Webull USA March 2022 Review | Tax Breaks On Trading Stocks, ETFs, and Options in IRA

7 min read

While Webull entered the brokerage industry late, it appears that the late entry has benefited the firm. Similar to pioneers like Robinhood, Webull offers a great option to trade easily on mobile platform, it also provides dozens of technical indicators, advanced orders, Nasdaq market data, customization, and more. To top it all off, the organization has experienced a rapid expansion of its pension-planning offering. The personal retirement account was launched at the end of 2019. It’s now offering traditional IRA, Roth IRA, and Rollover IRA. It also introduced cryptocurrency trading, options trading, fractional shares, and American Depositary Receipts (ADRs).

 Is Webull right for you?

A different broker might be a better choice for you if you have experience and have built a successful portfolio. Webull, on the other hand, could be an excellent choice if you have intermediate trading experience, are interested in active trading, or are wanting to develop your trading skills through advanced orders and technical analysis.

Webull offers active traders who want to trade stocks, ETFs, and options without paying commissions. Despite the little fee each trade may incur (usually less than $0.01), there is no minimum account size requirement. Additionally, Webull supports full extended hours trading, which includes full pre-market (4:00AM – 9:30AM ET) and after hours (4:00PM -8:00PM ET) sessions. This app may not be the best choice if you are looking for a joint brokerage account, college savings account, or mutual fund. Consequently, if the hands-off investment is your priority, you should look elsewhere.

Check out Webull’s commission-free trading platform with an expert market data dashboard and cryptocurrency data. Additionally, the app’s easy-to-navigate platforms may be attractive to beginning investors and options traders.

How I can invest with Webull?

Brokerage accounts:

Webull offers individual brokerage services. There is no minimum balance requirement, and no charges are assessed on US-listed stocks, ETFs. Some of Webull’s regulatory authorities and clearing firms still charge a small fee for every transaction.

The Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Options Clearing Corporation (OCC) all charge less for certain stocks, ETFs, and options trades. Webull offers traditional trading and margin accounts as well. By using margin accounts, you can buy securities with the cash you already have on hand or funds that are not yet settled. Getting a margin account with limited day trading requires a minimum deposit of $2,000.

Retirement Accounts:

With Webull, you can choose between traditional, Roth, and Rollover IRAs. Consequently, a personal retirement account can be opened and contributions made using either pre- or post-tax dollars. You can also roll over your employer-sponsored 401 (K) account and invest in stocks and ETFs through Webull’s IRA plans.

Features and Capabilities

In this section of our Webull review, we’ll take a closer look at the app’s features and capabilities.

Users Experience:

Webull’s mobile app and online interface provide great user experiences. It’s easy to use and simple to navigate the site. You can search for terms or queries in the Help section if you can’t find what you’re looking for.

If you’re interested in customizing your trading environment, the desktop trading software from Webull may be of assistance. You may choose which technical indicators to use when following the performance of a particular stock, as well as creating watchlists and placing orders. The desktop tool is only optional but can be used if you wish to go deeper into your portfolio analysis.

Services:

Webull is not intended for beginners or professionals, but rather for intermediate-level active traders. Apps for iOS, Android, desktop platform, and the web are available. It offers 24/7 customer service, and can assist you if you have questions or are experiencing issues.

Taxable brokerage accounts, Roth IRAs, and ordinary IRAs are some of the account types offered by the company. Webull does not provide support for custodial accounts or specialty retirement plans for self-employed individuals, such as SEP-IRAs.

Webull’s no-commission policy and no deposit minimums on stock trading are part of its biggest advantages. There is no commission charged by Webull, but you will still have to pay other costs. The SEC or FINRA fees, options exchange fees, and Options Clearing Corp fees are examples of regulatory and other fees. ADR costs and wire transfer fees are also possible.

It is possible to make money by trading on margin if the gains exceed the interest expenses. However, if your investment loses value, you will still have to pay the original amount plus interest.

Paper trading is a good choice for new investors because it doesn’t use real money. Simulating trades will allow you to see how your investment has performed without risking real money. For beginners, not having to risk any real money may make their trading more comfortable.

Asset types:

Webull allows investors to invest in various asset classes. Among the new investment options included in Webull are stocks, ETFs, Options, ADRs, and Cryptocurrencies.On its website, Webull offers thousands of stocks and ETFs. On the NYSE and Nasdaq, there are literally hundreds of stocks to choose from, so you’ll have plenty of options. Several thousand different ETFs are available for purchase and sale in the ETF category.

Analyzing techniques:

Stock screening, charts, and technical indicators which supplement Webull’s technical analysis tools can help you make better-investing decisions. Additionally, NASDAQ TotalView, which costs $1.99 a month, provides detailed information about bids and offers for trades. Further, the desktop platform allows you to create watchlists, aggregate them, and find investment opportunities using them collectively.

Safety and Security:

Securities trading is offered to self-directed customers by Webull Financial LLC, a broker dealer registered with the Securities and Exchange Commission (SEC). Webull Financial LLC is a member of the Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC), The New York Stock Exchange (NYSE), NASDAQ and Cboe EDGX Exchange, Inc (CBOE EDGX). It is safe and authentic to use Webull, as it is legitimate. Furthermore, Webull Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).

Also, users can install two-factor authentication. Your phone will provide you with a PIN each time you want to log in. Make sure this is always on in case you need to access your account.

Reliability:

Webull received an F-rating from BBB. Webull’s customer service isn’t particularly good based on this BBB rating. The BBB’s website also states that its ratings do not guarantee a company’s reliability or performance; they’re simply guides.

Before making a final decision, conduct a little research. Webull’s business practices have been criticized by the Better Business Bureau (BBB), which has given Webull an F on its website. Webull failed to address and resolve complaints from customers, which resulted in these issues, the bureau claims.

Education:

The amount of investor education offered by Webull in blog posts, articles, webinars, or videos is limited. It provides analytical and research tools through its mobile app, internet platform, and desktop platform for those who want to dive into the market but possess a basic knowledge of investing. A real-time ticker can be used to analyze price movements as well as charting tools and technical indicators.

Fees and Commissions:

Since Webull is a brokerage and not a robo-advisor, it does not charge an annual advisory fee. A small fee is charged by the SEC and FINRA for some trades. When you trade with margin, you’ll pay annual interest rates. There are more investment applications that adopt commission-free models, as shown in Webull’s fee schedule.

  • Fees for wire transfers are $8.
  • Wiring money costs $25.
  • For international deposit via wire transfers, there is a fee of $12.50.
  • For international withdraw via wire transfers, there is a fee of $45 .

You can avoid wire transfer costs by using ACH transfers instead of wire transfers for deposits and withdrawals. There is no cost associated with those.

Limited Investments:

Mutual fund or OTC stock cannot be invested with Webull.

Investor’s guide:

Contrary to other large brokerages, Webull does not have a lot of instructional resources for its customers. Consequently, most trading platforms based on apps suffer from this problem.

Paid Data:

Paying a subscription fee allows access to premium data. Furthermore, Webull charges for data feeds that are freely available from large U.S. brokerages, such as Merrill Lynch. Annual subscriptions are between $2.99 and $24.99 per month.

Joint accounts and other sorts of accounts:

It is not possible to create Trusts, UGMA/UTMA accounts, SIMPLE IRAs, SEP IRAs, Solo 401(k)s, and several other types of accounts as you can with other brokers.

How do I sign up for a Webull membership?

It is free and easy to register with Webull. Driver’s licenses, passports, and visas must be accompanied by a valid Social Security Number (SSN) or an Identification Number for Individuals (ITIN). Aside from that, you will need to provide some basic information, such as your date of birth. During the interview, Webull will ask you about your investing experience and your financial situation. After that, Webull team will review your application and, if there are no concerns, approve your trading account. Webull may, in some cases, require you to link a bank account in order to fund your investment account as a second step.

The following steps will guide you through opening a Webull account.

Visit the Website:

You will need to visit the Webull website to sign up for an account. You can use the mobile app or the web-based portal to accomplish this.

Personal Information:

The next step is for you to introduce yourself to Webull. Complete the form with your full name, full address, date of birth, social security number, and any other information that you may be asked for later.

Expertise and assets:

Almost any trading platform will require you to have previous investment experience. The previous trading history and average investment size you’ve made will need to be included. Additionally, you will be asked for your financial worth. You will be asked about your current wage as well as your retirement plan information if you’re a retail investor.

Verify Your Identity:

FINRA and the SEC regulate Webull, which is required to follow anti-money laundering legislation. KYC (Know Your Customer) is required in order to verify your account. All that is required for retail clients is a copy of their government-issued ID. In order to establish a new account, you will need to submit additional documentation as an institutional investor once the identification is verified and cross-referenced with your social security number.

Deposit Funds:

Following the validation of your account, payments can be made. It takes Webull approximately 48 hours to send two micropayments to your account; therefore, you won’t be able to use your account until those two micropayments appear in your Webull account gateway. To complete the transaction, you will enter the two micropayments’ values. If you have successfully linked your bank account, ACH funds can be transferred. It will take up to five business days for the funds to settle with Webull, but during this time you will be granted a partial credit for a limited time.

Final Thoughts

I think it’s safe to say that Webull has both good and bad features. On one hand, its main selling point is that there are no fees or charges associated with trading. There are a lot of stocks and ETFs that Webull has to offer that are not available on other platforms.

On the other hand, it’s disappointing that Webull does not list mutual funds and bonds, as other commission-free platforms do. The amount of investor education offered by Webull in blog posts, articles, webinars, or videos is limited.

Webull promotion – Webull recently offers 3 free stocks when you open and fund an account with Webull. For a limited time (3/1/2022-3/15/2022) special promotion, you would get 5 free stocks when you open and fund an account with Webull. Certain customers may also eligible for $5 crypto reward.

Sign up to Webull here.