Finance

Webull vs Robinhood: The Comparison

Webull vs Robinhood

Webull vs Robinhood is a comparison that all modern investors are making. These two commission free and zero minimum account  balance brokerages are extremely popular among all millennial investors. Let’s find out the result of Webull vs Robinhood.

Webull and Robinhood are two of the most popular brokerages which offer commission free trading and no minimum accounts. They are relatively new to the market but the tech savvy millennial population has readily embraced them both. If you are wondering which one is better for you, this post has got you covered. We will go through the different aspects of both Webull and Robinhood in this post and help you decide which one is best for you. Let’s get started with the Webull vs Robinhood matchup.

Who is Webull best suited for?

Webull is best for the undercapitalized active trader. These are part-time traders with less than $100k to fund their account with. The zero commissions and advanced platform give new and intermediate traders a way to play small ball and learn how to trade actively.

Webull is a great tool for all swing traders. Swing traders are generally uninterested in a tool’s flawlessness execution as they are more concerned with capturing a large scale market move than a tiny intraday fluctuation. 

Swing traders are also generally quite simplistic when it comes to their analysis. Rarely do they need more than a good charting platform and screener.

Who is Webull not suited for?

Most full-time day traders can’t switch to Webull and have to stick to their current brokers. The main reason behind it is the fact that active traders require direct access to the market for using their trading edge to their advantage. If they switch to a zero commission platform like Webull, they  might end up saving some money in commissions, but they will end up losing more due to a slow execution speed. Webull also doesn’t have the option that allows traders to create sophisticated keyboard macros. That’s a feature which day traders can’t do without.

What is Robinhood?

Robinhood is one of the world’s most popular online trading and investment apps. It was launched in 2013 and its commission free model helps keep investor costs low and encourages them to invest more in the stocks. Investors can trade stocks, ETFs, options and even cryptocurrency without paying commissions. The app was originally developed for Apple (AAPL) – Get Report phones and tablets but has since launched an Android version as well. 

Robinhood was born in the wake of the 2008 Recession. The product was created to fulfil a desire to “democratize America’s financial system”. The brains behind Robinhood also wanted to provide a more modern platform for young but jaded investors. 

Why was Robinhood named so?

The app was named after the legendary outlaw Robinhood who stole from the rich and gave it to the poor”. The aim of the app was to involve the next generation into the act of investing at an earlier age. Because of its unique approach to investing, a lot of millennials have started using the low-to-no-fee app, especially the high-frequency traders.  

What does Robinhood offer?

As of 2019, Robinhood offers a variety of investment vehicles including stocks, ETFs, cryptocurrency and options. The company has been valued at around $5.6 billion, following a recent Series-D investment round influx to the tune of $363 million, according to CNBC. 

And, according to a recent report by JMP Securities in 2018, Robinhood is estimated to have around $1,000 to $5,000 in average assets per account – still way behind those of their competitors like Fidelity and TD Ameritrade (AMTD) – Get Report. Still, according to the company as of May 2018, Robinhood has allegedly saved customers over $1 billion in commission fees. 

Webull vs. Robinhood: Which one should you choose?

As far as competitors go, Robinhood and Webull are each others’ biggest ones. Both these companies offer extremely lucrative prices which are perfect for millennial investors looking for the best bargain. Those bargain-seekers are by and large millennials, which is why both companies took a mobile-first approach, only developing desktop and web apps after establishing themselves in the industry.

Let’s go over some key differences between the brokers:

Pre-Market and After Hours Trading

If you are a Webull user, you can also trade during the pre-market/after hours with the standard account. However, Robinhood users will need a paid subscription to Robinhood Gold in order to do that. Webull allows you to trade between the hours of 4am to 8pm EST. 

Research Offerings

Because of its vast research and analysis background, Webull naturally offers more in terms of analytics and offerings. These are the research offerings offered on the web and mobile platforms of Webull:

  • High quality charts (similar to TradingView) with technical indicators
  • Stock screener with a surprising amount of features
  • Top-down market analytics
    • Stock and industry strength rankings
    • Daily level of net cash inflows into indexes
  • Active trader tools

Leverage

Webull utilizes the leverage which is available for all of its margin accounts. Robinhood, on the other hand, requires you to subscribe to Robinhood Gold, which costs $5 per month plus interest on any margin above $1,000 that is used.

Products Available to Trade

This is a category where both Robinhood and Webull perform similarly well. Robinhood comes with zero commission options trading along with the facility to trade in cryptocurrencies. Webull, on the other hand, doesn’t offer options trading right now but allows short selling, something Robinhood doesn’t allow on their platform.

Pure stock traders will much prefer Webull, as it gives them the ability to short stocks. Hybrid traders who like to use a mix of options and stocks in their trading practice, generally swear by Robinhood and will continue to do so until Webull comes up with similar features.

Who’s Webull for?

Webull was launched in 2018 as a direct competitor to Robinhood in the commission-free mobile investing space. But unlike Robinhood, Webull appeals to veteran and novice traders, thanks to an abundance of technical tools and research. The most common users of Webull are:

  • Active traders looking to reduce costs
  • Beginner traders transitioning from saving to learn technical and fundamental analysis
  • Mobile traders

Webull vs Robinhood: Which Platform is Better?

Trade execution is fast and simple on both platforms, but that’s where the comparisons stop. Webull simply has more to offer the intermediate and advanced trader when it comes to tools and analysis.

With Robinhood, you’ll need an outside source for your technical tools and market data. Webull provides plenty of data and research, plus the tools to separate signals from noise. The better features belong to Webull, hands down.

Webull vs. Robinhood: Which one offers better research?

Robinhood takes a beginner’s approach to trading. The charts are basic and lack indicators. You won’t find income statements or balance sheets anywhere and you’ll have to pay to get access to Morningstar research.

Listening to conference calls on the app is nice (if that’s your thing) but Webull has more to offer both technical and fundamental traders.

Webull vs. Robinhood: Cost Comparison

Webull gets the win here just for offering phone support. Robinhood only has bots and responds very slowly to customer service requests.

Webull vs. Robinhood: Tradable Asset Classes

Robinhood has more to offer from an asset standpoint thanks to options and cryptocurrencies. Webull does offer short-selling on some stocks which helps traders who want to bet against certain companies, plus a few advanced order types that Robinhood lacks. But no options and no cryptocurrencies means many traders may prefer Robinhood.

Webull vs. Robinhood: Ease of Use

Webull definitely takes longer to get used to than Robinhood, but that’s a good thing for traders who want to learn technical analysis. Robinhood will have you executing trades in a heartbeat after funding your account, while Webull will throw more analysis at you before getting to the execution screen.

So that was our Webull vs Robinhood comparison. Hopefully you will find it easier to choose between the two now. 

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