webull vs robinhood 2021

Webull Vs Robinhood – Which Is Better?

Commission-free stock trades were relatively unknown till October 2019 with only a handful of online brokers offering zero-fee trades. The race for $0 trades kickstarted in the online brokerage market with Charles Schwab’s ambitious move to charge zero fees on stock, options, and ETF online trades. The resultant price wars among big players in the online brokerage market brought to the forefront the hot debate on Webull Vs Robinhood – the better app for commission-less online trades.

Both Webull and Robinhood are top online brokers in the US that have been awarded high ratings of 4 out of 5 stars by Nerdwallet in April 2021. Both the online trading platforms allow investors to execute commission-free trades with zero account balance. Webull and Robinhood, both provide many promotional offers too from time to time to benefit online traders.

However, we will continue with our Webull Vs Robinhood analysis and reflect on the pros and cons of each in consecutive paragraphs to understand which of the two is better for you as an online investor.

Webull Vs Robinhood: An Overview

Founded in April 2013 by Stanford graduates Baiju and Vlad, Robinhood is an innovative online brokerage platform that gives individuals belonging to all social classes access to financial markets. Robinhood was a cost-effective solution for retail investors who had to incur high commission charges per trade whilst the large brokerage house executed heavy trade volumes at near-zero costs. 

Robinhood markets itself as an online investing platform for the rich and the poor alike. It also engineers novel financial products that help investors invest on their own terms and at their own pace.

On the other hand, founded by Wang Anquan, Webull entered the online brokerage market in May 2017. It is a robust technology-driven online trading platform that leverages the power of the internet to provide investors an enjoyable online trading experience at nominal costs. Webull markets itself as an online investing platform that facilitates smart investments using smart tech tools.

As mentioned earlier, both the firms offer zero commission trades and require no deposit minimums.

Webull Vs Robinhood: Offerings

Webull allows you to diversify your portfolio by trading in stocks, options, ETFs, and ADRs (American Depository Receipts). All trades are executed commission-free. Moreover, zero contract and assignment fees are payable on options trades. Besides, Webull allows you to trade in limited cryptocurrencies through its parent firm Fumi technology. 

On the other hand, Robinhood facilitates commission-free online trades in cryptocurrencies apart from stocks, ETFs, and options. With Robinhood, you can trade in bitcoin, ethereum, dogecoin, and many other digital currencies 24/7. You can also earn 0.3% APY (Annual Percentage Yield) on idle cash and acquire more flexibility with your brokerage account.

Webull Vs Robinhood: Value-Added Services and Benefits

Webull

webull vs robinhood 2021

Source: ekiensblog.com

Based on your short-term and long-term financial goals, Webull allows you to open two types of brokerage accounts – Individual Brokerage Account and IRA (Individual Retirement Account). While the former is the standard account for buying and selling securities and assets, the latter allows you to build a retirement corpus. You may save for the second innings of your life with a Webull conventional, rollover, or Roth IRA.

Webull facilitates trading in two sessions – pre-market ( 4 – 9 AM ET) and after hours (4 – 8 PM ET). Extended trading hours help you execute higher trade volumes in a day. Moreover, Webull has a well-trained customer support team that is 24/7 at your service to answer your queries and steer you through multiple trading platforms. In addition, you can download your tax documents from the Webull E-document Centre.

Webull has recently partnered with NASDAQ to provide investors with advanced intuitive charts, market data, screeners, detailed fundamental data, latest news, and much more to analyze stock market trends and patterns. Since August 2020, Webull has been offering a free 3-month subscription to the Level 2 advance plan, to all registered users.

The Level 2 advance plan is a NASDAQ TotalView-powered premium market data feed service. It displays the best 30 levels of bid-ask spreads for NASDAQ and NYSE-listed stocks. Moreover, it helps you analyze the market depth for a single security. Last but not the least, it provides a detailed auction-crossing NOII report that includes NASDAQ opening & closing crosses, upcoming IPO information, and halt crosses.

Things To Know

Apart from the above, Webull provides you with advanced trading tools with advanced functionalities. You can execute various types of trade orders on Webull’s user-friendly online trading platform with ease.

The Webull application is compatible with all types of electronic devices like desktops, mobiles, and tablets. Thus, you can ‘trade-on-the-go’ with Webull mobile and tablet apps. The desktop version of the Webull app is fully customizable. It helps you easily monitor your watchlist, analyze technical indicators and charts, and track open trade positions.

Robinhood

webull vs robinhood 2021

Source: cnbcfm.com

The cash management feature of Robinhood’s brokerage account helps you manage everyday monetary transactions with ease. You will get a customizable debit card, an ACH account number, a routing number, replacement of lost/stolen/mutilated cards, and access to digital payment apps, if you avail of this service.

The debit card will work in 75000+ ATMs across the US. It allows you to easily spend money on daily needs like paying utility bills, buying groceries, etc., or invest in securities. Moreover, you will also earn interest on uninvested cash. 

Besides, you also receive FDIC insurance coverage with Mastercard Zero liability Protection for amounts up to $1.25 million. With cash management services, you no longer have to incur account opening costs, account maintenance charges, inactive account charges, foreign transaction fees, and in-network ATM charges.

With the Robinhood app, you can access detailed research reports that may aid you in investing decisions. Robinhood has tied up with Morningstar to provide you detailed stock market reports for more than 1700 stocks. Based on your account balance, with Robinhood gold, you may get instant access to USD 5,000 – 50,000 when you make a deposit.

Robinhood also provides you Level 2 market data with detailed information on top stocks or funds to buy, upcoming IPOs, bid and ask prices, and much more. It also facilitates margin trading for taking large positions in the market. It reduces waiting time to access your deposits.

Things To Know

Moreover, Robinhood is a trusted and safe channel for executing cryptocurrency transactions. You can buy and sell cryptos on the Robinhood online trading platform at your will without fear of identity theft or leakage of sensitive information. 

Robinhood strives to maintain the highest security standards and reimburses 100% of the losses incurred in case of any unauthorized activity in your account. High execution quality, a transparent and sustainable business model, and a backend support team to help customers via phone or email are some of the other value-added features of the Robinhood trading platform.

Thus, in this Webull Vs Robinhood debate, we can say that Webull is more technologically advanced and provides high-quality market reports as compared to Robinhood. Robinhood, on the other hand, is more useful for digital currency transactions and routine monetary transactions.

Webull Vs Robinhood: Target Audience

webull vs robinhood 2021

Source: clark.com

Robinhood has the first-mover advantage in introducing the mobile trading application. Moreover, Robinhood’s simple app and website layout, user-friendly online trading interface, easy-to-understand market information reports, and comprehensive learning materials on the nitty-gritty of stock trading have made it an instant hit among novice investors.

However, Robinhood suggests complicated transactions like option trades or margin trades which amateur traders are unlikely to be familiar with. Moreover, it has also received criticism from industry experts for its stock trade suggestions. Beginner traders are likely to be lured by it and end up investing in unprofitable or risky stocks.

On the other hand, at first glance, Webull seems ideal only for sophisticated and seasoned investors. The advanced trading tools, in-depth market analysis tools, and advanced technology-driven online trading platform with a plethora of complex features and technical indicators may seem intimidating to a layman with no trading or finance knowledge. Moreover, beginners may find it difficult to comprehend the detailed stock market reports provided by Webull.

What To Know?

However, once you get a hang of the Webull app, you will realize that it is useful for both novice and seasoned investors. Webull has a unique feature known as paper trading that may be particularly useful for amateurs. This feature allows you to simulate trades and understand the potential costs of a trading position and the expected performance of a security in the future. Thus, it is a great tool for assessing potential returns from an investment.

Hence, we can say that in the Webull Vs Robinhood argument, Webull scores brownie points in terms of providing a high-quality trading experience to both beginner and expert traders.

Also Read: Comparison Analysis of Robinhood vs. ETRADE 2021

Webull Vs Robinhood 2021: Summary Table

Sr.No.Point of DistinctionWebullRobinhood
1Commission$0$0
2Minimum deposit requirements$0$0
3Niche audienceSuited for all types of online traders- beginner, intermediate, and expertSuited for novice traders or traders frequently on the move (mobile traders)
4Benefits
  • Zero fee trading in 5000+ stocks or ETFs.
  • No hidden costs.
  • Provides a wide range of fundamental and technical analysis tools.
  • State-of-the-art online trading platform with advanced technology features.
  • 4:1 leverage on margin trades and 2:1 leverage on overnight trades.
  • Detailed stock market reports with in-depth analysis and insights along with forecasts of stock price movements.
  • Facilitates short sales.
  • Extended trading hours
  • Simple and easy-to-understand market reports and trade analysis tools.
  • User-friendly online trading interface
  • A well-developed mobile trading app.
  • Facilitates trades in a large number of cryptocurrencies.
  • Efficient cash-management services
  • Ideal for everyday monetary transactions.
5Pitfalls
  • It May seem overwhelming to newbies at first glance
  • Does not allow investors to hold fractional shares
  • Does not support online trades in mutual funds, bonds, and OTC stocks.
  • Trading analysis tools are not sophisticated thereby making them less useful for professional traders.
  • Limited services are offered by the customer support team.
  • No option to open IRA brokerage accounts.
  • Does not support online trades in futures, mutual funds, or forex stocks.

Final Words

Both Webull and Robinhood were incepted to tap the millennial investor market. While both the online trading platforms have pros and cons, Webull is better than Robinhood on many parameters. It not only adopts advanced smart technologies to facilitate smart trades but is also a perfect trading platform for all types of investors. Moreover, the trade execution speed, trade analysis tools, and market information reports of Webull are a notch higher than those of Robinhood.

However, at the end of the day, your individual financial objectives and comfort level with a trading platform determine your final choice between Webull and Robinhood. On a generic level, Webull is a clear winner in the Webull Vs Robinhood debate.

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