Webull vs Fidelity (2022)


Fidelity Investments or WeBull — which is better in 2022? Compare margin accounts, online trading fees, stock broker extended hours, and differences.



Fidelity Investments vs Webull Comparison


Fidelity Investments was established in 1946. Webull started in just 2017. Can the much newer broker outperform the old titan? We have the 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
Fidelity $0 $49.95 $0.65 per contract $0 $0


Promotions


WeBull: 12 FREE stocks valued $34-$30,600 give-away at Webull.

Fidelity: Get $0 stock commissions.



1st Category: Methods of Investing


Before opening a brokerage account, you need to understand what type of account you’re opening and what investment products are available for trading. The two firms in this survey are quite different from each other in this category, so it’s especially important to understand the exact differences.

Webull:

Webull only offers self-directed accounts. With a self-directed account, you the account owner will be responsible for making all trading decisions.

Inside a Webull self-directed account, it’s possible to buy and sell stocks, option contracts, closed-end funds, exchange-traded funds, and cryptocurrencies. Stocks do not include foreign stocks or over-the-counter instruments.

Fidelity:

Fidelity offers both self-directed accounts and managed portfolios. This latter option includes both traditional and digital packages. The broker’s robo service costs less than 0.35% per year and trades a small selection of Fidelity mutual funds with no expense ratios. Financial planning and wealth management packages are available at additional cost.

Customers who want a large selection of Fidelity and non-Fidelity mutual funds will find them inside a self-directed account with the broker. Also on tap are stocks, bonds, annuities, options, ETFs, and closed-end funds. At Fidelity, stocks include both OTC and foreign securities.

Winner: Overall, we would take Fidelity


2nd Category: Margin Borrowing


With current low interest rates, margin trading should be a serious consideration in any devout trader’s program.

Webull:

Webull charges 3.99% to 6.99% right now for margin debits. It does take a very steep $3 million to get the lowest rate, however. Nevertheless, we do like the inclusion of margin details (such as leverage and maintenance requirement) in the broker’s software platforms.

Fidelity:

Fidelity’s lowest rate is 5.525%, and it only takes $1 million to get there. But its highest rate for small balances is 9.825%, quite a bit higher than Webull’s highest rate. And unfortunately, Fidelity’s software doesn’t display margin details like Webull’s platforms.

Winner: Webull


3rd Category: Website Trading


Speaking of software, both brokerage firms do a good job with their websites. Here are the details:

Webull:

In recent months, Webull has worked on its website, bringing more self-service features, such as a security center, the ability to add an avatar, a place to download account documents, and a funds transfer tool. Nevertheless, the site remains very basic. This situation is resolved with the addition of a web-based trading platform.


Webull versus Fidelity


Launched after logging in, this robust piece of software delivers many powerful features. Charting, for example, comes with many tools, and we really like the incorporation of multiple order tickets. A demo mode is icing on the cake.

Fidelity:

Fidelity doesn’t offer simulated trading (at least not yet). Nevertheless, its website is quite advanced, far outstripping Webull’s website; but Fidelity doesn’t have a trading platform on the site, which means the site is it.


Fidelity versus Webull


The Fidelity website is easy to navigate thanks to a very intuitive top menu. A Notebook is a unique feature that allows users to jot down and save comments on securities. Other highlights include charting with tools, advanced option tools, and a pop-out trade ticket.

Winner: Overall, pretty close


4th Category: Desktop Software


More advanced trading will be found on the two brokers’ desktop platforms.

Webull:

For whatever reason, Webull’s browser platform only offers derivative trading in calls and puts. But its desktop program (when upgraded to version 5.1.12, the latest version) has pre-installed strategies. During our testing, it was easy to trade these. Other highlights on this platform include right-click trading, a price ladder, multiple themes and layouts, and volume analysis.


Webull or Fidelity


Fidelity:

Fidelity comes through with simulated trading with its desktop software Active Trader Pro. As the name suggests, this is a very advanced piece of software that experienced traders will enjoy using. During our trial of it, we especially liked color-coded Level II data, direct-access routing, and basket trading, which is the ability to send multiple orders simultaneously.


Fidelity or Webull


Winner: Very close again


5th Category: Mobile Apps


Fidelity and Webull continue to shine with the addition of mobile trading technology.

Webull:

We were really impressed with Webull’s mobile app during our testing of it. There is a social networking tool that allows users to discuss specific stocks and other trading issues. Webull clients can even go head-to-head in trading competitions, albeit only in demo mode.


WeBull compared to Fidelity


Charting is on a high level, with several tools and widgets not available on other brokers’ apps. These include a replay mode and a dual-chart system. Other app highlights worth mentioning are time & sales data and option strategies.

Fidelity:

Fidelity’s app also has pre-installed option spreads, although it doesn’t have time & sales data or the advanced charting features that Webull managed to incorporate into its mobile platform. Nevertheless, it does have some features that Webull fails to incorporate like streaming financial news (courtesy of the very informative Bloomberg) and mobile check deposit.


Fidelity compared to Webull


Winner: Too close to call once again


6th Category: Miscellaneous Services


Fractional-share Trading: Both Webull and Fidelity offer fractional share trading in stocks and funds.

Banking Tools: Fidelity delivers some very good cash management tools. Webull has nothing.

IPO Availability: It’s possible to participate in Initial Public Offerings at either broker in this examination. Webull has a $100 account minimum, while Fidelity requires either $100,000 or $500,000.

IRAs: Saving for retirement is possible with tax advantages at either Webull or Fidelity. Fidelity has more IRA types, including an inherited IRA.

Dividend Reinvestment Program: Fidelity customers can sign up for dividend reinvesting on stocks and funds. Webull customers cannot.

Extended Hours: Pre-market and after-hours trading are possible at either brokerage house. Webull starts at 4 am, while Fidelity starts 3 hours later. Both evening sessions end at the same time.

Automatic Mutual Fund Investing: Fidelity customers can sign up for periodic mutual fund purchases.

Winner: Draw


Our Recommendations


Mutual Fund Trading: It has to be Fidelity.

IRAs: Fidelity has more IRA types and an extensive library of IRA resources and learning materials.

Small Accounts: Neither Fidelity nor Webull has any account minimums or fees. Even Fidelity’s portfolio management is free for the first $10,000. Webull has much lower margin rates.

Stock/ETF Trading: Fidelity’s has extensive research tools and excellent screeners. Webull is better priced.

Beginners: Fidelity has better learning materials. Webull is cleaner and has a simulated trading account.

Long-Term Investors and Retirement Savers: Who has self-employed 401(k)’s, annuities, many IRA types, and one-on-one financial advice? Fidelity of course.


Promotions


WeBull: 12 FREE stocks valued $34-$30,600 give-away at Webull.

Fidelity: Get $0 stock commissions.



Fidelity vs Webull Final Judgment


The older brokerage firm has an overall edge, but Webull has made huge strides since its founding, especially in the realm of software, and its stocks and cryptocurrency trading service is very enticing.



About the Author
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.