WeBull Review 2021: The Best Free Trading App

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3 months ago

WeBull Review 2021: The Best Free Trading App

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3 months ago
webull review

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When it comes to investing, there is a lot of research that goes into it. While professional stockbrokers get paid all day to sit around and look at the latest stock research and market analyses, most average people do not have the time or luxury to do so.

Thanks to WeBull, you have a trading app that lets you keep an eye on market performance all day. WeBull provides a simple graphical user interface to watch market trends while also offering a commission-free trading platform.

Commission-free trading is basically bog-standard nowadays, so WeBull cannot distinguish itself on that fact alone, however. So today we are going to take a look at WeBull and see if it is a worthy investment platform to try out. We will cover the features, pros, and cons of the platform. Then we will give our verdict on whether WeBull is worth giving a shot. This is our WeBull review.

5.0
5/5

DollarFlow rating

FEES

Commission-free investing.

CUSTOMER SERVICE

Rapid response times with a great customer service team.

TOOLS

One of the best free apps with tons of tools such as trading simulators, better graphs & indicators, industry research and news.

WeBull: Overview

In many ways, WeBull is a standard commission-free trading app. The platform offers traditional investment products such as stocks, exchange-traded funds (ETFs), and derivative options. WeBull also recently rolled out crypto so you can buy and sell popular cryptocurrencies. The platform is mobile-first and optimized for both iOS and Android operating systems.

As far as total investment opportunities go, WeBull does not have as many as some other big-name online brokerages. But, for what it does offer, it does it well. In many ways, one of WeBull’s main competitors is Robinhood and the company has modeled itself off of Robinhood’s success and general marketing strategy.

However, compared to Robinhood, WeBull does one thing much better. WeBull’s main claim to fame is its impressive suite of technical tools for analysis. When looking through the listings, you can click on a share and get a detailed picture of its historical price trajectory. You can then apply all kinds of technical indicators, including exponential moving average, Bollinger Bands, MACDs, Money Flow indices, RSIs, and much more. So if you are a more active-style trader, then we would recommend going with WeBull over Robinhood thanks to the presence of these impressive technical features. 

In addition to these technical tools, WeBull has a ton of resources for getting info on markets. The research tools they have include news, press releases, analyst recommendations, historical revenue data, financial calendars, stock screeners, watchlists/alerts, and much more. Most of these features are things that you only see on larger trading platforms so it is amazing that a smaller firm WeBull has them available for free.

How Does WeBull Work?

WeBull works like most other commission-free trading platforms. You first need to set up an account, connect a payment method, then you can get started investing. Like most platforms, you will have to provide some basic identifying info to sign up, such as a social security number, email address, payment method, and password. You also have to be at least 18 years old to make an account. Once you put those in, you have to verify your account via email. Then you can fund your account and get started investing. WeBull accepts debit cards and direct deposits from bank accounts to fund accounts.

Once you make an account, WeBull will ask you some questions to gauge your financial history and investment preferences. These questions are so the platform can tailor itself to work towards your advantage.

Stock Trading

It’s easy to pull off stock trading with WeBull. Simply tap on the stock listing that you are interested in and the big blue “Trade” button at the bottom will let you enter the desired number of shares. This page also shows you key relevant information like limits, market, stops, and other conditional trades. This setup makes it easy for beginners to do basic trades but also for experienced investors to pull off more complex trading strategies.

WeBull also has options for taking part in extended-hours trading. However, a large handful of stocks are not available during this time period, such as pink sheet and OTC stocks.

Options

WeBull also offers options trading, something it took Robinhood quite a while to implement. Buying/selling options contracts is largely the same as buying shares, except instead of entering in the share number and hitting “Buy,” you click on the section of the menu appropriately titled “Options.” Like most platforms, there is a brief approval period for options trading, generally about 1 day.

Like the share screen, the Options screen shows useful details such as calls, puts, bid/asks spreads, strike prices, and data points about historical performance. There are also some useful menu features to organize this data by sorting it into ascending or descending order. WeBull’s options trading is not as advanced as some other brokerages but it gets the job done.

ETFs

WeBull also has a list of completely commission-free ETFs. ETFs can be bought and sold just like you would shares. You can also practice trading ETFs with the paper trade function which is basically a demo version of the ETF market.

For the most part, WeBull offers listings for some of the most popular ETFs around, including the Dow Jones, S&P 500, and Nasdaq, as well as industry-specific ETFs like PRN Industrials, XPH Healthcare, and FUTY Utilities. There are also some ETFs that are focused on commodities like precious metals, agriculture, and energy.

Crypto Trading

WeBull recently added cryptocurrency trading to its repertoire and allows trading starting at as little as $1. Some of the cryptos they have include Bitcoin, Ethereum, and Litecoin. Unlike many other platforms, WeBull does not charge fees on crypto trading. They also include a wide range of info on crypto prices and historical trajectories and you can trade almost 24/7. The only time that crypto trading is not available is between 5:30 pm-6:30 pm for maintenance and account reconciliation.

Bonus Offers

As of the time of writing, WeBull is offering some pretty cool sign up bonuses. When you sign up and open an account you get 2 free stocks, each of which can be valued between $2.50-$250. If you open an account and immediately fund it with $100 or more, then you get 2 more free stocks, each of which is valued between $8-$1,600. So if you get the maximum valuation from the 4 free stocks, you can get up to nearly $4,000 in free stock. That is a pretty enticing deal if you ask us.

You also can get referral bonuses. Whenever you refer someone to the platform and they make an account, you can get a free stock.

Is WeBull Legit? Is My Money Safe?

Yes, WeBull is 100% legitimate and your money will be safe with them. WeBull itself does not actually handle the trades. It instead performs them through Apex Clearing, one of the largest account management companies in the business. They are also registered with the SEC and are a member of FINRA and SIPC. All brokerage accounts are insured by the SIPC up to $500,000 ($250,000 in cash). They also have additional insurance through Apex Clearing that will cover another $37.5 million per customer.

So your money is completely safe and you will be reimbursed in full if you lose anything from insolvency or financial misconduct. Of course, these protections do not apply if you lose money from a bad trade.

As far as account security, WeBull uses bank-level encryption protocols to protect your personal data. They also do not sell your info to third-party organizations for profit. In other words, your money and info will be just as safe with WeBull as it would be at any other big-name brokerage firm.

One thing to note though: WeBull itself has its legal headquarters in the United States, but it is a subsidiary of a company that is based out of China. It is up to individual investors to determine if they feel comfortable investing with an international brokerage company.

What Fees Does Webull Charge?

WeBull does not charge any trading fees and they also do not charge account management fees. So you are probably a bit curious: How does WeBull make money?

The answer is that they make money through some smaller optional surcharges. For example, they charge subscriptions for some data sources, to the tune of $2.99-$60 a month. They also earn interest on uninvested cash that sits in your account, somewhat like a savings account. They also require users to pay a fee for leverage trading. These margin fees essentially amount to an interest charge on leveraged assets. Lastly, they may charge a very small (fractions of a cent) fee when you enter and clear orders. These order flow management fees are so small you will never notice them, but millions of small transactions over millions of customers add up over time.

WeBull Pros & Cons

Pros

  • Commision-free trading. All trading on WeBull is 100% commission-free. This includes stocks, options, ETFs, and cryptos. Some options might charge a margin fee and, like always, ETFs incur expenses on the asset level that are factored into the share price.
  • Excellent technical features. WeBull has some amazing technical analysis tools so you can get all the relevant information that you need. Most of the tools are free to use but a handful requires an extra subscription.
  • Research library. WeBull has a huge library of research materials like analyst recommendations, historical data on market trends, news, and press releases. Most of the stuff you can find on your own elsewhere online, but it’s nice to have it all in one place.
  • Bonus offers. WeBull currently has some great promotional offers. You get free stocks when you sign up and a free stock whenever you refer someone to the platform and they make an account.

Cons

  • Limited customer support. There are some customer support options but they are not very comprehensive. Other apps have better support options.
  • Self-guided. Aside from the recommendations, WeBull will not help you make a portfolio. All the choices are up to you. This might be a good thing for more experienced investors but it can be intimidating for beginners.

Conclusions

So, do we recommend WeBull? As it stands, yes, we highly recommend WeBull. The commission-free trading and technical analysis tools are too good of a deal to pass up. WeBull also has some great promotional signup bonuses currently that can net you some free stocks, which is basically free money. The only things that are weighing WeBull down is its relatively limited stock options and lack of guidance. However, it has enough asset classes to keep you occupied and the lack of guidance can actually be a positive if you are looking for more portfolio flexibility. In a world of commission-free trading apps, WeBull still manages to stand out.

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