Schwab vs. Webull: Which Broker Is Right for You?

Charles Schwab and Webull are two of our top-rated brokers, and both have some standout features that could make them a great choice for certain investors. However, these are very different investment platforms that offer different services and features, so it's important to be aware of the pros and cons of each before making a decision.

In this Charles Schwab vs. Webull comparison, we'll see how each one stacks up when it comes to fees, available investments and accounts, trading platforms, and more.

Both of these brokers have relatively low cost structures. Neither charges commissions on stock and ETF trades. For options, Schwab charges a $0.65 fee per contract traded. And while it isn't a fair comparison since Webull doesn't offer mutual funds, Schwab charges up to $74.95 for mutual fund transactions (although there are thousands available with no transaction fees).

Webull offers the same $0 commission on stock and ETF trades, and takes it a step further, charging no per-contract fees on options trades. The only notable commission it charges is on cryptocurrencies, where a 1% markup is built into the price you see for buy and sell trades.

Both brokers charge a fee to move securities out of the account, which is rather standard in the brokerage industry, but Schwab's fee is lower -- and there's no fee at all unless you transfer all of the securities in the account.

Investment selection is an area where Schwab stands out. Both platforms offer stocks, ETFs, and options, and both have the ability to trade fractional shares -- but that's where the similarities end.

If your investment strategy involves (or will involve) mutual funds, bonds, or futures and foreign exchange trading, Schwab is the clear winner. Webull offers cryptocurrency investing, but with the recent emergence of Bitcoin ETFs and numerous crypto coin trusts trading on the major exchanges, this isn't as much of a differentiator as it once was.

Account types are another area where Schwab is the clear winner. Webull is designed to allow investors to open an individual taxable brokerage account or a basic traditional or Roth IRA. That's it.

On the other hand, Schwab offers joint brokerage accounts, robo-advisor accounts, SIMPLE IRAs and SEP IRAs that might appeal to self-employed individuals, custodial accounts for minors (UGMA/UTMA), checking and savings accounts, and more.

It's also worth noting that Webull only allows customers to open one IRA (unlike Schwab, where you could have say, a traditional and Roth IRA), and users are required to have an individual account before opening an IRA with Webull.

So far, it might seem as if Schwab is winning the comparison. But when it comes to its mobile app and trading platform, Webull is a standout, especially for beginners looking for an easy-to-use investment account.

In fact, Webull is perhaps the best combination of a user-friendly platform for beginners and the complex tools that more advanced investors and traders are looking for. As a mobile-first broker, Webull's app is highly rated and has an excellent educational library to explore through the app, including over 500 investing courses with videos.

On the other hand, while we wouldn't exactly call Schwab's platform clunky, it isn't quite as easy to navigate as Webull's or most other mobile-first brokerage platforms. And this is reflected in the numbers -- Schwab's app has just 2.4 out of 5 stars on the Google Play store based on over 25,000 reviews, compared with a 4.3 out of 5 for Webull.

The bottom line is that these are two very different brokers, and one could be far better for your needs than the other. If you want to invest in mutual funds, open a self-employed retirement account, or trade Forex, Schwab is the clear winner. On the other hand, if you just want an easy place to buy and sell stocks and invest for retirement, Webull could be a better fit.

If you want to learn more about either of these brokerages, check out our individual reviews:

• Webull
• Charles Schwab