10 Jul, 2023

Webull vs. Robinhood: Which Broker is Best for You?

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Webull vs. Robinhood

This Wedbull vs. Robinhood comparison puts two online broker giants side-by-side. Both brokers are well known for their commission-free trading and user-friendly interface.

They also have a wide selection of investment products, allowing you to spend extended hours trading. Here are the key differences:

Overall, both are great and reliable brokers and trading platforms. Your needs will help determine which to choose. Let’s dig in!

Webull vs. Robinhood: An Overview of Both Brokers

Both Webull and Robinhood are among the best online brokers in the world. They both stand out for offering commission-free trading. Both brokers are well-built trading apps that are easy to use and provide a wide range of investment products for users to invest in and trade stocks. While this is a good thing, choosing between the two can be dicey.

Webull vs. Robinhood investment broker.
Webull vs. Robinhood investment broker.

It can be challenging to decide which broker to choose between the two investment apps. However, this review will help you understand the significant differences between them.

We will compare each feature and category, including available investment options, platform usability, applicable fees, investment opportunities, and more.

Features Webull Robinhood
Stock screener toolsYesNo
Easy access to responsive customer serviceYesNo
Cash management account optionNoYes
Paper trading platformYesNo
Short sellingYesNo
Extensive fractional share tradingNoYes
Retirement account optionYesNo
Paper trading platformYesNo
Difference Between Webull and Robinhood

Webull vs. Robinhood: Differences and Similarities

Choosing between Webull and Robinhood will always be a close call; honestly, you can’t go wrong with either. They both have been operating for more than five years and have only continued to get better over the years.

Both brokers have a lot of similarities but also differences; more like they make up for each other. So it’s all a matter of preference and which suits you better. Please take note of the critical differences between them to decide which route to go.

Webull vs. Robinhood: Commissions and Fees

Earn 4.65% APY on Robinhood.
Earn 4.65% APY on Robinhood.

Neither Webull nor Robinhood will require you to pay any commission when purchasing options trading, crypto, ETF, and stock. In this aspect, both brokers maintain a standard of fee-free and commission-free trading platforms. You don’t have to worry about account maintenance fees as they do not charge for such. This is one significant advantage they have over other brokers. 

However, new investors need to know that a monthly fee of $5 is necessary to trade margin on Robinhood using the margin account or the Robinhood Gold account. Also, both platforms charge a $75 fee to transfer your assets from the margin accounts into either account.

Finally, all crypto trade on Webull will involve a spread of 1% (100 basis points). However, Robinhood doesn’t disclose the spread or margin rates it charges on crypto transactions.

Commission/Fee WebullRobinhood
ETF$0$0
Stock$0$0
Option$0$0
Account Maintenance Fee$0$0 ($5 monthly for Robinhood Gold account)
Cryptocurrency$0$0
Mutual FundsN/AN/A
Account Transfer Fee$0 to transfer into your account and $75 to transfer out$75
Fees and Available Commissions

Webull vs. Robinhood: Fractional Shares and Cash Management Accounts

For inexperienced investors, fractional shares are a popular way to access stocks. Particularly those that belong to businesses with extremely high costs per share, like Amazon.com Inc. (AMZN).

Fractional shares are available via Webull and Robinhood. However, only some of the ETFs and equities accessible on Webull can be purchased using this method, in contrast to most stocks and ETFs that trade on Robinhood’s platform.

Webull cash management accounts.
Webull cash management accounts.

Robinhood does offer a cash management account. An account that allows you to earn interest on the current cash in your investment wallet. Such an account also gives you access to a routing account number and debit card to pay bills and purchase other goods. With Robinhood Gold, you can earn a nice APY on cash in your investment account and enjoy FDIC-insured money.

None of the brokers offer robo-advising services, though, so there may be better options if you need robo-advising services. Check out our list of the best robo-advisors.

Robinhood and Webull offer a taxable brokerage account but do not provide access to a joint custodial account.

Webull vs. Robinhood: Professional Trading Tools

Consider screeners to demonstrate this distinction. With the aid of these tools, traders may choose investments like stocks and ETFs that satisfy their demands in various ways. They can enjoy favorable prices, dividend yield, technical trading indications, and other criteria. Webull provides users with a sophisticated screener, but Robinhood Gold does not.

The ability to create margin accounts to engage in short selling, a complex tactic favored by seasoned traders, also reflects this inequality. Stock short selling is available to Webull users who register a margin account. However, it is not on Robinhood.

Webull vs. Robinhood: Customer Service

Both Webull and Robinhood’s customer service could use some improvement. Webull exclusively offers only phone and email assistance. No live chat feature exists for present and potential clients or round-the-clock customer service. Investors have also complained that customer service is difficult to reach.

Compared to Webull, Robinhood’s customer support offers quicker response times. Additionally, it recently introduced 24-hour phone support. It’s doubtful that it will match many full-service online brokers and trading platforms.

Webull vs. Robinhood: Retirement Accounts

A significant consideration when choosing a broker is its retirement plan, with retirement accounts as one of the key investment drivers. Webull offers IRA rollovers and enables users to build standard and Roth individual retirement accounts (IRAs). On the other hand, Robinhood does not offer any IRAs.

Webull vs. Robinhood: Mobile Apps and Trading Platforms

Both investing platforms have user-friendly websites and apps, but they work differently. Robinhood is indeed the best option for beginners. Webull, on the other hand, is best for intermediate to advanced traders and expert investors. It provides a trading screen with all the stock screening tools, watchlists, and customizable alerts that an experienced trader would need.

Webull mobile investment app.
Webull mobile investment app.

But now that Robinhood has added advanced charts paper trading to its site, it is beginning to compete directly with Webull. This enables more knowledgeable traders to perform more technical analyses of crypto trades and use more market data to support their trading decisions. The functionality of the mobile apps is currently tied between Robinhood and Webull.

Webull and Robinhood offer mobile trading apps that simplify trading stocks, margins, and other options while on the road.

Webull vs. Robinhood: Available Investments

Available investments on Webull.
Available investments on Webull.

Robinhood and Webull offer access to ETFs, stocks, and options. Both brokers also offer fractional share trading. Although Webull requires a minimum invigorating fractional share investment of $5, Robinhood allows you to buy as little as 1/1000000 of a fractional share and start investing now.

None of the brokers provide access to mutual funds, CDs, futures, bonds, or currencies. They may not be the best option if you want to add these asset classes to your portfolio. 

Webull and Robinhood both allow cryptocurrency trading. However, Webull’s selection of available cryptocurrencies outpaces Robinhood’s. If you’re primarily interested in crypto trading, it is essential to consider this.

Who Should Use Webull?

Webull is the perfect option for someone who already has some experience investing in personal finance assets. Webull provides numerous research tools, more advanced traders, and charting features that Robinhood may lack.

Although candlestick charts are available on Robinhood, the available indicators may not suffice for advanced charting. Webull, on the other hand, provides you with access to dozens of technical indicators for effective advanced charting, paper trading, and all other analyses.

Webull also has a much more comprehensive selection of cryptocurrencies available for trading compared to Robinhood, which is what crypto traders want. It is most recommended for cryptocurrency trading. Again, the same warning applies to Webull as it did above with Robinhood.

With a Webull account, you can easily access trading options and other strategies, such as short selling or margin. Remember to consider the risks of these account types and strategies before enabling these features within Webull. The fantastic interface helps you spend extended hours trading without feeling tired.

Pros

  • Enjoy commission-free stock trading. Webull does not charge commissions on ETFs, stocks, options, and cryptocurrencies.
  • There is no account minimum. Users can spend or trade all their money without worrying about reaching an account limit.
  • Intuitive platform. The broker operates with an easy-to-use desktop and mobile app with intuitive and clean designs. Traders can navigate the interface quickly and locate the trading tools they need.
  • Quick and easy account setup. Open your brokerage account and approve it quickly. Add your bank account easily.
  • Extended trading hours: Access longer trading hours, including pre-market sessions, which is advantageous to any trader.

Cons

  • The margin rates could be better for most investors.
  • The educational content is insufficient, making navigating complex for a new trader.
  • There is only interest on the cash in your brokerage account, not the margin account.
Tradable Coins
  • 44+
Payment Options
Fees
  • 0%

More details

Webull is a dependable crypto exchange platform with low fees, suitable for both novice and seasoned investors. Its sleek desktop and mobile interface makes it attractive to all traders. However, its educational resources are limited, possibly making it less ideal for beginners.


  • Smooth account-opening process.

  • No fees on cryptocurrencies, stocks/ETFs, options.

  • Offers extended hours and pre-market trading.

  • Research tools

  • Flimsy educational support.

  • Backward portfolio options.

  • No live chat.

Who Should Use Robinhood?

Anyone new to investing and looking to trade assets with a simple, user-friendly app should use Robinhood. After all, that is the purpose of its creation.

Robinhood is the perfect option to help you adapt to the stock and ETF investing world. It will also aid beginner investors in exploring the world of option crypto trading platforms. The broker allows you to invest Bitcoin cash or the smallest possible cryptocurrency within the app, where it is safe and secure.

Who should use Robinhood?
Who should use Robinhood?

The Cash Management account from Robinhood is also the best option if you want to manage your money and financial goals in one place. You can save, invest, trade, and spend all within the app.

However, be careful about taking on too much risk or dealing with financial assets you need to learn more about. With Robinhood, you can easily access options, such as how many people lose money in the stock market.

Robinhood is known for the “gamification” of the investing process for new investors.

Pros

  • It allows for a diversified portfolio. You can perform any action, including trading crypto or investing in stocks, options, and ETFs.
  • No commissions. Trading is commission-free for crypto, stocks, options, and ETFs.
  • There are no account minimums. Robinhood traders don’t have to maintain a minimum balance on their trading and Robinhood Gold accounts.
  • Robinhood Gold perks. For only $5 per month, you get premium Morningstar research, Level II Nasdaq data, lower margin rates, and more extensive instant deposits.
  • Easy-to-use platform. Robinhood has an easy-to-use, understand, and navigate platform, website trading platform, and app. This makes it an excellent choice for any beginner investor.

Cons

  • It does not have bonds or mutual funds.
  • The crypto options are limited.
  • Users can’t withdraw crypto funds to an external wallet.
Robinhood ETFs and Options investments.
Robinhood ETFs and Options investments.

Conclusion

For the investor who prefers to trade stocks, ETFs, fractional shares, and cryptocurrencies effortlessly, Webull and Robinhood are both excellent investment choices here.

Webull may be preferred by those who desire less complicated access to technical market data or a low-fee, margin trading account. On the other hand, investors who want to keep things simple should choose Robinhood because of its user-friendly trading app and interface.

Since neither broker levies a commission, both provide fully functional apps. The decision depends on which interface best suits your requirements.