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Thanks to your smartphone, the stock market is right at your fingertips. Millennials and Gen Z are building their wealth and gaining financial freedom by investing in everything from bonds to EFTs and stocks. That’s where platforms like Webull and Fidelity come in. While Fidelity has a longer operating history, Webull is one of the most popular online broker platforms for beginners.
Are you looking to get your foot in the stock market door? If you’re debating between Webull vs. Fidelity, then you’ve come to the right place. We’re rounding up everything you need to know about the two platforms to decide if Webull is better than Fidelity.
What is Webull?
Webull is a commission-free online broker platform that does not require a minimum balance to operate an account. However, a margin account does require you to have a minimum balance of $2,000 due to industry regulations. With Webull, you have access to traditional and Roth IRA accounts, alongside taxable accounts to trade stocks and options. It provides all the options a beginner to the stock market could want.
Want to find out more about Webull? We have an in-depth Webull Review that you can check out here.
With Webull, you’ll be able to buy and trade over 6,000 different EFTs, stocks, and cryptocurrency at a competitive margin rate. Webull puts you in control of your stocks and options trading, allowing you to decide exactly what to do with your funds.
Webull does not charge a commission fee for any trades, including options trading. However, domestic and international wire transfers do involve a fee. You can also expect to be charged interest if you’re using a margin account through Webull as per regulations.
What is Fidelity?
Most online broker platforms are relatively new and were born after the social media boom of recent years. Fidelity is different. The company began in 1965 and has evolved to meet every change in the stock market and with technological advantages. Fidelity even became the first mutual fund company to operate online, making it an expert in its field. This low-cost broker is one of the most popular options available for those looking to get started with the stock market.
Fidelity offers its users asset options and in-depth educational material that can turn a beginner into an expert investor in no time. As a company with a long history, Fidelity has an absolute unbeatable reputation within the stock market. As a result, they’re able to offer their customers a wider variety of investment options.
This online broker platform offers everything from stocks to mutual funds, options, bitcoin futures, and EFTs. The one significant investment niche that is not on the platform is cryptocurrencies.
Fidelity’s primary competition within the online broker market is TD Ameritrade as opposed to Webull as the two platforms focus on slightly different demographics.
Webull vs Fidelity Referral Programs
Before we move on to Webull vs Fidelity, it’s worth pointing out their referral programs. These programs can help you maximize your potential on the platform.
With Webull, you’ll get 5 free stocks worth anywhere from $3 to $9600 when you sign up through a unique referral link. You can also receive free stocks when people join Webull through your own unique referral link.
For more information about Webull’s referral program, visit our in-depth guide in this Webull referral article. On the other hand, Fidelity’s referral policy is more complicated than Webull’s. While most referral promotions simply require the other user to make an account and an initial deposit, Fidelity’s ‘friends and family’ referral program requires the other user to open a new Stocks and Shares ISA with several thousand dollars as the initial lump sum deposit. In exchange, you’ll both receive a $50 Amazon gift card. If you’re looking to maximize the potential of your stock portfolio through referral links, it’s an instant win for Webull vs Fidelity.
Webull vs Fidelity Stocks Trading
You can start buying and trading stock immediately when you join Webull and enjoy their zero commission terms. Unlike other online broker platforms, Webull’s minimum investment for fractional shares is $5 – whereas most competitors offer $1 minimum shares. This beginner-friendly platform also provides you with customizable charts and real-time data to help you understand and predict the market’s direction.
A current drawback of Webull is that they only facilitate US stocks and EFT trading, which may not be desirable if you’re looking to develop a diverse portfolio. You can take advantage of a free practice account on Webull to get a feel for the platform and decide if it’s the one for you.
Fidelity gives you access to thousands of shares online that you can buy and sell, along with their expert guidance tools. You get access to margin rates that are as low as 4% through Fidelity with the option of investing in mutual funds, bonds, EFTs, and IPOs. Fidelity can save the average investor $18.79 on a 1,000-share equity order compared to the industry average of $3.48.
Webull vs Fidelity Crypto Trading
Like most online broker platforms, Webull supports market orders and limit orders for crypto trading – and do not have a minimum equity requirement. You can access crypto trading 24/7 with 11 cryptocurrencies, including Dash, Bitcoin, and Ethereum Classic. Webull also allows you to purchase fractional quantity in cryptocurrencies, including the option to pay in cryptocurrency or USD when making your purchase. You can buy and sell cryptocurrencies at a minimum of $1 on Webull.
The one area where Fidelity falls short compares to Webull is that the platform does not offer crypto trading. As an older platform, the lack of crypto trading is hardly surprising as Fidelity primarily targets itself to an older demographic who have a more traditional approach to the stock market. If you open a Fidelity account and are interested in crypto trading, you’ll have to open another account with a third-party.
If you’re planning to make crypto trading the bulk of your portfolio and want to be able to do everything through one account, Webull wins out against Fidelity.
Webull vs Fidelity Options Trading
While most online brokers charge $0.65 per contract for options trading, Webull’s zero-commission policy includes 0% contract and assignment fees. Webull is ideal for using for basic and complex options trading. However, it’s worth noting that complex options can only be accessed by accounts that have been approved by Webull, who will make a judgement call based on your experience and track record on the platform.
As an older platform, Fidelity has a unique position as an online broker that heavily promotes educational materials. Options is one area in particular where they heavily promote their educational materials and support tools. You can take advantage of free options trading webinars and consultations with their Trading Strategy Desk. You can figure out the most lucrative options trades based on your portfolio with the help of profit-loss diagrams and spread tools.
Unlike Webull, Fidelity does charge the standard market price of $0.65 per contract on options trading.
Webull vs Fidelity – Final Thoughts
So, is Webull better than Fidelity? It depends on what you’re looking for.
If you’re looking to invest in cryptocurrency, Webull will be your instant winner. If you’re looking to create a richly diverse portfolio, Fidelity offers you everything you’ll need, with the exception of cryptocurrency. You’ll have to decide how important cryptocurrency is to your portfolio to help you decide who wins between Webull vs Fidelity.
While both Webull and Fidelity are $0 commission platforms, their main difference comes with options trading. Webull is one of the few platforms not to charge the standard $0.65 per contract for options, whereas Fidelity does charge this fee. It’s something to consider if you’re interested in focusing primarily on options with your trading account.
Although Webull has a generous referral policy, Fidelity is most likely to be the winner in Webull vs. Fidelity if you’re not looking to invest in cryptocurrency. It’s one of the best well-rounded online brokers, offering you almost every form of investment at a competitive price and with first-class technology behind it.
The major benefit of Webull for any user is their referral policy. As an older platform, Fidelity doesn’t rely on referral policies to build its brand awareness and platform. As a result, they have a higher threshold for referral promotions with a lower-value reward.
Before you decide on whether to join Webull or Fidelity, we recommend trying out a free account on different platforms and reading our in-depth comparison reviews on Tasty Referrals. Our experts have rounded up everything you need to know about all the leading online broker platforms to make it easy for you to find the right one for you.
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