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Do you invest in the stock market with a brokerage account? If not, do you want to invest in the stock market?
If your answer was ‘Yes’ to either of those questions…
…you have come to the right place!
Why?
Because it is 2021, and there are no viable excuses for not investing in the stock market.
Okay, there is ONE excuse for not investing in the stock market.
Can you guess what it is?
The only excuse is not wanting to invest in the stock market.
In which case, read no further. You are LAME. Leave. Scram. Get out. We don’t want you here.
But please come back when you give a crap about your financial future.
Now, for those of you still with us…
…we are here to educate you on companies that are making investors’ lives much, much easier.
There are FREE, cutting-edge apps that have erased the most common excuses for not investing in the stock market.
These technological advances have taken high-commission costs and reduced them to literally nothing.
For the average investors, there has never been a better time to be in the market with the help of these apps.
As you can imagine, there are many apps out there today.
Some heavenly. Some hellish. And – for the purposes of thing analogy – some in purgatory.
So, we decided to save you a whole bunch of time by comparing the very best.
Today we have Robinhood and Webull going head-to-head in our epic investment app showdown.
Here you will learn…
- Where these companies shine
- Where these companies can improve
And after about 5 minutes of reading, you will know which app is the best for saving money and making money.
So, let the games begin: Webull vs Robinhood!
Robinhood Overview and Benefits
The app Robinhood set out to remove barriers to investing, including high fees and account minimum balances.
The trading platform has become wildly popular over the past couple of years by making trading easy.
You can manage your Robinhood account anywhere, including on your desktop or via the mobile app (compatible with iOS and Android).
This level of flexibility enables you to make trades on your phone or computer with ease.
But that is not even the best part.
Robinhood Asset Classes
Robinhood gives you unlimited free trading in your brokerage account for numerous different asset types, including:
- Stocks
- Electronic-exchange Funds (ETFs)
- Options Trading
- Cryptocurrencies
- And more!
Unfortunately, mutual funds and bonds are not offered.
Robinhood does not currently support retirement accounts, but plans to in the near future.
Robinhood Fees
Understandably, free trading is the most prominent feature that Robinhood offers its users.
Think about it, fees as minimal as $0.99 can add up significantly over time.
In addition to no-fee trading, you can open individual taxable accounts with no minimum investment.
So, whether you are Warren Buffet or a ramen noodle eating college student, you can trade stocks.
Robinhood Tools
Remember, Robinhood seeks to make investing accessible for everyone.
This mission is demonstrated in the simplicity of the trading platform.
The platform does not include advanced tools and features to trade stocks that may be helpful to some users.
However, you can still cash-in on the benefits of Robinhood and find free tools elsewhere.
The platform does include essential functions like historical data, links to relevant news, and analyst ratings.
Robinhood Safety
Your data is protected with 256-bit encryption.
The company is a member of the Financial Industry Regulatory Authority (FINRA) and the Security Investor Protection Corporation (SIPC).
These security features are important to see because you need to know that your personal information and money will be secure.
But note that this type of insurance does not cover loss in market value (so make wise decisions!)
Webull Overview and Benefits
The app Webull was released in 2018 and represents healthy competition for Robinhood.
You can manage your Webull account through the app (also compatible with iOS and Android).
But there is no desktop functionality, currently.
Q: I am 84 years old and have a flip phone – can I still use Webull?
A: Not yet, Grandma. But this feature may be coming soon.
Webull Fees
But like Robinhood, Webull offers free trades, and there is no account minimum.
You can make unlimited free trades of stocks and ETFs.
Additionally, there are no minimum fees unless you plan to trade on margin.
Trading with a margin account requires an account minimum of $2,000.
I realize you may be thinking:
“Hmm. Webull sounds like a watered-down version of Robinhood. I am going to sign-up for Robinhood.”
HOLD IT RIGHT THERE!
Because like any worthwhile competitor, Webull offers unique benefits that Robinhood does not provide.
Webull Tools
In addition to free trades and no account minimum, the company offers free advanced tools.
These tools far-exceed what Robinhood offers users, and include:
- Up-to-date news to keep you current on the latest events.
- Real-time market data to give you the most accurate information for decision-making.
- Analysis tools to allow to make the best possible decision.
You can also access pre- and post-market trading hours starting at 4:00 a.m. and ending at 8:00 p.m.
And, the trading platform offers a trading simulator to practice trading and test-out new trading strategies, also known as paper trading. Paper trading is great way to practice stock trading.
Webull Safety
Like Robinhood, the company protects your data with encryption and is a member of FINRA and SIPC.
Again, you can sleep soundly knowing that you are protected.
Another similarity is that Webull does not support mutual funds either.
However, WeBull does offer retirement accounts. You can open a Traditional IRA or Roth IRA with Webull, or rollover your IRA.
To learn more about Webull, check out our in-depth review.
Pro tip: If you are thinking about signing up for Webull, do it now. For a limited time only, Webull is giving away two free stocks for signing up and making a deposit. (up to $300).
How Can Robinhood and Webull Offer Free Trades?
We subscribe to the old adage, ‘If something is too good to be true, it probably is.’
And we realize you may be reading this article with skepticism for that very reason.
So, we think explaining how these companies make money is a helpful exercise.
For starters, both brokerage services use technology and paperless operations to offer you commission-free stock trading.
And rather than making money on commissions and fees, these companies make money the following ways:
- They earn interest income with uninvested cash held in customer brokerage accounts.
- Each company offers paid subscription services.
- Both earn fractions of cents by directing order flow.
- By offering margin trading with margin accounts, both earn interest.
So, the good news is that these companies genuinely offer commission-free trades with no strings attached.
Bottom line: Robinhood and Webull are not charities that cover your commissions.
Instead, both companies found creative ways to make money without charging fees and commissions.
Webull vs Robinhood Winner
And the Winner of the Webull vs Robinhood competition is…
In conclusion, both apps are excellent at what they offer.
Did you find this conclusion helpful? No?
Okay, okay. I get it. This isn’t kindergarten, where everyone is “special” in their own way. And this sure as hell isn’t soccer where things end in a 1-1 “tie.”
So, which investment app should you choose?
Do not labor too much making this decision because it truly is an apples to oranges comparison.
You need to know your personal situation and what you are looking for in an investment app.
Maybe this will make your decision a tad easier…
- Do you want to trade stock options? Forget about Webull.
- Do you want tools for advanced traders? Forget about Robinhood.
- Do you want to invest in mutual funds? Forget both.
- Do you have the memory of a goldfish? Read below for a refresher!
Robinhood is excellent because of simplicity, free trades on many assets, and no account minimums.
If you are a newer trader, we recommend that you sign-up for Robinhood.
Webull is excellent because of advanced trading tools, free trades on stocks and ETFs, and no account minimums.
For intermediate and advanced traders, we recommend that you sign-up for Webull.
If you are not looking to trade options or crypto, we say that Webull has a slight advantage because of fundamental and technical analysis tools.
But again, the best app depends entirely on your personal needs.
And since Robinhood and Webull offer free trades and no account minimums, there is no harm in trying BOTH to see which works best for you.
There is absolutely no risk or obligation on your part.
Let us know if you are Team Robinhood or Team Webull with a comment below!
Pro tip: If you are thinking about signing up for Webull, do it now. For a limited time only, Webull is giving away two free stocks for signing up and making a deposit. (up to $300).