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Abstract:Popular online trading platforms - Webull and Robinhood are very similar to one another. Both offer zero-commission stock trading, require $0 to begin real trading, are regulated by the SEC, and have many other similarities as well. Though a lot of similarities shared, but there are also some key differences. Webull, which is only a year or two younger than Robinhood, has enjoyed meteoric growth in popularity in recent years. The main distinctions between these two trading platforms will be discussed below.
Popular online trading platforms - Webull and Robinhood are very similar to one another. Both offer zero-commission stock trading, require $0 to begin real trading, are regulated by the SEC, and have many other similarities as well. Though a lot of similarities shared, but there are also some key differences. Webull, which is only a year or two younger than Robinhood, has enjoyed meteoric growth in popularity in recent years. The main distinctions between these two trading platforms will be discussed below.
Broker | Webull | Robinhood |
Logo | ||
Founded in | 2017 | 2013 |
Regulations | SEC, FINRA, FSA | SEC, FINRA |
Products | Stocks, Options, Index Options, Futures, ETFs, OTC, Margin, Fractional Shares, Cryptos | Options, ETFs, Stocks, Margin Trading, Cryptos, Futures |
Account Minimum | $0 | $0 |
Fees | $0 for Stock, ETFs, and Options trading, | $0 for Stock, ETFs, and Options trading, |
Margin Interest Rates | 8.74% | Up to 5.75% |
Account Fees | ❌ | ❌ |
IRA Accounts | Ruth IRAs, Traditional IRAs, Rollover IRAs | Ruth IRAs, Traditional IRAs |
Margin Rate | ❌ | ❌ |
Promotion | ✅ | ❌ |
Shining Feature | Webull Pay App, Webull Lite | Robinhood Gold |
Originally established in 2017, Webull is an online trading platform with strong mobile app and zero-commission on stock, options, and ETFs. With Webull's straightforward and easy trading platform interface, $0 to start trading allows one to trade stocks, options, index options, futures, ETFs, OTC, margin, fractional shares. Webull offers IRA accounts including Traditional IRAs, Rollover IRAs, and Ruth IRAs. It charges no fees for starting or managing accounts. Moreover, this broker does not charge margin rates and offers up to 9.74% margin rate interest. Established in 2013, Robinhood is an older online trading platform than Webull, which closely resembles it actually. Among the limited range of products offered by Robinhood are Options, ETFs, Stocks, Margin Trading, Bitcoins, Futures. Especially, Robinhood offers no trading of cryptocurrencies. Like Webull, Robinhood likewise charges no cost on ETFs, equities, and options. Furthermore, this platorm provides up to 5.75% margin rate interest. About IRAs, Robinhood offers both conventional and Ruth IRAs.
Both Webull and Robinhood offer some unique features, and that's why they could set apart and continue to attract more and more retail investors.
Unique Features of Webull Platform:
Unique Feature of Robinhood Platform
When it comes to investment choices, both are the winner. Aside from regular trading options like Stocks, Options, Futures, these two trading platforms also provide access to fractional shares trading, quite friendly to investors with small budgets.
Products | Webull | Robinhood |
Stocks | ✅ | ✅ |
Options | ✅ | ✅ |
Futures | ✅ | ✅ |
ETFs | ✅ | ✅ |
Margin Trading | ✅ | ✅ |
Cryptos | ✅ | ✅ |
Fractional Shares | ✅ | ✅ |
Option Index | ✅ | ✅ |
OTC Trading | ✅ | ✅ |
Mutual Funds | ❌ | ❌ |
Forex | ❌ | ❌ |
Bonds | ❌ | ❌ |
Treasury | ❌ | ❌ |
Trading fees
Both Webull and Robinhood offer commission-free trading for stocks, ETFs, options contracts, and cryptocurrencies, aligning with their zero-commission trading model. While cryptocurrency trading is free of direct commissions, investors should note that transactions incur real-time spread costs. Neither platform charges account opening or maintenance fees for standard accounts. However, Robinhood's premium service, Robinhood Gold, requires a $5 monthly subscription fee for access to advanced features.
Fees | Webull | Robinhood |
Logo | ||
Stock | $0 | $0 |
ETFs | $0 | $0 |
Option | $0 | $0 |
Cryptocurrency | $0 | $0 |
Account Fee (Open or Maintence) | $0 | $0 ($5 monthly for Robinhood Gold account) |
Transfer Fee | $75 per outgoing stock | $75 |
Transfer Fees
Regarding account transfers, both platforms maintain consistent ACATS (Automated Customer Account Transfer Service) fees. Webull charges $75 for outgoing transfers while offering free incoming transfers. Robinhood similarly applies a $75 fee for account transfers, regardless of direction.
Deposit and Withdrawal Fees
Firstly, neither company charges deposit or withdrawal fees on ACH methods. That's a good starting point. Yet, Robinhood really surprises us that it does not charge any fee on Wise Transfer deposits or withdrawals.
Webull | Robinhood | |
Deposit | ||
ACH | $0 | $0 |
Wise Transfer ( Domestic) | $8 | $0 |
Wise Transfer (International) | $12.5 | $0 |
Withdrawal | ||
ACH | $0 | $0 |
Wise Transfer ( Domestic) | $25 | $0 |
Wise Transfer (International) | $45 | $0 |
Not many other brokers let investors perform margin trading. Webull and Robinhood both let them. About margin rates, Webull and Robinhood both use a mechanism whereby your rates are reduced the more money you borrow.
Webull charges an annual margin interest rate ranging from 4.74% to 8.74% depending on the debit balance in the account. The yearly margin rate is 8.74% for debit balances less than $25,000. With rates of 9.24% for amounts between $25,000.01 and $100,000, 8.74% for balances between $100,000.01 and $250,000, and so on the rate declines as the debit balance rises. Debit balances exceeding $3,000,000 have the lowest yearly margin rate—5.74%. By allowing reduced interest rates on bigger debit amounts, this tiered system encourages traders to have better margin balances.
Based on the amount borrowed, Robinhood margin rates are tiered: As the borrowed amount rises, interest rates progressively drop. For example, borrowing up to $50,000 pays a 5.75% interest rate; borrowing more than $50 million pays a 4.7% rate.
While Robinhood only offers a mobile app targeting beginners more, Webull offers desktop and mobile trading apps to stistfiy clients with diverse demands. With Webull Desktop, Webull Mobile App, and Webull WebTrade—Webull excels with its comprehensive trading platform offering. More sophisticated charts and functionalities on Webull trading systems enable traders to swiftly and effortlessly run and control their transactions.
With sophisticated charts, analyst reports, watchlists, news feed, and customized notifications, Robinhood provides web-based as well as mobile trading apps. It can also listen live for the real-time pricing. Robinhood mobile app so seems to be more beginner-friendly.
When it comes to customer support, Webull only provides phone and email support, with online support, probably the most effective channel, missing. And Webull does not provide 7/24 customer support. Compared with Webull, Robinhood provides phone and online chat support, enable clients to submit their trading problems quicker and more effeciently. Besides, investors can also follow Robinhood on some social media platforms like X, Ins, Facebook, TikTok, and Linkedin.
Broker Name | Webull | Robinhood |
Logo | ||
Phone Support | ✅ | ✅ |
Email Support | ✅ | ✅ |
Online Support | ❌ | ✅ |
7/24 Support | ❌ | ✅ |
Social Media Support | Ins, X, FaceBook | X, Ins, FaceBook, TikTok, Linkedin |
✅ | ✅ |
Compare these two broker's trading interface and prcing model, Robinhood is the winner.
Beginner-friendly Trading Interface -Robinhood has long been popular among new investors due to its extremely user-friendly interface and commission-free trading. The platform offers a straightforward mobile experience with intuitive design, making it particularly appealing to younger, tech-savvy beginners who want a simple investment process. Webull, while also offering commission-free trading, provides a more robust set of analytical tools and research capabilities. For beginners interested in deeper market research and more sophisticated charting, Webull might be the superior choice.
Simple Pricing Model -Both platforms are competitive. Neither charges commissions for stock, ETF, or options trades. However, Webull tends to offer more advanced features in its free tier compared to Robinhood. Account minimums are low for both, making them accessible to investors starting with small amounts of money.
Fractional Share -Robinhood provides access to fractional shares for investors who come with small budgets, as little as $1. With fractional shares, investors can invest in certain stocks or ETFs, which can reduce their trading risk.
Overall, Robinhood remains an excellent starting point for beginners prioritizing simplicity and ease of use.
When comparing Webull and Robinhood, determining superiority depends entirely on investor needs and experience levels. Both platforms offers a commission-free trading model, each offering unique advantages targeting different investor types.
Webull positions itself as a platform for more sophisticated traders, offering comprehensive technical analysis tools, extended trading hours from 4:00 AM to 8:00 PM ET, and robust research capabilities. Its platform supports various retirement account options, including traditional IRAs, Roth IRAs, and Rollover IRAs, particularly attractive for long-term investors. Besides, the platform also provides access to ADR trading, appealing to those interested in international market exposure.
In contrast, Robinhood has established itself as the go-to platform for beginner investors, featuring an intuitive, user-friendly interface that simplifies the trading experience. The platform offers accessible features such as fractional share trading with a minimum investment of just $1, a comprehensive cash management system complete with a debit card, and IPO access for eligible customers. Robinhood Gold, their premium service, provides additional benefits including higher instant deposit limits and margin trading capabilities.
The choice between these platforms, ultimately hinges on investors's trading strategy and experience level. To make it clear, Webull is better suited for experienced traders who require advanced analytical tools and diverse account options, while Robinhood is optimal for newcomers to the investment world who value simplicity and accessibility.
Generally, Robinhood features a stronger focus on cryptocurrency trading compard to Webull, for this broker entered into the crypto market quite early, equipped with some advanced technology designed for its cryptocurrency trading. More importantly, Robinhood has effectively leverage its brand and market effort to position itself as a leading cryptocurrency trading platform.
Early Entry: Robinhood was an early entrant into the retail cryptocurrency market, beginning to offer cryptocurrency trading service in 2018. Robinhood allows traders to buy and sell 15 cryptos on its app starting as low as $1. Comparing with many exchange, this trading platform is widely chose by retail cryptocurrency investors due to its easy accessibility and comparably simple fee struture. Aside from cryptocurrency trading, this online trading platform began to offer crypto wallet in 2022 to specialize its service.
User-friendly Interface: Robinhood's intuitive interface, designed with simplicity in mind, has made cryptocurrency trading more accessible to a wider audience, particularly those new to investing. A user-friendly interface is the key for cryptocurrency trading to some degree, for it enables traders to quickly acquaint themselves with a new trading environment and execute trades in an efficient way.
Spread-based Fee Model: Robinhood employs spread-based pricing on cryptocurrency trading, a familiar and simple fee structure compared to many exchanges where taker and maker fees are calculated plus many other small fees. Robinhood charges spreads can make overall fees on cryptocurrency trading more transparent, saving much time on unnecessary calculations.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.