Investing Simple Logo
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by Sam Pennington on May 1, 2022
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

Webull Fees Explained 2024: Are There Any Costs?

The last ten years of investing will undoubtedly be some for the record books. Besides a few years of remarkable market returns, the equity markets investors have seen some major innovation. 

In fact, investing institutions are referring to the past few years as the years of the retail investor. Retail investor is a very loose piece of terminology but is taken to mean those who are not professional investors or represented by professional investing institutions. 

The relatively recent innovation in equity markets investing platforms has opened investing opportunities for the retail investor. Investing platforms like Robinhood take credit for the rise of retail investors by creating a simple, beginner-friendly investment platform. 

Another platform to join in the rise of the retail investor is Webull. A lot of people are familiar with Webull’s marketing campaign of referring friends to get free stocks. In addition to sweet sign-on bonuses, Webull also helps retail investors invest in their own stocks they like without extreme fees and platform regulation. 

To learn more about all of the offerings of Webull, head to our Webull summary article. While this article will cover some of the advantages of using Webull, the main purpose is to cover all of the fees associated with the Webull platform. 

New to Webull? Check out my full tutorial below!

Webull Fees

According to the official Webull website, there are five main buckets of fees associated with Webull accounts. Each bucket represents unique and different account offerings. While all buckets are commission free, there are still costs associated with trading that will be explored later in this article. The five high-level buckets are listed below. 

  1. Stocks/ETF Trading Fees
  2. Stock Options Trading Fees
  3. Margin Interest
  4. Level II Market Data Fees
  5. Miscellaneous Fees

Learn More: Robinhood Retirement 3% Match

Robinhood is a popular "all-in-one" investing app.

While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.

Introducing Robinhood Retirement; home of the biggest IRA match on the market.

Robinhood IRA Boost

Here's what you need to know:

  • Robinhood offers 2 types of retirement accounts - the Roth IRA and Traditional IRA
  • All Robinhood investors will get a 1% Match on what they Contribute or Transfer
  • Robinhood Gold members will get a 3% Match - the biggest on the market

And don't worry, this comes with a Portfolio Builder Tool. You don't have to construct your investment portfolio from scratch if you don't want to.

Lastly, you'll even get a free stock worth up to $200 when you open a new Robinhood account using our link.

Best Free Stock Promotions

Robinhood Logo1 Free Fractional Share Worth Up To $200Learn More
Webull LogoEarn Up To 75 Free Fractional SharesLearn More
Moomoo Logo7 Free Stocks When You Deposit $100+Learn More
Acorns Logo$20 Bonus When You Invest $5+Learn More

Stocks/ETF Trading Fees

First, it is important to understand where each of these fees are coming from. Webull is very clear that all trades on its platform are commission free. However, there are relevant government fees (SEC and FINRA) that can apply to any transaction. 

The SEC stands for Security and Exchange Committee. This is an independent government agency that is responsible for protecting fair trades in the equity markets. 

FINRA stands for the Financial Industry Regulatory Authority. Unlike the SEC, FINRA is a non-government agency that enforces rules of brokers and broker-dealer firms in the United States. 

While Webull is a commission free trading platform, they do pass along fees from the SEC and FINRA. These fees may apply to all sell transactions on the Webull platform. In other words, there is $0 in fees to buy stocks and ETFs on the Webull platform. 

The Regulatory Transaction fee rate (charged by the SEC) is 0.00051% of all sale orders (with a minimum of $0.01 fee per transaction). That means that for every $1M in sales, your Regulatory Transaction fee would be $5.10. 

The FINRA trading fee rate (charged by FINRA) is charged by a per share basis rather than percent of sale like the SEC. The FINRA trading fee rate is $0.00013 per share (with a minimum of $0.01 fee per transaction and a maximum of $6.49). 

Webull states that it does not profit from any of the above fees as these are all regulatory fees passed to the investor.

Stock Options Trading Fees

Unlike many competitors, Webull does not charge any contract fees for stock options trading. Additionally, Webull maintains its commission free trading for all stock option trades as well. 

As with stock and ETF trades though, Webull passes all regulatory fees to the investor. Stock options trading have additional fees that apply to options trading that do not apply to stock and ETF trading. 

The four external fees charged through Webull for stock options trading are SEC fees, FINRA fees, OCC Regulatory fees, and OCC Clearing fees. It is important to note that these regulatory fees do change. You can stay up-to-date by checking the fees on the official Webull website. 

The Regulatory Transaction fee rate (charged by the SEC) is 0.00051% of all sale orders (with a minimum of $0.01 fee per transaction). That means that for every $1M in sales, your Regulatory Transaction fee would be $5.10. This fee is for sale orders only. 

The FINRA trading fee rate (charged by FINRA) is charged by a per contract basis rather than percent of sale like the SEC. The FINRA trading fee rate is $0.00218 per contract sold (with a minimum of $0.01 fee per transaction). This fee is for sale orders only. 

The third and fourth fees come from the OCC. The OCC stands for the Options Clearing Corp and is the regulator for all options trading in the United States. 

The OCC regulatory fees are a per contract fee charged on all option buy and sell transactions. The fee is currently $0.02915 per contract purchased or sold. 

The OCC clearing fees are also a per contract fee charge on all option buy and sell transactions. The fee is $0.02 per contract purchased or sold. The maximum OCC clearing fee per trade is $55. 

Margin Interest

As with any brokerage, borrowing money comes at a cost. Webull only charges margin interest on levered positions that are held overnight. In other words, if you are to open and close a position on margin in one day you don’t have to worry about these additional fees. 

However, if you plan on borrowing money overnight (keeping your levered positions open overnight), you will be subject to margin interest. This amount of interest depends on the dollar amount borrowed. Margin interest is accrued on a daily basis and is paid on a monthly basis. 

The daily interest is a simple formula that you can apply to your investments. Daily margin interest is equal to the borrowed cash * Margin Rate / 360. Webull’s current margin rates are outlined below (but are subject to change at any time). 

Debit Balance Annual Margin Rate
0-25,000.00 6.99%
25,000.01-100,000.00 6.49%
100,000.01-250,000.00 5.99%
250,000.01-500,000.00 5.49%
500,000.01-1,000,000.00 4.99%
1,000,000.01-3,000,000.00 4.49%
>3,000,000.00 3.99%

To learn more about how margin trading works, check out our free article on Webull margin trading

Level II Market Data Fees

This fourth bucket of fees is fairly straightforward. While level I sales data is free on the Webull platform, there is a $1.99 monthly charge for level II market data

To learn more about what is included with Webull level II data, head to the official Webull website. 

Miscellaneous Fees

The final bucket of fees can be categorized as other miscellaneous fees that an investor may come across on the Webull platform. While most fees are covered in this article, there may be a few that are smaller and less frequent that may not be mentioned in this section. 

Short Selling Fees

A short transaction of any kind includes borrowing shares of a company before selling the shares. Just as there is a fee associated with borrowing money on margin, there is a fee associated with borrowing stocks. 

This loan rate changes with market conditions but is always accrued on a daily basis and charged daily. 

The formula for short selling fees is the market value of the stock when market closes * that stock specific loan rate / 360. 

Index Option Fees

Webull investors have access to trading index options on the Webull platform. Unfortunately, index options carry different fees than individual stock options. 

These fees are determined by the trading exchange and differ by ticker symbol. Because of that, these index option fees all vary. However, it is important to understand that index options carry different fees than stock options. 

Webull Fees: Final Thoughts

Given that Webull is a commission free trading platform, investors often wonder if there are any other fees they can incur while using the trading platform. Unfortunately, commission fee does not necessarily mean fee free and that is the case for Webull. 

Webull has five main buckets of fees for investors that use the platform. Those five buckets of fees are as follows: stocks/ETF trading fees, stock option trading fees, margin interest, level II market data fees, and miscellaneous fees. 

A lot of the above fees are not fees created by Webull but rather regulatory fees that Webull passes along to the customer. Webull has stated that the platform does not profit from any of the regulatory fees on the company platform. However, other fees like margin interest are fees that Webull has enabled to make a profit. 

Even though there are fees on the trading platform, the regulatory fees are often extremely small. Retail investors typically only see a few cents of charge on their trades because of these fees. To learn more about how these fees can impact your portfolio, check out the official list of fees on the Webull website. 

If Webull sounds like a good investment platform for you, sign up for free today!

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2024 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram