Imagine being able to trade stocks, options, cryptocurrency and exchange-traded funds without paying a penny in commissions or any hidden fees. Forget about imagining it; it’s already here.
For the average retail investor, there has never been a better time to invest with these free cutting-edge platforms.
In this article, we are going to compare the Webull and Robinhood platforms. We will be identifying where each platform shines as well as where each platform could improve.
|Account Types||Taxable, Margin, IRA||Taxable, Margin|
|Assets||Stocks, ETFs, Options, Short Selling||Stocks, ETFs, Options, Cryptocurrencies|
|Sign Up Incentive||2 Free Stocks||1 Free Stock|
|Stock Lending Income Program||Yes||No|
|Checking & Savings Account||No||Yes|
|Best For||Intermediate Active Traders||Complete Beginners|
Most importantly, what kind of freebie does each brokerage offer?
Webull has the most generous sign up bonus. When you open the account, you will get a free stock worth anywhere from $2.50 to $250.
In addition, if you fund the account with $100 or more on your initial deposit, you get another free stock worth anywhere from $12 to $1,400!
So if you open and fund a Webull account with $100 on your initial deposit, you will receive 1 free stock with a combined valued up to $1,650. The minimum amount you can potentially make is $14.50 in free stocks.
Robinhood also has a FREE stock promotion. If you open an account you will receive a free stock valued from $2.50 to $200.
If you want, sign up for both to see what free stocks you can get!
Webull Review 2020: Best Free Investing App?
Robinhood Review 2020: Best Investing App?
||Open A Robinhood Account Here|
Webull is a commission-free stock and ETF trading platform. Experts designed Webull for the active trader who is looking for a more dynamic user interface than most free platforms are offering.
This platform has features specifically for traders such as technical indicators, research agency ratings, financial calendars, and more.
In other words, with easy access to margin, research tools, and live data, Webull has built an ideal platform for active traders.
However, since Webull is putting so much in front of you at your fingertips, it can be overwhelming if you are a complete beginner. Robinhood has created a true beginner-friendly platform, but most intermediate to advanced traders agree that it lacks in many areas.
Even though there are so much information and data packed into this app, Webull still maintains an excellent user interface. The app itself has a great design, and it is effortless to navigate. For more info, check out our full Webull review.
Are you interested in getting completely free stocks?
Webull is offering Investing Simple readers who open an account using this link one completely free stocks just for signing up and funding with $100+ on your initial deposot.
It is based on a lottery system, however, so it could be a lower value stock or one worth quite a bit more!
Robinhood did a great job gaining market share for beginner investors, however they did not meet the needs of intermediate active traders. That is why Webull was able to step in and gain market share so quickly. One of the newest features is fee-free retirement accounts offered on the platform!
Webull is most well-known for the data.
In fact, they were initially just an app for investment research before they added the trading feature! Webull offers real-time market data for all US markets. This is particularly important when it comes to trading, as your goal is to capitalize on very quick moves in the market.
Unlike many trading platforms that have delayed quotations, Webull is sharing this data with traders through the app in real-time. For those looking for real-time data for global markets, for instance, Webull offers this for a monthly subscription.
However, remember that you do not need to pay for any subscriptions to access real-time data on US markets.
Real-time data is essential when you are using it to make trading decisions. As a trader, you are often looking to capitalize on micro-trends that can happen at the blink of an eye. Delayed reporting of price data could be very costly for an active trader.
Traders rely on technical analysis or chart patterns.
However, Webull offers close to two dozen technical indicators available at the click of a button. They also offer a number of advanced order types that you do not see on other free platforms.
This includes OCO, OTO, and OTOCO.
This is one of the features that are totally unique to Webull. To be honest, the fact that other trading apps have not picked up this ball and run with it came as a surprise to us.
For beginners entering the stock market, paper trading is a very important step in the process. The trading simulator allows traders to practice without using real money.
In other words, you are using fake money and placing trades just like you would with real money. This allows you to test out trading strategies and become more familiar with the platform risk-free. Webull gives you $1,000,000 of play money in the free trading simulator.
Most free brokerage accounts do not offer short selling.
This is an advanced trading strategy where you bet against a particular stock. Not only does Webull offer short selling, however, but it is also available commission-free. Short selling must take place in a margin account.
In order to open a margin account, your account balance needs to be $2,000 or more.
One of our favorite features was the analyst ratings.
Webull offers a variety of research tools for both the technical trader and fundamental investor. For instance, theses include press releases, earnings reports, earnings dates, dividend dates, key financial documents, analyst ratings, and more.
Analysts make buy, sell, and hold recommendations about stocks. This can be very helpful to you when you look at making buying or selling decisions. They present this in a very organized fashion, and it is possible to get a good overview of a particular company in a matter of seconds through the app.
Fundamental investors study the financial health of a company to make a long-term bet. They look at key financial documents like the balance sheet, cash flow statement, and income statements. They also look at key metrics like earnings per share, PE ratio, and more!
Webull places all of this data at your fingertips.
You can view the numbers from the key financial documents as well as see visual graphs of the overall trends. They also offer helpful comparison tools that compare the metrics of one company to another in the same industry.
You will be able to answer questions like:
Another useful feature for users is the financial calendar.
This calendar shows you important upcoming dates for a company, including dividend payments and earnings reports. In addition, there are also calendars that show what companies are reporting earnings each week as well as what are the up and coming IPOs or initial public offerings.
Quickly filter through thousands of stocks based on dozens of criteria to find investments that align with your trading strategy.
Webull allows you to filter stocks based on:
This screener allows traders to identify potential investments within the platform and easily keep an eye on them or add them to a watchlist or set up alerts.
By adding multiple filters, it is possible to create a shortlist very quickly of stocks that meet your criteria without having to waste time switching between different platforms.
Webull allows you to create watchlists of 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 for under $100, you could set a price alert for when it reaches that level and receive a notification from Webull.
Webull offers IPO or initial public offering investing. This allows you to get in on new public stock offerings before other investors do. This is part of a partnership with ClickIPO.
However, the number of IPOs available is limited, but it is still a great feature and something you do not see on most brokerages.
Are you interested in earning some extra income from your shares? Webull has rolled out a great new feature that allows you to loan out shares to short sellers. You are fully insured by SIPC, so there is no risk with doing this.
Essentially, you are giving Webull permission to borrow your shares in your brokerage account. Then, they loan these shares out to short sellers. They collect interest from this and share a portion with you!
You can still sell your stocks at any time even if you participate in this program. It is simply a way to earn some extra money within your trading account.
Webull is 100% free trading platform. You will pay no commissions for trading stocks, ETFs and options.
They do not charge any hidden fees, and there are no strings attached. There is no minimum balance to open an account. However, you do need to have $2,000 to open a margin account.
There is a $0 fee for incoming ACATS stock transfers and $75 fee for outgoing transfers. For those funding the account with a wire transfer, the initial transfer in is free. After that, there may be fees associated with this wire transfer.
ACH or Automated Clearing House transfers are completely free. This a direct electronic transfer from your bank account to Webull. You can electronically transfer money to and from Webull at any time for free.
Known as the app that pioneered commission-free trading, Robinhood opens doors for beginning investors looking to get their feet into the game without paying high commissions or dealing with large minimum account balances. Robinhood charges $0 in commissions and the minimum to open an account is, you guessed it, $0!
Experts designed this platform with beginners in mind.
It is meant to be the most straightforward trading platform out there. As a result, intermediate to advanced traders often find this platform to be lacking when it comes to research tools, order types, and technical indicators.
Still, if you are looking for a simple platform to trade commission-free, it is an excellent option.
Here's a great bonus offer from Robinhood! If you open an account with this link (you don't even have to fund it) you will get a free stock!
It is based on a lottery system, but this free stock will be worth anywhere from $2.50 to $200! Since it is 100% free, this is an easy way to get some free money and win a free stock just for opening an account.
It’s very simple to open a Robinhood account right on your smartphone (or online).
Just plug in a few answers, for instance your contact info and how you’ll fund your account. You will also have to enter your social for tax reasons as well as some additional information about your employment. After that, they will ask you a few questions about your level of trading experience.
Then it’s onto the next step: launching your soon to be stellar investments.
Once your account is approved, you can make your initial deposit and begin investing. You may decide to invest in an individual stock, or maybe an ETF is better suited for you. Robinhood now offers fractional shares which means you can buy shares of stocks and ETFs in $1 increments.
In a nutshell, this is a beginner platform with some basic features. One key area where they shine is offering cryptocurrency as well as options trading. The fractional shares help smaller investors too!
Robinhood charges $0 commissions on trades for:
There are no strings attached or hidden fees of any kind. With Robinhood, what you see is what you get!
Recently, Robinhood rolled out a great new feature. Select users are able to invest in stocks and ETFs using fractional shares. Instead of buying whole shares of stocks like Amazon, that trade for thousands per share, you can invest just $1 at a time!
Instead of buying an entire share, you are buying a fraction of a share worth $1.
Finally! We have a dividend reinvestment option available form Robinhood.
This allows you to automatically reinvest your dividends, which means you earn compound interest. You need to use the DRIP feature hand in hand with the fractional shares feature. You cannot use it without fractional shares.
For those looking for a place to keep their extra money or emergency fund, Robinhood is also rolling out an online savings account. They have a free online savings account that pays a better than average APY on your uninvested cash.
You are eligible for up to $1.25M in FDIC insurance with this account. There are no minimums, no fees, no transfer limits of any kind.
This integrates directly with the investing side, so you can easily move money from savings to your investing account!
Robinhood is currently offering a wait list for their cash management feature. Once approved, this feature allows users to earn interest on their non invested cash. Users can set up direct deposit to this account and link a Robinhood debit card to it. There are no minimums as well as no fees.
Lists are an organizational tool Robinhood created for investors to categorize different assets. In essence, a list is simply a bucket that you are able to create, add different investments to, and track over time.
A single list can contain a mix and match of any of the asset types on Robinhood including stocks, ETFs, and crypto. You can easily access all of your lists from the main screen of the Robinhood app and keep an eye on how the assets within each list are performing.
You're also able to set up alerts for your lists so that you are notified when there are significant price swings or news events concerning the assets on your lists.
Based on their investments, Robinhood provides users with personalized insights and statistics to help them understand their investments.
This includes cleanly displaying the asset allocation for a portfolio across asset types and industries, as well as providing relevant information and news stories based on your investments.
A feature like this is particularly useful for newer investors who are not as familiar with principles of portfolio diversification.
They have the most straightforward user interface of any investing app we have tested.
This is a pro for some and a con for others. We can 100 percent say that Robinhood is a beginner-friendly app. However, as you become a more experienced trader you may find that it is lacking in some areas.
Just like with Webull, this is a 100 percent free trading platform.
They do not charge any hidden fees, and there are no strings attached. Don’t have the cash to open a sizeable account? No worries. Robinhood doesn’t have a purchase minimum, which means people can get started investing right away.
However, to invest, you’ll need enough to purchase the investment you have your eye on. But you can start small, then gain momentum as you go along and become more confident and acquire more know-how. Thanks to fractional shares, you now only need $1 to buy a fraction of a share of any stock or ETF that trades on the platform.
Even though there is no minimum balance to open an account, however, you do need to have $2,000 to open a margin account.
Robinhood Gold allows you to take advantage of several different features. For example, it gives investors who can tolerate more risk the ability to trade on margin, which is also known as borrowed money.
You can increase your buying power by trading on margin. Robinhood extends you a loan to purchase stocks relative to your account value.
You need to have at least $2,000 in your account to open a margin account.
It also allows you to have instant deposits from your bank and professional research reports from Morningstar.
You must opt into the service, which has a flat monthly fee based on margin (Robinhood refers to this as buying power) as well as your account size. Margin trading is hazardous, and beginner investors should not be using it. If you’re new to investing and wary of risk, we say skip this option for now until you’re familiar with all the ins-and-outs.
Once you’re ready to go, you won’t be bogged down by account verifications.
Robinhood uses instant verification with many major banks. Bank transfers of up to $1,000 are available immediately for investing, and the same goes for profits of up to $1,000 from selling stocks.
Deposits more substantial than $1,000 will take around five business days to process.
Want to invest in a schedule? You can set up automatic deposits out of your bank account weekly, biweekly, monthly or quarterly.
Webull and Robinhood are offering a very similar platform for investors.
Both are leveraging technology and operating paperless businesses to be able to offer investors a commission-free and fee-free investing experience. Instead of charging a commission on trades like a traditional brokerage, they make money in a few different ways:
The old saying goes, if it seems too good to be true, it probably is.
However, the good news is that it is just not the case with these free investing platforms! Both Webull and Robinhood carry the same SIPC insurance as the mainstream brokerages. They simply found creative ways to make money outside of charging customers fees and commissions.
There are fees charged by the SEC and FINRA for each trade.
You will pay these fees regardless of what brokerage you use. It is important to understand that Webull passes these fees directly to these regulatory agencies, and Webull does not receive any of the money.
With so many platforms available today, it can be a bit overwhelming. However, the good news is, even if you make a decision and you want to branch out, you are allowed to have multiple different brokerage accounts.
Some people, for example, will use Webull or Robinhood for their active trades and then do their long term investing within M1 Finance. You may find that using multiple platforms is more effective.
You can also sign up with both Robinhood and Webull, which will allow you to get 3 free stocks total!
Webull and Robinhood both offer commission-free trading with no minimum account balance. What really separates the two are the unique features of each platform.
In a nutshell, Robinhood is designed for first time or beginner traders, However, Webull is meant for intermediate to advanced traders.Robinhood is designed for complete beginners who are looking to trade stocks, ETFs, cryptos or options, all commission-free. However, Webull is for intermediate to advanced traders looking for more technical or fundamental data that you will not find with most other free trading platforms. However, one thing you will find is that Webull leads the pack on customer support. Since they have to cut costs and operate lean business models, free investing apps traditionally have not offered any kind of phone support. With Robinhood, you are not able to call and ask questions or place trades over the phone. However, with Webull they do provide a customer support phone number where you can call in and ask questions. If you are looking for an even more hands-on type of customer service, you may want to consider an online discount broker.
Webull recently added free IRAs which is not something Robinhood is offering at this time. In addition, they don't offer any retirement accounts.At the end of the day, both platforms are 100 percent free, so you can try them both and see which one is a better fit for you!