Finding an online brokerage firm to use for your personal investment can be intimidating. There are many options out there, and it isn’t all about picking the option with the most bells and whistles — you have to choose the one that financial sense to you. This guide compares two of the most popular options available, Webull and Charles Schwab.
If you want a little but of that human touch when it comes to your investing, consider working with a financial advisor instead.
Overview of Webull vs. Charles Schwab
Webull and Charles Schwab are both online investment platforms, but they have quite different backgrounds. Charles Schwab’s brokerage service is part of a huge financial services company founded in 1971. Schwab is publicly traded on the New York Stock Exchange. Webull, on the other hand, is a company focused only on its trading platform. It was founded in 2017 and is privately held.
Schwab offers a number of financial services and has no trade or account minimums. There is also a robo-advisor tool available for those clients who want just a little bit more help. You can buy and sell various securities on the platform, including actively- and passively-managed mutual funds.
Webull offers an electronic trading platform. Although it started as mobile-only, you can now access the service on a desktop. There is a limited line of investment products available, but crypto trading is an option.
Webull vs. Charles Schwab: Products
Webull has a trading platform available both on desktop and mobile. There are four different securities available for trade on the platform: equities, exchange-traded funds, options and cryptocurrency. The lack of mutual funds, bonds and some other securities may put off some investors — especially older investors — but the platform does support both Roth and traditional IRAs.
Charles Schwab offers many financial services, including financial advising, banking and trading. There are both actively and passively managed funds and a robo-advisor tool available. Schwab recently purchased TD Ameritrade and is expected to integrate the firm’s function’s into its platform by 2023.
Webull vs. Charles Schwab: Fees
Regardless of where you choose to do your investing, it won’t be for free. Here is breakdown of the fees you can expect to pay at both Webull and Charles Schwab:
Webull has no mission trading and does not have a minimum deposit or account balance, but there is a $1 deposit fee for cryptocurrency accounts. The other exception is a $2,000 deposit minimum to open a margin account, with margin rates starting at 6.99%. The trading account fee (TAF) is $0.00019 for sells with a maximum fee of $5.95 per trade.
Each customer at Webull gets one free wire transfer. After that, it is $8.95 per domestic wire and $12.95 for all international wires less than $25,000.
Charles Schwab Fees
At Schwab, there are no commissions for stock and ETF transactions done online. It also has no charge for trading mutual funds or bonds. There is a $0.65 charge per options contract and $2.25 per future contract. Trades with assistance from a broker cost $25.
Investors can purchase partial shares of stock indices for $5, and investors transferring assets out of an account will pay between $15 and $25.
Schwab has a robo-advisor with no fees and a $5,000 minimum. If you have at least $25,000 to invest, you can open an Intelligent Portfolio Premium account. There is a $300 charge to start the account and then a $30 monthly advisor fee.
The margin rate at Schwab ranges from 10.575% for loans under $25,000 to 8.825% for loans between $250,000 and $499,999.
Webull vs. Charles Schwab: Services and Features
Webull’s platform is accessible on mobile devices and desktops. It is a customizable workplace station giving news and technical trading tools like charting, fundamental analysis, a stock screener and analyst ratings. Investors using Webull can trade after hours.
Schwab has a robo-advisor offering automated investing services and tax-loss harvesting. The firm also offers a daily Q&A and has a free library of financial education resources for investors looking for a leg up.
Webull vs. Charles Schwab: Mobile Experience
Both of these platforms have robust mobile platforms for those investors who prefer to run their entire personal finance operation from their smartphone.
Webull has a strong app, which mirrors the desktop interface so you won’t have to learn two completely different platforms, though of course it has been optimized for the smaller screen and a mobile experience. You can customize trading ticket information and create watchlists. You can also access research on the mobile app.
Schwab’s mobile app is perfectly usable, but it does lack some of the features you’ll find on the companies web-based platform. While this probably isn’t a big deal for the average investor, if you’re planning on frequently making trades and want to do it from your mobile device this could present some issues.
Who Should Use Webull vs. Schwab
Generally speaking, most investors will be able to get what they want out of either of these platforms. Webull, though, is probably a better fit for a slightly more sophisticated investor who knows what they are doing doesn’t need much hand holding. Schwab, on the other hand, has tools like a robo-advisor for more novice investors.
Webull and Schwab are both popular investing platforms with many tools and features available. While each has its own focus, any investor will probably be able to use either and find what they are looking for.
- If you prefer more of a hands-on approach, a financial advisor could help you create a financial plan for your investment needs. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Even if you aren’t investing on your own, make sure you take advantage of any workplace retirement accounts that are available, such as a 401(k). This is a good way to invest in the market without having to do too much extra work.
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