Have you heard of Webull? How about Robinhood? You probably know that both of these are trading platforms, but when you look at Webull vs Robinhood, which one is best? Does one offer more than the other? Is one free vs. the other having high hidden fees? When you look at Webull vs Robinhood in 2022, which trading platform wins out?
Let’s take a look!
What Is Webull?
First of all, what is Webull? As we already eluded to in the intro, Webull is a brokerage platform with a well-designed mobile app experience. In other words, you can buy and sell stocks on their platform.
At this moment, they have quite the teaser for you to sign up and fund your account – you get 5 free stocks!
- When you first sign up with Webull, you receive 2 free stocks worth up to $300
- Then, we you fund your account, you get 3 free stocks worth up to $3,000!
(Before you get too excited, when you read the fine-print, you realize that you’ll likely receive two $3 stocks, and then three $7 stocks, for a total of $27)
Webull Pros and Cons
What does Webull do well? What does it do poorly? Is it worth signing up with them?
Based on our research and knowledge of the stock trading space, below are what we consider to be the pros and cons of Webull.
A big pro of Webull – they have a great app and a simple user interface.
Other pros of Webull? Here’s our list:
- They offer free stock at sign-up (as we mentioned above)
- No trading commissions
- Access to 17+ different cryptocurrencies
- Great community of users if you need help
So what are the main cons of Webull?
There are a few:
- Webull doesn’t offer bonds, mutual funds, futures, or forex trading
- Poor customer support
- Very few customer resources to guide them in their trades
Is Webull Really Free?
To start a Webull account, it’s free. It’s also free to trade ETFs and stocks on Webull. And, Webull offers free options trading as well.
Not a bad deal.
But, as you may suspect, there are certain things that Webull charges for.
If you want to trade on margin, that’s going to cost you on Webull (as it would anywhere) – anywhere from 3.99%-6.99%, depending on the amount you’re borrowing for your trades.
Finally, it’s worth noting that while trading comes with no commission fees, that doesn’t mean that Webull isn’t getting paid. Webull earns money via a third-party marketmaker, who is actually fulfilling your purchases and sales — up to 1% for crypto orders!
So when you’re looking at Webull vs Robinhood, which platform is faster?
It’s a question worth answering. We’ll get to it later in the post once we give Robinhood a fair shot at this comparison.
“Do I Own Bitcoin on Webull?”
I’ve seen this question pop up a fair amount. People are wondering…if they make a Bitcoin purchase on Webull, do they actually own Bitcoin?
It seems like they’re suspect about whether or not Webull is a proper medium for purchasing crypto. So what’s the answer?
- Is Webull a good place to buy crypto?
- If you buy Bitcoin on Webull, do you actually own Bitcoin?
With Webull, you can buy up to 17 different cryptocurrencies, which is pretty cool. And, they have some of the most popular cryptocurrencies as well, including Bitcoin and Ethereum. So yes, you can buy these cryptos and own them with Webull, but there’s one major drawback. Webull doesn’t offer a crypto wallet.
So what’s the big deal if you don’t have a crypto wallet?
It’s not a huge deal if you believe in Webull and if you don’t really want to use your crypto. But, without a wallet, you can’t transfer your crypto coins anywhere. And, if you can’t transfer them, that also means you can’t buy anything with your crypto either.
Again, not a big deal if you’re just looking to buy and hold (or buy and sell). But for many, this is a major drawback.
Related: The Top 3 Bitcoin Alternatives
Webull Review: Is It Largely Positive?
Overall, the reviews on Webull are good.
Nerdwallet gives Webull a score of 4.5 out of 5, but they tend to rank everything quite high.
The main reasons for the lower Webull review scores?
- The poor customer service
- The limited trading options (no bond or mutual fund trading)
Other than that, Webull is solid place to make your commission free trades. They’re going to be around a while.
Can Webull Be Trusted?
What about the morality aspect? Can Webull be trusted? Or are they going to take your money and run?
Webull has been around since 2017. It started out as a portfolio consolidation and research company, and has recently shifted into the brokerage world. While they are still fairly new, they have already become a powerhouse in the trading community. I believe they are here to stay.
That said, their customer service is lacking, which means they likely care more about your initial sign-on than they do about your long-term business. If you want to make some short term trades with Webull, I think they’re a great choice. If you’re looking to make trades for the long-term and park your money with them, I’d honestly look elsewhere.
So what about other trading platforms besides Webull? What is Robinhood?
Robinhood is certainly similar to Webull in the fact that they’re a brokerage company where you can buy and sell funds. But there are some differences.
Below, we’ll get a look at the comparison: Webull vs Robinhood in 2022. Is Robinhood better than Webull? And if so, for what reasons?
Robinhood Pros and Cons
It’s time to dig deep into Robinhood. While you’ve probably heard that they’re a great place to trade, let’s verify that. What does Robinhood do well? And what do they lack?
Let’s check out the pros and cons of Robinhood.
Just like Webull, Robinhood has a very user-friendly trading app that allows you to pop open your phone and easily make a trade in seconds.
Other pros of Robinhood:
- No monthly fees or minimums
- Commission-free trades
- Can trade stocks, ETFs, options, and cryptocurrency (just like Webull)
So what are the cons of Robinhood?
There are a few main ones, and they’re oddly similar to Webull:
- No fixed income, mutual funds, forex, or futures trading
- No phone options for customer service
- Limited education and research tools
Are their any catches to Robinhood’s free trading? Is it really free?
According to Money.com (and many other reputable sources), Robinhood is indeed free when it comes to trading stocks, options, crypto, and ETFs. But, that doesn’t mean they don’t charge any fees.
So how does Robinhood make money?
Robinhood makes money with the following:
- They get a cut from the marketmaker, the platform that’s actually performing the purchases and sales (just like Webull and many other brokerage sites)
- They earn money on your cash (just like banks – they invest your cash to earn higher returns than they pay you)
- Robinhood charges $5 a month if you want to buy and sell on margin. Oh, and they’ll charge interest when you borrow as well.
None of the above items are out of the norm. In fact, these methods are how most brokerages earn money today. Robinhood just happens to offer a great tool for buying and selling investments, and they allow free trades on nearly everything!
When looking at Webull vs Robinhood, many would say that Webull is better than Robinhood, but is that truly the case?
What about when you look specifically at crypto trading or options trading? Is one better than the other?
Webull Crypto vs Robinhood
Webull and Robinhood both offer crypto trading, but when you compare Robinhood vs Webull, is one better than the other in the crypto market?
While both Robinhood and Webull offer free crypto trades, neither actually offer a crypto wallet. The only real difference is what crypto you can buy on each platform.
- Webull offers 17+ crypto options
- Robinhood offers just 7 crypto options
- Bitcoin Cash
- Shiba Inu
- The Graph
What crypto can you buy on Robinhood?
- Bitcoin Cash
- And Bitcoin SV
- Ethereum Classic
When looking at Robinhood vs Webull, Robinhood definitely has a limited amount of crypto vs. Webull. Robinhood has the main ones, but that’s about it.
Webull vs Robinhood Options
So, what about options trading when you compare Webull vs Robinhood? Who offers the best options experience?
Options gives the trader the right to buy or sell a specific security on a specific date at a specific price.
Webull Options Trading
With Webull, you can trade options with…
- No commisions
- No contract fees
- Advanced charting and indicators
- No assignment or exercise fees
And of course, an easy-to-use platform (as we’ve already mentioned).
Robinhood Options Trading
With Robinhood, you can trade options with…
- No commissions
- No contract fees
- And, no assignment or exercise fees
But…there really isn’t advanced charting or research tools with Robinhood. There’s only basic information provided.
So, while the Webull and Robinhood platforms are similar, Webull wins out when it comes to options trading.
Does Webull Have More Fees Than Robinhood?
Webull and Robinhood are nearly identical when it comes to fees (or lack thereof). The only difference is that Robinhood targets the beginner investor, and Webull targets the more advanced trader with their sophisticated trading tools.
Why Are Webull and Robinhood Prices Different?
At times, the stock prices shown on Webull are different than the prices shown on Robinhood. This is likely due to the speed of each platform.
Since stock prices are ever-moving throughout the day, even a couple second delay can give the appearance that a stock price is actually different on one app vs the other. They shouldn’t be, but the reality is that sometimes one platform may be running slower than the other.
It is usually not a big deal, unless you’re truly trading by the second. (And, for those of us that are building true wealth…you probably shouldn’t be. Remember, slow and stead often wins the race!)
So what’s the verdict? Is Robinhood or Webull better?
If you’re a beginner investor, you’ll probably enjoy Robinhood more. It’s simpler, more basic, and the experience is excellent. But, if you’re familiar with trading and want more research tools and tech, then go with Webull.
Is one really better than the other? I don’t think so. It’s just a difference in their target market. That’s all.
Should I Have Webull and Robinhood?
You might be asking, “Would it ever make sense to trade on both Webull and Robinhood?”
I’m a firm believer in simplicity. I like to keep as few accounts as possible and focus on what really matters – investing and making a return. So for me, I’d probably choose just one platform.
But, if you’re just playing around and you want to get some free stocks with the promotions, then sure, join Webull and Robinhood. Who knows, you might get lucky and win yourself a pretty nice stock when you sign up!
Webull vs Robinhood – Which is Better?
Alright. After all that info, can we actually declare a winner? When you compare Webull vs Robinhood, which one should you pick?
If you’ve been reading along with us this whole time, we already gave this answer a couple sections ago.
For the beginner user, Robinhood is probably best. If you’re an experienced investor, then Webull is the way to go. For me, after doing all this research, I’d choose Webull. In fact, I’m going to sign up right now and see what kind of free stock they’re going to give me (I don’t have my hopes up, but I’m still curious!).
What about you? After reading the above, what would you choose? Webull or Robinhood?
AUTHOR Derek Sall
Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially--one email, one article, one person at a time.