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Webull vs Robinhood 2020 – Which Zero-Fee Broker is Better?

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Webull vs Robinhood 2020 – Which Zero-Fee Broker is Better?


Nick M.-

You need a broker to make trades, but the commissions eat up your profits. It’s a double-edged sword many investors face, but today there are options.

Webull and Robinhood set out to make a difference in the trading world by offering commission-free trades. While they aren’t the only advisors offering this, they are among the most popular advisors pitted against one another in a competition.

Which advisor is right for you – Webull or Robinhood? We break down each platform to help you decide

Webull vs Robinhood – An Overall Look

Webull and Robinhood are both mobile apps geared toward millennial investors. Neither charges commission fees – so both are attractive right off the bat, but the similarities end there.

Investors can trade stocks, options, and ETFs on both platforms, but Robinhood has the leg up with cryptocurrency trades. Use either platform on your phone or desktop (iOS and Android) and get in-app analytics but Robinhood charges $5 a month for its research options.

Who Should Use Webull?

Webull launched as a competitor of Robinhood. It’s fairly new to the scene (2018), but caters to a different set of millennial investors.

Webull is for advanced or experienced investors. Beginning traders are welcome, but to get the most out of Webull you should have an interest in technical and fundamental analysis otherwise you may be lost or not use the features Webull offers.

Webull is targeted to the advanced investor looking to break into day-trading or active investing. Its technical and fundamental analyses are robust and can be overwhelming if it’s not what you’re looking for or if you’ve never invested.

Who Should Use Robinhood?

Robinhood was one of the first brokers to offer commission-free trades and cater to beginners looking to learn the ropes. Whether you’re looking to trade stocks, options, or ETFs, Robinhood helps beginners learn the ropes quickly, taking control of their finances while keeping more profits in their pockets.

The Robinhood platform is user-friendly and it takes just minutes to sign up. You don’t need a minimum balance, which means investors can start investing quickly.

Where Robinhood shines for beginning investors, it’s unattractive for active or advanced investors. The platform is streamlined for user-friendliness, which is a downfall for those looking for active trades and robust information.

Webull Features

  • Robust tools and research options including up-to-the-minute news, Morningstar reports, and company financials
  • Paper trading account – Learn the platform and practice trades in the real market, but with fake money
  • No minimum deposit – You can open an account with any amount of money.
  • Short sales allowed – Even though both platforms have margin accounts, only Webull allows short sales
  • Extended hours trading – Investors can trade pre-market (4:00 AM – 9:30 AM ET) and after-market hours (4:00 PM – 8:00 PM ET)
  • Great customer service – Webull offers 24/7 online customer service
  • No commission fees – The only fees investors pay are the SIPC per transaction fee (not paid to Webull)

Robinhood Features

  • Earn interest on cash balance – Any uninvested cash in your Robinhood account earns 0.30% APY
  • Low margin rates – Robinhood charges $5/month for margin balances of $1,000 or less or 5% on balances over $1,000
  • Trade cryptocurrency – If you prefer to keep all trades on one platform, Robinhood offers that option with the addition of cryptocurrency
  • Basic reporting functions – Robinhood offers the basic reporting functions beginners need without getting overwhelmed
  • Referral bonuses – If you refer friends to Robinhood and they sign up and trade, you may earn free stock in exchange for the referrals
  • No commission fees – The only fees investors pay are the SIPC per transaction fee (not paid to Robinhood)

Webull and Robinhood Pros

Webull Pros:

  • You can open an individual taxable or IRA account
  • Have access to all necessary information in one platform instead of switching back and forth between programs and wasting time
  • Safe to use as all investment accounts are SIPC protected
  • More trading options, including short sales (for margin accounts)

Robinhood Pros:

  • You can trade fractional shares
  • Trade in real-time for more accurate trades
  • User and beginner-friendly
  • Safe to use as all investment accounts are SIPC protected

Webull and Robinhood Cons

Webull Cons:

  • Higher margin rates of 6.99% for all balances under $25,000
  • Webull only offers individual accounts – no joint accounts
  • An overwhelming platform for beginners

Robinhood Cons:

  • Limited research options, making it a limited choice for advanced investors
  • Robinhood doesn’t offer joint accounts or IRA accounts
  • Customer service is somewhat lacking

Webull Summary

  • Account minimum - $0
  • Commissions - $0
  • Types of trades – Stocks, options, and ETFs
  • Types of accounts – Individual taxable, IRA, or Roth IRA accounts
  • Margin rates – 6.99% on balances under $25,000
  • Best for: Intermediate investors or beginners ready to learn fundamental and technical analysis

Robinhood Summary

  • Account minimum - $0
  • Commissions - $0
  • Types of trades – Stocks, options, ETFs, and cryptocurrency
  • Types of accounts – Individual taxable accounts
  • Margin rates - $5/month (no interest) up to $1,000 and 5% on balances over $1,000
  • Best for: Beginners looking for a streamlined approach without getting overwhelmed

The Bottom Line

Webull and Robinhood look similar at first glance, but they are for very different audiences. Millennials (or any investor) looking to start investing should consider both options compared to their intentions.

If you’re looking to jump right in and learn the ropes with robust reporting and making your own decisions, Webull helps you achieve these goals. If you would rather take things slow and learn the ropes a little bit at a time, Robinhood is the best choice.

If you want to read more about Webull we wrote up a full report here.

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