SHORT ANSWER: Webull offers more advanced trading tools and extended hours, while Robinhood provides a simpler interface and commission-free options trading.
In the fast-paced realm of finance and investing, having the right tools at your disposal can make all the difference. Webull and Robinhood are two prominent names in the world of commission-free trading platforms, each offering unique features and benefits to users.
Before you jump headfirst into trading and investing, it's crucial to understand the nuances of these platforms to make an informed choice. With different functionalities, user interfaces and investment options, knowing the distinctions between Webull and Robinhood is vital for maximizing your investing potential.
Read on to choose which is best for you.
Webull vs. Robinhood: An Overview
Webull and Robinhood both leverage the underappreciated market of millennial traders, but which app provides the most bang for your buck? We did some research and compared both apps. Here's an overview of commissions, pros, and cons of each platform below.
Who’s Webull for?
Webull was launched in 2018 as a direct competitor to Robinhood in the commission-free mobile investing space. But unlike Robinhood, Webull appeals to veteran and novice traders, thanks to an abundance of technical tools and research. The most common users of Webull are:
- Active traders looking to reduce costs
- Beginner traders transitioning from saving to learn technical and fundamental analysis
- Mobile traders
Who’s Robinhood for?
Robinhood exploded onto the scene in 2016. It wasn’t the first brokerage to offer $0 commissions, but it certainly made the most noise. Appealing to a millennial demographic often ignored by the big firms, Robinhood steadily increased its user base from year to year and has had no problem finding venture funding. While light on news and analysis, Robinhood still opened the world of finance to a niche that had been seriously neglected. Robinhood is best suited for:
- Beginner stock traders
- Beginner options traders
- Cryptocurrency traders
- Mobile traders
Both apps have plenty in common, including a desktop version for both Mac and Windows users. Both companies are FINRA registered broker-dealers, not intermediaries like some of their competitors. You’ll get SIPC protection on your funds and clearing is done by Apex at both firms. Webull and Robinhood are safe, reliable places to keep your investments.
Comparing Webull vs. Robinhood
Let's take a deeper look at what Webull and Robinhood have to offer.
Platform and Tools
A careful analysis of platform and tools is a major necessity. We’ve flicked every switch and pushed every button to make sure you’re getting what you want from each.
- Active Traders
What Webull Offers
Once inside, you’ll be able to make trades with only a few swipes. From a trade execution standpoint,
However, once we get into the tools,
Additionally,
- Beginners
What Robinhood Offers
Robinhood’s platform is simple and sleek but does leave a lot to the imagination compared to Webull. Stock and option trades can be made with a few easy swipes on your phone, but you won’t find much in the way of tools.
Stock charts show 5 years of history in either candlestick or line format, but no technical indicators can be overlayed. You can’t even use moving averages.
Stats are available like the 52-week high and low, P/E ratio, average daily volume, market cap
The Better Platform
Trade execution is fast and simple on both platforms, but that’s where the comparisons stop. Webull simply has more to offer the intermediate and advanced trader when it comes to tools and analysis.
With Robinhood, you’ll need an outside source for your technical tools and market data. Webull provides plenty of data and research, plus the tools to separate signals from noise. The better features belong to Webull, hands down.
Research Offerings
Next… What about research? This is where we tested whether one platform over the other breaks all the rules.
What Webull Offers
Webull users can access real-time U.S. market data completely free. This means not only live price quotes, but income statements, balance sheets and cash flow reports. (Basically, all the stuff you need to look up on Yahoo Finance if you’re a Robinhood user.)
Additionally, you’ll get streaming news reports from important sources like Bloomberg, Morningstar and CNBC.
And while only U.S. stocks and ETFs can be traded on
What Robinhood Offers
Robinhood has standard research offerings, but nothing you couldn’t get from the individual sources themselves. You’ll get breaking news updates from free sources like Yahoo Finance, Bloomberg and CNBC, along with online news outlets like MarketWatch, Seeking Alpha and Benzinga.
The previous 4 earnings reports are listed below each stock chart and conference calls are live on the app.
However, Robinhood Gold, the premium version which requires a monthly fee, does provide stock research from Morningstar.
The Better Platform
Robinhood takes a beginner’s approach to trading. The charts are basic and lack indicators. You won’t find income statements or balance sheets anywhere and you’ll have to pay to get access to Morningstar research.
Listening to conference calls on the app is nice (if that’s your thing) but Webull has more to offer both technical and fundamental traders.
Commission and Fees
Obviously, commissions and fees are a big part of the bigger picture. We blew Webull and Robinhood wide open in order to evaluate both.
Webull’s Fees
Webull has no fees or commissions on any stock or ETF trade. All you’ll pay is the spread and SEC transaction cost, which are fractions of a penny. You can transfer money in and out of your account with no fees using ACH, although domestic wire transfers cost $8 per deposit and $25 per withdrawal.
International wire fees are $12.50 and $45, respectively. Margin rates start are 6.99% for up to $25,000.
Robinhood's Fees
Robinhood is also commission-free on all trades, including options and cryptocurrency trades. Margin is available through Robinhood Gold, but there’s a $5 monthly fee.
One bonus though: The first $1,000 of margin can be borrowed interest-free. After $1,000, rates are 5%. Only ACH transfers are permitted to fund your account, so no fees ever apply on deposits or withdrawals.
The Better Platform
Both Webull and Robinhood have $0 commission on any trade, although Robinhood gets bonus points for extending this to options and crypto.
Margin rates are better on Robinhood too, although
Security
How are you protected with Webull and Robinhood? Let's crack open security on both.
What Webull Offers
Webull is a registered broker-dealer and customer accounts are SIPC protected. Additionally, Apex Clearing has an insurance policy for up to $37 million in securities and $900,000 in cash. Personal information and account passwords are encrypted with high-level data security. Users can set passwords to access the account and execute trades.
What Robinhood Offers
Like Webull, Robinhood went the official broker-dealer route. Customer funds are protected by SIPC insurance and Apex’s additional policy. Accounts are protected by industry standard security and bank information is never saved. Two-factor authentication is available too.
The Better Platform
Webull and Robinhood are both safe to use. Your funds are just as secure here as with larger brokers like Charles Schwab and TD Ameritrade. Personal information is encrypted and only a few people will have access no matter which company you choose.
Customer Support
The differences between Webull and Robinhood are not that different in terms of customer support. Get a load of what each one offers.
What Webull Offers
Webull shows a large collection of FAQs to help customers find answers. Customers also get
What Robinhood Offers
Robinhood also has FAQs and email and phone support. Getting responses from Robinhood support can take a while, too. Its help center does have an extensive list of articles and Q&As to guide customers to answers but that’s probably its most helpful feature.
The Better Platform
Although Webull and Robinhood offer similar customer support options, Webull emerges as the better choice in the comparison due to its faster response times to customer service inquiries.
Tradable Asset Classes
Interested exclusively in ETFs and mutual funds? Options and crypto? Let’s figure out which one will fit your needs best.
What Webull Offers
Webull offers no commission stock, ETF
Short-selling is also available on certain stocks. Want to practice first? Webull lets you try your luck with a paper trading account before putting any real cash to work.
What Robinhood Offers
Robinhood has a bigger selection of asset classes. Stocks and ETFs are available commission-free as well as options and cryptocurrencies. No short-selling, though. Order types are limited to market, limit and stop-limit. Bracket orders would be a nice feature to add here.
The Better Platform
Robinhood has more to offer from an asset standpoint thanks to options and cryptocurrencies. Webull does offer short-selling on some stocks which helps traders who want to bet against certain companies, plus a few advanced order types that Robinhood lacks. But no options and no cryptocurrencies means many traders may prefer Robinhood.
Ease of Use
Which one of these contenders takes longer to use? We’ll help you dig through the viney tentacles of each platform (though each is pretty easy to use, to be honest).
What Webull Offers
However, once you get accustomed,
What Robinhood Offers
Robinhood is one of the best investing apps for the inexperienced trader. The app is sleek and the interface takes no time at all to learn. The options trader will even hold your hand through every trade. Robinhood Instant accounts can add funds for trading without any delay. You won’t find an easier trading experience than Robinhood.
The Better Platform
Webull definitely takes longer to get used to than Robinhood, but that’s a good thing for traders who want to learn technical analysis. Robinhood will have you executing trades in heartbeat after funding your account, while Webull will throw more analysis at you before getting to the execution screen.
Webull vs. Robinhood: It's Up to You
Commission-free trading is here to stay with both
But
Still undecided? Check out Benzinga's guides to free stock trading brokerages and promotions, the best Robinhood alternatives and our comparisons of Robinhood vs. Interactive Brokers.
Frequently Asked Questions
Is Webull for beginners?
Webull is for intermediate or experienced traders, generally. But as a beginner, you can still use the platform with practice.
Does Webull offer commission-free trading?
Yes, Webull offers commission-free trading.
Can you actually make money on Webull?
Yes, it is possible to make money on Webull. Webull is an online brokerage platform that allows users to trade stocks, options, and other securities. By making informed investment decisions, engaging in thorough research, and effectively managing risks, individuals can potentially generate profits through trading on Webull.
About Dan Schmidt
Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on stocks. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.