Webull vs Robinhood
Last Updated: March 10, 2023
While debating Webull vs Robinhood might seem like discussing two sides of the same coin, these two companies offer different trading experiences.
Webull has sophisticated features set in place with intermediate and advanced traders in mind. On the other hand, Robinhood offers a more basic experience geared toward new investors.
But the differences don’t stop here. So let’s look at the specifics!
Webull vs Robinhood: Side-by-Side Comparison
A side-by-side comparison is always the best way to compare key features. So let’s take a look:
|AUM:||$30 billion||$20 billion|
|Stock trading fees:||$0||$0|
|Robo advisory service:||No||No|
|Regulated by:||SEC, FINRA||SEC, FINRA|
In the table above, you can see how similar the two companies are. They seem to have the same benefits like no account minimum and $0 trading fees. But, unfortunately, the downsides are also identical — namely, the lack of advisory of any kind.
So let’s keep reading to see what truly sets these platforms apart.
Webull vs Robinhood: Ease of Use and Trading Offerings
Let’s go through the typical registration process, platform navigation, and trading offerings to see if both companies deliver on their promises of a streamlined experience.
Webull: registration, use, and trading offerings
Getting started with Webull has been made as simple as possible.
To create a Webull account, you must be at least 18 years old. Also, you need to be from the US, Canada, or China. Unfortunately, the service isn’t available to customers from other countries.
To prove your age, residency, and identity, you’ll have to provide a document — a driver’s license, ID card, passport, or Social Security Number (SSN).
There are two types of accounts on Webull — cash and margin. If you want to start margin trading, you will need to sign up for a margin account. In this case, you have a minimum balance of $2,000 as per the FINRA regulation.
Since there is no minimum deposit for brokerage accounts, you can start with any amount. Upon registration, you’ll receive one free stock, valued between $2.50 – $250. What’s more, the Webull free stock policy rewards users who fund their account with at least $100 with one free stock, valued between $8 – $1,600.
At Webull, you can trade:
Unfortunately, the brokerage doesn’t support mutual funds, bonds, IRAs, and 401(k)s. Hopefully, this will change in the future.
Robinhood: Registration, Use, and Trading Offerings
Opening a Robinhood account has pretty much the same requirements as at Webull. You must:
- be 18 years of age,
- have a valid Social Security Number,
- be a US citizen,
- have a valid address in the USA.
And of course, to prove that you meet these criteria, you have to provide some form of identification or document with your photo on it, like an ID card, driver’s license, or passport. Then, when you fill out and submit the application with all the proof included, it will take less than 24 hours for Robinhood to verify your account.
With your account, you’ll have access to the Robinhood options, stocks, ETFs, ADRs, cryptocurrency, and fractional shares investment array. Unfortunately, just like Webull, Robinhood doesn’t support mutual funds, bonds, or retirement funds.
There is a $0 minimum deposit, so you can start trading as soon as you open your account. However, as per the FINRA requirement mentioned above, if you want to trade margins, you need to sign up for the Robinhood margin(Gold) account that requires a minimum of $2,000.
Day trading is available at Robinhood only if you have a balance of $25,000, which is steeper than the industry average. In addition, day trades are somewhat limited, and they are regulated by the company’s Pattern Day Trading Rules.
Webull vs Robinhood: Fees
Both of these companies claim to be commission-free, and they sure deliver on that promise. However, while there are no trading fees, there are some other charges you may be subject to.
Webull carries fees for local and international wire transfers. Specifically, local wire transfer has an $8 deposit fee and a $25 withdrawal fee. Meanwhile, an international wire transfer has a $14 deposit fee and a $45 withdrawal free.
Robinhood fees include a 5% margin rate for margin traders, $5 per month if you have a Robinhood Gold account, and a $75 charge for an outgoing transfer.
Both of these brokerages are regulated by the SEC and FINRA. This means that they have to follow the same rules as any other legit brokerage.
Webull and Robinhood also have similar SIPC insurance policies. Both have a policy with a $500,000 per-customer limit with $250,000 on cash investments.
As for your data protection, both of these companies encrypt before storing it. So technically, even if there was a breach, no one could see your data.
Webull hasn’t had a security breach to date. But Robinhood experienced one in 2020. The hacker attack compromised around 2,000 accounts.
Both brokerages put effort into making their app a streamlined experience for users. As a result, the two apps are effective, easy to navigate, and meet all the functionality requirements.
But the Webull app offers some advanced features that active and intermediate/advanced traders may find very useful. Offered in both the web and desktop versions, these include:
- paper trading
- price alerts
- voice command
Yet, Robinhood’s app is also sleek and offers a good trading experience. Some of its features include:
- earnings calls live audios
Customer service is not a strong point for Webull or Robinhood. Users of both brokerages report unanswered emails, unsatisfactory or slow phone support, or the absence of a phone line in Robinhood’s case.
For Webull, your best chance of proper customer support is the message center that works very well. The Webull Community of users, found in the app, is also always willing to help.
On the other hand, Robinhood doesn’t offer a live chat option or phone support. Of course, this is a big downside, mainly because its competitors provide 24/7 support.
Who Is Webull Best for?
In terms of cost, Webull has a pretty good score. With no account minimum, no trading fees, a decent selection of trading offerings, and advanced app features, the platform can appeal to many investors. In addition, the slightly lower Webull margin rates could be beneficial to some.
Having said that, with little to no educational content on their platforms, Webull might definitely be better suited for advanced and active traders.
Who Is Robinhood Best for?
Despite the presence of a Robinhood desktop app, this is undoubtedly a mobile-first platform. It puts a lot of effort into a streamlined experience for its users. However, this might be a downside since it doesn’t come with all the bells and whistles that more advanced traders may be used to.
And while experienced investors might find some features lacking, Robinhood is perfect for beginner investors that might get overwhelmed by all the options.
It’s also worth noting that Robinhood margin rates are very competitive. Yet, the company charges a monthly fee for their Gold account to trade margins.
Which Is Better, Webull or Robinhood?
Let’s summarize the pros and cons of Robinhood and Webull.
So, the obvious pros of both of these brokerages are:
- Easy registration process
- Streamlined apps with plenty of features
- $0 fee trades
- No account minimum required
An advantage that sets Robinhood apart from Webull is the fact that it offers fractional shares. Like at some other brokers, this means that you can pay as little as $1 for a portion of a stock. This makes it very easy to build a diversified portfolio.
Additionally, you can’t debate Robinhood vs Webull, without mentioning some of their downsides like:
- Lack of educational content
- Lack of any form of advisory (both robot and human)
- Tradable securities
While they both offer a decent amount of tradable securities, the lack of common securities like bonds, mutual funds, and IRA for retirement investors cannot go unnoticed. Additionally, to have a well-rounded platform, educational content, and some form of advisory or portfolio oversight is crucial.
Moreover, Robinhood has been into controversies that have affected the company’s overall sense of reliability and trustworthiness.
So which one is right for you?
Ultimately, if you are a beginner who likes the $0 trading fees, enjoys a streamlined, simple platform with the ability to trade cryptocurrency, then Robinhood can be a good choice for you.
But, if you have an intermediate level of experience and want to be an active trader and enjoy the lack of Webull fees, then give it a try.
Yes. Robinhood is regulated by the SEC and FINRA, thus making it legitimate and safe to use. In addition, your investment is protected by the company’s SIPC policy that covers up to $500,000 per customer and $250,000 on cash investments.
Yes. You’re just as safe with Webull or Robinhood as you would be with other big brokerages like TD Ameritrade or Fidelity. Webull has a similar SIPC coverage as Robinhood — a $500,000 per-customer limit, with a $250,000 limit on cash.
One of Robinhood’s biggest selling points is that it doesn’t charge a commission. The platform has zero fees on trading, thus making it suitable for beginners.
Yet, if you have a Robinhood gold membership, you will pay $5 a month. In addition, for margin trading, there is a 5% commission and a $75 charge for outgoing transfers.
You can trade in regular and extended hours — 30 minutes before the market opens and 30 minutes after it closes.
Yes, the Webull day trading capacity appeals to active investors. But to start day trading you need a $25,000 minimum net balance. If your limit is below that threshold, you can make three trades in five business days.
Yes. Trading in stocks, options, and ETFs on Webull is free. However, there are a few non-trading fees like wire transfer fees ($8 for deposits and $25 for withdrawals) and international wire transfer fees ($14 for deposits and $45 for withdrawals).
While both companies offer a $0 trading fee and no account minimum, Webull is generally considered better for intermediate investors and active traders, while Robinhood is more suitable for beginners. When facing the Webull vs Robinhood choice, you should consider the factors that determine the platform as a better match for you.