TD Ameritrade 300

Webull vs Acorns


Compare Acorns versus Webull - which broker is better in 2022? IRA/Roth accounts, online investing fees, broker mutual fund rates, and differences.



Overview


If you’re looking for a modern tech-savvy brokerage firm, look no further than Webull and Acorns. Although they are similar in this regard, there are important differences between them. For example, consider these issues:


Pricing


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
WeBull $0 na $0 per contract $0 $0
Acorns na na na $3-$5 per month $3-$5 per month


Promotion Links


Acorns: Get $10 when you open an Acorns account with this referral link.

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



First Category: Investment Methods


Acorns doesn’t offer self-directed trading accounts. Instead, it provides robo management of 12 (yes, just 12) exchange-traded funds. The kicker is that the broker has a round-up service (there’s a charge for this) that lets clients round up debit and credit card purchases and transfer the difference to Acorns accounts. These transactions can occur anywhere plastic is accepted.


Acorns


Webull is pretty much the opposite of Acorns. Webull doesn’t offer any investment-advisory services. It provides self-directed trading in stocks, options, closed-end funds, cryptocurrencies, and ETFs. Every ETF in the United States is available for trading. That’s more than 2,000 funds. Penny stocks can be traded as well.

We like Webull’s setup better.


Second Category: Technology


To service its self-directed clients, Webull offers three trading tools: a mobile app, a browser platform, and a desktop program. The latter two are exactly the same.


Webull Trading Platform


The computer program delivers option chains for derivative traders. For stock and fund traders, there are charts with technical studies and drawing tools. There is a default watchlist on the platform that can be modified. The trade ticket offers a variety of order types and duration choices.

The Webull mobile app has a community forum where traders can discuss investing and the day’s market news. There is also a simulated trading mode, which the desktop software also has. Charting on the mobile system is quite good.

Because Acorns doesn’t emphasize self-directed trading, the broker doesn’t have a desktop platform. It does have a mobile app and website, though. Both of them are user-friendly but don’t offer any trading tools because self-directed trading isn’t possible. There are account management features and not much else.

Webull takes another victory.


Third Category: Learning Materials


For investment education, the Acorns site has videos and articles that address basic financial issues such as managing credit, weathering bear markets, and using its round-up service. The number of materials is rather small, and they’re mostly about personal finance rather than trading.

At Webull, the picture is largely the opposite. There are brief articles on trading topics, but the lion’s share of information is found on security profiles. Here, there is data on short interest, institutional holdings, time and sales, order flow, and margin requirements. Although there are no pdf stock reports, there are analyst recommendations.

Webull also has a stock screener that looks for investments based on a few criteria. These include EPS, market cap, and sector. Results can easily be sorted by any condition.

Another loss for Acorns.


Fourth Category: ETFs


As we already mentioned, both investment firms in this study offer ETFs. The problem we have with Acorns is that it only offers trading in a grand total of 6 funds. Moreover, there isn’t much information on these funds. Clients answer questions on an online questionnaire, and then the company’s robot makes trading decisions.

At Webull, there aren’t a lot of great fund resources, either. The broker’s platform shows the day’s big ETF movers. Fund profiles display news articles, dividend history, and asset allocation over multiple quarters.

Webull has a slight advantage.


WeBull Investing


Fifth Category: Cash Management Tools


Despite Acorns’ limited investment service, the company does provide some decent banking tools. Its app offers mobile check deposit. For spending, Acorns customers get a Visa debit card and FDIC insurance up to $250,000. Moreover, ATM fees are reimbursed by the broker. There is a $3 monthly fee for all this, the one downside.

Webull offers nothing in this category and finally suffers a loss.


Sixth Category: Other Services


Dividend Reinvestment Program: Acorns automatically reinvests dividends from its 12 funds. Webull does not have a DRIP service.

IRAs: Webull has more investment options for Individual Retirement Accounts.

Automatic mutual fund investing: For obvious reasons, neither Acorns nor Webull offers this service.

Fractional-share Trading: Available at Webull but not in Acorns.

Webull wins another category.


Recommendations


Beginners: It’s tempting to choose Acorns for its auto-investing service. But there’s really nothing to learn at Acorns. We think new traders will learn more at Webull, especially with its decent, although not great, customer support.

Mutual Fund Traders: We propose TD Ameritrade.

ETF and Stock Trading: Webull’s software and research materials make it the easy pick.

Long-Term Investors and Retirement Savers: Both brokers will work.

Small Accounts: Because of Acorns’ flat monthly fee, small accounts will be better off at Webull.


Promotion Links


Acorns: Get $10 when you open an Acorns account with this referral link.

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



Webull vs Acorns - Outcome


Acorns has a unique style of investment management, but it also underperforms Webull in most categories. The latter broker is obviously the better firm for self-directed trading.




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.