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Webull vs TradeStation (2024)
TradeStation or Webull: which is better? Compare investing accounts, online trading
fees, stock broker extended hours, and differences.
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Webull vs. TradeStation: Key Impressions
• Webull and TradeStation have sophisticated software for advanced traders.
• Webull, but not TradeStation, has robo accounts in addition to self-managed accounts.
• No-fee IRAs will be found only at Webull.
TradeStation vs. Webull Introduction
TradeStation and Webull are similar in some ways but very different in others. Have a look.
Investing
Webull traders can sell and buy a moderate list of financial instruments:
- Domestic stocks
- Option contracts
- ETFs
- Futures
- Bonds
- Closed-end funds
Webull’s domestic-stock category includes over-the-counter (OTC) securities that can include foreign issues.
TradeStation also offers access to OTC stocks plus a large selection of foreign stocks through a partnership with Interactive Brokers. And TradeStation has fixed income, mutual funds, and futures contracts (in addition to everything on Webull’s list mentioned above).
But Webull has an entire division that does not exist at TradeStation: investment advice. This service is only available in automated form. A $100 minimum is required at a cost of 0.2% per year.
Both Webull and TradeStation have taxable and tax-advantaged accounts. Only TradeStation has business accounts.
Winner: Debatable
Banking
TradeStation does not have any cash-management features that are worth mentioning here. Webull doesn’t do much better, although it does have an FDIC sweep that yields 5.0% on uninvested cash right now.
Winner: Webull
Websites
TradeStation has a basic website for account management only. There is no trading capability, and we found no research tools, either. However, the site hosts three trading platforms:
- Web Trading (live and simulated)
- FuturesPlus
- Crypto
The first one, Web Trading, is for futures and securities. The second one is for futures options. The securities platform has a really good order ticket with account switching, tons of duration choices, and several advanced order types. Full-screen charting is available with more than 50 technical studies.
Over at Webull, we found just one trading platform on its website. It can submit orders for all of the products available through the brokerage house. Charts are on a somewhat higher level compared to TradeStation with more plot styles and more drawing tools.
There are three order tickets on Webull’s platform: a classic ticket, an advanced ticket, and a rapid-fire ticket. TradeStation’s securities platform, by comparison, has two (a regular ticket and a price ladder). Both platforms offer practice trading.
Winner: Pretty even
Mobile Apps
Mobile traders will find much to like about either firm. The TradeStation app has simulated and live trading with the same great order ticket we found on its platform. Charts, though, are on a lower level with no horizontal mode. Option chains are available on a security’s profile with several pre-installed strategies. It’s possible to create custom 4-leg orders.
On Webull’s mobile app, it’s not possible to create 4-leg orders, although there are integrated option plays. Webull does have horizontal charting, and a graph has all sorts of great tools, like dual charting, a screenshot tool, and chart layers. As with the TradeStation app, there are some really advanced order types on the Webull app like bracket orders and limit conditional.
One feature on Webull’s app that we really like that we didn’t find on TradeStation’s app is a Feeds section, which is a digital bulletin board.
Winner: Webull
Desktop Environments
Desktop platforms are available at both firms and round out the trading picture. They both have a lot of the same trading resources we have already seen, although the TradeStation program has a greater selection of advanced tools, such as TSAlgos (a selection of trading algorithms) and a strategy optimization tool.
Winner: TradeStation
Day Trading
Hotkeys: Desktop platforms at both broker-dealers have customizable hotkeys.
Day-Trading Workspaces: Both desktop systems in this contest have layouts for day trading.
PDT Counter: Both platforms have day-trade counters, too.
Level 2 Quotes: TradeStation and Webull both offer Level 2 data.
Short Trades: Short-trading tools and margin details are available at both firms.
Order Routing: Direct access to ECNs and market venues is available at TradeStation but not at Webull.
Extended-hours Trading: Both firms have pre-market and post-market trading. Futures at TradeStation are available 24/6, and cryptocurrencies can be traded 24/7.
Winner: TradeStation
Margin
Both firms offer cash and margin trading for brokerage customers. Webull does require $2,000 in equity before an account can enable margin.
Any account that does actually borrow money will be liable for interest charges. Right now, Webull charges 9.7% to 5.7% for long positions, depending on the total amount borrowed. TradeStation’s tiered schedule is a little higher: 13.5% or 12.5% with negotiated rates above $500,000.
Webull’s software shows margin details such as maintenance requirement and margin rate for specific securities. TradeStation’s software doesn’t do this, although its website has a list of symbols with abnormal margin requirements.
Winner: Webull
Added Services
Fractional-share Trading: Only at Webull.
Individual Retirement Accounts: Both investment firms here offer IRAs. TradeStation charges multiple fees on its retirement accounts, although crypto and futures IRAs are available. Webull has no IRA fees.
DRIP: Webull offers automatic dividend reinvesting.
Initial Public Offerings: Both broker-dealers offer IPO trading.
Systematic Mutual Fund Purchases: Not on tap at either brokerage firm.
Fully-Paid Stock Lending: TradeStation and Webull clients can earn some extra cash by loaning out their shares of securities.
Winner: Webull
Promotions
Webull:
Up to 40 FREE fractional shares when you make a deposit at Webull.
TradeStation:
Get up to $150 cash bonus with a $5,000+ qualifying deposit
Our Recommendations
Mutual Funds: For obvious reasons, TradeStation is better than Webull, although Vanguard would be better than TradeStation.
Long-Term Saving & Retirement Investing: An IRA with Webull would be a decent way to start planning for retirement. TradeStation has trust accounts.
Beginners: A robo account with Webull (combined with paper trading on its desktop platform).
Small Accounts: TradeStation has a $10 monthly fee. Plus, a securities IRA has a $35 annual fee and a $50 termination fee. Obviously, this is not a brokerage firm for small investors. Webull has no fees.
Frequent Stock/ETF Trading: Webull and TradeStation are both good for active equity trading.
TradeStation vs Webull Result
Although TradeStation is the more advanced broker-dealer, Webull is well worth considering, especially with its fractional-share service and DRIP investing.
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Updated on 10/7/2024.
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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