The Complete Guide to Webull Stock Trading
In this trading guide, you'll learn how to safely trade using Webull. Webull is a free stock trading mobile App that offers zero-commission trading on different asset classes including stocks, options, ETFs, and ADRs. This article will cover the most important questions related to Webull. Many traders wonder, is WeBull safe to use? How does WeBull make money? What kinds of accounts can I trade on Webull? Find the answers to these questions and more. Keep reading as we reveal why Webull is the biggest threat to Robinhood.
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Nowadays, the big trend is to trade stocks directly from your mobile phone. But, how do you trade with your iPhone and Android devices?
Modern technologies allow us to use some of the best mobile trading apps like Webull, Robinhood, TD Ameritrade, Fidelity Investments, and many more.
Now, in this mobile Apps trading guide, we will help you decide if Webull is the best trading app for your needs. If you’re interested in actively trading stocks as well as other asset classes, then Webull may be the right App for you.
Let’s start by answering the most asked questions: What is Webull? How does Webull work? Most importantly, is Webull safe?
What is Webull – Webull Mobile App/Webull Desktop
Webull is a stock trading App that is 100% commission free designed for novice traders and professional traders and stock investors. When comparing Webull versus Robinhood, the user experience will be very important. In terms of the investment assets offered by Webull trading App, you can gain access to investing in over 5,000 instruments, including:
- Thousands of individual companies (global stocks)
- Options trading
- Exchange-traded fund (ETF) trading
- IPO offerings
- Cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum and Litecoin)
Note* Webull App is available on both iOS and Android devices.
If you’re a forex trader you might be wondering:
“ Does Webull have forex trading?”
Unfortunately, Webull doesn’t offer forex trading, but you can monitor through the App most of the major currency pairs.
The Webull App platform has several advantages, including:
- 100% commission-free stock trading platform.
- No commission and no fees to buy and sell stocks, options, ETFs and ADRs.
- User-friendly mobile App.
- Start trading on the Webull App with no deposit minimums.
- No monthly account maintenance fees.
These are great advantages, especially for beginner stock traders.
The difference between Webull vs Robinhood is that Webull is also available for download for desktop (Windows and MAC supported devices). While Webull is a free stock trading app, if you want to bring your trading game to the next level, Webull offers additional features that can help you especially if you’re actively trading the stock market.
The Webull margin account offers the most extensive:
- Built-in research
All Webull features are packed into the trading App for each stock and ETF available on the platform.
If you’re wondering what types of accounts you can open with Webull, we have that covered for you below:
Webull Account Types
At Webull, you can open an individual stock trading account and have the option to choose to open either a cash account or a margin account.
Now, you might ask yourself:
What’s the difference between a Webull cash account and a Webull margin account?
In simple terms, the cash account is also the default account that allows stock traders to invest with their own money. On the other hand, the Webull margin account is a leveraged account where you borrow additional money from the brokerage trading firm, which will increase your buying power.
Webull offers up to 1:50 leverage contingent to how much you’ve deposited into your account.
Additionally, Webull offers different types of brokerage trading accounts, including:
- Traditional IRA account (comes with a $50 bonus for a minimum deposit of $5,000)
- ROTH IRA account
- Rollover IRA account
So, if you’re wondering:
“Does Webull have ROTH IRA account?”
The answer is YES.
You can save in taxes with your retirement-savings account if you use the Webull ROTH IRA account.
To open a Webull account, you need to follow the standard procedure and submit ID verification documents along with proof of address. In order to open a brokerage trading account on Webull, you need to fulfill 4 requirements:
- Be at least 18 years old.
- Provide a valid SSN (Social Security Number).
- Legal residence in the US.
- Have US citizenship or a Green Card.
Now, you might wonder:
“How long does Webull take to approve my account?”
Webull approves new trading accounts automatically except when additional information is required in which case your application approval process will be extended.
If you’re interested how long does it take to withdraw from Webull, you should know
Well, it depends on the withdrawal method used:
- For ACH withdrawals it takes between 1 and 5 business days.
- Withdrawal for different ACH accounts can take up to 60 days.
- International wire withdrawals can take up to 5 business days.
Now, if you want to invest on behalf of your children with a custodial account, you might wonder:
“Does Webull have custodial accounts?”
Unfortunately, at the moment, Webull doesn’t support custodian accounts nor it supports joint accounts or trust accounts.
One more thing to note is that Webull will run a soft inquiry on your credit score.
So, if you’re wondering:
“Does Webull run your credit?”
The answer is yes, but this will not appear on your credit report and it will not impact your credit score. Webull will use your credit score just for background check purposes.
Let’s discuss another type of trading account, you can find on Webull aka the paper demo account.
How to Paper Trade on Webull
If you want to practice with a demo account before actually you trade with real money, a Webull paper trading account lets you practice stock trading with virtual money. Read more about paper trading in our paper trading options guide.
Furthermore, Webull clients can access demo trading competitions where you can win real cash prizes. In this regard, Webull is the best stock trading app for beginners.
The next logical question you might have:
Is Webull free?
The answer is Yes, you only need to have enough free space on your mobile device to install the Webull App.
We’re going to answer another important question that a lot of stock traders might have:
- “Can I trust Webull with my money?”
- “Is Webull legit?”
- “Is Webull safe, legitimate or is a scam?”
Is Webull Safe?
Investing in the Webull app is safe because it’s regulated by tier-one regulatory agencies. Additionally, all your funds with Webull are protected because they provide SIPC insurance that buys you protection against bankruptcy.
Webull’s financial services fall under the regulatory standards and rules imposed by:
- Securities and Exchange Commission (SEC).
- Financial Industry Regulatory Authority (FINRA)
Additionally, the SIPC insurance works the same as a bank’s FDIC insurance. All legitimate brokerage trading firms hold SIPC insurance up to $500,000, which includes a $250,000 limit for cash.
If something bad happens to Webull due to financial troubles, your money will be protected due to the SIPC insurance.
More, if Webull goes bust, you can transfer all your stock holdings from Webull to Robinhood or other brokerage trading firms. Or, if you want the SIPC can liquidate your account and pay you the value of your stocks at that time.
Let’s break down the Webull stock trading App and see how they make money.
How Does Webull Make Money?
We’ve learned that Webull doesn’t charge any commissions or fees to their customers, so how exactly is Webull making money?
This is a legitimate question.
Webull is a free investing app that is offering 0% commission trading and fees.
Like any other for-profit business, Webull’s goal is to make money. But, how does Webull make money outside the traditional online brokerage model of charging commissions?
Webull stream of income comes from at least 5 channels:
- Paid subscriptions to committed stock traders. The paid subscription range from $4.99 per month to $53.99 per year.
- Margin trading – Webull charges margin fees that start at 3.99%.
- Selling order flow – Webull earns a fraction of a cent for every transaction.
- Interest on Cash – Webull earns interest on idle cash held in customer accounts.
- Short Selling Fees – Webull earns interest by lending shares.
In terms of getting started on this stock trading App, here is how to trade stocks on Webull. Like Robinhood, Webull uses a "freemium" pricing model in order to make money. You can use most of the app for free, but there will be some components that you'll need to pay for.
How do you Buy Stock on Webull?
Webull can help you start trading stocks right from the palm of your hand.
Just like Robinhood, Webull gives stock traders access to advanced order types, including:
- Market orders
- Limit Orders
- Stop-loss orders
- And, stop-limit orders
With so many order types available you might wonder:
“Is Webull good for day trading?”
Because Webull also allows margin trading, this makes the perfect combination for stock day trading.
Webull interface is extremely user-friendly which makes it easy to buy and sell stocks.
How to Buy Stocks on Webull: Step By Step
- Step #1: Make sure you first deposit money into your Webull account.
- Step #2: Go to the “Markets” tab and search for your favorite stock you want to buy.
- Step #3: Once you select your favorite stock, at the bottom left you’ll see a “Trade” button. Click on “Trade”.
- Step #4: Choose your order type (limit or market order), the price, the quantity (how many shares you want to buy). Click on the “Buy” button at the bottom left and you’re done.
Buying stocks on Webull is as easy as that!
Now that you’ve bought your first stock on Webull, you may be thinking:
“How to setup stop loss on Webull?”
Before you place an order on Webull, you have the option to activate the Stop Loss/Take Profit order.
Make sure you activate it and input your desired price levels there.
What other types of stocks you can buy on Webull:
- Can you buy OTC stocks on Webull?
- Can you buy penny stocks on Webull?
Unfortunately, Webull doesn’t offer OTC stock trading on its platform. Additionally, Webull doesn’t support penny stocks on the OTC market. However, you can buy stocks that are trading under the $5, which are technically considered penny stocks.
Another cool feature that comes with Webull is the free extended market trading hours.
How do Trade After Hours on Webull?
Webull offers pre-market and post-market trading so that you can continue to trade stocks even after the market closes as well as before the stock market opens.
Webull extended hours trading includes:
- Pre-market hours from 4:00 AM to 9:30 AM ET (that’s a window of 5.5 hours before the market opens).
- After-market hours from 4:00 PM to 8:00 PM ET (that’s a window of 4 hours after the market closes).
While Webull after-hours trading is free, you should be aware that during this time the stock market is more volatile.
Let’s see how you can earn free stocks on the Webull stock trading App.
How to Claim Free Stock on Webull?
Webull stock trading app offers free stocks not just when you open a Webull brokerage account. We’re going to list the couple of different ways you can claim free stocks on Webull.
Here is how to get 2 free stocks from Webull by simply joining the App:
- Opening a Webull account will grant you a free stock worth between $2.5 and $250.
- After your initial deposit of at least $100, you will receive the second free stock that can be valued anywhere between $12 and $1,400.
The 2 free stocks from Webull can help you grow your stock portfolio without investing any penny out of your pocket.
Thirdly, by simply sharing the App with your friends and family you can earn free stocks on Webull.
So, how to refer your friends to Webull and get free stocks?
If you want to invite others to open a new Webull account follow these steps:
- Step #1: Log-in to the Webull App.
- Step #2: Go to Menu on the bottom right corner of the App.
- Step #3: Go to Bonus Guide and select “Invitation Bonus” (Guide No.2).
- Step #4: Share your referral link with your friends.
Note* in order to get two additional free stock your friend needs to deposit at least $100.
Thew way the Webull invitation bonus works is the same as when you first join Webull.
- When you refer a friend you get 2 free stocks worth anywhere between $12 and $1,400.
- When you refer 3 friends you get 9 free stocks worth anywhere between $12 and $1,400 (which is 3 free stock per referral).
Once you get your free stock they will be available in your Webull stock holdings and you can sell the stock and cash out your profits.
So, yes, you’re allowed to sell your free stocks.
More, you can even go short stocks on Webull. So if you’re wondering:
“Can I short stocks on Webull?”
The answer is YES!
How to Short on Webull?
The process of short selling stock on Webull is the same as how you buy stocks on Webull. Instead of selecting the “Buy-Side,” you select the Sell-Side.”
Short selling on Webull is as simple as that!
Important Note* To be able to sell on Webull you need to have a margin account of at least $2,000. Additionally, only stocks that have a blue downward arrow icon can be shorted on Webull.
Let’s see how to buy options on Webull.
How to Trade Options on Webull?
If you’re wondering:
“Does Webull have options or not?”
Since the beginning of 2020, Webull has brought options trading to its customers.
However, in order to be allowed to trade options on Webull, you need first to get approved. The permission to trade stock options is due to the regulatory frameworks imposed by the US financial institutions
Here is a step-by-step guide on how to buy Call and Put options on Webull:
- Step #1: Add options trading to your Webull account.
- Step #2: Choose what stock options to trade.
- Step #3: Decide between Call and Put options.
- Step #4: Tap on the “Options” tab.
- Step #5: Decide your strike price and expiration date.
- Step #6: Choose how many options contracts to trade.
- Step #7: Place your options order.
- Step #8: Choose whether to auto-exercise or not.
Options trading on Webull is as simple as that!
Final Words – Webull App Trading Guide
In summary, Webull will give you the most user-friendly interface and the best overall user experience. If you want to save on stock trading commissions while you invest in your favorite stock you might want to try Webull stock App. On the other hand, if you’re more interested in passive investing and not having to actively research stocks, you can try Robinhood.
It’s definitely worth checking out Webull and start saving on the commission-free trading feature. The ability to invest in thousands of stocks along with ETFs, options, and bitcoin and other cryptocurrencies has attracted stock investors and traders of all types.
Now that you know what is Webull and how it makes money, it’s time for you to start buying and selling stocks and make a profit.
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