Webull versus Robinhood

Webull and Robinhood share several similarities in their core trading environment. Both offer commission-free equity and ETF trading, access to IPOs, and cryptocurrencies. Webull and Robinhood also share the same primary client base, millennial and GenZ traders with a preference for mobile trading, for which Webull and Robinhood developed proprietary mobile apps. Webull features a more advanced mobile app and offers a desktop trading platform and a web-based alternative.

Beginner traders get more educational content at Robinhood, and leveraged traders get notably lower margin rates versus Webull, which offers excellent order execution, transparency, and price improvement. Robinhood has a controversial history and lacks overall transparency but has pioneered commission-free trading in the US. Both brokers engage in payment for order flow.

We have conducted an in-depth review of Webull and Robinhood to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Features and Platforms

Features & PlatformsRobinhood (visit site)Webull (visit site)
Headquarter:USUS
Established :
20132017
Retail Loss Rate:
UndisclosedUndisclosed
Regulation:
Minimum Deposit:
$0$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
Deposit Fee:
Third-Party
Withdrawal Fee
Third-PartyThird-Party
Funding Methods:
22
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Undisclosed
Bonuses and Promotions:
Unique Feature One:
Access to IPOsExcellent order execution
Unique Feature Two:
Fractional share tradingLow trading costs
Broker Offers:

Noteworthy:

Webull and Robinhood allow fractional share dealing, where the former has a minimum transaction size of $5 and the latter of $1. Webull has IRA accounts, and Robinhood provides branded debit cards to traders.

Available Markets

Available MarketsRobinhoodWebull
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:21:4
Maximum Pro Leverage:
1:21:4

Webull offers 7,016 equities listed on the NYSE, the NASDAQ, and the AMEX. It also provides traders with 3,057 Canadian equities, including small caps listed on the TSXV and 4,687 Chinese stocks. ETFs, options contracts, nine currency pairs, and 48 cryptocurrencies are also available. Robinhood offers the same sectors but lacks overall transparency.

Typical Spreads and Fees

Typical Spreads & FeesRobinhoodWebull
Minimum Raw Spreads:
Not applicableUndisclosed
Minimum Standard Spreads:
Not applicableUndisclosed
Minimum Commission for Forex:
Not applicableCommission-free
Commission for CFDs/DMA:
Commission-freeCommission-free
Commission Rebates:
Not applicableNot applicable
Execution Type:
Market MakerDMA

Webull ranks among the cheaper US-based brokers, except for financing costs, where this broker features higher mark-ups. Financing costs range between 3.99% and 6.99% versus 2.50% at Robinhood. Both brokers offer commission-free trading, but Robinhood has higher non-leveraged trading costs. Webull and Robinhood suffer from an overall lack of pricing transparency and earn income by selling order flow.

Security and Trust

Robinhood

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed

Webull

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed

Both brokers are also members of the Financial Industry Regulatory Authority (FINRA). Client protection is available via the Securities Investor Protection Corporation (SIPC), up to $500,000 per net equity or $250,000 for cash claims. Webull also has membership with The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX) with a clean FINRA record.

Webull started IPO talks in 2021 with valuations of around $400 million. Robinhood is a publicly listed company on the NASDAQ. Between 2019 and 2021, Robinhood faced several security breaches, resulting in over five million stolen e-mail addresses, two million names, and at least 300 extensive thefts of personal information.

Robinhood vs Webull – Verdict

Robinhood

ProsCons
Fractional share dealing from $1.00 and access to IPO tradingLimited deposit and withdrawal options
Debit card for swift financial transactionsDebit card for swift financial transactions
Beginner traders get a wealth of educational content in written form
Optimized mobile app

Webull

ProsCons
Quality proprietary trading platform with Level 2 data and advanced mobile appLow leverage and high financing costs on overnight positions
A secure trading environment with an additional third-party insurance policyLimited deposit and withdrawal options
Broad-based equity selection and fractional share dealingHigh deposit requirements for margin trading and short selling accounts
Excellent order execution statistics and transparency

Margin traders can achieve lower costs at Robinhood, despite higher spreads. Webull offers better order execution and price improvement. The trading platform at Webull remains more sophisticated, but neither supports algorithmic trading. Robinhood provides superior research and education.

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