Webull vs TD Ameritrade

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Contributor, Benzinga
September 30, 2022

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Webull and TD Ameritrade are both online financial brokerage companies with large followings, but they’re different in many ways. 

Webull is a relatively new player targeting a younger market with its progressive mobile app, direct crypto trading and fractional share options. 

TD Ameritrade is a large, publicly traded company offering a range of account options. It has no direct crypto trading feature and no fractional share options. It offers an award-winning trading platform with educational content and advanced analytics that attract a wide audience from beginner to advanced-level trading.  

Take a look at how Webull and TD Ameritrade compare.

What is Webull?

Webull is a relatively new online brokerage and fintech startup. Launched in 2017, this Chinese company is headquartered in New York. Webull took a mobile-first approach to designing its products, targeting millennials as its most important market segment. 

Webull is regulated by U.S. financial authorities, including the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. 

Low Cost, Easy Entry

Webull is a low-cost investment platform offering a wide range of products, including cryptocurrencies, stocks and options. A deposit is not required to open an account, and there are no trading commissions on stocks, options or cryptocurrency trades. Webull charges 1% on crypto trading through the spread on buy and sell transactions.

Webull offers instant funding of up to $1,000 even before your funds have cleared. This allows eager traders to start investing immediately, even though funds generally take up to four days to clear. 

Fractional Shares

The company added fractional shares to their investment options in 2021, allowing users to invest in shares they might otherwise not have had the money for. Webull offers extended hours and premarket trading. 

Webull Mobile App

Webull’s mobile app is its standout feature. The layout is clear and user-friendly. Each stock has its own page, linking to news articles and company announcements. Each page also has a comments section so users can get an idea of investor sentiment. The mobile app is also voice-enabled for quick and easy order placement. 

The Webull platform has a trading simulator allowing users to try out trading strategies using virtual money while receiving real-time feedback on U.S.-listed stocks. It also features advanced charts and indicators, price alerts and paper trading. 

Investment Tools

Available investment tools:

  • Crypto trading: Invest as little as $1 in 25 digital currencies, including Bitcoin, Ethereum and Solana
  • Fractional shares: Invest as little as $5 in stocks and exchange-traded funds (ETFs)
  • U.S.-listed stocks and ETFs

Webull offers good customer service with 24/7 access via email, phone and chat. 

What is TD Ameritrade?

TD Ameritrade is a full-service broker established in 1975. The company has more than 11 million clients and over $1 trillion in assets. It is a publicly-traded company operating as a bank and authorized by four tier-1 regulators.

All traders can benefit from the product offering as it has educational resources covering a range of topics and advanced charting and analytics. The Learning Center has more than 400 pieces of learning content. 

Like Webull, you don’t need a deposit to open an account. You can open almost any type of account and invest in a number of retirement funds and college savings accounts. TD Ameritrade users also have access to trusts and business investment accounts. ATM withdrawals and debit and credit cards are all available options. 

Trading Platform

TD Ameritrade is best known for its flagship thinkorswim trading platform. Winner of the 2022 Best Desktop Platform, thinkorswim offers all the features an active trader needs. It has real-time news, advanced technical analysis, quotes and backtesting. The advanced charts are customizable. You can also set up notifications via third-party platforms like Twitter and Facebook Messenger. 

Riskless Trading

TD Ameritrade has a trading simulator called Paper Money containing $100,000 in virtual funds so users can try out their trading strategies without risking their funds. The simulator also has a margin account for increased buying power. On the simulator, you can trade anything that’s on the real platform so it allows you to test all the features. Nonusers can also register on the simulator for a 60-day free trial. 

Investment Tools

Available investment tools:

  • Mutual funds: Choose from more than 13,000 mutual funds. More than 3,700 have no fees. If you invest in the fee-free options, you must hold the investment for at least 180 days or you will be charged a fee of $49.99. Each fund has a page showing its holdings performance and other features. 
  • Futures
  • Bonds
  • Options: 65 cents per contract
  • Stocks: Commission free 
  • ETFs: Commission-free
  • Lump-sum fixed deposits
  • Forex currencies: Over 70 tradable currency pairs

Customer service is good with live chat, email and telephone service available 24/7. There are also more than 250 branches where you can arrange in-person meetings. 

Schwab acquired TD Ameritrade in October. Full company integration could take a few years, so there may be some changes on the horizon at TD Ameritrade. 

  • TD Ameritrade
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  • Webull
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How Are TD Ameritrade and Webull Similar?

Here’s how TD Ameritrade and Webull stack up on similarities

Deposit: No deposit

Account maintenance fee: None

Transfer fee to another broker: $75

Platform: Both have easy-to-use, functional trading platforms and mobile apps

Demo accounts: You can practice your trading skills without risking your money on both trading platforms

Customer service: 24/7 live chat, telephone and email service

How Are Webull and TD Ameritrade Different?

The major differences between the Webull and TD Ameritrade product offerings include: 

Portfolio tools: TD Ameritrade offers its users innovative and easy-to-use portfolio tools. Users can customize them to suit their needs. The TD Ameritrade platform thinkorswim is a standout feature the company is well-known for. 

Fractional share trading: This is not an option on TD Ameritrade but is offered on Webull.

Option trading fees: Webull charges no commission. TD Ameritrade charges 65 cents for every options contract

Mutual fund trading: Not available on Webull. Users can choose from thousands of mutual funds on the TD Ameritrade platform

Crypto trading: Webull offers direct crypto trading, which is not an option at TD Ameritrade. TD Ameritrade offers crypto coin trusts for over-the-counter trading, and you can trade cryptos through the futures markets. Webull offers a choice of 25 cryptocurrencies. 

Account options: Webull offers brokerage accounts, traditional retirement accounts and Roth individual retirement accounts (IRAs). It has no cash-management account option. TD Ameritrade offers accounts ranging from long-term savings to current accounts with debit and credit card options 

Margin interest rates: The margin interest rate charged by TD Ameritrade is significantly higher than the margin interest rate charged by Webull

Choose the Best Online Broker for Your Portfolio

If you’re a beginner, you may prefer the educational resources available on TD Ameritrade. Webull offers advanced orders and technical analysis and is one of the cheapest trading platforms on the market. 

Choosing the best online broker is an important decision and takes some research. Benzinga helps traders to find the right match. Start your search for the best online broker and platform.

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Frequently Asked Questions

Q

Why is Webull the best?

A

Webull is the best because it offers a community experience. Webull offers fractional share options, allowing investors with limited funds to buy into large companies with expensive shares. 

Q

What is the advantage of using TD Ameritrade?

A

The advantage of using TD Ameritrade is that it offers an enormous array of mutual funds, so investors have plenty of choices when it comes to diversification.