Question 1

How does Webull compare to Robinhood?

Accepted Answer

There are a few differences:

Webull offers short selling (though you can't expect them to have borrows on hard-to-borrow stocks that brokers like Interactive Brokers or Centerpoint may have), whereas Robinhood does not offer short selling
Webull's trading platform offers more features (see below for a rundown of the features in Webull's platform) such as a stock screener, paper trading and technical indicators
Webull offers pre-market and after-hours trading like you'd expect, though will Robinhood you have to pay for that (via Robinhood Gold)
Webull offers IRA accounts

Webull definitely feels like a better version of Robinhood, as it does almost everything Robinhood does and significantly more beyond that. The only benefits I see to Robinhood over Webull is that Robinhood offers fractional share trading, along with crypto trading (As of March 2020 Webull is working on crypto).

Question 2

How does Webull work for day trading?

Accepted Answer

Webull is definitely catered towards day traders over long-term investors, as the more frequently you trade the higher your commissions would normally be, and a commission-free broker will save you a ton of money over the long term. However, it's still of course subject to the pattern day trader rule (no more than 3 round trip trades within a 5 day period if you're trading with less than $25,000 USD). The disadvantages for Webull with day trading is that you don't get to choose what market maker to route your order to (as explained below, Webull makes this decision for you and makes a bit of money by routing orders to certain market makers), which won't matter for highly liquid stocks but may result in worse executions when you're trading illiquid and especially OTC stocks. Also, their margin rates are much higher than many other brokers, so I strongly advise against day trading with them if you need to use any kind of margin as the margin fees will likely outweigh the commission-free trading.

Question 3

Is Webull insured?

Accepted Answer

Yes. Webull is covered by SIPC insurance, which covers up to $500,000 in securities or $250,000 in cash for each account. There is also insurance from Apex Clearing Corporation up to $150 million in total.

Question 4

Can I get a free stock with Webull?

Accepted Answer

Yes. Webull has a referral system where if you join up under someone's referral link, you get a free stock (or two). It's random what stock you'll get, but you can expect the value to be somewhere around $10-20, so it's worth doing.

Question 5

Is Webull's customer service any good?

Accepted Answer

Webull has good customer support that will get back to you quickly, though they still lack a live chat support feature.

Question 6

How do dividends work with Webull?

Accepted Answer

Dividend payments with Webull work just like with any other broker. If a stock you're holding has a dividend payment, you'll see the cash in your account on the payment date or the day after.

Question 7

Does Webull have a good trading platform?

Accepted Answer

Webull's trading platform isn't revolutionary by any means, but it's definitely perfectly sufficient for most needs.

Question 8

What's the catch with Webull?

Accepted Answer

The premise of Webull (commission-free trading with no inactivity fee) sounds extremely appealing, so it's not surprising it's got popular. However, there are a number of things you should be aware of:

~~You can only trade US stocks and ETFs on Webull~~ (UPDATE March 2020: Webull now offers options trading, and appears to be working on bringing crypto trading to the platform as well)
You can only deposit and withdraw via bank transfer, not credit card (not that we would recommend that!) or electronic wallet
As of March 2020, there is no live chat on the website (though they added a telephone number) which is always my preferred way of contacting a broker
Webull only accepts customers from the US, China and India
While Webull offers commission-free trading, you'll still be charged margin fees ranging from 3.99% (for over $3 million) to 6.99% (up to $25,000), which is higher than many brokers (the stock trading broker I usually trade with, for example, Interactive Brokers, offers far lower margin fees). If you're trading on margin, you may find that Webull isn't the cheapest broker for you despite its commission-free trading
There are still SEC and FINRA trading fees, though these are very low (SEC trading fees are $0.0000221 * Total $ Trade Amount, FINRA trading fees are $0.000119* Total Trade Volume - both for sells only)
If you'd like data for many different exchanges (Toronto stock exchange, Taiwan stock exchange, London stock exchange, Hong Kong stock exchange etc.) it'll cost you a monthly or annual fee. Costs are between $2.99/month and $59.99/month
You should be aware that Webull makes money by directing order flow. Instead of having an order screen where you get to choose what market maker you want to place your order through, Webull gets to make this decision for you, and market makers pay Webull for sending orders their way

OutwitTrade

Johnathan Bellis

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