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Webull Review: Is it Good for Buying Crypto?
If you are looking for a crypto trading platform that offers an easy-to-use interface, not to mention an offering of great trading functionality for stocks and crypto, as well as a broad package of tools to choose from, look no further than Webull.
This trading platform is accessible via a mobile app as well as a desktop interface and offers crypto trading, as well as stock and exchange-traded fund trading. You can also use its platform to access margin calls that give you a higher return albeit the risk or liquidation.
Simply put, if you are an avid trader who needs no introduction to the trading game of various assets, Webull offers the perfect balance of functionality and variety in terms of available tools and features. Here is an in-depth look at the advantages and disadvantages you should expect on the platform.
Webull Overview
Webull is a crypto and stocks trading platform that targets a new crop of millennial traders who are looking for a mix of convenience and functionality. Founded in 2017 by Fumi Technology which is a holding company in China with the backing of prominent technology outfits such as Xiaomi and Shunwei Capital, Webull boasts of a zero-commission model that compares competitively with brokerage platforms such as Robinhood.
Both its mobile and desktop interfaces come with a slick design despite the low-level educational content that might leave most beginners in a lurch. What’s even more exciting about the platform is that, unlike most brokerage platforms, Webull has no account minimum requirement for trading; however, margin trading comes with a minimum trading requirement of $2000. You can trade ETFs, options, and stocks at zero commissions.
Webull also comes with insurance coverage thanks to the company’s insurance firm facilitated by Apex Clearing Corp. Therefore, users are protected from the downside of any hacking event. The cover for securities goes up to $150 million and $900,000 for cash.
- Online broker with support for stocks, ETFs, options and cryptocurrencies
- Buy cryptocurrency for as little as $1
- Commission-free trading
- Free stock for signing up
Webull Pros & Cons
Pros
Ideal for self-directed traders
Easy setup process with an intuitive user experience
Get a debit card attached to your account
Offers a variety of trading tools to advanced traders
No fees or account minimum requirements
Cons
Limited portfolio management tools
Still missing some important cryptocurrencies
No way to withdraw crypto
Limited amount of crypto content available on website
History of Webull
Webull is a fairly new app that aims to make it easier for people to invest in the stock market as well as crypto. The company follows the same model as applications such as Robinhood and SoFi where there are zero commissions and no minimum balance requirements for access to various sophisticated trading solutions and assets.
With Webull, you can trade stocks, ETFs, options, and crypto while on the go. Plus, with their mobile app, it’s easy to engage in real-time discussions with other investors about various topics such as company fundamentals or personal investing strategies.
In terms of crypto trading, Webull offers the chance to invest in several cryptocurrencies, including Bitcoin, Litecoin, and Dogecoin to mention only a few. Despite the low number of supported cryptocurrencies, Webull traders get to enjoy extended trading hours that apply even when it comes to stocks and ETFs. This makes it a safe and reliable trading platform for margin trading. In addition to the services on offer, Webull also comes with retirement accounts, thus allowing individuals to set up traditional IRAs and Roth IRAs.
How Does Webull Work?
Account set up on Webull can be achieved with a few simple clicks. Once logged in, the platform presents a highly customizable trading experience with the tools to engage in real-time discussions with peers.
Here are the steps for getting started on Webull:
First, enter your personal information and create a password. Also, be sure to set up a two-factor authentication system for your account. Once the basic info is complete, you can personalize your profile to add extra information as you go.
Then, select an account type. Webull offers several account types ranging from a standard account that comes in the basic cash format or the margin enabled account for high-frequency traders. They also offer retirement accounts in the form of traditional IRA and Roth IRA accounts.
Other important features on Webull include a dedicated paper trading area which is an ideal sandbox platform where beginners can practice their trading strategies in a simulation. Furthermore, Webull also offers a variety of technical analysis tools such as Fibonacci levels, trend lines, or Pitchforks. They also have some great risk management tools on their platform, including stop-loss orders, market timing options, and contingent orders.
After the account is set up, you can fund it with a credit card or bank account via ACH transfer. You will then need to verify your identity for future purchases. Once verified, you can enjoy a wide range of trading opportunities with Webull.
Security & Support
Webull has two-factor authentication enabled, which makes it easier to guard your account against hackers and password theft.
The service also comes with the Webull Money Back Guarantee, which allows users to withdraw their funds if they are unhappy with the services offered by Webull within the first seven days of signing up. Any issues can be addressed via Webull’s customer support portal or email address for urgent requests.
Webull Fees
Webull does not have a minimum account balance, so you can get started with the platform for free. With no account minimums and zero commissions, this is an ideal model for beginner traders who will be able to take advantage of all the features offered by the platform without paying anything at all for their first trades.
However, there is a minimum requirement for advanced trading features such as margin and options trading. For margin trading, a user is expected to have a minimum of $2,000 in their account. Margin is available for both leveraged and short sale positions on Webull. What’s more, each margin is based on the size of the account. For instance, if the account has a minimum of $25,000, it receives a 6.49% margin with progressive rates ranging from 6.66% to 6.49%, 5.99%, and as low as 3.99% for accounts with more than $3 million.
There are also no charges for making ACH deposits and withdrawals; however, Wire Transfers incur a fee of $8 for deposits in the US and $12.5 for international ACH transfers. Also, if you are making a withdrawal using ACH or Wire Transfer, you can expect to pay a $25 fee in the US and about $40 internationally.
Which Cryptocurrencies Can You Trade on Webull?
Webull was built as a brokerage platform for traditional assets. Currently, they have four primary asset classes, which include stocks, ETFs, options, and cryptos.
Over the years, Webull has added support for several cryptocurrencies into its trading app. These include the following;
- Bitcoin
- Bitcoin Cash
- Ethereum
- Dogecoin
- Litecoin
- Stella Lumens
- Ethereum Classic
- Cardano
- Dash
- Shina Inu
- Basic Attention Token
- Chainlink
- Terra Luna
- Polygon
- Ren
- Algorand
- Uniswap
Country Restrictions
While Webull makes it easy to open an account and start trading cryptocurrencies, stocks, and options, its services are mainly limited to US residents.
The platform is open to users from the United States and a select few countries such as China and others that Webull has deemed fit for its services.
How is Webull Performance?
Webull has over 50 million registered user accounts and has maintained an uptime of 99.99% for over two years now. The company has also become one of the most trusted financial companies in the world with an A- Better Business Bureau (BBB) rating and is a member of several top industry associations, including the National Futures Association (NFA).
Webull’s trading platform is easy to use, even for beginners who have little to no experience when it comes to trading. The platform also offers a wide range of trading tools such as market orders, stop-limit orders, and several other advanced order types, which allow for flexible trading strategies.
How to Create an Account on Webull
Before creating an account on Webull, you will need to have your identity verified. You can verify your identity by providing complete information of a valid US driver’s license, which must include the following;
- license number
- state of issuance
- date of issue
- expiration date
- address on the license
- date of birth
Webull verifies this information by checking it against publicly available sources, including the US DMV. Once they have determined that you are a legitimate customer, you’ll be able to create an account on Webull in just a few minutes. You can also request for temporary activation of your account if you plan on trading over the weekend. Here are the steps to sign up
- Click “Sign up”
- Enter your name, email address, and password
- Click “Continue”
- Update your personal information
- Upload your driver’s license (if required)
- Enter your bank account information (if required)
- Click “Verify now”
Activate your account. Once the account is activated, you will be able to start trading immediately. Having a US bank account makes it easier for Webull to facilitate withdrawals so you can withdraw your profits using bank wire transfers.
Webull Frequently Asked Questions
Given the fact that Webull charges zero commissions on all its trades, it is hard to imagine how it makes its revenue while giving access to its well-built platform. Well, Webull’s core business is built around the payment they receive from order flow.
As a broker, Webull received on average $0.00024 per share of its order flow and an average of $0.525 per option contract they sell to traders. Webull also generates interest from the cash in the trader’s account. Since the company does not pay interest on the cash balances of its user’s accounts, the interest generated from the cash is part of the profit that Webull keeps. In addition, Webull also has a stock lending program where investors can lend their stocks for traders looking to take on various margin calls. The interest paid to the lender is also another source of revenue for Webull.
Webull is still new in the market, with few traders using their platform regularly. Despite this, there are thousands of satisfied users out there who swear by it. A lot of traders like its user-friendly interface and say it has one of the best trading experiences. On average, most users seem to agree with the broker’s zero-commission trades.
There are no reports of Webull being hacked since its launch in 2017 and full mobile app release in 2018. Webull has adapted a great security policy for all their customers to ensure the safety of their accounts at all times. All funds are maintained in FDIC-insured bank accounts, and Webull takes the protection of their clients seriously.
Webull is owned by a Chinese golding company called Fumi Technology which is known to have received backing from other outfits from China such as Xiaomi, Shunwei Capital, and several private equity investors from the country.
Even though Webull claims to store its user data locally, there are still several laws from China that Webull is required to follow to serve its clients in China. Granted, China deliberately formulates vague laws to compel various companies to cooperate with its government and harvest user data from the company’s platform; however, as long as you keep your interactions with Webull to a minimum, there is nothing to worry about.
Since its inception, Webull has secured a strong reputation for being reliable and secure. Their zero-commission model is attracting more traders to their platform who are looking for an alternative to established trading platforms such as E-trade and Robinhood.
