Nowadays, it is becoming more and more difficult to find a company that doesn’t charge investors for trading. The two most popular companies are Robinhood and Webull. Robinhood charges zero commission on trades while Webull charges 0.5% of the trade value.
The webull vs robinhood trading hours is a battle between two of the most popular stock trading apps. Webull has zero commission while Robinhood only charges 0.25% on stocks traded on their platform.
Webull and Robinhood have emerged as two of the most powerful retail trading platforms in the United States, with more than 20 million investors utilizing their interfaces to execute their trades.
The following evaluation contrasts the services of these two providers by comparing their features and qualities to help you determine which is a better match for your trading and investment requirements.
Overview of Webull vs. Robinhood
Webull and Robinhood are both new retail brokers, with Webull being the most recent of the two.
These firms have thrown the industry into disarray, and millions of Americans have rushed to their platforms to take advantage of their low-cost trading options.
Webull was established in 2017, and it capitalized on the zero-commission trend that has wreaked havoc on the brokerage sector in the United States. Retail traders may access cutting-edge trading technologies, real-time quotations, and extended-session transactions with zero-commission trades.
To understand more, read our comprehensive Webull review.
Robinhood was established in 2013 by two former high-frequency traders who saw an opportunity to disrupt the market by offering low-cost brokerage services and instruments, such as fractional shares and cryptocurrencies, as well as low-cost margin transactions.
Webull and Robinhood have both grown their user bases by making investing more accessible and cheap to individual traders. These services are attracting both novice and experienced investors, who are turning away from conventional brokers who have yet to adapt to changing market conditions.
To discover more about Robinhood, read our entire review.
Main Differences Between Webull and Robinhood
Webull caters to both novice and expert traders, while Robinhood offers features that assist both long-term investors and high-frequency traders.
Webull stands apart from other providers in the market thanks to its user-friendly interface, access to cutting-edge trading technology, a broad variety of accessible instruments to trade, and various kinds of accounts, as well as zero-commission transactions.
Webull offers real-time market data for a variety of asset classes, including global stocks, indices, forex, and futures (however Forex and futures cannot be transacted on their site).
Webull also provides customers with a “paper trading” demo account, which enables them to invest virtual money in the market before depositing real money. This option is very helpful for newcomers or those who want to test the platform before depositing money into an account.
This service allows for margin trading, with margin charges starting at 6.99 percent. A $2,000 minimum account balance is needed. Investors may enjoy 4x day trading purchasing power during normal market hours and 2x buying power during extended sessions after their margin account is authorized.
Overview of the Main Features
- Platform Customizability: The platform may be customized to meet the needs of both novice and experienced investors.
- Real-Time Market Data: Webull provides free real-time market data for over 100 exchanges across the globe.
- Technical Indicators: Webull provides real-time data on a variety of technical indicators, including as volume, Bollinger bands, MACD, and more.
- Knowledge and Research Tools: Webull provides a variety of user-friendly knowledge and research tools, such as suggestions, graphing tools, and basic data.
- News: Webull provides a real-time news service for stock and ETF traders.
- Webull utilizes the most current revenue statistics from the businesses on their list.
- Stock Screeners: You may use stock screeners to filter your stocks depending on the metrics you choose to use.
- Webull allows you to perform virtual transactions (sometimes known as “paper trades”). This allows novices to invest in stocks with virtual money and observe the outcomes of various situations.
- Webull enables you to trade from 4:00 a.m. to 9:00 p.m. You may trade after hours from 16:00 until 21:29.
- Margin Trading: The platform enables you to double your day-trade or off-hours purchasing power by four times.
- Shorting: Shorting gives investors additional choices.
Check out our complete Webull review to discover more about the app and its features.
Along with their zero-commission strategy, Robinhood also allows customers to trade fractional shares (something Webull does not currently provide), as well as create a Robinhood Gold account to trade on leverage.
Margin trading with Robinhood offers an extra benefit: the first $1,000 in margin is interest-free, while any further borrowing is subject to a very competitive 5% annual flat rate.
The company also provides rapid deposit clearing, which is a fantastic feature for investors who want to get in quickly to take advantage of real-time market possibilities.
Real-time access to Level II market data from the Nasdaq stock exchange is another service provided by Robinhood. It displays the amount of purchase and sell orders, as well as the bid and ask prices for each. This data is best utilized in conjunction with sophisticated trading techniques.
Advanced features of the Robinhood Gold account include more favorable margin rates, a larger threshold for the quick deposits function, and the option of enrolling in Robinhood’s Cash Management service.
In terms of trading platforms, Robinhood’s isn’t the most sophisticated in terms of functionality and technical interface complexity.
Traders, on the other hand, may take use of a user-friendly platform and utilize third-party trading methods to supplement their research while making low-cost transactions via Robinhood.
Overview of the Main Features
- Fractional shares: In addition to their zero-commission strategy, Robinhood also allows customers to trade fractional shares, something Webull does not presently provide. (Investors may purchase a portion of a stock using fractional shares.)
- Margin trading: One benefit of margin trading with Robinhood is that the first $1,000 in margin incurs no interest charges, while any further margin incurs a very competitive 5% flat yearly interest rate.
- Instant deposits: With this option, investors may get their deposits cleared right away.
- Access to Level II market data in real time: This feature displays the volume of purchase and sell orders, as well as their bid/ask values, as obtained directly from the Nasdaq stock market. This data is mostly utilized to back up sophisticated trading techniques.
- More favorable margin rates, a larger threshold for the quick deposits function, and the ability to enroll in Robinhood’s Cash Management solution are among the advanced features available to Robinhood Gold accounts.
- Despite the absence of sophisticated charting tools on Robinhood’s platform, investors may still enjoy a user-friendly trading platform while depending on third-party services to perform this kind of research.
Check out our complete Robinhood review to learn more about the app and its features.
Investment Options: Webull vs. Robinhood
Although both platforms provide comparable kinds of instruments, the quantity of cryptocurrencies accessible on each differs somewhat.
Traders may use Webull to trade a variety of products, including US-listed equities, options, ETFs, American Depositary Receipts (ADRs), and a limited number of cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
This broker does not provide OTC goods, bonds, Forex pairs, or penny stocks.
Robinhood provides access to over 5,000 US-listed ETFs and equities, as well as American Depositary Receipts (ADRs) (ADRs). Any US-listed stock worth more than $1 with a total market value of more than $25 million may also be purchased in fractional shares.
Additionally, the company provides the option of trading options — even sophisticated methods — for free, making it an appealing alternative for options traders.
Bitcoin, Ethereum, and Dogecoin are among the cryptocurrencies presently supported by Robinhood.
This provider does not allow you to trade foreign stocks, forex pairs, bonds, or OTC securities.
Account Types in Webull vs. Robinhood
In comparison to Webull, Robinhood falls short in this area, since the former does not provide retirement accounts (as of this writing), while Webull offers a variety of various kinds of individual retirement plans (IRAs).
Currently, Webull provides two kinds of accounts:
- Individual brokerage account – a standard investment account that allows customers with a balance of more than $2,000 to access margin.
- Individual retirement account (IRA) — a tax-deferred retirement account in which users may trade and invest while benefiting from not having to pay taxes on their profits until they remove funds from the account. This supplier presently supports traditional, Roth, and rollover IRAs.
Robinhood presently only offers taxable individual investing accounts as of this writing.
There are many kinds of accounts available, each of which grants traders varying levels of access to the provider’s numerous services. These are the following:
- Robinhood Cash – Robinhood’s most basic account, which enables users to trade all of the company’s goods throughout normal and extended market hours. Margin trades are not available with this account.
- Robinhood Instant – A taxable margin account that allows traders to use the instant deposit function and has a variable margin amount depending on the account’s balance.
- Robinhood Gold — This is Robinhood’s premium account, which gives traders access to Level II market data as well as a larger margin balance and immediate deposit threshold.
In today’s retail brokerage market, sign-up incentives and referral programs have grown quite popular, and both Webull and Robinhood frequently run promotions that, in most instances, involve stock bonuses.
Webull is now running a limited-time deal that entitles new users to two free stocks worth between $2.5 and $250, as well as two more equities worth between $8 and $1,600, provided they deposit a total of $100 before the offer ends.
These stocks will be paid to the client’s account 15 days after the offer has been claimed, and customers will have 30 days to claim their stock bonus once their first payment has been processed.
There are two kinds of incentives offered by Robinhood: signup and referrals.
The registration bonus is a free stock worth between $1 and $213.57 that is awarded to the user’s account when they finish the sign-up procedure. (Keep in mind that there’s a 98 percent chance you’ll wind up with a stock worth between $2.50 and $10, according to the company.)
Users who encourage and persuade their friends to create an account with Robinhood may earn up to $500 in shares via the company’s referral program. As a signup incentive, each friend who joins will get a free stock.
Fees & Pricing: Webull vs. Robinhood
The major price difference between Webull and Robinhood is the margin rate. Both of these brokers now provide zero-commission transactions on all of the instruments to which they have access.
Webull, on the other hand, charges greater non-trading costs.
Webull does not charge a commission for any of the instruments that their platform supports.
Webull’s margin rates start at 6.99 percent for accounts with less than $25,000 in balance. If the account balance exceeds $3 million, the rate gradually decreases to 3.99 percent.
Other non-trading costs include a $8 charge for wire transfer deposits and a $25 fee for wire transfer withdrawals.
In addition, international transactions incur a $12.5 deposit charge and a $45 withdrawal cost.
Robinhood, like Webull, does not charge any fees for trading the instruments available on its platform; instead, their margin cost is a flat 5% regardless of account balance. Custodial costs may apply to overseas shares, though.
A $5 monthly charge grants access to Robinhood’s Gold account and all of its features.
What We Like About Webull vs. Robinhood (Pros)
Each of these brokers has certain commonalities, but they also have some distinguishing characteristics. Here are a few of them.
- A highly regulated brokerage company headquartered in the United States.
- Trades in US-listed securities with no commissions, including as stocks, options, ETFs, and ADRs. This service also allows you to trade certain cryptocurrencies.
- Webull can help you set up a retirement account.
- Top-of-the-line trading platform with a variety of research tools.
- Trades with no commissions on all instruments provided by this supplier.
- For thousands of US-listed companies and ETFs, fractional shares are available.
- Robinhood is a highly regulated trading platform located in the United States.
- Margin rates that are competitive.
- Upon registering, you will get a bonus stock.
- Users may earn up to $500 in stock incentives by referring others to the site.
- Instant deposits allow you to boost your purchasing power practically immediately after putting money.
What We Don’t Like About Webull vs. Robinhood (Cons)
There is a lot to like about Webull and Robinhood’s services, but there are also drawbacks, such as the unavailability of specific asset classes and instructional resources on their platforms.
- This broker does not trade bonds, OTC securities, or international stocks.
- Wire transfers inside the United States and internationally are charged at a high rate by Webull (both incoming and outgoing).
- This service does not allow traders to trade several asset classes, including Forex and futures.
- The company is quite new, having been in business for less than three years.
- There are no instructional resources.
- Customer service at the company is said to be sluggish or difficult to contact.
- This service does not allow you to trade forex or futures.
- During periods of severe market volatility, the company has suffered downtime.
- There are no retirement accounts supported by this provider.
- The only way to contact Robinhood’s customer support is through email, which is a little frustrating.
- Although the business provides some textual instructional resources, the platform does not include videos or lessons to help customers improve their investing and trading abilities.
Robinhood Security vs. Webull
Webull and Robinhood are both highly regulated US-based companies in terms of regulatory coverage.
Webull is a highly regulated company headquartered in the United States, having registrations with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) (SEC).
Webull’s clearing firm, Apex Clearing Corp, has also purchased a private insurance policy that provides protection for up to an aggregate of $150 million – including $900,000 in cash held in customers’ accounts – and is a member of the SIPC, which means investment accounts are protected for up to $500,000 — including $250,000 in cash.
Robinhood, like Webull, is a FINRA and SEC-regulated broker. In addition, the company is a member of the SIPC, which implies that Robinhood customers’ accounts are covered for $500,000, including $250,000 in cash.
Trading Platforms and Apps: Webull vs. Robinhood
The style and functionality of each of these brokers’ trading platforms are perhaps the most noticeable distinctions.
Here’s a quick rundown of what each interface has to offer.
The trading interface at Robinhood is extremely user-friendly, and it is geared more at novice investors than experienced traders.
This is mirrored in the online version’s and mobile app’s limited customizability, but there are certain features that are very useful, such as alerts and push notifications delivered to the user when various events occur.
Corporate activities, earnings releases, dividend payments, and price fluctuations are examples of these occurrences.
Basic fundamental data for individual stocks, analyst ratings and reports for numerous securities, and a newsfeed are among Robinhood’s research tools.
In comparison to Webull’s sophisticated algorithms, the charting tool is very simple. Level II market data is available to Robinhood Gold account users who want to do a more in-depth examination of an instrument’s supply and demand levels.
Market, limit, stop-loss, stop-limit, and trailing stop orders are among the trade orders offered by Robinhood’s platform.
Webull’s trading platform has a completely configurable interface with real-time market data for five distinct asset classes, including stocks, ETFs, indexes, Forex, and futures.
The interface also includes a live news feed with stories from reputable news organizations like as CNBC, Seeking Alpha, and Benzinga. There’s also a charting tool with over 45 technical indicators and a variety of sketching tools.
Most stocks and ETFs come with fundamental data, and the company also has a trading ideas portal where investors may look for ideas.
The Stock Screener is a helpful tool that allows users to filter thousands of US-listed companies based on fundamental and technical criteria, allowing them to find assets that suit their investing/trading strategy.
Market, limit, stop-loss, stop-limit, and bracket trade orders are presently supported by Webull.
What is the purpose of Robinhood?
Day traders and buy-and-hold investors may both utilize Robinhood. Everyone may benefit from the low-cost brokerage services available.
Traders may discover that Webull is a better match for their requirements when it comes to charting tools and other sophisticated technical research.
However, it’s worth noting that Robinhood still has a competitive edge over Webull in terms of fractional shares, since Webull has yet to make this option accessible to its customers.
What is the purpose of Webull?
Webull’s cutting-edge technology and sophisticated trading system make it stand out among experienced traders who are more interested in technical data they may use to execute trades.
Webull, on the other hand, falls behind Robinhood in that it does not provide fractional shares, has higher margin rates, and does not have a quick deposit option (which is a great asset for active traders).
Webull and Robinhood both provide comparable services, including zero-commission trading, but each has its unique advantages.
Webull may be a better match for active traders, but it lacks some of Robinhood’s advantages, such as quick deposits and lower margin transactions, which are both beneficial to traders. Webull’s sophisticated trading platform and algorithms make it a better fit for experienced traders who depend on technical analysis to make their trade decisions.
The Level II market data provided by Robinhood, as well as the characteristics mentioned above, distinguish this service as a top choice in the retail brokerage sector.
Frequently Asked Questions
Does Webull take commission on trades?
Webull does not take commission on trades.
Does Webull have more fees than Robinhood?
Webull is a stock trading app that does not charge any fees for transactions. Robinhood is a brokerage platform that charges a fee for each trade.
Is Webull commission free?
Yes, Webull is a commission free broker.
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