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Webull vs Betterment (2024)
Betterment vs Webull Smart Advisor for online investing. Compare cost, brokerage fees, IRA accounts, and differences. Which firm is better?
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Betterment vs. Webull Introduction
No two brokerage houses could be more different than Webull and Betterment. For the full scoop on
these two firms, consider our research.
Cost
Services
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Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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WeBull
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Betterment
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Methods of Investing
Betterment started the robo-investing industry. The company offers automated accounts with portfolios of ETFs. There is a monthly fee of $4. Customers who reach $20,000 in assets or set up direct deposit automatically switch to 0.25% per year.
Besides its automated-investing service, Betterment also has real human investment advisors available over the phone to assist with all sorts of issues. Prices for these phone calls range from $299 to $399.
Although it provides no self-directed trading, Betterment did recently launch a robo cryptocurrency service. It costs 1.00% of assets under management plus trading fees of up to 0.15%. There are 4 similar portfolios to choose from. Bitcoin and Ethereum are the majors, although there are some smaller coins in the portfolios.
Webull offers both self-directed trading and robo-advisory accounts. There are custom-built portfolios
with Webull's Smart Advisor which cost 0.30%.
Webull has a longer list of tradable products. Clients can trade stocks (including OTC stocks),
options, closed-end funds, and a long list of exchange-traded funds.
Winner: Webull
Promotions
Webull:
Up to 75 FREE fractional shares when you make a deposit at Webull.
Betterment:
Up to a year managed for free with this promotion.
PC Software
Because Betterment is a robo advisor only, it goes without saying that there are no self-directed tools of any kind on its website. We did, though, find some decent resources on its website that investors of all kinds will find useful.
For example, there is a link to connect with one of the company’s financial planners (look for the “Ask an Advisor” link in the bottom-left corner). There are advertisements for other services through Betterment, such as retirement accounts and banking resources. After these few resources, there’s not much else there.
Over at Webull, there are many self-directed trading tools plus a simple website with account management features. For the former, there are two platforms (web-based and desktop) that deliver lots of gizmos and gadgets for a variety of purposes. Combined, the two trading programs offer:
- Integrated option spreads with profit-loss diagrams
- Full-screen charting with many tools
- Multiple order forms with all sorts of trade types
- Level II data
- Time & sales information
- Multiple watchlists
- Details on Hong Kong securities (not currently tradable, though)
- Alerts
- Price ladder
- Equity screener
- Security analysis tools
Another really nice feature on both of Webull’s computer platforms is simulated trading, which is really useful for beginners and even advanced traders who want to practice.
Winner: Webull
Mobile Apps
Moving on to mobile apps, we see much the same situation. Betterment’s app is user-friendly but simple with no advanced features of any kind. The same ads for other services appear here, too.
Webull’s app continues its emphasis on advanced trading. There are several option spreads and two trading tickets for equities. Available trade types include OTO and trailing stop.
A graph, which isn’t available on the Betterment app, can be displayed horizontally with comparisons and technical studies. There’s also a handy replay mode that can broadcast a recent price history in live action.
One feature on the Webull app that doesn’t exist on the broker’s computer platforms is social networking.
Neither app has mobile check deposit.
Winner: Webull
Margin Trading
In its self-directed accounts, Webull offers both cash and margin trading. It does take a $2,000 account balance to upgrade to margin status (this can be done on the website).
Webull’s trading platforms display margin details for entered ticker symbols, and this is really helpful when trading on margin. Examples of particulars include:
- Overnight leverage
- Short margin rate
- Maintenance requirement
For long positions, Webull has a traditional, stepped pricing schedule. It ranges from
9.24% to 5.24%.
As a robo advisor, Betterment has no margin service of any kind.
Winner: Webull
Miscellaneous Services
Individual Retirement Accounts: An IRA can be opened at either investment firm. Only Betterment has the SEP account for small businesses. Webull restricts its IRA service to one account per customer.
Fractional Shares: Available at both brokerage firms.
Access to IPOs: Only available with a Webull account.
Cash Management Tools: Betterment offers several banking services, including a high-yield savings
account and a checking account with a Visa debit card that includes fee-free ATM withdrawals around the globe.
Webull pays a very high
5% APY interest on cash balances.
DRIP Availability: Dividends are automatically reinvested in either broker.
Extended Hours: Webull clients can trade before the opening bell and in the evening, too. This is not possible at Betterment.
Winner: Webull.
Recommendations
Mutual Funds: Firstrade is a good place to buy shares of mutual funds.
Small Accounts: Because of Betterment’s flat monthly fee, we don’t recommend it for small
investors. With Webull’s fractional-share service, it’s possible to buy stocks or ETFs starting at
$5.
Beginners: An investment-advisory account at Betterment is a good way to start an investment
journey. So is getting an index fund at Webull (it's commission-free).
Retirement Savers and Long-Term Investors: An IRA at Betterment coupled with the company’s
financial-planning services would be good.
ETF & Stock Trading: Definitely Webull.
Promotions
Webull:
Up to 75 FREE fractional shares when you make a deposit at Webull.
Betterment:
Up to a year managed for free with this promotion.
Webull vs Betterment Summary
Self-directed and experienced traders should head over to Webull, while hands-off
investors should use Betterment.
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Updated on 10/4/2024.
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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