Webull vs Schwab Comparison
Charles Schwab is decades older than Webull. Does that mean Schwab is where you should open your next
brokerage account? This comparison has an answer.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
WeBull
|
$0
|
na
|
$0 per contract
|
$0
|
$0
|
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
When it comes to commissions, Webull is better priced than Charles Schwab. The firm also
offers much lower margin rates, which is important if you'll be borrowing money from your broker.
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
WeBull
|
|
|
|
|
|
|
|
Charles Schwab
|
|
|
|
|
|
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Promotions
WeBull:
12 FREE stocks valued $36-$36,000 when you deposit ANY AMOUNT at Webull.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Investment Services
Schwab customers can open both self-directed and investment-advisory accounts. The latter have a variety of setups, minimums, and prices. The company’s automated service is free with a $5,000 starting balance. It invests in a small selection of ETFs.
Self-directed clients get thousands more ETFs. They also get a smorgasbord of other assets, including stocks, mutual funds, options, bonds, closed-end funds, and futures contracts. Schwab’s equity offering includes foreign stocks.
Webull offers self-directed trading only. There are no managed accounts of any kind. The list of
tradable instruments includes stocks, ETFs, options, closed-end funds, and cryptocurrencies. Foreign stocks are not tradable, although Webull does provide information on some of them.
A self-directed account at Webull can be opened as an individual or retirement account. There are no other account types available at the moment.
A managed or self-directed account with Schwab can be opened in a variety of tax structures. These include custodial accounts, trusts, estate accounts, small business accounts, joint accounts, etc.
Winner: Schwab
Websites
For actual trading, both brokerage firms have powerful websites. Schwab’s has a trade bar at the bottom of the screen that provides real-time data on any company or ticker symbol entered. The widget can display a small graph, too, although the trade bar can’t send an order to an exchange. For this, Schwab has a trade ticket that sits within a web page. It has a discrete sell short button and five basic trade types. There is a conditional order as well.
Traders at Schwab who demand more can use StreetSmart Central. This is a browser platform that can be launched from the Trade Futures page (click on the Trade tab in the top menu and then select Futures). An older link in the upper-right corner of the site has been removed.
Despite its association with futures, Central can trade equities and options. It does have some very advanced order types, including OTO and contingent on volume. And charting is on a very high level.
Webull’s website has no trading tools, although there is a web-browser platform that brings trading to a high level. Unlike Schwab, Webull decided not to give the software a name. Nevertheless, we do quite like it.
The platform has three (yes, three) order forms. Two differ mainly in layout, while a third delivers quick trading with pre-defined buttons (like sell $300 of the ticker symbol at market price). The platform has simulated trading, which Central lacks. And charting is very good with many tools.
Winner: Schwab
Other Software
Browser platforms are only the beginning for these two. Desktop programs are available free of charge. Once again, Schwab has given its software a name, while Webull has not.
StreetSmart Edge offers some really nice features that won’t be found on Central. These include live streaming of CNBC, Level II quotes, and direct-access routing (with only a few choices, though). Profit-loss diagrams are included on the order ticket, and this results in a really nice experience. This time, Schwab included demo trading (look for the check box on the login screen).
Webull’s desktop program also offers simulated trading. Like Edge, it has a lot of advanced features, although direct access to market makers isn’t one of them, nor is streaming business news. We do like the charting and order entry on the platform, though.
And then there are the mobile apps. Both brokers deliver effective trading tools. Option spreads are pre-installed on both apps, for example. And horizontal charting with many tools is standard fare.
For futures trading, Schwab has a discrete app. Called StreetSmart Mobile, it can trade contracts, although it loses a lot of the features found on the regular app.
Only Webull has social networking on its app, and only Schwab has mobile check deposit.
Winner: Overall, pretty close
Margin Services
Both investment firms in this contest strive to be powerhouses in trading. So of course they offer margin accounts. It’s really easy to upgrade a cash account to margin status on either broker’s website.
Schwab’s website shows short interest and maintenance requirement. Its mobile app shows only the maintenance requirement. Webull’s software displays margin details on a security’s profile. Details for both long and short strategies are displayed.
Margin trading involves borrowing money, and this of course comes at a price. Currently, Schwab’s tiered
schedule ranges from 13.575% to
11.825%. Webull charges anywhere from
9.49% to
5.49%.
Winner: Webull
Security Research
Webull has an effective stock screener that can look for potential investments based on a wide variety of criteria, including market cap, return on equity, and technical events. The search wizard can scan the Chinese, Indian, and Canadian markets, although results are not currently tradable.
The downside of the stock search tool is that it only searches for stocks. It doesn’t have the ability to search for ETFs. Webull’s website has an “ETF Top Movers” section, but that’s the extent of ETF searching.
Security profiles at Webull deliver quite a bit of info, especially for big-name stocks. During our research, we found corporate actions, press releases, financial statements, and news articles. There are trade recommendations from multiple analysts, although there are no stock reports.
Schwab does offer stock reports. These can be downloaded in pdf format from several analysts. There is no charge for doing so.
As with Webull’s profiles, security profiles on Schwab’s website have a great deal of information. For example, we found peer comparisons and expected earnings along with technical movements.
Unlike Webull, Schwab has an actual ETF screener. The tool can look for funds based on tons of criteria. Plus, Schwab has screeners for bonds and mutual funds.
Winner: Schwab
Customer Support
Schwab clients who need assistance can find it at one of the company’s 200+ locations. There is one in almost every city in America. Large cities like Los Angeles have more than one.
Customers who would rather skip the drive can chat with an agent online through the chat widget on the website. It will be found at the top of the site under the Support link. It starts in robo format, although a human is available (look for the link to chat with a representative).
The website also has a document upload tool that can be used to send a message. Look for the Messages link next to the Support link.
Phone and chat services are available around the clock, which is an obvious advantage over the branch locations.
Webull has no branch locations, and this is strike one. The brokerage firm also offers no online chat or internal messaging, which is strike two. It does have 24/7 phone service. It also has a customer support email address for traders who prefer email.
Both broker-dealers provide service in Chinese.
Winner: Schwab
Other Services
IRAs: Webull offers 4 IRA versions (Roth, Traditional, Rollover, and Inherited). Schwab offers these four plus three others (Custodial, SEP, and SIMPLE).
Dividend Reinvesting: Schwab customers, but not Webull traders, can set up automatic dividend reinvesting for securities that make cash distributions.
Cash Management: Who offers checkwriting? Schwab does. Who has a Visa debit card with unlimited
ATM fee refunds? Schwab does. Who offers both checking and savings accounts with FDIC insurance?
Schwab does. Who has credit cards? Schwab does. However, Webull now pays an impressive
5% APY interest on cash balances–higher rate than at all banks.
Extended Hours: Pre-market and after-hours trading are both possible at Schwab and Webull. The latter broker has longer hours.
IPO Participation: Webull and Schwab both offer access to upcoming Initial Public Offerings. During our research, we found zero current IPOs inside our Schwab account and 11 inside our Webull account.
Fractional-share Trading: Stocks and ETFs are available for trading in whole-dollar amounts at Webull. Schwab offers only the S&P 500 stocks for fractional-share trading.
Auto Mutual Fund Purchases: Available inside a Schwab account.
Winner: Schwab
Recommendations
Mutual Fund Trading: Schwab is it.
Small Accounts: For self-directed trading, neither Schwab nor Webull has a deposit minimum or
any ongoing fees. But Webull has $0 commissions on all products.
Active Stock Trading: Both Schwab and Webull have really good trading platforms. We tend to
favor Webull, who has more stocks available for
partial-share trading and paper trading. Due to Schwab’s $6.95 commission for OTC trades, we recommend Webull for over-the-counter trading.
Beginners: A managed account with Schwab (preferably, one with an attached human financial
planner) would be a great way to start investing. So is buying index fund at Webull and paying nothing.
Long-Term Investors & Retirement Savers: Schwab has countless resources for long-term investors,
including not just a long list of account types, but annuities, investment advice, small business
services, insurance, charitable giving services, and more.
Promotions
WeBull:
12 FREE stocks valued $36-$36,000 when you deposit ANY AMOUNT at Webull.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Webull vs Charles Schwab Verdict
Yes, Schwab has built an impressive brokerage unit over the years, and it does have a lead over
Webull...at least for now.
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Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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