Webull vs Robinhood: Is Webull Better than Robinhood?

Chef TastyDecember 26th, 2023

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Table of Contents

At first glance, the popular trading platforms Robinhood vs Webull seem to have a lot in common. But delve further into the specifics of each platform and you’ll find a few prominent differences to consider when comparing the two. Consult this article to make an informed decision about these self-directed platforms and be sure to capitalize on the great referral program details listed at the end.

Webull vs Robinhood Fees

Fees are on the forefront of every retail investor’s mind when picking a platform, and hidden costs are the quickest way to turn off potential investors. Luckily Webull and Robinhood’s respective fee schedules are transparent and easy to locate on their websites. Both offer zero commissions for stocks, ETFS and options, plus there are no deposit minimums, all of which is great for beginning investors. Relevant SEC and FINRA fees always apply with the sale of equities, but Webull and Robinhood don’t profit off these. Just earlier this year the SEC fee rate was reduced to $5.10 for every $1,000,000 in sale proceeds. In other words, you can do a lot of trading for mere pennies.

Webull’s margin loans start at $2,000 at an annual margin rate of 6.99% up to $25,000. Margin rates decrease as an investor’s debit balance increases. You can access margin on Robinhood with only $1,000, but it costs $5.00 for 30 days of use. Margin over $1,000 is charged at a rate of 2.5%. Overall, Robinhood offers better margin rates for smaller accounts.

Other costs associated with the two platforms include a $75.00 transfer fee for moving your account or individual stock out, and both charge $5.00 for paper statements. Domestic and international wires on Robinhood are $8.00 and $25.00 respectively, whereas Webull’s wires cost $12.50 and $50.00, respectively.

Neither company charges annual nor inactivity fees.

Webull vs Robinhood Assets

Webull vs Robinhood assets- both provide access to what you’d expect like stocks, ETFs, options, and cryptocurrencies but Robinhood takes it further by offering access to IPOs. They don’t require you to have a minimum account balance or maintain a special status to have the opportunity to request shares in emerging companies. But since IPOs only offer a limited number of shares, requests to purchase these shares are randomly selected from all inquiring Robinhood investors.

The trading of cryptocurrency is treated very similarly between Robinhood and Webull. Both companies hold crypto assets in accounts separate from an investor’s individual brokerage account. These crypto-specific accounts are not under a registered broker-dealer nor are they under FINRA’s umbrella, and account holdings are not FDIC or SIPC insured. Webull provides a few more of these popular investments, but Robinhood is very committed to growing their list of cryptocurrency offerings. See table below for the particulars.

Cryptocurrency
Bitcoin (BTC)
Bitcoin Cash (BCH)
Bitcoin SV (BSV)
Ethereum (ETH)
Ethereum Classic (ETC)
Dogecoin (DOGE)
Litecoin (LTC)
Zcash (ZEC)
Cardano (ADA)
Stellar (XLM)

In addition, Webull now offers fractional shares at a $5.00 minimum, and Robinhood offers them at a $1.00 minimum. The ability to purchase a fraction of a share enables stock portfolio expansion without committing to potentially expensive whole shares. Most beginning investors don’t have hundreds of dollars to shell out right away to build their portfolios.

Neither platform offer mutual funds, bonds, futures, or forex trading. They both support the purchase of ADRs, or American Depository Receipts, which is a foreign stock certificate issued by a national bank in U.S. dollars.

NOTE: When you see Robinhood has “gold” listed under their products online don’t get too excited. It’s not the commodity but rather an advanced version of their platform that offers margin trading, professional research reports and Level II market data for $5.00 a month.

Online and App Experiences

Now, let’s compare Webull vs Robinhood platforms. Robinhood is geared more toward novice investors with its simplistic web and mobile interface. Trading is quick and easy especially on its highly-rated app. However, experts are often concerned about how the company recommends equities based on users’ activity, much like Netflix does with shows and movies. This “you may also like” idea of investing has the potential to encourage risky trading behavior among beginner investors. Robinhood’s philosophy of trading is borderline entertainment and gaming.

In stark comparison, Webull offers much more tools and analytics to appeal to intermediate to advanced traders. Users can download their highly customizable desktop software for Mac, Windows, or Linux. It supports 50 technical indicators (yes, 50!) and 12 charting tools. Additionally, Webull offers all registered users a complimentary three-month subscription to Nasdaq TotalView, a Level II premium data feed that helps expert investors snatch trading opportunities. The cost of this sophisticated information is $1.99/month after expiration of the promotional subscription.

Pros and Cons

Webull Pros & Cons

Pros	Cons
Short selling is available, which is an advanced trading strategy that speculates on a security’s price drop. Emphasis on advanced. Investors can open Traditional, Rollover and Roth IRAs but Webull does require users open an individual brokerage account first. They claim more retirement accounts are in the works. They have “paper trading,” a highly valuable feature that allows investors to practice their trading skills and explore strategies. In other words, you can trade in real time with fake money. Customer service reps are available 24/7 online to help via email and chat. Plus, you only must jump through a few hoops before getting a real-life rep via telephone.	Minimal educational support. Webull really focuses on the advanced tools available to veteran investors, leaving true beginners underwhelmed and out of luck. The lack of mutual funds and bonds makes their retirement accounts less appealing. Webull offers no interest on cash balances, nor any cash management product to make up for it.

Pros

Cons

Short selling is available, which is an advanced trading strategy that speculates on a security’s price drop. Emphasis on advanced.
Investors can open Traditional, Rollover and Roth IRAs but Webull does require users open an individual brokerage account first. They claim more retirement accounts are in the works.
They have “paper trading,” a highly valuable feature that allows investors to practice their trading skills and explore strategies. In other words, you can trade in real time with fake money.
Customer service reps are available 24/7 online to help via email and chat. Plus, you only must jump through a few hoops before getting a real-life rep via telephone.

Minimal educational support. Webull really focuses on the advanced tools available to veteran investors, leaving true beginners underwhelmed and out of luck.
The lack of mutual funds and bonds makes their retirement accounts less appealing.
Webull offers no interest on cash balances, nor any cash management product to make up for it.

Robinhood Pros & Cons

Pros	Cons
Considerable amount of educational content. Ease of use. Robinhood is ideal for part-time and DIY investors. Impressive cash management program. As of March 2020, uninvested cash earns an Annual Percentage Yield (APY) of 0.30%, though this is always subject to change. Robinhood issues Mastercard debit cards that can be used at over 75,000 free ATMs across the country.	No retirement accounts available. Customer support is limited to email and social media, with no telephone number listed online. Users often cite this as a key frustration. The drama: Robinhood was recently subject to $70 million in total fines relating to system outages in 2021. Earlier this year, the company was under extreme scrutiny for limiting customers from purchasing GameStock shares that were driving an unprecedented short squeeze of the fund. Robinhood’s users’ gains came at the expense of mighty hedge funds. Litigation followed, and in February more than 90 lawsuits had been filed against Robinhood. Potential users should consider the company’s trustworthiness.

Pros

Cons

Considerable amount of educational content.
Ease of use. Robinhood is ideal for part-time and DIY investors.
Impressive cash management program. As of March 2020, uninvested cash earns an Annual Percentage Yield (APY) of 0.30%, though this is always subject to change. Robinhood issues Mastercard debit cards that can be used at over 75,000 free ATMs across the country.

No retirement accounts available.
Customer support is limited to email and social media, with no telephone number listed online. Users often cite this as a key frustration.
The drama: Robinhood was recently subject to $70 million in total fines relating to system outages in 2021. Earlier this year, the company was under extreme scrutiny for limiting customers from purchasing GameStock shares that were driving an unprecedented short squeeze of the fund. Robinhood’s users’ gains came at the expense of mighty hedge funds. Litigation followed, and in February more than 90 lawsuits had been filed against Robinhood. Potential users should consider the company’s trustworthiness.

Current Promotions

As you can see, Webull and Robinhood each have pros and cons, and one platform isn’t necessarily better than the other. It all boils down to what’s best for you as an individual investor. That being said, if you’re still unsure which platform to choose, bear in mind these referral program breakdowns.

Webull Referral

Get your two free stocks when opening a brokerage account (valued up to $300 each)
Direct deposit any amount and receive three free stocks (valued up to $3,000 each)

Investors must claim their freebies in 30 days, and the stock arrives in 10-15 business days. Read more about how the Webull referral works in this Webull Referral Program article.

Robinhood Referral

Offers “reward” stock for new account sign-ups once invitee links their bank account (valued up to $225). You can receive no more than $500 worth of reward stocks annually.

Must claim within 60 days.

Of course, Webull and Robinhood cannot control market fluctuations, so the values of stock bonuses can change. Finally, referral programs change often, too! Keep visiting Tasty Referrals for a comprehensive list of up-to-date options.

Disclaimer: The information provided in this piece does not constitute professional investment advice, and it’s always best to consult a tax advisor to fully understand the tax consequences of trading.

Read more information and also our thoughts about Webull in our Webull Review.