Webull vs Vanguard
When it comes to investing in the stock market, you have a lot of different options to choose from.
For starters, you could follow a growth or income oriented approach. Beyond that, you also need to choose what brokerage you choose to invest with. The good news is, there are more options available today than ever before.
Vanguard is a time tested firm with trillions of dollars in assets.
Webull is an up and coming commission free trading app, popular among millennials.
We will be comparing Webull vs Vanguard in this article.
- Vanguard is most well known for their low fee investment funds
- However, you can also invest directly through the Vanguard brokerage platform
- Both offer $0 commissions on online trades
- Both offer top-quality research, however Webull has more technical data available
- Webull is catered more towards the “trader” while Vanguard is catered more towards the “investor”
- Vanguard has a track record of being extremely reliable to its clients, when Webull is new, more up to date, and more technologically driven
- Both allow you to trade stocks and ETFs
- Webull has some more advanced features like a free trading simulator
- You can get 1 free stock with Webull when you open an account and fund it with $100
What Is Webull?
Webull is revolutionizing the brokerage industry by offering commission free trading and in depth market research in the same place. By offering services commission free with no minimum balance, this platform is reducing the barriers to entry for investors big and small.
For the most part, this brokerage is geared towards active traders who rely on a variety of different investment data.
Webull allows its clients to trade a large variety of assets including stocks, crypto, ETFs and options with absolutely no commissions. Unsure of what some of these technical terms are? Webull’s customer support has you covered.
Webull Sign Up Incentive - Free Stock!
Ready to sign up for Webull? If you open an account using the link below and fund it with $100, you will get a completely free stock!
The $0 minimum deposit on Webull brokerage accounts makes it an especially attractive service for smaller investors. Beginner investors need to start small in the learning process, and Webull allows this on its platform.
However, keep in mind that you need to fund the account with $100 initially to be eligible for your free stock.
Webull Account Types
Webull offers the following:
- Traditional IRA
- Roth IRA
Retirement accounts are 100% free with no commissions and no minimums.
Webull provides market-research and real-time quotes in the “Market” section of its website. Here, clients can read different public articles that are linked directly to the page.
This is an educational resource in itself and clients can learn a lot by keeping up with news stories and hearing the perspectives of experts in the field.
Technical Trading Platform
Webull’s tech-savvy trading platform gives it a great leg up in trade execution compared to Vanguard. Webull’s technical charting tools allow investors and traders alike access to charts and graphs that can help them decide what trades to take.
Webull’s app design is clean and easy to use. It is perfect for the beginner investor that is looking to get started with investing. The application is accessible on multiple platforms which will be discussed below.
Supported On Multiple Operating Systems
Webull is available on the Google Play Store, App Store, and the Browser View Web App. Applications can also be downloaded directly through its website to your Windows device.
The wide range of available sources to download and run the app shows Webull’s dedication to providing its service to a diverse range of people.
Webull Help Center
Webull provides a Help Center on its website that contains many educational resources to help you navigate market turmoil and even take advantage of it.
This can be found in the “Help” section on Webull’s main website and offers insight on some terms that beginner investors can have trouble defining.
Full Extended Hours Trading
Webull fully supports pre and post-market trading. This means you can place trades before the market opens and after the market closes for a set period of time.
Have a question? Webull’s customer service reps can help you!
These representatives are professionally trained and ready to answer any questions you may have about Webull. This includes chat, phone and email support.
Insured By SIPC
Webull is not a bank, so it cannot be insured by the FDIC. Instead, Webull is insured by the SIPC (Securities Investor Protection Corporation).
SIPC insures Webull investors for $500,000 of securities and $250,000 of cash. They have also purchased additional insurance through their clearing house Apex.
Zero-Commission Trading Fees
$0 commissions on stocks, options, cryptos and ETFs.
Deposit & Withdrawal Fees
There are no fees for ACH deposits and withdrawals from US bank accounts. Webull charges fees on foreign bank accounts, however, varying at a rate from $8 to $45 depending on several factors. These fees cover the charges by Apex which is a clearing firm.
If you are interested in leveraging your investments, Webull offers up to 4x day-trade buying power to its clients.
Webull also offers 2x overnight buying power on its margin accounts. This is more so used for investments instead of trades due to the overnight holding implications.
Clients who wish to invest on margin must have a $2,000 minimum to apply for a margin account.
Margin rates vary depending on the amount of margin the client is taking using. The general rates are between 6.99% and 3.99%.
- No commissions on trades
- Services oriented towards active traders
- No minimum account balance
- Educational resources and free trading simulator
- Pre-market and Extended-hours trading
- Free Stock incentive
- No significant track record
- More of a complicated platform for beginner investors
- No dividend reinvestment or fractional shares
What Is Vanguard?
Vanguard’s mission is to level the playing field for all investors. Big or small, they are committed to take a stand for their investors by treating them fairly and giving them the best chance for investment success.
Since 1975, Vanguard has been providing low-cost ETFs for its investors to gain maximal diversification and to take the subjectivity of a money manager out of the equation for returns.
Vanguard funds are client-owned, meaning that fund shareholders own the funds, which in turn own Vanguard.
This company has been at the forefront of managed investing for decades.
Whether you are interested in a simple brokerage account, retirement account, or personally managed account, Vanguard has options for all of your needs. Here are the accounts they offer:
- Traditional IRA
- Roth IRA
- Rollover IRA
- SEP IRA
- Simple IRA
- Solo 401(K)
- Custodial Accounts
- 529 Plans
Vanguard’s brokerage service offers a wide array of investment vehicles across asset classes for its clients to choose from.
Stocks, options, bonds, CDs, and the most relevant, ETFs, just to name a few.
Vanguard offers over 450 low-cost ETFs for its clients.
An ETF, aka Exchange-Traded Fund, is a basket of underlying assets that track the gains of an index or specific industry.
ETFs allow investors to achieve maximum diversification and “own everything” contained in an index in a low-cost way.
Here is an example:
If you have $300 and want to invest in all the companies in the S&P 500, it would be impossible due to the high cost of purchasing 500 different stocks.
Instead, you could buy a share of the Vanguard ETF “VOO” for $268 and get a fractional piece of every company in the S&P 500.
Vanguard offers industry-specific ETFs to satisfy its clients' investment goals. Are you only interested in the main technology companies? The VGT “Vanguard Information Technology” ETF has you covered.
The wide range of different ETFs that Vanguard covers allows its investors to achieve high-diversification while also investing in the industry’s or indices that they are interested in.
Vanguard offers both technical support and also a call center for its clients to utilize if they have any questions regarding their investments.
Gaining an edge is what Vanguard is all about, and it can achieve this also through the usage of top-quality market research.
Account Protection Information and SIPC
The Securities Investor Protection (SIPC) protects Vanguard brokerage clients up to $500,000.
To increase the insurance on its accounts, Vanguard utilizes additional brokerage coverage from Syndicates at Lloyd’s London.
By doing this, they can secure a per client coverage assurance of $49.5 million for securities, and $1.9 million for cash.
Zero-Brokerage Commissions for Online Trades
Vanguard offers $0 trades on securities, ETFs, and other investment vehicles available to its clients if trades are placed online.
Over The Phone Trades
Placing a trade over the phone will cost a fee of around $20 per trade. This is a relatively high commission for investors with smaller account balances. So if you fall into this bucket then making online trades may be a better option.
Brokerage Account Fees
$20 annual fixed fee if the AUM (assets under management) are below $10,000 for your account. They will waive this fee if you agree to receiving electronic instead of paper statements.
Mutual-Fund Only Account Fees
Vanguard charges $20 as an annual fixed fee if its client is investing in mutual funds.
Simple IRAs/403(b) Plan Fees
Charge $25 for each specific mutual fund that its clients own in their IRA account. In terms of 403 (b) plans, Vanguard charges $5 per month per participant. This adds up to $60 per year.
Individual 401(k) & Individual Roth 401(k) Plan Fees
For these two retirement plans, Vanguard charges $20 per mutual fund in each account.
Vanguard offers a whole host of ways to waive fees when using their services.
Whether it is signing up for e-delivery for annual reports or being a Voyager Select member, there are many ways to forgo these fees.
Simply navigate to the Vanguard Benefits and Costs section at the top right page of its website to learn more ways to dodge some of these fixed costs.
- Leading the industry in providing highly diversified ETF products to its clients
- Industry-specific ETFs to capture sector movements
- Zero-brokerage commissions for online trades
- Has shown a long track record of providing reliable services to clients
- Ways to waive fixed fees to decrease account costs
- Protection of $49.5 million in securities and $1.9 million in cash
- Top-quality market research to give its clients the edge when investing
- Numerous different assets to choose from
- Some annual fees in place, but they can be waived
- Expensive mutual fund fees
- No online trading platform for technical analysis
- Various retirement accounts have different fees associated
Final Verdict: Webull vs Vanguard
When it comes down to it, Webull and Vanguard are offering two very different products. Webull is an active trading platform designed for research oriented traders, particularly millennials. Vanguard is more of a long term investing platform.
If you are simply looking to trade stocks and have easy access to research tools, Webull is a great option for this. You can even invest in Vanguard ETFs on Webull!
However, if you are looking to invest for the long haul in stocks and funds, Vanguard may be a better option. They have a more diverse selection of assets as well as many different account types.
In some cases, it might make sense to invest with both! Webull is useful for your active trades where you are looking for technical data available at your fingertips. You can use Vanguard alongside Webull for your long term investments.