Webull vs. E*TRADE: Which Broker Is Right for You?

E*TRADE and Webull are two popular brokerage platforms, and for good reason. Both have impressive technology features, and both have certain things they do very well.

However, these platforms are designed for two different subsets of the investing public, and it's important to know the key differences before you decide on a broker for your own investment portfolio. In this comparison, we'll take a closer look at Webull vs. E*TRADE so you can decide if one of them might be a good fit for you.

In several ways, E*TRADE and Webull are on equal footing when it comes to pricing, but there are some key differences to know.

Both brokers offer:

• Commission-free stock trading
• No maintenance fees
• The same $75 fee to completely transfer an account to another broker

You should also note that Webull is one of the few places investors can trade most options for free -- though certain index options do have a $0.55 per contract fee. E*TRADE, on the other hand, charges a per-contract fee. To be fair, its standard options commission of $0.65 is on the lower end for the industry, and frequent options traders -- 30 or more stock, option, or ETF trades per quarter -- can get a lower rate of $0.50 per contract.

Then there are some other fees that only apply to one or the other, too. Webull charges a 1% markup for cryptocurrency trading via the Webull Pay app, while E*TRADE doesn't allow direct investment in cryptocurrency assets. Conversely, E*TRADE has more than 6,000 no-load mutual funds to trade with $0 commission fees, while Webull doesn't currently offer mutual funds.

When it comes to the types of investments available, E*TRADE is a clear winner between the two. That is, unless cryptocurrency investing is a major priority for you.

Webull offers the ability to trade stocks, ETFs, options, and cryptocurrencies. Plus, Webull clients can buy fractional shares of stocks, which can be a big perk for newer investors who may not have enough money to buy a full share of some of their favorite companies. Notably, however, E*TRADE does offer fractional shares, too, via automatic investing (subject to a $25 minimum).

Still, Webull currently offers eight digital currencies to most traders on the Webull Pay app -- though New York residents are limited to just four of those.

E*TRADE offers far more variety in the types of investments available. For example, you can't invest in mutual funds through Webull. E*TRADE not only has mutual fund investing, but over 6,500 different mutual funds are available with no load fees. You can also buy bonds and CDs through E*TRADE, which can be must-haves for income-seeking investors. Futures trading is another type of investment available on E*TRADE that you won't find on Webull's platform.

LEARN MORE: Best Options Trading Platforms

The bottom line is that the better choice for you largely depends on what you want to invest in. E*TRADE offers some of the most popular investment products for hands-off and retirement-focused investors, while Webull is largely geared toward active traders.

E*TRADE is designed to meet the needs of virtually all investors, so it offers a wide variety of investment account types. In addition to taxable individual brokerage accounts, E*TRADE also allows customers to open joint brokerage accounts with a spouse or someone else.

Plus, E*TRADE offers a full suite of retirement accounts. In addition to traditional and Roth IRAs, it offers less common types like SIMPLE IRAs, SEP IRAs, and individual 401(k) accounts. It offers custodial accounts such as UGMA and UTMA accounts, and also offers Coverdell ESAs to help parents save for college expenses.

What's more, E*TRADE offers its Core Portfolios robo-advisory service for investors who want to put their portfolios on autopilot. And because it is owned by Morgan Stanley, it offers excellent checking and savings account products through Morgan Stanley Private Bank.

READ MORE: Best Robo-Advisors

On the other hand, Webull's account options are rather limited. The mobile-first broker only offers individual brokerage accounts, so if you want to open an account with your spouse, you'll need to choose a different broker. And while Webull supports retirement accounts, it only offers traditional, Roth, managed traditional, and rollover IRAs, though it has plans to expand its IRA offerings. Webull doesn't offer custodial, college saving, trust, or other account types. And in contrast to most of its peers, it doesn't have an interest-bearing savings account. That said, there is a high-yield cash management feature.

LEARN MORE: Best IRA Accounts

It's worth mentioning that while both of these brokers offer margin accounts, Webull has lower margin interest rates. Webull's highest margin interest rate as February 2024 was 9.74%, while E*TRADE's was 11.70%. If you're an active trader who regularly uses margin, this is worth considering.

Both Webull and E*TRADE have highly capable trading platforms. E*TRADE has excellent web- and desktop-based trading platforms, in addition to its mobile app, that has more than enough functionality for most people. And its Power E*TRADE platform is a high-powered platform packed with features designed for sophisticated investors. Webull offers the Webull Desktop platform that allows investors to create a customized trading experience. Plus it has a web-based trading platform as well as a mobile app of its own.

Both have well-rated apps that are very functional and easy to use. E*TRADE has ratings of 4.6 and 3.9 out of 5 stars on the App Store and Google Play store, respectively, and Webull's ratings are significantly better at 4.7 and 4.3. It's also worth noting that E*TRADE also offers a separate Power E*TRADE app designed for advanced traders, and this has App Store and Google Play ratings of 4.5 and 3.8, respectively.

READ MORE: Best Online Stock Brokers for Beginners

As you've probably gathered, E*TRADE and Webull are rather different from one another. Certain types of investors would likely be a better fit for one or the other. For example, if you want to invest in mutual funds, E*TRADE is the natural choice out of these two.

On the other hand, if you use margin regularly or want to incorporate cryptocurrency investing as part of your strategy, Webull is probably best.

However, if both of these platforms meet your needs -- say, you're simply looking for a place to open a standard brokerage account and buy and sell stocks -- it's important to weigh the pros and cons of each platform and decide what features are most important to you.

LEARN MORE: Best Brokers for Fractional Shares