Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Robinhood vs. Webull: At a Glance
But Robinhood is the better choice for folks looking for retirement savings accounts as Robinhood's traditional and Roth IRAs offer a 1% match on investor contributions.
Webull's new smart advisor is an automated investing account that utilizes quantitative analysis and insights to make smart investment decisions for your financial goals (majority stocks and ETFs).
You can receive a customized portfolio by inserting data like your time horizon, risk tolerance, and goals. It also offers a range of beneficial account tools like auto-rebalancing and a performance tracker.
Is Robinhood Right for You?
Robinhood Pros and Cons
| Pros | Cons |
|
|
Investing with Robinhood
You can primarily trade six different types of asset classes: stocks, ETFs, options, ADRs, IPOs, and cryptocurrencies. Robinhood has a $0 account minimum requirement on its individual brokerage accounts, but you'll need at least $1 to trade fractional shares.
To access margin trading, you must be a Gold member and have at least $2,000 in your account.
Its account selection includes:
- Individual brokerage accounts
- Cash management accounts
- Retirement accounts (traditional IRAs and Roth IRAs)
- Margin accounts
On the crypto side, Robinhood lets you trade 18 digital assets including bitcoin, ether, dogecoin, and more. Crypto sales have no commission fees and you only need $1 to start investing.
IRA accounts offer $0 trading commissions, a 1% match on every dollar you contribute (with no cap), recommended portfolios with Robinhood's portfolio builder, and more. You also get SIPC account protection up to $500,000.
If you're planning to use Robinhood Gold, know that it has a
Account Features
Robinhood offers a virtual library that contains an array of financial education articles on investing, options trading, and other topics. The downside is that you won't be able to access additional research and market insights unless you're a Robinhood Gold member.
Gold members are eligible to earn
Robinhood currently has margin rates of 12% for non-gold members, and 8% for gold members.
Non-gold members can access IPOs, recurring automatic payments (select daily, weekly, bi-weekly, or monthly options), 24/7 customer support, and guidance on first trades. Robinhood now offers crypto wallet access.
Is Robinhood Trustworthy?
Robinhood Investing has a D rating from the Better Business Bureau due to a pattern of complaints that users were unable to withdraw funds from their investing accounts. The brokerage account also took a hit because of the government actions taken against the business.
In 2023, Robinhood entered into an agreement with the Commissioner of Financial Protection and Innovation when the CFPI claimed Robinhood provided negligent information for margin trading and risk to Robinhood users and operated under an inadequate identification program. Robinhood agreed to a $10.2 million penalty.
Robinhood came under intense scrutiny in late January 2021 after it paused trades of Gamestop and other popular stocks. It reopened trading, but this also brought more attention to Robinhood's payment for order flow (PFOF) practices. A federal court in Miami later dismissed the case in November 2021.
Is Webull Right for You?
Webull Pros and Cons
| Pros | Cons |
|
|
Investing with Webull
Webull's investment choices include stocks, ETFs, options, OTCs, ADRs (shares in foreign companies), fractional shares (starting at $5), and cryptocurrencies. The commission-free rule applies to stocks, ETFs, and options trading, but Webull also works with regulatory agencies and clearing firms that apply small fee deductions (usually no more than $0.050) on each trade.
You can invest in the following accounts:
- Individual brokerage accounts
- Retirement accounts (traditional IRAs and Roth IRAs)
- Cash management accounts
- Margin accounts
- Automated accounts
With a margin account, you borrow from your brokerage and pay back the loan along with an annual margin interest rate. But keep in mind that you need at least $2,000 in your account to access margin trading features.
Cryptocurrency traders should note, however, that Webull also doesn't allow you to transfer crypto into or out of your account. This means that your assets are essentially locked into the brokerage. This prevents you from moving them to a bitcoin wallet or other crypto exchange.
On the retirement side of things, the firm offers traditional IRAs, Roth IRAs, and rollover IRAs. The difference between Webull's standard brokerage accounts and IRAs is that the retirement accounts only allow you to invest in stocks and ETFs.
Account Features
You can access great account features like Nasdaq-sponsored market data, free real-time investment quotes, 24/7 customer support, portfolio rebalancing (on automated accounts), paper trading, and recurring investment options.
Webull's margin annual rates range from 5.74% to 9.74%, depending on your account balance.
It's also important to note for cryptocurrency traders that Webull doesn't allow you to transfer crypto into or out of your account. This means that your assets are essentially locked into the brokerage. This prevents you from moving them to a bitcoin wallet or other crypto exchange.
Webull's cash management account now offers a 5.00% APY on uninvested cash.
Is Webull Trustworthy?
Webull has received an F rating from the Better Business Bureau. The BBB uses a grade range of A+ to F when rating companies, so Webull has received the lowest possible score. According to its website, the BBB has given Webull an F for multiple reasons, including government actions against the brokerage and Webull's failure to respond to customer complaints.
FINRA fined Webull $3 million on March 9, 2023, claiming Webull had customer approval violations, such as mistaking ly approving 9,000 accounts for options trading. Webull neither admitted to nor denied FINRA's findings. The brokerage agreed to a settlement and pledged to fix the previous issues, including establishing a supervisory system for overseeing its due diligence system. It's currently undergoing this process.
Like Robinhood, Webull also paused the buying of Gamestop and other stocks in 2021. The brokerage — which receives PFOF — also reopened trading on the stocks it had previously restricted.
Which is Better: Robinhood or Webull?
When it comes to standard brokerage fees,
You should consider Webull if you're a passive or hands-off trader who likes the convenience of automated investing. Along with its low-cost products, Webull offers extended hours of trading, free real-time quotes, Nasdaq market data, and 24/7 customer support.
While
There's also another distinction worth addressing: Robinhood offers a 1% match on IRA accounts but Webull doesn't. Therefore, if you're opening a retirement account, Robinhood is the better bet between the two. It's also the best option for crypto trading as Webull doesn't allow crypto trades to be moved in or out of its account.