Webull is a commission-free stock and ETF trading platform that was launched in 2017. Today, it has over 10 million users across the U.S. and around the globe.
It quickly became known for its extensive menu of offerings, ranging from technical indicators to simulated trading to a wide variety of advice from analysts.
Because of this deep wealth of resources, Webull caters to more seasoned traders who are actively involved in the market. It is not intended for passive, longer-term investors who may not have the need for real-time updates and technical indicators.
In fact, it can be overwhelming for complete beginners to take in all the info Webull offers.
However, the app itself has a well-organized design and it is easy enough to navigate.
In this article, we will be covering some of the ins and outs of Webull, explaining exactly how this app works! So even if you're a complete beginner, don't worry we'll have you up and running in no time.
If you prefer watching instead, check out our video on this topic below!
Your very first step with Webull is getting your information verified and opening a trading account.
When you sign up, you decide if you want a cash, retirement, or a margin account. Webull does not charge you any money for opening and maintaining a trading account. There is also not a minimum balance you are required to hold in your cash account.
Again, this is a 100 percent free trading platform. They do not charge any hidden fees and there are no strings attached. However, there is a minimum balance if you want to open a margin account. That minimum is $2,000.
Margin accounts are a type of brokerage account that lets investors buy securities with borrowed funds, requiring a deposit of cash or assets as collateral to cover the risk on these transactions. You will also pay interest on margins.
Webull has an annual margin interest rate between 3.99% and 6.99% depending on the total amount that you borrow.
Keep in mind that margin accounts can be very risky, and they are probably not a good option for new investors. Before opening a margin account, you need to remember that you may have to deposit additional cash or securities in your account on short notice to cover market losses.
For most people, a taxable or retirement account will be a good fit. This depends on whether or not you are investing for the short term or long term.
By investing in a retirement account, you can benefit from a host of tax advantages. However, you'll need to follow certain rules and regulations in order to avoid taxes and penalties.
After you open your account, we would recommend taking the app for a test drive using the free paper trading simulator.
The term paper trading comes from the stock exchange, where investors would write down their choices on paper and then see how well their stocks and ETFs fare day-to-day. Webull’s paper trading is fully simulated.
This means you are just practicing buying and selling stocks and ETFs and building a diversified portfolio without worrying about losing money. You chart progress and market fluctuations up and down and tally up your results at the end.
Webull is one of a small handful of platforms that offers simulated trading to let you test out trading strategies and become more familiar with the platform risk-free.
The trading simulator gives you $1 million of fake currency to work with, as well as a demo on how to get started.
Once you are comfortable with the app after using the trading simulator, your next step should be to create some stock watchlists or set some alerts.
These allow you to track stocks that you want to keep an eye on. You can also set price alerts that will allow you to get notifications from Webull when the price reaches a certain level. For example, if you were looking to buy a stock or ETF for under $100, you could set a price alert for when it reaches that level and receive a notification from Webull.
This is particularly useful for active traders who want to keep tabs on many potential trading opportunities without keeping their eyes glued to their screen.
Now that you have your account opened and you are familiar with the trading simulator, here are some other great Webull features you should be aware of!
On the Webull platform, you're able to buy and sell options at no cost. Options are derivative investments that allow you to speculate on the price movements of a stock and potentially magnify your gains or losses.
Due to the risky nature of options, you're going to be restricted on the strategies you can use with options depending on your experience with trading. For beginners, it's generally best to steer clear of these until you've got some more experience under your belt.
Once you're ready to start trading options, you can send ina request to Webull to have options enabled on your account. Based on your account size and history with trading, you'll be given access to a certain level of options trading. As time goes on, you can request access to higher levels if you wish to take advantage of riskier strategies.
To learn more about options on Webull, check out our Webull Options Review.
Webull users are also able to buy cryptocurrencies like Bitcoin and Ethereum on the platform. This has become an increasingly popular feature and can appeal to traders looking to take advantage of price swings in the volatile crypto market.
Webull currently offers over 20 cryptocurrencies, which includes notable names such as Bitcoin, Ethereum, Litecoin, Dogecoin, Cardano, and more.
It's important to keep in mind that crypto purchases, regardless of the platform, are not protected by SIPC insurance. Webull also does not offer members access to a crypto wallet and therefore does not allow transferring coins in or out of the platform. For this reason, you're likely better off using a dedicated crypto platform like Coinbase for your crypto trading.
Most free trading platforms do not offer extended hours trading. Instead, you can only place trades during market hours which are 9:30 a.m. to 4:00 p.m. EST from Monday to Friday. Those that do offer extended trading hours frequently charge a fee for this service.
Webull offers free extended hours trading to all users. You can place trades during pre-market (4:00am to 9:30am EST) or after-market (4:00pm to 8:00pm EST) by placing a limit order.
Webull is most well-known for the data they supply for traders. You can take advantage of real-time market data for all U.S. markets free of charge. This is good information to have when you are actively trading, and your goal is to take advantage of very fast changes in the market.
Many other trading platforms are limited to delayed data reporting by up to 15 minutes. Delayed reporting of price data could be very costly for an active trader. This is because you could lose out on micro-shifts in prices happening in real-time.
However, if you are looking for real-time data for global markets, you will need to pay a monthly subscription starting at $3.99 and up per month.
Keep in mind that you do not need to pay for any subscriptions to access real-time data on U.S. markets. If you’re new to Webull, it may be best to start out by studying U.S. markets first as this is where many of the largest companies are located.
Webull offers a variety of research tools for both newer and more advanced investors. These include news briefs, press releases, important financial documents and details, earnings reports, earnings dates, dividend dates, and more.
Analysts are experienced pros who offer recommendations on buying, selling, and holding stocks and ETFs in your portfolio. This can be extremely helpful to you when you look at making buying or selling decisions.
Webull showcases these ratings in an organized way to give you a good snapshot of a particular company right when you need more information.
The ratings include visuals like charts and graphs to help you better understand the value of your stocks. They also offer helpful tools that compare the metrics of one company to another in the same industry.
You will be able to answer questions like:
In addition to all of the functionality you can get out of the Webull mobile app, there is also a desktop platform that provides traders with even more resources. From stock screeners, to advanced charting and data, Webull Desktop 4.0 does not disappoint.
As far as free software goes for trading, this is definitely one of the most comprehensive setups we have come across. Even when compared with paid software, the desktop interface for Webulll is quite impressive.
Within the platform, you're able to create a customized dashboard with a variety of widgets that Webull offers. This allows you to create a workspace that is tailored towards your particular trading strategies.
Another useful feature for Webull users is the financial calendar.
This calendar shows you important upcoming dates for a specified company, such as dividend payments and earnings reports. There are also calendars that show what companies are reporting as far as earnings monthly, and also if there are any Initial Public Offerings (IPOs) on the horizon.
In general, Webull is best suited for active traders that are in search of significant data and research tools to identify opportunities in the market. The platform was built for those that use technical stock analysis and rely on chart patterns to make buying and selling decisions.
If you are a long-term investor looking to pursue a buy-and-hold strategy, you'll likely be better served with a platform more tailored towards this style of investing. Apps like M1 Finance and Robinhood are built for the longer-term investor and have a wealth of tools to support these clients.
Now that you have a basic understanding of the Webull platform, you have the tools you need in order to get started investing. As you progress through the various features that Webull has to offer, feel free to read through the other articles on Investing Simple where we dive deep into things like Webull Margin and Webull Options.
There's a ton to learn about the stock market, but Webull offers you many avenues to become more informed and track the stocks in your portfolio.
When you take advantage of the platform, you will shorten your learning curve and be on the way to becoming a more seasoned investor. Best of luck out there!