Webull and TradeStation are two trading platforms with great tools for intermediate and advanced investors.
Both offer commission-free trading and multiple account types for investors with varying goals and objectives. Both are known for their wide array of research tools which allow investors to gain in-depth knowledge before making trades.
However, these two apps are by no means equal. Each has its strengths and weaknesses that differentiate one platform from the other.
This article will focus on the main similarities and differences and why each one might be the best option for you.
Webull focuses primarily on intermediate investors and those who don’t have a lot of capital at their disposal. With a $0 minimum and no fees for investors, this is an appealing option for those that are just getting started. Additionally, the research and data available set it apart from other free investing apps like Robinhood.
TradeStation was built with professional traders in mind and still carries those themes throughout the platform today. With an older and more feature-rich platform, new traders may be overwhelmed by this platform while advanced traders will feel right at home.
Both platforms are tailored toward active traders and provide in-depth stock charting resources. Longer-term investors will likely find a platform like M1 Finance to be a better fit for their needs as it has a simplified feature set and refutes day trading.
In this article, we will break down the core features of Webull and TradeStation to help you determine which is best for you.
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TradeStation Review 2021: Best Brokerage Account? |
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Webull Review 2021: Best Free Investing App? |
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Download Webull |
Webull is a commission-free trading app designed to put power in the hands of intermediate investors.
Several other free investing apps lack research tools and in-depth stock analyses. This is where Webull shines. Webull created a trading app that was both easy to use and loaded with useful data and research.
Active traders will likely find that the tools and features they have been waiting for from apps like Robinhood are all included on the Webull platform.
No minimums on any account paired with zero commissions on stocks, ETFs, options, or cryptos makes Webull an instant favorite.
As mentioned above, options are available on Webull with $0 commissions, $0 contract fees, and $0 assignment or exercise fees. This puts a whole lot of money back into the pockets of options traders.
While commission-free trading is rather standard at this point, there are still many brokers that still charge commissions on options. Webull is not one of them.
Retirement accounts available with Webull are fairly standard but impactful. These options include traditional, Roth, or Rollover IRAs. Not only are these accounts an important key in building long-term wealth, but they also come with $0 account management fees from Webull.
Webull is one of the only commission-free trading apps that offers retirement accounts with no minimums.
This is a significant advantage for long-term investors who want to avoid paying a significant amount of taxes on their investments. Through the use of these investment accounts, it's possible to save hundreds of thousands of dollars over the course of your life.
However, in order to benefit from tax savings, there are several rules for retirement accounts. You can read more about them here.
When you sign up for paper trading, Webull gives you $1,000,000 to trade with.
These funds, of course, are not real but they help you test out your trading skills before risking any real money.
This is a particularly useful tool for traders that are new to Webull and want to get a feel for the platform without risking any of their hard-earned cash. Additionally, you can use this fake cash to try out your trading strategies to see if they are feasible before you put your money on the line.
Another area where Webull stands out against the rest is in the data and research that is available for all traders.
From the app on your phone, you have access to a wide variety of advanced tools and data to help you make the best decisions. This is something that other brokerage accounts such as Robinhood have failed to do and it has cost them users.
However, a word to the wise, all this information can be a bit overwhelming. So do your research and make sure you are focusing on the most important data points to avoid analysis paralysis.
This feature allows users to invest in dollar amounts and not in whole shares. This has allowed investors with limited capital to grow their net worth by investing in previously unaffordable stocks. Stocks such as Berkshire Hathaway, whose share price is well into the hundreds of thousands of dollars, are now affordable by using fractional shares.
Simply type in the dollar amount you are willing to spend and a percentage of the stock will be yours! This is a feature that is currently not available on TradeStation.
Webull offers all users on the platform free access to extended-hours trading. This means instead of being limited to the standard 9:30 am - 4:00 pm EST, investors can transact from 4:00 am - 8:00 pm EST.
It's important to note that outside of standard market hours, there is typically increased volatility in the market because there are fewer buyers and sellers.
On the Webull platform, traders are able to buy and sell a number of cryptocurrencies. These include Bitcoin, Dogecoin, Ethereum, and more.
All in all, it can be a good way for beginners to start buying cryptos. However, experienced crypto investors will likely find the platform limiting. This is because users are not able to transfer crypto off of the Webull platform and into cold or offline storage.
Because crypto is not covered under SIPC insurance, many crypto investors prefer to keep their coins on a hardware wallet. This increases the level of security and mitigates the risk of loss. As you own more crypto, this becomes more and more important.
With Webull Crypto, you are not able to transfer your coins out of the platform or onto a hardware wallet. For this ability, you'll likely need to use a platform like Coinbase that specializes in crypto.
There is virtually always a free stock promotion happening on the Webull platform. However, it tends to change from month to month. As of writing this article, the current promotion Webull is offering is 2 free stocks for new users who sign up for an account and fund it with at least $5.
This is split between one free stock just for opening the account and another free stock when you fund with $5 or more. In total, this could end up as being worth over $2,300 in free stock or as little as $11. The stocks are based on a lottery system so it's totally random what stocks you end up receiving.
For the most up-to-date offer, click on the button below and you'll see the current free stock promotion from Webull.
TradeStation is a trading platform built for high-volume and active traders. While not originally designed for retail investors like you and me, TradeStation has since revamped its offering to attract a larger group of investors
With 14 different account types offered by TradeStation, you’ll be sure to find exactly what you’re looking for.
This platform offers many different and diverse investing options from stocks and bonds, to futures and even cryptocurrency. Let’s explore some of the more compelling offerings brought by TradeStation.
TradeStation offers two main trading models for its investors; TS Go and TS Select.
The former, TS Go, is for the average retail investor who is not looking to invest thousands of dollars at a time.
TS Select, on the other hand, comes with a hefty account minimum of $2,000 but in turn, offers lower fees on equity and options trades while using the desktop version of the platform.
TradeStation allows investors to trade across many different securities. Since the company was originally established for professional brokers and money managers, there are various options for investments.
These investment types include Stocks, Bonds, Mutual funds, Exchange-traded funds (ETFs), Options, Futures, Cryptocurrencies. This is a wider range than what is offered on the Webull platform.
With both TS Go and TS Select, there are no commissions for trading stocks, ETFs, options, or futures. The only exception is for TS Go users who choose to place a trade from their desktop. As this account type is tailored toward mobile traders, there is a commission for desktop trades.
This can be avoided if trades go through the mobile application.
Whether you are looking to beef up your retirement accounts, trade with additional capital, or set up an investment for your business, TradeStation has you covered.
Within individual and joint accounts, you can find options ranging from individual trading accounts to custodial accounts. Each account is designed to work flawlessly toward its main purpose.
In terms of retirement accounts, there are several to choose from. These include a Traditional, Roth, SEP, or Simple IRA to keep those retirement funds flowing.
On top of that, entity accounts are available for all different forms of businesses. LLCs, Sole Proprietorships, Trusts, and Corporations to name just a few.
TradeStation offers 3 dynamic modes of trading for its investors.
No one likes paying fees; especially when they are higher than the average alternative investment fund.
TradeStation has a few random fees such as a $35 annual IRA account fee and a $50 IRA account termination fee.
In addition, if your account goes inactive or if you want to transfer your funds, you’ll be charged $50 and $125, respectively.
There are a collection of other fees you may face from Tradestation so you'll want to be careful when using the platform in order to avoid any extra fees you weren't expecting.
While both brokers are tailored towards short-term traders, their offerings differ significantly.
Webull is very much geared toward retail or non-professional investors. It is a more accessible platform for traders of all experience levels.
TradeStation, as you might have realized, is built for a more sophisticated investor with years of experience. If you're coming in as a complete beginner, you're likely going to feel some level of information overload.
Both apps offer research and data but it all comes down to the complexity of the moves you are trying to make. On one hand, if you are a more casual investor, you might find that Webull is simpler and easier to navigate. On the other hand, if you are looking to make sophisticated trades or open a less common account type, you may find TradeStation is better suited for you.
The best part is both are free to use so give them both a try today to see which platform helps you reach your financial goals!
