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. Customers can also trade fractional shares on Webull, which is a great feature -- especially for beginning investors.

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.

Transfer fee reimbursement

Most brokers charge customers to transfer their existing accounts to another brokerage. The industry standard fee for this is about $75. Webull will provide a transfer reimbursement of $100 when you transfer a brokerage account with $2,000 or more in assets, or $75 for an IRA transfer with at least $5,000.

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.

IRAs

Unlike some of the mobile-focused brokers, Webull offers traditional and Roth 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 cryptocurrency investing

Webull allows investors to trade in Bitcoin, Bitcoin Cash, Ethereum, 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, bonds, CDs, futures, or forex.

Investor education

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

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.

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 it actually reimburses for incoming stock transfers, as discussed earlier.
• 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 4.3 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, especially in the relatively high-rate environment we're in now. 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, but it can certainly be used for long-term purposes, especially for knowledgeable investors to open IRAs. Having said that, 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.