Webull is a new investment app that’s been making waves in the financial world lately.
In particular, people are lauding it as a great alternative to Robinhood and other existing investment apps and tools.
Webull stands out because it offers in-depth trading data and other advanced features, and it’s targeted more at people with existing investment experience than total beginners.
However, it also doesn’t charge commissions or fees on their trades the way many advanced investment services do. The combination of no-commission trading and advanced features has led many people to wonder – is Webull legit?
What is Webull?
Webull is an investment app that allows you to buy and sell stocks and ETFs, conveniently and without commission fees.
Webull was founded in 2016 and is backed by venture capital.
They released their app in May of 2018. One of their goals is to provide equal opportunity to investing with high quality tools and services. Read our detailed review of Webull here.
Is Webull Safe to Use?
Webull has taken extensive measures to create a safe investing opportunity for its users.
Webull is a registered broker dealer with the SEC, and they are also a member of FINRA and SIPC. To maintain these certifications, they must meet strict standards. The SIPC protects consumer securities up to $500,000. Webull’s clearing firm, Apex Clearing Corporation, also offers additional insurance for members. Just like other investment companies, Webull cannot protect you against market losses.
However, they do offer in-depth investment tools to help you make the best financial decisions for you. Webull also uses encryption and other digital security measures to ensure that your personal information is kept safe.
Is Webull Really Free?
A common question that many people have about Webull is whether or not it is really free to use.
It’s true – Webull doesn’t charge commission fees on trades, which makes it unique from many other investment programs on the market. There’s also no minimum balance required to open an account.
However, there are still some fees you will encounter while using the app. SEC and FINRA both charge fees for member transactions. There are also standard margin fees, ranging from 3.99 to 6.99%. These fees are very small and they go down for larger trades, and are standard for any investment.
Webull does not charge you to transfer funds to your bank, but financial institutions do charge their own standard fees. These fees are $25 for outgoing domestic wire transfers and $45 for outgoing international transfers.
Incoming transfers are $8 domestically or $14 internationally. Your first incoming transfer is typically free.
Webull also does charge for certain advanced features, although you don’t need these features to use the app successfully. All US market data is free, but if you want access to international market data while you are trading, you will need to pay for a subscription.
There are also certain ‘advance quote’ features that cost money.
These provide very detailed information about certain stocks and markets. These subscriptions are one of the biggest ways Webull makes money, and they are quite appealing for more serious traders.
Find out how to get $100s in free stocks with Webull here.
How do I set up a Webull account?
Setting up a Webull account is fairly straightforward. You’ll need to fill out some basic personal information to verify your identity, which is required for federal brokerages like Webull. You will also need to provide your bank account information.
Webull will then verify your account, which typically takes less than a day and is often done in just a few hours. Once your account has been verified, Webull will make two deposits in your bank account for very small amounts, which typically takes another day or two.
Once you have received these deposits, you will need to verify them on Webull to confirm your bank account.
Then, you can start trading. There’s no minimum deposit required to get started.
If you open a Webull account now, you’ll get a free stock. (Potential value of $1,000)
What Features Does Webull Offer?
Webull offers a huge range of excellent investment features to help you make smart investment decisions. Here are the features you can expect from the Webull app:
- Real time charts and indicators. If you love data, you’ll enjoy trading with Webull, which allows you to really dive into all of the relevant data for any stock you are interested in. They have many of the indicators that you would expect from a serious trading account, which is something experienced investors love.
- Analyst recommendations. If you are interested in purchasing a stock, you can find an aggregate report of analyst recommendations. This can help you get a consensus on what experts are saying about the investment.
- News reports, press releases, and calendars. Webull has a news feature that pulls together relevant articles to help you stay abreast of everything that’s going on in the financial world. This makes doing your research very convenient, and it’s easy to stay up to date with what’s going on. They also have calendars noting important dates for traders.
- Stock screening. If you’re having difficulty deciding which stocks you want to buy, you can use a screening feature to narrow down your selection based on a range of different features. These screeners are very in-depth, allowing you to find what you’re looking for quickly.
- Watch lists. A good watch list feature is essential for any investment app. They allow you to easily keep track of the stocks that interest you most.
- Virtual portfolio. One of the best features Webull offers is the ability to open a paper account, which is essentially an investment account without money. This allows you to get a feel for the platform and practice new investment strategies without risking your money.
- Ability to trade on margin. Webull does allow traders the option to trade on margin. However, this is the one instance when Webull does require a minimum balance. You will need at least $2,000 to trade on margin with Webull. Webull also does charge percentage fees on margin trades.
- Short selling. Webull also allows you to make short sales, which is different from many of its competing investment apps.
- Extended hours trading. Many investment tools claim to offer extended hours trading, but Webull really makes good on this promise with longer hours than most platforms. You’ll be able to trade in extended hour periods from 4 AM to 9:30 AM and 4 PM to 8 PM EST. This is a very helpful tool for anyone who has a busy schedule.
Pros and Cons of Webull
There are many advantages to using Webull for your investing needs, as well as a few disadvantages.
The biggest advantage is that Webull has such an extensive range of features, so users can invest much more actively than they would on other, simpler platforms.
Their range of features makes it easy to find the best stocks for your needs, and you can also learn and practice new investing strategies with their paper trading options.
Their extended trading hours are also a very popular feature that makes them more convenient.
The accessibility of Webull is another thing that makes it such an appealing option for many people.
Most brokers that have similar advanced features to Webull charge commission fees and have account minimums to get started. This can make it difficult for people who aren’t particularly wealthy to get started with investing, because it just isn’t financially feasible.
However, Webull doesn’t have these limits.
Webull also is known for their excellent customer service.
You can talk to customer service agents by email, online live chat, or phone to get answers to your questions. The customer service team responds to inquiries quickly, which is particularly important when trying to solve financial problems.
There are a few downsides to Webull that are important to consider before signing up. The biggest downside is that it’s not very user-friendly for total investment beginners.
The in-depth trading features are great for those who already have some investing background, but if you are completely new to it, they can be very overwhelming.
The other downside is that there are a few investment options that Webull doesn’t offer, like options, mutual funds, bonds, and a few others. OTC and Pink Sheet stocks are limited, as are stocks that are under $1 or have a market cap of $10 million.
This could potentially limit your investment strategy.
With all of the excellent features and trading options that Webull provides, it’s safe to say it is a legit option for investors who want to grow their wealth and learn new investment strategies.
Webull targets a niche that hasn’t yet been covered in today’s market – people who want to move beyond investment basics but aren’t active day traders either. The lack of fees and minimum balance requirements means the barrier to entry is relatively low.
Overall, it’s an app worth trying out if you’re looking to dive deeper into the world of investment.