Webull vs Robinhood in Comparison 2022 | Which is better?


Both Webull and Robinhood are commission-free stock trading apps that offer a variety of features to help traders make informed decisions. Webull promotes itself as well to the desktop market than to users using platforms as well and is geared towards more advanced investors. Robinhood has developed more of an "gamification" market, emphasizing its app-based strategy and user-friendliness for novice investors. But, the appeal of Robinhood to new investors is in stark contrast to its focus upon options trading. Options trading is an extremely complex area of the market. This could cause problems for certain users.

Webull vs Robinhood

So, which one is right for you? In this article, we'll compare the two platforms and outline the pros and cons of each. By the end of it, you should have a better idea of which platform is the best fit for your needs.

It's going to be an unbiased comparison. AtoZ Markets is in no way responsible for any information given by the writer.

Webull vs Robinhood: Similarities

Webull and Robinhood offer commission-free trading for shares and Exchange-traded funds (ETFs). Options trading is free on both platforms, which is significant over other brokerages online.

 

Both platforms let you trade cryptos. Are you looking to transfer your cryptocurrency into the cold wallet to protect it or transfer it to a cryptocurrency exchange? There is no way to do that. Webull nor Robinhood provide this kind of flexibility at present. 

 

One of the main similarities between Webull and Robinhood is that they are both commission-free. This means that you don't  have to pay any fees when you make transactions on either platform. Additionally, both platforms offer a variety of investment options, including stocks, ETFs, and options. Both platforms also have user-friendly interfaces, which makes it easy for you to navigate them and make investments.

Webull vs Robinhood: Differences

Webull and Robinhood are slightly different when it comes to account types, fees, and investment research resources.

 

RobinHood

Robinhood features

image credit: Robinhood

 

  • Account types

 

Robinhood has Individual brokerage accounts, cash management accounts, margin accounts, instant accounts, and Gold accounts.

 

  • Investment Products

 

Stocks, ETFs, Options, ADRs, Gold and Cryptocurrencies. 

 

  • Account Advantages

 

They have commission-free accounts, fractional shares, cash management accounts, cryptocurrency trading, margin trading, Morningstar research

 

Human advisors and robo-advisors are not available with Robinhood.

 

Robinhood does not offer extended hours trading. 

Webull

webull features

image credit: Webull

 

  • Account types

 

Webull had Individual brokerage accounts, Cash accounts, IRAs, and margin accounts. 

 

  • Investment Products

 

Stocks, ETFs, Options, ADRs, and Cryptocurrencies

 

  • Account Advantages

 

They have commission-free brokerage accounts, extended hours trading, cryptocurrency trading, Nasdaq-sponsored data, and IRA investing

 

Webull offers extended hours trading. 

 

Webull does offers a margin account which allows users to borrow money from the platform in order to invest more money into stocks. 

Webull vs Robinhood: Fees

 

One of the most important factors to consider when choosing a stock trading platform is the fees. Webull and Robinhood both have no commission fees, but there are some other differences in their fee structures. For example, Robinhood charges $0.01 per share for all orders, while Webull has a minimum order size of $0.50. This means that if you want to buy a stock that costs less than $0.50 per share, you would actually pay more with Robinhood since they charge by the share. However, if you're buying stocks that cost more than $0.50 per share, then Webull would be more expensive.

 

Another difference between the two platforms is that Robinhood offers a $0.00 minimum balance, while Webull has a $100 minimum balance. So if you're just starting out and don't have much money to invest, Robinhood may be the better option. However, once you reach the $100 minimum balance on Webull, you won't have to worry about paying any additional fees.

Webull vs Robinhood: Features

Both platforms offer a variety of features to help investors make informed decisions and trade stocks efficiently. For example, both platforms offer real-time stock quotes, news updates, and analysis from experts. They also both allow users to buy and sell stocks, options, ETFs, and mutual funds. However, there are some differences in the features that they offer.

 

For example, Webull offers a margin account which allows users to borrow money from the platform in order to invest more money into stocks. This can be helpful for investors who want to maximize their profits by buying more shares of stock. Robinhood does not offer a margin account, so if this is something you're interested in, then Webull would be the better option.

 

Another difference between the two platforms is that Webull offers extended hours trading. This means that investors can trade stocks before and after the market officially opens and closes. Robinhood does not offer this feature, so if you're someone who likes to trade stocks outside of regular business hours, then Webull would be a better choice.

Webull vs Robinhood: User Experience

 

The user experience is another important factor to consider when choosing a stock trading platform. Both Webull and Robinhood have sleek, easy-to-use interfaces that make it simple for investors to find the information they need and trade stocks quickly. However, there are some small differences in terms of functionality and design.

Read Also: Webull vs TD Ameritrade

For example, on Webull you can view your account history, orders, and positions all on one page. This makes it easy to track your portfolio's performance at a glance. On Robinhood, each of these features is located in separate tabs which can be a bit more confusing for first time investors. Another difference is that on Webull you can see the order book for a particular stock, while on Robinhood this information is hidden behind a few taps.

 

Overall, both platforms offer a great user experience and are simple to use for investors of all levels. However, if you're looking for some additional features like extended hours trading or a margin account, then WebULL may be the better option.

 

Account Types of Webull and Robinhood

 

Webull and Robinhood provide a range of accounts, but there are some major distinctions. 

 

  • Robinhood

 

Robinhood has three kinds of accounts that are designed to fit your objectives and needs: 

 

  • Robinhood Instant 
  • Robinhood Gold 
  • Robinhood Cash 

 

When you sign-up, you'll automatically sign up for an account with Robinhood Instant Account. You are able to transform your account into a Cash Account or upgrade into Robinhood Gold. This comes with the cost of $5 per month. 

 

The participation in this kind of account comes with a few benefits: 

 

  • Advanced research reports as well as market information. Access to more than 1,700 detailed equity research publications produced by Morningstar an independent firm for investment research. 

 

  • Larger instant deposits. You can get instant access to between $5K and $50K when you deposit, based on your balance and current status.

 

  • You can borrow money at a rate of 2.5 percent.

 

  • Webull

 

Webull offers only two account types. 

 

  1. Cash Account 2. Margin Account.

 

  • Cash Account

 

Cash account is a type of brokerage account in which the client is required to pay the full price of the securities purchased. In simple terms, cash represents your purchasing power in the case of a cash account. You cannot borrow money in order to conduct trades.

 

  • Margin Account

 

Margin accounts are a type of brokerage account that enables investors to use funds and securities already in their possession to purchase additional securities. It's an excellent way to increase the value of your investment and maximize your returns. You run the risk, however, of doubling your losses. Margin accounts, on the other hand, can be a risky investment. Margin accounts enable you to leverage the funds and securities that you already own to purchase additional securities. There are two distinct types of purchasing power: day-trade purchasing power (DTBP) and overnight purchasing power (OPP) (ONBP).

 

If you're still undecided between these two brokers, be sure to check out our in-depth reviews of Webull and Robinhood.

Webull Vs Robinhood: Regulations 

Regulations comparison

Let's see how both Webull and Robinhood are licensed and regulated.

 

Webull is a broker-dealer registered in the SEC and FINRA. This means It is subject to strict surveillance and regulations. However, Robinhood does not have the status of a broker-dealer registered and is not subject to the same oversight as Webull.

 

Robinhood is regulated by U.S. Securities and Exchange Commission (SEC) and also maintains membership with the Financial Industry Regulatory Authority (FINRA). US Regulators are also noted for being strict with companies who behave in a manner that is unjust. Therefore, you can be certain that all safeguards have been put in place to avoid the risk of being a victim of a Robinhood fraud.

 

Keep in mind that the approvals issued by these regulatory bodies does not guarantee the security of investments, however they ensure that the funds will not be taken from the middle of the operation.

Robinhood is for Whom?

 

For new investors who want to get started in the stock market, Robinhood isn't bad. It has a lot of useful features and is easy to use. However, we have a lot of doubts about Robinhood's strategy.

 

People who work for Robinhood say they want to "democratize finance for everyone." That's what Robinhood wants to do. It wants to make investing fun and easy. The app has a simple, clean look and is easy to use.

 

There is, however, a problem with this tactic that has been talked about a lot in the news. By making it easy to invest, Robinhood makes it almost like a game, so it's fun. Robinhood is meant to help new investors, but it also encourages and allows active trading, which comes with more risk.

 

Unlike the best brokers for beginners, Robinhood doesn't have a lot of educational resources for new traders and investors. This makes it even more difficult for people who are just starting out to understand how trading and investing for the long term should work.

 

Pros of Robinhood

 

√ Having a good cash management account

 

√ Extensive trading of fractional shares.

 

√ The app is very easy to use and well-designed.

 

 Cons of Robinhood 

 

× Poor options for customer service.

 

× There isn't any retirement account

 

× There's no way to move crypto outside of the platform.

 

Webull is for Whom?

Webull also provides a user-friendly, well-designed mobile investment app that allows stock trading and purchasing cryptocurrency. We also note that, as we did within our Webull Review, it's apparent that Webull is directly competing with Robinhood to attract novice investors.

 

There's a difference between Webull from Robinhood The latter takes more of a traditional and shrewd approach to investing. With tools for brokerages that are standard such as paper trading advanced charting, screeners for stocks, along with an advanced interface that draws its inspiration from the top brokerage platforms, Webull treats investing as an important business.

 

It's also important to note that a vibrant user base is built inside Webull. Webull platform. It's like an inside Twitter which can help novice traders learn about trading through conversations with more experienced traders. However, Webull doesn't offer extensive instructional materials, as do some of the top brokers online.

 

After everything is done it's clear that Webull is a fantastic platform for novice or intermediate investors who wish to learn about investing and trading as well as benefit from modern, clean interface and an excellent mobile application.

 

Webull Pros

 

× Advanced charting tools including stock screener, paper trading

 

× Retirement plans available

 

× More than 30 different cryptocurrencies can be traded on the platform.

 

Webull Cons

 

× Cash management accounts are not available.

 

× Less fractional share trading options for fractional shares

 

× There is no way to transfer cryptocurrency off of the platform.

 

Robinhood vs. Webull: Which is Better for you?

 

If we think about the standard brokerage charges, Webull and Robinhood are quite alike. The two firms differ primarily in the availability of types of accounts as well as account features, margin rates, investment research.

 

It is worth considering Webull If you're an active or experienced trader who must stay up to date with market trends during the course of the day. In addition to its products at a low cost, Webull offers extended hours trading, no-cost quotes in real-time, Nasdaq market data, and 24 hour customer service.

 

Although Robinhood and Webull have the same $2,000 margin account minimum, however, Robinhood's margin of 2.5 percent is significantly less than Webull's rates of margin (margin rates are the amount of rates brokers charge when you take out a loan in order to put it into investment). So, you'll have to pay less when you borrow at Robinhood. Another important thing to remember is that while Robinhood Gold membership costs $5 per month, it allows immediate account deposits of up to $50,000.

 

There are two additional distinctions worth noting: Robinhood offers cash management accounts, however Webull does not. Webull provides IRAs but Robinhood does not.

 

If you're considering an affordable combination of investment options and cash-management, Robinhood may be the most suitable choice. The app currently provides 0.30 percent annual percentage yield on cash that has not been invested. If retirement savings are crucial, Webull may be the most appropriate choice.

Read Also: Robinhood Vs Stash Comparison

Let us know what you are thinking about these two brokers. Also if you have any questions,you can ask in the comment section below.