaxableIndividual Taxable
    Account Minimum$0$0
    Short SellingYesNo
    Technical IndicatorsYesNo
    Virtual Trading SimulatorYesNo
    Trading PlatformApp based, Desktop coming in 2019App and Desktop
    Investment ResearchYesBasic, No
    InvestmentsStocks, ETFsStocks, ETFs, Crypto, Options
    Analyst RatingsYesNo
    After Hours Trading4am to 8pm ESTOffered on Robinhood Gold subscription $10-$15 per month

    The Verdict

    Webull and Robinhood both offer commission free trading with no minimum account balance. These are the only two real similarities. Beyond that, they each offer a totally different experience for investors.  Robinhood is designed for complete beginners who are looking to trade stocks, ETFs, cryptos or options commission free. Webull is designed for intermediate to advanced traders who are looking for more technical or fundamental data.  What you will find with most of these free trading platforms is that they all lack in customer support. Since they have to cut costs and operate lean business models, they do not offer any kind of phone support. You are not able to call and ask questions or place trades over the phone.  Overall, we believe Webull has the slight edge because they offer a trading simulator as well as numerous research tools for both active traders and long term investors.  One feature we would like to see added in the future for both is a DRIP and the ability to purchase fractional shares. At the end of the day, both platforms are 100% free so you can try them both and see which one is a better fit for you!

    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.

    webull free stock offer

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