Banking Online Banking

Webull vs. Robinhood: What’s Best for you?

Online trading has become more popular in the past few years as investing in stocks became more accessible. Now, you can start by investing even just a few dollars when you take on the job of investing yourself (versus something like Robotraders). Two of the biggest online trading platforms are Robinhood and Webull. What’s the difference between them, and which is best for you? When it comes to Webull vs Robinhood, it depends on what you’re looking for.

What can you do with Webull and Robinhood?

When considering Webull vs Robinhood, they both offer a platform where users can invest in and trade stocks. Both offer Android, iOS, and desktop use so you can access your account on the go or wherever you prefer to do your trading. Neither charge fees for trading (other than required FINRA and SEC fees) or commission fees, setting them apart from standard brokerages. 

What you should know about Robinhood and Webull

If you’re a beginning trader, you’ll probably have plenty of questions to start out with. Robinhood offers a wide variety of articles explaining everything from basic investment terms to how to analyze a stock. What Robinhood doesn’t offer, though, is customer support over the phone. Only email support is available, and some reports state that it can take a while to get a response. Webull offers both phone and email support, besides a robust collection of FAQs on their website.

Price Comparison – Webull vs Robinhood

You can sign up with Webull and Robinhood for free. They both offer commission-free trading. Webull gives you free access to integrated Morningstar reports, while Robinhood charges $5 per month for Robinhood Gold which includes Morningstar reports. Robinhood Gold also gives you the ability to trade on margin, or borrowed money. The first $1,000 borrowed is free; if you borrow more than that, your interest rate is 5%. Webull charges 6.99% for up to $25,000, and reports are included free of charge.

About Robinhood

When it comes to Robinhood vs Webull, it's important to consider their mobile platforms.

Robinhood was the first platform to offer consumers the ability to trade without commission fees. They’ve been around since 2016 and are noted for their ease of use and the ability to help beginners start trading right away. One benefit of Robinhood is the ability to buy fractional shares, meaning you don’t have to plunk down a huge chunk of cash to buy a complete stock. You can buy a little as 1/1,000,000 of a stock, which makes owning stock more accessible to everyone.

Despite this, many Robinhood users report needing to do research outside of the Robinhood app, causing extra steps and making trading clunky and more time-consuming as a result.

Pros of using Robinhood

  • No investment minimum
  • Commission-free trades (you still pay FINRA, SEC, and OCC fees if applicable)
  • Offers trading in cryptocurrency
  • Learning tools on their website
  • The ability to buy fractional shares 
  • Earn a share of stock just for signing up
  • Free ACH transfers
  • Streamlined and easy-to-use for beginners

Cons of using Robinhood

  • Monthly fee for trading reports (Robinhood Gold, starting at $5/month)
  • No option to use domestic wire transfers
  • No phone support
  • Doesn’t support paper trading

About Webull

The question of Robinhood vs Webull is not a one-word answer.

Webull was launched in 2017. While Robinhood is known for its ability to help beginners, Webull offers more information to investors to help them make decisions about trades. All the information may overwhelm newer investors, but more experienced investors will be pleased with the variety of information at their disposal. 

Even new users, though, can benefit from Webull’s option of paper trading. Paper trading uses simulated trades to give traders a realistic trading experience without putting their money at risk.

Pros of using Webull

  • No investment minimum
  • Commission-free trades (you still pay FINRA, SEC, and OCC fees if applicable)
  • Offers traditional and rollover IRAs
  • Real-time U.S. market data included on the platform, including Morningstar and streaming news reports
  • Option to utilize domestic wire transfers (though fees apply – $8 for a deposit, $25 for a withdrawal)
  • Free ACH transfers
  • Free paper trading accounts

Cons of using Webull

  • No ability to trade in cryptocurrency (although it is coming soon, according to their website)
  • No option to buy fractional shares

If you’ve always dreamed of learning about the stock market and trading on your own, both Robinhood and Webull offer commission-free trading and easy-to-use platforms. While Robinhood is geared more toward beginners, Webull offers more information that may be helpful to those who have experience trading. Paper trading with Webull is a good option for learning without putting your money at risk, while Robinhood might be the best place to start if you are ready to jump in right away.