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Webull vs Fidelity 2020: Which Is A Better Investing Platform?

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Written by Edward Canty
Updated on May 19, 2020

When it comes to investing in the stock market, one of the most important steps is deciding what brokerage to go with.

In the past, there were not many to choose from. They all charged commissions and they were generally not very user friendly.

Today, there are countless free investing apps out there that are very user friendly, making the sign up process as simple as possible. We will be comparing one of these "new school" investing apps called Webull to one of the "old school" brokerages which is Fidelity.

The Webull app not only focuses on commission-free trades but also has a vast amount of technical resources and research to help individuals that are looking to trade stocks.

Opening an account with Webull and funding with $100 or more allows you to get two free stocks. This is a very generous sign up incentive.

Fidelity is one of the few brokerages to offer zero expense ratio index mutual funds. Unfortunately, they do not offer a sign up incentive.

Offering $0 trading commissions and a selection of over 3,700 non-transaction-fee mutual funds, Fidelity is one of the brokerages with top-notch research tools to help its investors with very low fees. 

Webull vs Fidelity: Summary

  • Webull offers 2 free stocks when you open the account and deposit at least $100 initially 
  • Both offer commission free trading on stocks, options and ETFs
  • Fidelity offers zero expense ratio index funds as well as other assets like mutual funds
  • Both have a $0 account minimum
  • Fidelity has over 3,700 mutual funds with no load fees
  • Free and extensive research and data with Fidelity
  • Live chat 24/7 with Fidelity 
  • Webull offers research tools and global market data as well as a free trading simulator
  • Fidelity also offers demo accounts to test drive the platform
  • Fidelity is a full blown brokerage with a lot of research and investing tools
FeatureWebullFidelity
Minimum Investment$0$0
Sign Up Bonus2 Free StocksNone
Trading CommissionsNoneNone
Options FeesNone$0.65 Per Contract
Mutual FundsNoneOver 3,700 With No Load Fees
DataAdvancedAdvanced
AssetsStocks, ETFs, Options, Short SellingStocks, Bonds, ETFs, Options, Mutual Funds
Retirement AccountsYesYes
Local BranchesNoneAlmost 200
Best ForTraders Looking For 2 Free Stocks, Easy To Use PlatformThose Looking For Mutual Funds/Full Blown Brokerage

Sign up for Webull + Get 2 Free Stocks!

What Is Webull?

Webull is a fintech startup based in the US that offers commission free trading as well as an array of great research tools. Having been founded in 2017, it is regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

They supply you with in-depth news for the investors, real-time market data, $0 trading commissions and an array of research and analysis tools.

Investors can create an account through the app and approval of the account happens pretty fast – within one hour in most cases. However, if your application has to go through a further verification process, it may take longer. 

Once you open your account, you fund it using an ACH bank transfer. The good news is there is no minimum, but you will need to fund it initially with $100 or more to get your 2nd free stock. 

Investors who want to see how the platform works before they can decide to use it can take advantage of the free trading simulator. This does not require you to deposit money to trade, since you are using pretend money. You can take the app for a test drive before fully committing. 

Webull features dozens of technical indicators such as Bollinger Bands, RSI, Money Flow Index and Exponential Moving Averages.

If you'd like to short stocks, you must have margin account approval as well as a deposit of $2,000. Webull allows 2 times overnight margin and 4 times intraday trading margin.

With this app, you can trade stocks, ETFs and options commission free. They also offer free retirement accounts as an added bonus. 

How Webull Works

First, you will need to install the app. Use our link below to get your two free stocks!

When registering, you will provide your personal information, which includes name, date of birth, address and social security number.

You verify your account by submitting a photo of your passport or ID. When the account is verified, you choose your account type – margin or cash. You now review the information and submit the application. The approval process happens very quickly in most cases. 

Sign up for Webull + Get 2 Free Stocks!

Webull Features

  • Over 20 different technical indicators and other advanced data/charts
  • Access to IPO investments before they go public
  • Free trading simulator to practice with
  • Live news feed as well as an earnings calendar for key reporting dates
  • Real-time market data
  • Commission free short selling
  • Extended trading hours
  • Stock lending income program
  • Retirement accounts available

Webull Fees

There are no commission costs associated with any of the assets you can trade on Webull. This brokerage offers commission free trades for stocks, ETFs and options.

However, there are certain activities that you are charged fees on. On trades, the FINRA and SEC charge nominal fees. These fees are paid regardless of what brokerage you use.

In addition, there are of course margin fees if you trade on margin. This is where you are borrowing money to invest with. You will pay monthly interest to your broker when you borrow money. 

Webull also charges for securities transfers, as most brokerages do. There is a $75 ACAT transfer fee to transfer your account from Webull to another brokerage. 

Is Webull Safe?

A lot of people wonder if Webull is safe since it is a relatively new platform.

You are covered under SIPC, which is the type of insurance that all brokerages have. They are also regulated by FINRA and the SEC. 

Also, there is an additional insurance policy provided by Apex Clearing Corporation. This is the clearing house that Webull uses. 

Webull Pros 

  • Fast and easy opening of account
  • Free stock, ETF and options trades
  • No inactivity fees as well as withdrawal fee when you use ACH
  • Great trading tools, technical patterns, news alerts, and paper-trading
  • Generous sign up incentive of two free stocks

Webull Cons

  • No mutual funds
  • Might be a bit overwhelming for beginners
  • No fractional shares
  • No prebuilt portfolios
  • They do not offer dividend reinvestment

Sign up for Webull + Get 2 Free Stocks!

What Is Fidelity? 

Founded in 1946, Fidelity is one of the longest serving brokerages out there. 

Fidelity allows trading of stocks, ETFs, options, mutual funds and bonds. Its zero-fee index funds, along with strong customer service support, make it one of the preferred brokerage for individual investors. Fidelity was rated by Barron’s and Investor’s Business Daily as the Best Online Broker In 2020.

Having been in business for a long time, this brokerage has built out research and investment tools  to provide the investors with a strong platform that can make their experience a great one.

Fidelity continues to enhance the features of its platform and commits itself to always lowering the cost of investment.

It supports about 16 base currencies, and it takes you approximately 1-3 days to open an account. Fidelity also provides a demo account to allow investors to test the waters before fully committing to this brokerage. 

Fidelity offers stock trading for both domestic and international markets. It also offers over 30,000 investment-grade bonds along with other fixed-income securities.

How Fidelity Works

You will begin by signing up, where you provide your personal information which includes your name, address, as well as social security number. Fidelity will have to verify your identity before you can open an account. This is typical when you open any brokerage account. 

Once you open the account, you set up the account preferences and features, for instance, whether you would want to receive statements/tax documents electronically.

Once you create your account, you can now fund your account, though this is optional.

Fidelity Features

Minimum Deposit 

Fidelity does not require a minimum deposit for you to open an account. However, to trade certain mutual funds, you will need to have a minimum deposit of $2,500. For margin trading, you need to have a minimum deposit of $5,000.

Commission Free Trades

Online ETF, option and stock trades are commission free, but broker-assisted trades will cost you $32.95.

Mutual Funds

Investors can access over 13,000 mutual funds with over 3,700 no transaction fee (NTF) funds – where you are not charged when you sell or buy. However, when your fund sells within 60 days of purchase, they charge a redemption fee of $49.95.

It is recommended to place trades online and not through an in person broker, since those fees are quite expensive.

Portfolio Analysis

Investors are able to keep track of their non-Fidelity accounts through the FullView feature to help with asset management. This allows you to analyze all your assets in one place.

Fidelity Pros

  • Commission-free ETF, bond, options and stock trades
  • Zero Expense Ratio Index Mutual Funds
  • Strong customer service
  • Solid research tools
  • US and international stocks
  • Uninvested cash swept to a money market fund
  • Asset screeners and other research tools
  • Broker assisted trades available

Fidelity Cons

  • With so many tools built in, it might be overwhelming for beginners

The Verdict: Fidelity vs Webull

Fidelity has been offering their services for decades. They provide a platform with a wide range of features and minimal fees. Fidelity also has a wide range of investment options beyond what you see on Webull, including mutual funds.

Webull is a new platform and has slightly less features compared to Fidelity, but comes with a very low fee structure. They also have a generous sign up incentive offering new users 2 free stocks. 

Both Fidelity and Webull have extensive research tools, though Webull seems to be gaining an edge in offering research tools at your fingertips. We also love the trading simulator offered by Webull. Both players have commission-free trades for stocks, ETFs and options. 

At the end of the day, it comes down to the features offered by each platform as well as the sign up incentive. Webull is on the cutting edge when it comes to the research tools, however Fidelity still offers a superb platform. Unfortunately, Fidelity does not offer any kind of sign up incentive. 

Sign up for Webull + Get 2 Free Stocks!

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