Webull vs. Ustocktrade ComparisonDisclaimer
- Ustocktrade uses an alternative trading system that allows for unlimited day trades.
- This alternative trading system poses a huge liquidity concern.
- Webull has a far more robust trading platform, offering over two dozen technical indicators.
- Ustocktrade offers same day order settlement and 1-day transfers from many bank accounts.
- Both platforms offer a trading simulator.
- Webull offers commission free short selling, margin accounts and extended trading hours.
- Ustocktrade charges $1 per month and $1 per trade while Webull is 100% free.
- You can get a free stock when you sign up for Webull using this link.
There has never been a better time to become a stock market trader or investor. Not because of market conditions, but because of the plethora of platforms available.
Two of the newer platforms are Webull and Ustocktrade. Webull is a robust trading platform designed for the intermediate to the advanced active trader. Ustocktrade offers traders same-day settlement through a peer to peer exchange. In this review, we will be comparing these two trading apps!
Webull vs. Ustocktrade: Summary
What Is Webull?
Webull is a commission-free trading platform with features that appeal to active traders. The platform is designed for the intermediate to the advanced stock trader, including over two dozen technical indicators, real-time market data, and other great features. All of this data is packed into a very user-friendly app, resulting in excellent user experience.
For active traders, Webull is a breath of fresh air. Most of the free platforms out there are geared towards beginners or long term investors. Webull designed the app with traders in mind.
The best part is, Investing Simple readers can get two completely free stocks when they sign up for Webull using our link!
Real-Time Market Data
One of the most useful features is the real-time market data available through Webull. Traders are often looking to capitalize on micro trends happening in the market, and having real-time data is crucial. All users have access to real-time US market data for free. Data on other global markets are available for a paid subscription.
Traders rely on technical analysis or chart patterns. Webull offers close to two dozen technical indicators available at the click of a button. They also provide some more sophisticated charting including candlestick charts.
One of the best ways to learn how to trade is with a trading simulator. Webull allows you to hone your skills in “sandbox mode” with play money. You still have the full functionality of the platform available at your fingertips, just no risk of losing money.
Commission Free Short Selling
This feature is limited to margin accounts that have a minimum balance of $2,000. Within margin accounts, Webull offers commission-free short selling.
What Is Ustocktrade?
Ustocktrade is a hybrid between a peer to peer network and a brokerage account. They aim to be a community based investing platform without a middleman. When you buy and sell stocks on this platform, they are not traded through traditional means. Instead, an ATS or alternative trading system is being used.
This is a non-exchange trading venue that matches up buyers and sellers for transactions. Ustocktrade matches you with users on the platform looking to buy or sell what you are transacting. That is where the peer to peer aspect comes in to play.
By eliminating this middleman, Ustocktrade claims to be able to get better pricing for customers. These middlemen or market makers earn money on the spread or the difference between the bid and the asking price. They also can offer this for a lower commission, just $1 per trade and $1 per month fee.
Unfortunately, the Ustocktrade platform itself is a bit lacking. It seems like another one of these watered down trading apps out there. With time, they may be able to make improvements and create a more appealing platform.
Same Day Trade Settlement
For most brokerages, it takes two business days for trades to settle. The seller must surrender the shares, you need to pay for them and then they are moved to your account. This ends up being a frustrating experience for traders because when you sell a stock, the funds are not available for a new trade for two to three business days as the trade settles.
Since Ustocktrade is using their own alternative trading system, they can offer same day settlement for trades. This means that your money will be available as soon as the trade settles on the same day for another trade, eliminating these two to three-day hold.
1 Day Fund Transfers
Ustocktrade has partnerships with specific banks to offer 1-day fund transfers. In most cases, it takes 3 days for funds to transfer from your bank account to your brokerage account. This cuts down on the time you have to wait to begin placing trades.
Unlimited Day Trades
Since Ustocktrade offers same day trade settlement, they effectively eliminate the potential for a free ride. This occurs when you use the proceeds of trade to place another trade and then sell before the funds are settled. Essentially, you put a round trip trade with unsettled funds.
As long as your orders are being filled through the Ustocktrade alternative trading system, you will not run into this issue of free riding. As a result, you can place unlimited day trades.
Your orders settle on the same day, meaning you are free to do whatever you want with that money. You can use it to place another trade and close it out without worrying about a free ride.
One of the best features of Ustocktrade is a free trading simulator. This allows you to practice trading without using real money. You are also able to familiarize yourself with the platform risk-free.
They charge a flat fee of $1 per month. On top of that, each trade is $1.
Webull vs. Ustocktrade: The Verdict
Both Ustocktrade and Webull provide a solid platform for day traders. Overall, we have to lean towards Webull because of the research tools available. Ustocktrade is quite limited when it comes to the actual investing platform itself.If you are looking to day trade without worrying about fund settlement or unintended free rides, Ustocktrade is the clear winner. This revolutionary same day trade settlement has eliminated the potential for free rides that could result in a ban on your trading account.
Both of these platforms offer trading simulators, which is great! There are a few features that are unique to Webull. This includes commission free short selling, extended trading hours, and margin accounts. Ustocktrade does not support margin accounts or short selling.
We do have liquidity concerns associated with this alternative trading system used by Ustocktrade. While it does come with some added benefits, like same day fund settlement, it is entirely possible that your orders go unfilled. If there is not a buyer or seller on the other end, your order will not execute.From a fee standpoint, Webull is a better pick. Ustocktrade does not charge much, but it is hard to compete with free. On top of that, Webull offers a great sign up an incentive for Investing Simple readers. If you use our link, you will get a free stock!