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Written by Edward Canty on September 8, 2020
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Webull vs E*TRADE 2020: Which Is Better?

When it comes to investing in the stock market, you have many different brokerages to choose from. In the past, these brokerages were known for charging hefty commissions to investors and high fees.

Now, many of these brokerages have adopted a commission-free model instead!

In this article, we will be comparing the "old school" brokerage E*TRADE to the "new school" up-and-comer known as Webull. Here are the key similarities and differences between them.

FeatureWebullETrade
Account Minimum$0$0
Trading Commissions$0$0
AssetsStocks, ETFs, Options, Short SellingStocks, Bonds, Mutual Funds, ETFs, Options, Futures
Options CommissionsNone$0.65 Per Contract
DataAdvancedAdvanced
Sign Up Incentive2 Free StocksNone
Account TypesTaxable, RetirementTaxable, Retirement, Savings, Managed
Robo-AdvisorNoYes

Product Features Overall Price Buy Now
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Webull Review 2020: Best Free Investing App?

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  • Data & Charting Tools
  • Beginner Friendly
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  • Sign Up Incentive
  • Assets
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E*TRADE Review 2020: Best Investing Platform?

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  • User Friendly
  • Retirement Accounts
  • Sign Up Incentive
  • Research Tools
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What Is Webull?

Webull is a commission-free stock and ETF trading platform designed for the active trader who is looking for a more dynamic user interface. It essentially builds upon the basic features offered by the popular trading app Robinhood.

Robinhood was the pioneer for commission-free stock and ETF trading. Webull took things a step further by creating a robust, research-oriented commission-free trading platform. This app picks up where Robinhood leaves off.

Webull has a variety of features that are designed for traders such as technical indicators, research agency ratings, financial calendars, and free margin trading as well as short selling. With easy access to margin, research tools, and live data, Webull has built an ideal platform for active traders.

Check out our detailed review of Webull here!

Webull is a platform that is designed for the intermediate trader who already has some experience with the stock market.

If you are a complete beginner, you might experience information overload. If you are a somewhat experienced trader, Webull will give you all of the data you will likely need! Not only that, but it is also all neatly packed into a mobile app that is very user friendly. They also have a desktop platform available for investors called Webull 4.0.

Webull Free Stock Promotion!

webull free stock

If you sign up via our link, you will get 1 free stocks! All you have to do is open an account and fund it with $100+ on your initial deposit.

So, the minimum value of the free stock is $14.50 and the maximum value is $1,650! It is based on a lottery system.

Webull App Features

Real-Time Market Data

Webull offers real-time market data for all US markets.

This ensures you are viewing consistent real prices in real-time, making sure you are making the right investment decisions based on accurate data. This feature is extremely important for active traders who need price accuracy down to the penny.

You may also have access to real-time global market data on the Webull platform. There is a monthly fee for this feature. This is charged on a monthly subscription basis and the fee differs by market. This is one of the ways that Webull is able to make money.

You do not have to pay any money for real-time data on US markets.

News Stream

Webull offers real-time financial news through the news stream feature.

Articles from Reuters and Bloomberg and other financial institutions are available through this feature. This can be extremely helpful in getting the most up to date news articles and possibly making important trades on breaking news for specific companies.

This feature provides a single location to view financial news as well as providing a mixed collection of high-quality content giving you a variety of different points of view on specific topics.

Extended Hours Trading

All Webull users have access to extended hours trading on the Webull platform. This means that you're not restricted to placing trades only when the markets are open.

Most platforms will restrict your trading to between 9:30 am - 4 pm on weekdays. With extended hours trading you're able to trade from 4 am - 8 pm EST Monday - Friday. This can be a big advantage to swing traders looking to take advantage of pre-market price swings or day traders looking to close out their positions in the evening.

Virtual Trading Simulator

This is one of our favorite features of Webull.

Webull offers a virtual trading simulator on their platform in order to learn new investing strategies without any risk. This is a valuable feature if you are trying out new trading strategies you’ve never used before. It can also be helpful in testing out a simulated portfolio before risking any real money.

Anyone new to investing should start out using a trading simulator. This way you can gain experience and knowledge without taking any real risk. Webull is one of the first platforms to offer a built-in trading simulator!

Every user has access to a dummy portfolio with $1,000,000 of fake money to practice with.

Agency Ratings

Another feature offered by Webull is the ability to track and see professional analyst ratings on certain stocks.

Rated stocks will have several ratings by professional rating agencies and firms. They will rank the company as a buy, sell, or hold and sometimes ratings in between. It is very easy to see and analyze these different ratings in the app.

Stock Screener

A stock screener is an important tool for traders to rapidly identify stocks that fit their buying criteria. By using a screener,  you can filter thousands of stocks down to only a few that match your specific set of requirements in a matter of seconds.

With this feature, you can easily keep an eye on new potential investment opportunities without having to constantly do detailed research into stocks one at a time. If you know what you're looking for, it's extremely easy to create a shortlist in no time.

Smart Alerts

Webull gives you the ability to set a variety of smart alerts that will notify you if a specific holding hits a defined price, moves a defined percentage, or has reached a specific volume level. These smart alerts can provide a system for executing trades at a certain price level or after a series of volume or price changes.

Tools like this allow traders to be more effective and efficient when trying to execute trades over a long period.

webull trading simulator

Financial Calendar

Webull offers a financial calendar that keeps you informed on upcoming financial news for the month.

The financial calendar tool keeps track of upcoming IPOs, earnings releases, and which companies are about to pay out dividends. This tool provides a consolidated calendar of events, keeping you informed on upcoming market events all on one screen.

Margin Trading

Webull offers easy access to margin trading on the platform. You must have a minimum account balance of $2,000 to be approved for margin trading.

When trading on margin you are virtually pledging the assets within your account as collateral to borrow money and invest it in more securities.

Webull will lend you these funds for a fee at a specific interest rate. If your account drops below $2,000 you run the risk of a margin call and forced liquidation of your funds. Margin creates leverage which could increase potential returns but carries significant risk as it could also amplify losses.

Technical Indicators

Webull prides itself on the usability of its platform for serious traders. Many traders use technical price indicators to indicate ideal buy and sell levels. The platform gives you access to 44 technical indicators for developing trading strategies.

In addition to these indicators, Webull provides investors with 12 charting tools to allow you to quickly identify patterns and execute on them.

Options Trading

A recent addition to the Webull trading platform is commission-free options trading. This is a higher risk investment that is not recommended for beginners.

To trade options with Webull, you have to request the feature in the app. They will ask you a series of questions about your financial situation and investment experience. If they think you are a good fit for options trading, they will enable this feature for you.

Stock Lending Income Program

A feature unique to the Webull platform is the ability to make money by lending your shares to Webull. You can choose to lend any of your stocks you own to Webull and they will in turn lend these out to short sellers and pay you interest.

For investors looking to generate income from their portfolio, this can be a great option because it is totally passive.

The interest paid to you is calculated as follows:

Daily Interest Earned = Number of Shares on Loan *Stock Price* Annualized Interest Rate / 360 * 15%

Retirement Accounts

Lastly, a key differentiator between Webull and other commission-free trading apps is that Webull now supports retirement accounts.

Currently, they offer:

Just like with the traditional taxable account, these retirement accounts are commission free with no minimum account balances. In addition, you'll be able to take advantage of the significant tax savings that retirement accounts have to offer.

What Is E*TRADE?

ETrade graph

E*TRADE is one of the top investing platforms available today. With over $65 billion in assets under management, E*TRADE has become one of the most popular options for investors looking for discount online brokers.

E*TRADE is a full-service brokerage that allows you to invest in stocks, bonds, options, ETFs, Mutual Funds, Futures, and Forex. Recently, E*TRADE switched to a commission-free business model (for common asset trades) as many other brokerages have.

E*TRADE has a $0 minimum account balance for regular brokerage accounts. The E*TRADE platform is one of the most dynamic investing platforms available today. From executing orders as a day trader to having your investments managed for you, there is a tremendous amount of flexibility on the E*TRADE platform.

  • Stocks and ETFs trade commission-free
  • Options contracts are $0.65 apiece
  • Futures contracts are $1.50
  • Bond trades are $1 per bond

Features

Managed Accounts/E*TRADE Capital Management

This is full-service portfolio management offered by E*TRADE if you have a minimum account balance starting at $5,000.

E*TRADE will build a portfolio of ETFs and mutual funds that matches your risk, time horizon, and goals. E*TRADE will handle all the rebalancing of your account as well as tax management in your portfolio. There are 4 tiers of management; Core, Blend, Dedicated, and Fixed Income.

Core Portfolio

  • Minimum $5,000 investment
  • 0.30% flat fee
  • ETFs only
  • Tax-Sensitive Portfolios
  • Socially Responsible Investments
  • Smart Beta Investments
  • Help from a managed account specialist

Blend Portfolio

  • Minimum $25,000 investment
  • 0.65%-0.90% blended annual fee
  • ETFs and Mutual Funds
  • Tax-Sensitive Portfolios
  • Socially Responsible Investments
  • Smart Beta Investments
  • Help from a Financial Consultant and a managed account specialist

Dedicated Portfolio

  • Minimum $150,000 investment
  • 0.95%-1.25% blended annual fee
  • ETFs, Mutual Funds, Individual Stocks
  • Tax-Sensitive Portfolios
  • Tax-Loss Harvesting
  • Socially Responsible Investments
  • Category and Security Restrictions
  • Ongoing one on one relationship with a financial consultant

Fixed Income Portfolio

  • Minimum $250,000 investment
  • 0.35%-0.75% blended annual fee
  • Investment-Grade Corporate Bonds, Municipal Bonds, US Government Bonds
  • Taxable And Tax-Free Portfolios
  • Professionally Managed Bond Portfolio
  • Actively Managed Portfolios Adjusted To Respond To Market Conditions
  • Ongoing one-on-one relationship with a financial consultant

E*TRADE Trading Platforms

One of the key factors contributing to E*TRADE's popularity is their robust trading platform. The company has created one of the most immersive and feature-rich experiences for traders of any free platform available.

E*TRADE Web Platform

For most people, the E*TRADE web-based platform has more than enough features and tools available to investors. You can research companies, use screeners, access to third-party research, news, live quotes, and charts.

Advanced Trading Via OptionsHouse

E*TRADE purchased investing company OptionsHouse to offer an advanced trading platform within their scope of service. You can trade stocks, options, ETFs, and currencies within OptionsHouse. You have the option to choose from idea generating ideas such as options chains or trading laters all with real-time data.

Mobile App

The E*TRADE mobile app is focused on a user-friendly experience. We believe this mobile app could be one of the best and most dynamic out of all the investment platforms we have reviewed so far.

E*TRADE Account Types

  • Individual Taxable
  • Joint Taxable
  • Traditional IRA
  • Roth IRA
  • SEP IRA
  • Simple IRA
  • Coverdell
  • Trusts
  • Custodian
  • Solo 401(k)

The Verdict: E*TRADE vs Webull

Overall, E*TRADE is a superior trading platform. They have a more sophisticated options trading platform and a wide variety of assets and account types. If you are looking for a full-blown brokerage, that is likely your best choice of the two.

E*TRADE also appeals more to beginners due to the increased educational resources on their platform when compared to Webull. Webull has a small collection of educational videos and materials, but the content offered by E*TRADE is much more comprehensive.

That being said, Webull does have an app that is more sleek and user friendly, making it more popular among millennial's. If that is a priority to you, then Webull should be on your list of considerations.

Webull is also on the cutting-edge of innovation in the space and is adding new features and capabilities faster than older brokerages like E*TRADE. If you're someone that wants to get in on new features first, you might be better off opening a Webull account as well.

Lastly, Webull has a generous sign up incentive of two free stocks while E*TRADE does not offer anything for free.

Keep Reading:

Webull vs ETRADE
Article written by Edward Canty
Ed is a financial planner and personal finance enthusiast. At his day job, Ed helps clients plan for retirement, manage their investments, and navigate their tax situation. In his free time, Ed enjoys golfing, traveling, and wrenching on his old BMW.

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