Webull Review for Beginners and Intermediate Traders
Prior to 2020, I hadn’t invested much directly. I had put money into a retirement fund that was provided by my work but that was the extent of it. I had read a lot of Dave Ramsey’s books and articles and the importance of investing. And much I have learned a lot in a short time span. I had started investing a little over 6 months ago and Webull was the first app that I have used to invest in. This Webull review is from the perspective of a new investor. This article is more for saving in general and the future rather than saving for a vacation. If you are interested in investing and saving money for the future then look no further!
* I am not a financial adviser and this should be viewed from an entertainment perspective based on my experience.
This article contains affiliate links that provide stocks to both the affiliate and the new sign-up. At the time of writing this, The individual signing up for a Webull account will get one free stock after depositing $100 into their Webull account. Stock can be valued from $8-$1600 value
My Experience so far
For this Webull review, it is from the stance of a novice trader. With that being said, I have had a positive experience with Webull thus far. When I started, I do not have a lot of money for a lot of trades, but instead am slowly adding to my portfolio. I had opened my account with the $100 minimum to get a free stock which I then later sold. This was the slowest process as it took about 15 days to finally get the stock. For basic trading, this is can be a pretty straightforward app but does provide advanced features. Such as setting trade limits and buy orders. There have been several times that I set a buy order at a given price, which went through flawlessly. It keeps track of all of your stock purchases and what your average price for a share is.
Adding money can be slow as it takes about 5 business days for your money to clear and be in your account. However, Webull will provide buying power in the meantime. If you transfer $50, they will set your buying power at $50 (only up to a certain limit) until the money clears. However, if the money does not clear, then you are charged a $30 fee. This would be if you are trying to transfer money and you don’t have enough in your regular bank account.
I have been very pleased so far with my decision to use this broker. My goal with setting this up was to set money aside to invest and get a higher rate of return that can later be used for other things. If I want to get out, I can always sell my stock to get my cashback to my bank account. This isn’t so much saving for Disney but saving for retirement, later on, that could allow me to continue going to Disney!
What is Webull?
In this Webull review, we must know what it is. Webull is a relatively new online broker that was founded in 2018. Webull is a stock trading platform on both PC and mobile. The mobile app has pretty straight features but can be complex the deeper you delve. Webull is SIPC insured and regulated by the FINRA and SEC. For the clearing firm, Webull uses Apex Clearing Corporation.
Through Webull, individuals can make several different types of trades. These include ETFs, individual stocks, bonds, Limited cryptocurrency. One of the biggest benefits of Webull is that it is a zero-commission platform. So when you make a trade, you are not charged a fee. If you are looking to trade mutual funds, futures, and bonds, it is best to look at other applications. It should also be noted that robo-portfolios, banking services, and advisory services are not available on Webull
Benefits of Webull App
There are many different benefits from using the Webull App, many that I use on a daily basis now. This includes news/press releases, Revenue data, and financial calendars. I have several watchlists and alerts set up to make sure I have the opportunity to get the best deals possible. You can search for possible stocks using the stock screener tool.
How does Webull make their money?
Most of the brokers that offer $0 trades, including Webull, do this by selling the order flow to the wholesale market makers. This means that they sell your spot to make money by moving you back spots in line to execute the trade order. They also make money off of interest on cash balances and margin lending.
If you use ACH transfer, then there is no charge for deposit or withdrawal of funds. For domestic wire transfers, there is a $25 withdrawal fee and an $8 deposit fee. Internation will have a $45 withdrawal fee and a $14 deposit fee.
History of Webull
For a good Webull review, we must include some history as well. Webull initially started out as a research company that has recently expanded into the brokerage industry in 2016. It wasn’t until Nov 2020 that they started to support cryptocurrency trading, although limited. The apps work well for more intermediate-type traders due to some of the complexity. However, beginners can pick up the idea pretty quickly. I have found that it is straightforward enough to get started and enough features to learn as I go.
Pros and Cons
- Zero commission on trades
- Allows short selling
- Pre-market and after-hours trading
- IPO access without account minimums
- Free mobile and PC app
- Real-time market data and analysis tools for free
- Limited for Full-day traders
- Membership required for some features
- No trading Mutual funds
- Unable to trade pink sheet stocks
- No stocks under $10 million or less in market cap
There is no minimum account balance with Webull but there are some exceptions. You are required to have a minimum deposit of $2,000 for accounts to short stocks. You will need to deposit $100 when setting up your account to get the free stocks with affiliate links. Note it can take up to 15 days to get your free stocks from Webull.
Is my money safe with Webull?
It does appear to be safe from an overall standpoint. The security through Webull is up to $500,000 in securities and $250,000 claims for cash. This is due to Webull being a member of the SIPC (Securities Investor Protection Corporation). One thing to note is that investing is always a risk due to fluctuations in the market. However, if you do not sell, your shares do not change. You lose money if you sell when the price of a stock drops lower than what you bought it at.
We will have a couple of other articles in the future of other brokers to find one that best fits your needs. Overall, this has been a great app and broker to use. Between the ease of use as well as the features that come along with it, Webull is a great choice! If you would like to sign up, here is a link for sign-up! But remember to deposit $100 into your account to get the sign-up bonus
Is this something that you would potentially use? Is there anything you would like to know more about in the Webull Review? Let us know in the comments below!
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