Robinhood Vs Webull 2021. A Comparison of the Two Best Brokerage

Robinhood and Webull both offer free stock trading, but they are very different in their approach to the market.

Which Broker Is Better: Webull or Robinhood?

The Best Investment App You’ve Never Heard Of!


We've been using both apps since we started our journey towards becoming financially independent. We're going to compare them side by side and tell you what works better for us. 

Robinhood

Is a brokerage firm that offers commission-free trades on stocks listed by major exchanges like NASDAQ or NYSE. They also have an app for iOS devices that allows you to trade from your phone without having to go through any brokers’ website. The downside of this service is that it only works with US-based companies.


Pros 

1) No fees - if you want to buy shares of Apple, Google, Amazon, Facebook, Netflix, etc., then there's nothing stopping you. You can even use credit cards to fund your account.

2) Easy to sign up - just download the mobile app and follow the instructions. There's no need to fill out forms online or send documents via snail mail.

3) Fast execution times - once you've set up an account, you'll be able to place orders within seconds.

4) Low minimum deposit - $25 per month will get you started.

6) Good security features - all transactions are protected using SSL encryption technology.

Cons

1) Limited selection of stocks - while Robinhood does allow users to invest in more than 100 stocks, many popular international names aren't available.

2) Not suitable for beginners - although Robinhood has made its services accessible to everyone, some people may find them too complicated.

3) High risk of losing money - because Robinhood doesn't charge commissions, investors must rely solely on the price movements of individual securities to make profits. If prices fall, so do returns.

Robinhood is best suited for:

  • People who don't mind paying higher transaction costs.

  • Those looking for a simple way to start investing.

  • Investors who prefer to keep things as straightforward as possible

Robinhood Tools

What Robinhood offers

  • Commission-free trades on over 1 million U.S.-based equities.

  • No minimum balance is required to open an account.

  • Easy access to real-time quotes and charts

  • Fast order executions

  • Robust customer support team

  • Low minimum deposits

  • High level of protection against fraud

How Robinhood makes money

The company charges 0% interest on cash balances held at the end of each day. This means that customers' accounts grow steadily throughout the year. The company earns revenue when clients execute trades. It takes a small percentage of every trade executed.

There are two types of accounts offered by Robinhood: standard and premium. Standard accounts come with lower limits on how much equity you're allowed to purchase. Premium accounts give you greater flexibility.

Standard accounts

$500/month

Minimum investment amount $250.

Premium accounts

 $1000/month

Minimum initial investment $10k

Fees charged

0%.

Maximum monthly fee $50

Taxes & other expenses

All taxes associated with investments are paid directly by the investor.

Other fees include:

  • Brokerage fees

  • Transaction processing fees

  • Security maintenance fees

  • Deposit insurance coverage

  • Account opening fees

  • Annual membership dues

  • Referral program fees

Webull

Webull is a social network where users can create portfolios of stocks and ETFs and then invest money into them. Users earn interest on these investments as well as dividends when shares rise in value. This means there’s no need to pay commissions if you want to buy and sell securities. You just make deposits and withdrawals using credit cards or bank accounts. There are currently over 1 million active members who use the site. 


It has been around since 2011 and was founded by two brothers named Jason & Jarred Altschul. Both were previously employed at Goldman Sachs before starting up Webull.

The Pros:

  • No fees – If you deposit $100 dollars into your account, you will get back $1.10 per day depending on how much you put in each month.

  • Free Trading – All investors receive access to all markets including Forex, Stocks, Bonds, Commodities, Currencies, Indices, Futures Contracts, Options, Mutual Funds, Gold, Silver, Platinum, Palladium, Oil, Gasoline, Natural Gas, Coal, Copper, Aluminum, Zinc, Lead, Iron Ore, Diamonds, Precious Metals, etc…

  • Low minimum investment – Minimum initial investment required is $5.00. However, most people start out investing between $25-$50.

  • Easy to Use – Once you sign up, you simply log in and begin making deposits and withdrawals.

Cons 

  • Limited number of countries – Webull is only available in the United States right now but they plan to expand internationally soon.

  • High Risk of Losing Money – Because there are no transactions costs involved, investors must rely entirely on the performance of their portfolio. If share prices drop, so do investor earnings.

  • Not Suitable For Beginners – Although Webull makes trading simple, some people might feel overwhelmed by the amount of information provided.

Webull is Best Suited for?

  • People looking for ways to save money without paying any commission fees

  • Investors that have already invested with other brokers and would like to switch

  • Those interested in learning about finance and economics

Webull  Tools

What Webull Offers

Investing Platform

  • Invest directly from your Facebook profile

  • Create an online brokerage account within minutes

  • Access more than 10,000 financial products such as mutual funds, bonds, commodities, forex, indices, options, futures contracts, gold, silver, platinum, palladium, oil, gas, coal, copper, aluminum, zinc, lead, iron ore, diamonds, precious metals, etc.

Trading Platform

  • Trade stocks, ETFs, currencies, commodities, indices, options, future contracts, and cryptocurrencies

  • Buy and Sell Shares Directly From Your Portfolio

  • Receive real-time market updates via email

  • Track historical data and charts

  • View detailed company profiles

  • Monitor stock price trends

  • Set stop-loss orders

  • Manage multiple positions simultaneously

Account Types

  • Individual Account

  • Business Account

  • Joint Account

Deposit Methods

  • Credit Card

  • Bank Deposit

  • Wire Transfer

Withdrawal Methods

  • Debit Cards

  • Cheque

  • PayPal

  • Bitcoin

Security Features

  • Two Factor Authentication

  • Password Protection

  • SSL Encryption

  • Anti-Phishing Technology

  • Fraud Detection System

Customer Support 24 Hours A Day 7 Days A Week

Frequently asked questions Robinwood vs Webull

What are the extended trading hours for webull?

It is among the few brokerages that offer a full suite of services outside regular business hours. This includes free trades during weekends and holidays.

How does webull work?

We use a unique algorithm called “smart order routing" which allows users to place limits, market, stop losses, trailing stops, take profit, and even automatic sell/buy orders at pre-determined levels.

Is webull safe?

 Yes, all transactions made through webull are fully insured up to $500k per client.

Does webull charge commissions?

No, because we don't believe in charging customers for doing nothing. Instead, we make sure that every trade has zero cost.

Can you day trade with mobile apps like Robinhood and Webull?

Yes, but only if you want to lose money. There are no guarantees when it comes to investing. so be careful out there.

Does Webull or Robinhood offer better customer support?

Both companies provide excellent customer service. However, they differ on how much personal attention each one provides its clients. While Robinhood offers live chat support throughout the entire week, webull focuses solely on the weekend and holiday hours.

Is Webull cheaper than Robinhood?

Webull charges 0% commission fees on most investments. Robinhood charges 1%-2%.

How do I open an account with Webull?

Webull doesn't require any minimum deposit amount. After signing up, click the "open your account" button. Then follow the instructions provided.

What's the difference between Robinhood Gold and Robinhood Prime?

Both Robinhood Gold and Robinhood Prime give you access to some extra features. The main difference lies in the fact that Robinhood Gold requires a monthly fee of $10, whereas Robinhood Prime is completely free.

 Final verdict

In our article comparing Webull vs Robinhood, we found that Robinhood was slightly superior to Webull. However, their differences were not significant enough to warrant switching from one platform over another.

If you have any other questions about either app, feel free to leave your comments below. Happy trading!