Webull Review 2020: Is Webull Legit?

Webull offers one of the best stock trading apps available right now. But what distinguishes this trading platform from others? I will provide you with hands-on information on how to use the app in this Webull review. Also, I reveal how to get your Webull free stocks worth up to $1,600. Finally, I talk about day trading, swing trading, and investing with Webull. Is it worth it or not? Find out and continue reading the review.

 Webull Review | Trading App

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Webull Free Stock

Let's start with this little Webull hack. Click here to get a 3-month Level 2 Nasdaq TotalView subscription for free while using the Webull mobile app and the brand new Webull Dekstop. There is no need to fund an account for this deal. But if you decide to open an account and deposit funds of at least $100, you get a free stock worth between $12.5 and $1,600 on top of the free Nasdaq TotalView subscription. This is a return on investment of at least 12.5% up to 1,600% relative to the minimum deposit of $100.

Continue reading the Webull review to find out more about the suitability for investors and traders, customer service, the company behind the Webull app and the account opening process. Finally, I will also provide you with an easy to understand hands-on guide on how to trade with Webull.

About Webull Financial

Webull offers one of the best investment apps available today. Let's discover why Webull is regarded as one of the best investment apps that you can use to kick-off your investing activity. I mixed it up a bit to provide you with:

  • In-depth information about the Webull investment app features
  • A fee structure overview
  • Various comparisons to their competitors: Webull vs. Robinhood
  • A detailed evaluation of benefits for investors and traders
  • A beginner friendly starter guide

Webull Trading and Investing

Tradeable Instruments

Webull's users can take advantage of commission-free investing for more than 5,000 US-listed stocks, ETFs, and other instruments.

The app provides investors with trading services covering market data from more than 100 exchanges and 90 countries. Stocks, bonds, commodities, FX, derivatives, cryptocurrencies - everything can be found there.

Suitability for Investors and Traders

Interesting wise Webull is not only a legit consideration for investors but also for traders. In March 2019 Webull released the newest version 5.0.

The trading and investment app is used by over 9 million users worldwide. And the coolest thing is that they have a free paper trading account included. But let's have a closer look at the suitability for the different investment and trading categories. Now let's proceed with the Webull review by taking a closer look at the investing opportunities.

Investing with Webull

Investing with Webull is as simple as it could be. You can choose between more than 5,000 U.S.-listed stocks. While you can sell any stock that's in your Webull account, there are some limitations regarding the buying process.

  • You cannot buy shares with a price lower than 1 cent per share
  • If you want to buy stocks with a pricing range between 1 cent and 9.9 cents, then you have to buy at least 1,000 shares at the same time
  • If you want to buy shares with a pricing range between 10 cents and 99.9 cents, then you have to buy at least 100 shares.
  • Stocks with a price from 1 dollar and above can be traded with a minimum share size of only 1.

At first, it might sound like a disadvantage. But it's not - this rule protects you from investing in too low priced stocks. I will go more in detail in the penny stock section below.

Also, you should notice, that the settlement date for all trading transactions is two business days (T+2). So if you like to withdraw funds from your account, then it might take up to three business days until the funds are available for withdraws.

Go on reading the Webull review by getting a better understanding about the swing trading and day trading suiability.

Swing Trading with Webull

You can swing trade with Webull trading platform at any time since you can hold stocks overnight. With a net account value lower than $2,000, you are limited to swing trade stocks and ETF's on the long side only. However, if you have a net account higher than $2,000, you can make use of Webull short selling functionalities.

Buy and Sell Orders with Webull App

Also, please note that the standard market data feed only streams the last traded price in real-time. If you are used to be to see the best bid and offer in your brokerage account, then you can add best bid and offer data too for less than $3/month.

More on this in the fee structure part of this Webull review. Now let's see if this investment app is also great for day traders.

Webull Day Trading

Day trading utilizing Webull's trading platform is possible. However, the same capabilities apply as with any other broker registered in the United States. First of all, you need at least $25,000 in your account to day trade as active as you like. Otherwise, the pattern day trader rules come into play and prevent you from actively day trading.

If you make a maximum of 3 day trades within 5 business days, then day trading is possible with less than $25,000 in your account too.

For example, let's say you opened your account with Webull and your deposit was $100 to qualify for the Webull free stocks (At the top of this article I revealed the answer to the question "How do I claim free stock on Webull.").

So now you have $100 cash in your account plus a free Webull stock worth between $10 and $1,000. Without a margin account, you can now trade only stocks with a value of up to $100. Your cash amount is equal to your buying power.

At Webull, you can also open a margin account and you can sell stocks short too. With a margin account you can trade on leverage. If you like to short stocks using the leverage then the minimum deposit is $2,000.

Once you have a net value of at least $2,000 in your margin account, then you can trade long and short on margin with four times the buying power. So if you have $2,000 in your margin account, then you can trade stocks and ETFs (long and short) with a buying power of up to $8,000 ($2,000 times 4).

Please note that the leverage works in both ways. You make four times more money and can also lose your money four times faster.

Penny Stock Trading with Webull

A Webull review would not be complete without taking a closer look at penny stock trading with this app. Yes, penny stock trading is possible with Webull. There are only some limitations regarding the price per share to buy a penny stock. Here are the details:

Webull | Penny Stock Trading

Webull Review: Trading Hours

Pre-Market Hours Trading with Webull

During the pre-market from 4 AM - 9:30 AM EST you can place limit orders to buy or sell stocks before the regular market hours begin.

Please consider, that limit orders protect you from unexpected losses and bad fills during low liquid trading times. The limit order is in place to protect you. Once the market opens, you can change the order to a market order too.

After Hours Trading with Webull

Also after hours trading is possible. The regular trading hours usually end at 4PM EST. With Webull you can trade 4 hours longer from 4 PM EST to 8 PM EST.

Short Selling on Margin

You need to open an account with at least $2,000 and maintain a net value of at least $2,000 to short stocks on margin. Trading on margin enables you to buy and sell stocks and ETFs with a leverage of four.

If you have a net value of $2,000 in your account, then you can trade stocks and ETFs with a value of up to $8,000 ($2,000 * 4) intraday. If you want to maintain a position overnight, then a leverage of 2 is available.

Consider this, especially if you have an open position worth more than two times your account net value. I strongly encourage you to avoid trading on margin because there is high risk involved when trading with leverage.

Please note, trading with Webull is commission free, but it costs money to maintain a position held on margin. The following fees apply:

Webull Margin Rates

The alternative to a margin account is a cash account. With a cash account, you can trade stocks and ETFs worth up to the liquid net amount within your account.

Tip: You can check the current margin and leverage values before you trade by using the Webull stock screener. Go to "markets," select "United States" and chose "marginable" to see the list.

Check Margin with your Webull App

Webull Short Selling

How to short on Webull? The answer to this question is simple. You need to have an active margin account with a net value of at least $2,000. Plus, the stock you like to short has to be shortable.

Use your mobile Webull app to have a look at the availability and the potential leverage for trading. Sometimes shares are hard to borrow, or other short sale restrictions apply. In that case, you cannot short stocks via Webull. Consider, those limitations are true for most brokers and not limited to Webull.

Webull Review: Options Trading

Webull Options Trading

Finally, Webull options trading is available now. Since 2020, investors can trade options on Webull. But anyone who thought that they would offer the same as other brokerage companies where wrong. Instead of charging $0.65 commissions per contract as other leading brokerages do, Webull takes it a step further and offers options trading with 0 commission and 0 contract fees.

Commissions and Fees

Commission free stock trading and options trading, no trading platform fees and no minimum deposit requirement. Similar to Robinhood, Webull offers free-of-charge investing services.

Apart from the no-commission trading, another benefit is the fact that investors can open a regular trading account without any deposit minimum. Webull also does not charge any maintenance or management fees.

SEC and FINRA Fees

SEC and FINRA fees are applied as follows:

  • SEC Trading Activity Fee: $0.0000207*amount traded (1 cent minimum per trade; sells only);
  • FINRA Trading Activity Fee: $0.000119*shares traded (1 cent minimum per trade; sells only).

We are usually talking about cents here per transaction. Those fees apply because the SEC and FINRA charge this fee. Webull doesn't make money charging those fees. Here is an example. Let's say you trade 100 stocks with a price of $10 each. Your total trade volume is $1,000.

  • SEC Trading Fee: $1,000 * 0.0000207=$0.0207
  • FINRA Trading Fee: 100 shares * 0.000119 = $0.0119

In other words, in this example, you pay about 3 cents for the whole transaction. And any other brokerage would also have to charge you this money too if you trade in the United States.

Margin Trading Fees

Yet, for margin trading accounts, the minimum balance is set at $2 000. With a margin account, you can trade with a leverage of up to 4 times the net value in your account. Margin investors should be aware that the app has an additional commission fee structure for trading on leverage.

Wire Transfer Fees

Funds transfers via Automated Clearing House (ACH) are free of charge. Domestic wires cost money:

  • Deposits via domestic wire: $8 (national transfers)
  • Withdrawal via domestic wire: $25 (national transfers)

Webull fees policy states that international wire transfers are subjects to a fee of $12.5 for deposits and $45-per withdrawal transaction respectively.

Webull Review: Market Data

Here is the market data fee at a glance:

  • Last price data: free
  • Nasdaq Basic Level 1 with best Bid and Offer (BBO): $2.99/month or $33.99/year (7-day free trial available).
  • Best bid and offer from 13 exchanges and times and sales: $10.49/month

Webull Market Data

I have to commit that the Webull review already got longer than expected and we are getting closer to the summary. After having covered the Webull fees, Webull trading and investment options there are now some exciting Webull features I like to talk about.

Webull Features

Free Paper Trading Module

The trading simulator or in other words, the Webull paper trading feature is pretty cool and includeds popular technical indicators.

Webull Paper Trading Account Feature

The best education is, indeed, practically-oriented education. Sharing the same idea, Webull has built a paper trading feature that allows its users to "taste the waters" with real-time data trading stocks and options without risk.

You can open it by choosing "menu" and then "paper trading." Click on "Trade" to choose the stock or ETF you like to trade. Once selected, you can paper trade with a click at the bar at the very bottom of a chart.

The paper trading simulator allows traders to use limit orders and market orders. Trading outside the regular trading hours is also possible by using the Webull paper trading module.

For a free investment app, this paper trading functionality is a big plus. Mainly because you can use the free market data feed. I strongly encourage you to paper trade first until you see that you trade profitably over a longer period.

Just fund your Webull account with $100, grab your free Webull stock and enjoy risk-free trading with their paper trading app until you are profitable over the longer term.

Webull Watchlist aka. Simulated Holding

Webull has also implemented a watchlist feature. It can be found right on the main screen within the Webull app at the very bottom left. The watchlist feature is a good one. You can monitor your favorite stocks and ETFs from one page and with one click to can go into details for each underlying (Underlying = stock or ETF).

Users can set-up multiple individually-tailored watch lists. There are also smart alerts through SMS or e-mail that notify you each time when a target instrument on your watch list trigger some of the conditions (price or indicators) that you have configured initially.

In-Depth Charts

The charting feature is a good one. I would not try it with a little 5-inch smartphone, but on my iPad and larger screens, the charting feature works great. You can switch between various time frames like:

Intraday Time Frames (click on the intraday time frame to toggle between all available time frames):

  • 1 Minute
  • 5 Minute
  • 15 Minute
  • 30 Minute
  • 1 Hour
  • 2 Hours
  • 4 Hours

Long Term Time Frames

  • 1 Day
  • Weekly
  • Monthly
  • Quarterly
  • Yearly

Popular trading indicators are also available.

Advanced Orders

Advanced order types such as OCO, OTOCO and OTO are now available to build your portfolio with the Webull trading app. However, the Webull paper trading module does not allow to use those advanced order types.

Market Data

Webull provides free data feeds for over 100,000 instruments such as stocks, ETFs, Forex, Futures, and Indices. Popular exchanges like NYSE, NASDAQ, LSE, and SGX are covered with the free plan.

The free real-time market data contains the "last price" only. So if you need more detailed pricing information, then you have to subscribe to Level 1 or Level 2 for the exchanges of your choice.

Financial Calendar and Analyst Ratings

Here is another cool Webull app feature rolled out by Webull 5.0. Analyst ratings and the financial calendar are now available within the Webull app. At a glance, you see the current ratings in a graph.

Also, all information about dividends, splits, insider activity, and also press releases are part of the new feature. You can also check the current key indicators like ROE, EPS, Net Margin, CRS, Earnings forecasts, and much more.

Free Stock Screener

The Webull app also stands out when it comes to its stock screening functionalities.

The stock screeners are equipped with rich features and ready-made options to choose from, such as "Biggest movers in the last 5 minutes". The process is easy as each feature is designed in such an intuitive way, that it is almost self-explanatory.

That way, investors can employ the power of fundamental and technical analysis easily and in a matter of minutes.

Webull for Fundamental Analysis

If you rely heavily on fundamental analysis, then Webull is one of the best free in-app solutions that you can find. It provides news streams, professional recommendations, historical data, press releases, statistics, insider holdings and much more.

Webull for Technical Analysis

If you are more of a technical analyst, then you can take advantage of real-time candlesticks and line charts that can get back in time 5 years. Also, time frames can be adjusted. There are plenty of price and momentum indicators, such as

  • Bollinger Bands,
  • MACD,
  • RSI oscillators,
  • exponential moving averages
  • and many more.

One of the Best Trading Apps for Free Research

One of the main reasons why Webull's research center is referred to as one of the best in the sector is the fact that it provides free research/tracking for:

  • Stocks,
  • Forex
  • ETFs,
  • Indices,
  • Futures,
  • Cryptocurrencies,
  • and Options.

With the real-time quotes, the app gives you everything you need to invest wisely, no matter whether you are a beginning or an advanced investor. This makes it the most complete free research center that you can have on your mobile device.

Webull vs. Ronbinhood

Is Webull the best Robinhood alternative? In my opinion, yes, it is. While Robinhood is still the market leader, commission-free investing is no longer limited to one company.

Actually, there are already a few companies offering such commission-free investing opportunities, and there are more to come in the future. For me, Webull is currently the best Robinhood alternative. Let's compare Webull vs Robinhood:

Feature Webull Robinhood
Commission Free Trading Yes Yes
Research Tools Yes Yes
Member of SIPC Yes Yes
Trading Simulator Yes No
Tradable Assets Stocks, ETFs, Options Stocks, ETFs, Options, Cryptos
Margin Trading Fee No Yes (with Robinhood gold, fees up to $200/month)
Short Selling Yes No
After Hours Trading Yes (free) No (with Robinhood gold, fees up to $200/month)
Free Stock Promotion Yes, for new account Only if you refer a friend

There are many benefits opening an account with Webull. The free Webull stock makes the overall package exponentially attractive because the free stock can have a value of up to $1,000.

Webull Customer Service

  • Webull customer service number: No phone, only via the app
  • Webull customer service email: customerservice@webull-us.com
  • Address´╝Ü44 Wall Street, New York City
  • Service hours: 24/7 with the around-the-clock live help team

Users can get in touch with customer support representatives through chat, e-mail and via help-guide. There is no official Webull customer service number.

How to Open an Account with Webull

Once you signed up for free, you can install the Webull app on your mobile device or desktop to finally open your account. And don't forget to claim your free Webull stock!

There are just a few requirements to open a Webull account. First of all, you must be at least 18 years old. Also, you need a valid social security number.

That's it. Once you registered for free, you can open either an individual cash account or individual margin trading account. That's it. There is no need to transfer any money to Webull. However, to claim your free stock worth up to $1,600 you need to deposit at least $100.

Open Your Account in 5 Easy Steps

  1. Click here to get a 3-month Level 2 Nasdaq TotalView subscription for free plus a free stock worth up to $1,600.
  2. Once registered, download the Webull App.
  3. Select the "Trade" tab to start opening the account.
  4. Choose the account type.
  5. Fill out the information needed and accept the Terms and Conditions.

That's it. You open your account with Webull in under 5 minutes. Now it takes about 60 minutes to approve your account. Most of the times it is faster, and then you receive an email once your account was approved. Webull will let you know if any additional information is needed. If you just like to test the app first, then you can do so as well.

Webull Review Summary

You finally made it to the Webull review summary. I enjoyed writing this Webull review since there were so many cool features to explore. Webull is keeping up with the wave of Fintech innovation in the industry.

IMO, Robinhood has its first real competitor now. The Webull app has great functionalities, the fee structure is , and the Webull free stock program is attractive too.

The truth is that the Webull app offers a fascinating platform, full of features and tools for research and analysis, all for free. The market data is not the perfect solution for day traders. But this is fine since Webull's main customer group are investors.

Just like RobinHood, Webull's platform also offers a free stock if you deposit at least $100 in your account. Another feature that makes the Webull app stand out from the rest is the 4x intra-day margin trading and the 2x overnight margin trading.

Webull's rule on automatically-forced liquidation margin calls when the account balance falls below $2,000. This basically means that, if the account balance drops, below the above-mentioned sum, then the shares will be automatically sold to maintain the limit.

Final Verdict

In my opinion, Webull is an excellent choice for investors and swing traders. Also, day trading beginners will love the Webull app because of their free paper trading account.

With Webull, you can practice day trading from everywhere around the globe. But let's stay realistic here. Webull is not suitable for high-speed day trading, scalping, or even high-frequency trading.

Webull is a great app and investors will enjoy features like free research and free market data. Swing traders will like the platform too because it is not that important to have milliseconds of faster trade executions to become and stay profitable.

And finally, day traders can practice day trading with the Webull paper trading app. No matter what type of investor you are - It is definitely worth it to register for free. Also, nothing speaks against a deposit of $100 to get your free stock worth up to $1,000.

Webull Pros and Cons

Pros

  • Commission-free stock and options trading
  • Free stock for any new client (worth up to $1,600)
  • Fully-functional mobile app and desktop platform
  • Excellent research center
  • Professional customer support
  • No account minimum
  • Margin Trading with leverage of up to 4:1

Cons

  • Generally - professional day trading is not possible with mobile apps
  • International outgoing wires are kind of expensive relative to the minimum deposit

Rating:

rating

About the Author: Alexander is an investor, trader, and founder of daytradingz.com. After devoting many years to educating himself on powerful day trading techniques and effective investment styles, he started trading and investing more actively. In the past 20 years, he has executed thousands of trades. In 2015, he began writing articles about trading, investing, and personal finance. He is very passionate about sharing his knowledge and strives for success in himself and others. Alexander has been featured on Benzinga, Rockstar Finance, and ESI Money.

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