Webull Brokerage Review: A Great Mobile Option for Active Traders

Webull is a mobile-focused brokerage. Its strength: Better platform functionality than its closest rivals. In this Webull review, we'll take a deep dive into the perks and potential drawbacks of using Webull to invest. We'll also cover what investors should know before opening an account.

This broker is a good fit for: Active traders who mainly deal in stocks and options and want to do so exclusively via a mobile app.

Top perks

No commissions

Like most online brokers, Webull offers $0 commission stock and ETF trades.

No per-contract fees on options

Most brokers still charge a per-contract commission for buying and selling options. Webull doesn't. There are no assignment or exercise fees, either. These factors make Webull a solid broker for options trading.

No account minimums

Webull doesn't have a minimum deposit requirement to get going. You can join Webull and start investing with just a few dollars.

Excellent mobile platform

Webull's mobile trading platform offers more features than many other mobile-oriented brokers.

Competitive margin rates

Webull offers some of the most competitive margin rates we've come across. And unlike main rival Robinhood, Webull doesn't require a subscription.

Virtual trading

Webull allows for virtual trading of stocks and options. It even hosts contests on its "play money" platform -- with actual prizes.

IRAs

Unlike some of the mobile-focused brokers, Webull offers traditional IRAs. These are offered in addition to standard brokerage accounts.

Free stock bonus

Many brokers offer cash bonuses for new accounts -- but only after users meet certain minimum deposit requirements. Webull gives free stocks to customers with small deposit thresholds. These stocks are worth anywhere from $2.50 to $1,600 per share. Currently, just $100 is required for the best bonus.

Offers crytpocurrency investing

Webull allows investors to trade in Bitcoin, Bitcoin Cash, Etereum, and Litecoin.

What could be improved

There is no such thing as a perfect broker, and Webull has some potential drawbacks investors should know about before opening an account.

Limited investment options

Webull doesn't offer investing in mutual funds or over-the-counter (OTC) stocks.

Investor education

Unlike some of the major brokerages, Webull doesn't offer much in the way of educational resources. This is a drawback of most app-based trading platforms.

Paid data

If you want access to premium data, you'll have to pay for it. In short, Webull charges for some data feeds that investors can get for free through the major U.S. brokers. Subscriptions range from $2.99 to $24.99 per month, though there is a discount for annual subscriptions.

Joint and other account types

Webull doesn't allow customers to open joint brokerage accounts. It also doesn't support trusts, UGMA/UTMA accounts, Coverdells, SIMPLE IRAs, SEP IRAs, Solo 401(k)s, and several other account types offered by competitors.

If you want to review another highly-rated mobile investing platform: Robinhood goes toe-to-toe with Webull on many fronts, including one of the best mobile trading experiences around and $0 commissions for stocks, ETFs, and options. Where Robinhood outshines Webull is that it offers both higher yields on uninvested cash and access to more cryptocurrencies. Depending on your balance, Robinhood may also offer lower margin rates.

RELATED: See The Ascent's complete comparison of Webull vs Robinhood.

If you want a full-featured broker: Merrill Edge® is one of the top brokers we've come across. The broker has a wide array of account types, $0 commissions for online stock and ETF trades, and a relationship rewards program that is the gold standard for combined banking and investing needs.

Like most online brokers, Webull has done away with stock trading commissions. The platform offers $0 commission online stock and option trades.

However, most brokers still charge a per-contract commission for options trades. Webull doesn’t.

One of Webull’s biggest weaknesses is that it doesn't let you invest in mutual funds -- not yet, anyway. If you want to make mutual funds a major part of your investment strategy, Webull is likely not the right brokerage for you.

As mentioned, Webull offers commission-free stock and options trades, but that doesn't mean it's entirely a fee-free platform. For example, if you trade on margin, you'll pay interest on your debit balance. We'll discuss this in greater detail below.

In addition, Webull does charge some other fees. Here are some of the most relevant:

• Webull charges an $8 fee to deposit money via wire transfer and a $25 fee for wire withdrawals. If the funds are coming from or going to a non-U.S. bank account, the fees are higher.
• Webull charges $75 for outgoing stock transfers (but not incoming stock transfers).
• Like most brokers, Webull encourages customers to receive electronic communications. There are fees for paper trade confirmations ($2 each), paper statements ($5 each), and paper prospectuses ($2.50 each).

One of Webull's biggest strengths is its highly rated app-based investment platform. The company's mobile app currently has a 4.5 out of 5-star rating on the Google Play store and a 4.7 out of 5 on the Apple App Store. The platform offers many features active traders may find useful. These include excellent charting tools, the ability to enter complex trade orders, and a feature-packed stock screener. And unlike some other mobile trading platforms, Webull lets investors sell stocks short.

Plus, customers can participate in extended-hours trading from 4 a.m. to 8 p.m. EST. Webull is also one of the few mobile-first brokers to allow for virtual stock and options trading. Webull also offers a desktop trading platform with all of the same features, but to be clear, this is a mobile-first broker.

We're generally not fans of margin trading, but we know that many investors are. If you use margin (borrowed money) regularly or occasionally, be aware that doing so isn't free: Brokers charge margin interest. So a broker with relatively low margin rates can be attractive.

Webull has some of the most competitive margin rates we've seen. As with most of its competitors, the rate you pay depends on how much you've borrowed, but these are generally low when compared to some of the biggest brokers we've looked at:

Webull's platform is mainly targeted at traders, not long-term investors. As such, there isn't much in the way of research -- or fundamental analysis in general, for that matter.

There is no such thing as a perfect brokerage for everyone (at least, we haven't found one yet). That said, Webull could be an excellent choice if these statements apply to you:

• You're an active trader who only wants to buy and sell stocks and options.
• You already know the basics of how the markets work and don't need a ton of educational resources.
• Your investment strategy includes buying and selling options, as Webull is one of very few brokerages that offer zero-commission options trading.
• You don't have a ton of money to invest. Webull has no minimum deposit requirement, and it offers a new account bonus at a much smaller deposit threshold than many competitors.

RELATED: See The Ascent's comparison of TD Ameritrade vs Webull.