How Does Webull Make Money? Is It Possible To Have Zero Fees?

How does Webull make money? 4 main options

Webull Review

Webull makes money by using the same methods as most other brokers. Short selling fees, margin trading fees, paid subscriptions, interest on cash, order flow fees, and outgoing transfer fees make up most of the back-end revenue streams.

The main difference? No commissions. While it might seem like a single line item, trade commissions are the primary revenue source for many traditional brokers. Webull removes these trading fees to attract users to its platform. The more users on the platform, the more activity that contributes to the back-end revenue streams.

Webull margin trading

Margin trading allows you to borrow money to purchase stocks and other securities. This loan increases your buying power and enables you to place larger orders, but borrowers should make sure not to invest more than they can afford to lose.

Webull offers up to four-times day trading buying power and up to double overnight buying power to margin traders. To open a margin account, you must have a minimum balance of $2000. The interest rates associated with margin trading can be found in the table below.

Interest rates associated with margin trading

Subscriptions

Webull offers global market insights for an additional subscription fee of $1.99/month.

Paying for this higher tier will grant you access to the following Level 2 data:

• Nasdaq TotalView, which gives you the Nasdaq 30 best bids/offers as well as Nasdaq time and sales

• Real-time Options Price Reporting Authority (OPRA) sale and quotation data

• Toronto Stock Exchange best bid/offer quotes and transaction ticker

• Taiwan Stock Exchange best bid/offer quotes and transaction ticker

• Hong Kong Exchange 10 sets of bid/ask data quotes and transaction ticker

Short selling

When you short sell, you are selling stocks or other securities that you don’t own. Webull will lend you these stocks and charge you interest until you give them back, similar to margin trading.

To short sell, you borrow stocks or other securities in the anticipation that their value will drop. Then, after selling these stocks on the open market, you wait until the price has fallen before repurchasing those stocks and returning them to the original lender or brokerage.

Be aware that while people do make significant profits by short selling, the strategy also has a very high risk/reward ratio. If the stock price does not fall or increases dramatically, you could incur heavy losses when you return the stocks.

To short sell on Webull, you must first open a margin account on the platform with a minimum balance of $2000. Daily interest is charged on any open short selling positions.

Working with market makers

Another way that Webull generates income is by directing order flow to market makers. These market makers compete against other stock exchanges, like the Nasdaq, and can often provide better offers.

Webull will send trade orders to certain market makers who try to make a profit on the bid-ask spread. If a profit has been made, the market maker will give Webull a small fraction of that profit.

Although these profits are usually fractions of a cent per trade, they can add up to substantial amounts given the immense volume of transactions handled by Webull.

Other Webull earning sources

Payment for order flow (PFOF)

Payment for Order Flow (PFOF) is a significant income stream for Webull. By routing orders to specific market makers, Webull earns compensation for directing client trades. This method enables the platform to provide commission-free trading while earning revenue from high-frequency traders or institutional firms.

Interest on сash balances

Webull generates revenue by earning interest on the uninvested cash sitting in user accounts. This practice involves lending or depositing client funds with partnered banks, allowing Webull to collect interest while maintaining user funds readily available.

How does Webull explain its business model?

Webull stands out in the world of commission-free trading by keeping things simple — no fees, no minimum deposits, and a platform designed with users in mind. Anthony Denier, CEO of Webull Financial, emphasized that their "Internet model" thrives on providing an intuitive platform that draws in and keeps a large audience.

Denier shared that while Webull earns relatively small amounts from individual users, the sheer number of users keeps the business profitable. The company reached a new peak in early 2025, recording over 1.2 million active users in a single day — a clear sign that their focus on customer needs is paying off.

Unlike some brokers that push clients into making frequent trades to boost commissions, Webull focuses on giving users a low-pressure environment where they can make decisions freely. This transparency has resonated with its growing user base, strengthening Webull’s reputation as a reliable platform for both beginners and seasoned investors.

Is it possible to have zero fees on Webull?

Webull advertises zero commissions on stock, ETF, and options trades, which can indeed save traders a significant amount of money. However, "zero fees" doesn’t mean that all costs are eliminated:

• Hidden costs. Payment for Order Flow might lead to slightly less favorable trade execution prices.

• Regulatory fees. Webull passes on small fees imposed by regulatory bodies like the SEC or FINRA, which are minimal but not zero.

• Spreads. For crypto and certain assets, you’ll indirectly pay through the spread.

For long-term investors who avoid margin, premium features, or frequent trades, it’s possible to trade with minimal costs. However, occasional regulatory or spread fees are unavoidable.

Tips for beginners using Webull

1. Understand PFOF. While Webull is commission-free, understand that order execution quality might differ slightly from paid brokers. Monitor your fill prices to ensure they align with expectations.

2. Avoid margin until experienced. While margin can amplify profits, it also increases risk. Stick to cash accounts until you’re comfortable with market dynamics.

3. Leverage free tools. Webull offers free charting tools, technical indicators, and paper trading. Use these to refine your strategies without risking real money.

4. Be cautious with crypto trading. Crypto trades on Webull involve spread costs, so always factor these into your calculations.

5. Stay informed. Use Webull’s educational resources, like tutorials and newsfeeds, to keep up with market trends. Knowledge is your greatest asset as a trader.

6. Start small. Begin with small investments and gradually increase your exposure as you gain confidence and experience.

Conclusion