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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Webull is an electronic trading platform that allows you to exchange stocks, options, cryptocurrencies, ETFs, and more. You can access the platform on any mobile device or desktop computer, and their fees are among the lowest on the market!
However, some things are not free. This comprehensive guide will review everything you need to know about Webull fees and how much they charge for services. We will discuss everything from trading and deposit fees to how these amounts compare to other trading platforms.
There are no crypto fees on the Webull platform, and there are no minimum capital requirements either. The company charges only a markup that is already built into the cost of the cryptocurrency.
Since Webull is an online trading platform, it makes sense to start with their trading fees. These include the brokerage fees that you are required to pay any time you actually make a trade. For example, a trading fee would apply any time you purchase a stock or ETF.
Depending on the transaction, you may be charged a commission, financing rate, or spread.
So, does Webull charge fees? The short answer is no, they do not, but some charges may still apply.
Webull does not charge any commissions for trading securities listed on U.S. exchanges. This includes stocks, ETFs, and options. However, regulatory agencies like the SEC, FINRA, and OCC do impose certain fees. Although Webull does not profit from these charges, they are still applied according to regulatory standards.
Webull Stock Fees
For stock sells, the SEC imposes a transaction fee. The minimum fee is $0.01, but the total amount can be calculated as follows:
SEC Transaction Fee = $0.0000051 x Total Dollar Trade Amount
That means for a $50,000 stock sell, the SEC will charge you a transaction fee of $0.255.
FINRA, or the Financial Industry Regulatory Authority, also requires a fee. It is a regulatory fee that is charged on sell transactions only, and it can range anywhere from $0.01 to $5.95 per transaction. Here is how you can determine your regulatory fee:
FINRA Regulatory Fee = $0.000119 x Total Trade Volume
In this example, if you sold 50,000 shares, you would be assessed a regulatory fee of $5.95 – which is the maximum charge allowed. So, even if you sold 100,000 shares, your fee would not be any higher.
All applicable stock fees will be withheld from your proceeds by Webull’s clearing partner, Apex Clearing.
Webull Options Fees
Like with stock trades, the regulatory authorities impose certain fees for options activity. Here is a quick breakdown of each of these charges:
Webull does not charge commission fees for crypto trading. However, there is a 100-basis point spread on each side of the trade.
Webull Non-Trading Fees
When you use an online trading platform, you may also be subject to non-trading fees. These charges are not related to buying, selling, or trading assets. Instead, they apply when you deposit or withdraw funds, are inactive, or have an account open.
In other words, some brokers may charge a deposit fee, inactivity fee, or an account fee. The good news is that Webull does not charge you a lot for non-trading-related activities!
Does Webull Have an Inactivity Fee?
Webull does not charge any account maintenance or inactivity fees. That means you don’t have to worry about getting charged for not trading on the platform or simply for having an account open!
How does Webull Charge Transfer Fees?
You may also receive a charge when you transfer stocks in or out of Webull.
If you transfer stocks into the platform Webull will not assess a fee, but the delivering broker may – you will need to contact them to determine the cost.
On the other hand, if you need to transfer shares out of Webull, you will be charged $75 per outgoing stock transfer. The receiving broker may also impose a fee - but again, you will need to obtain that information directly from them.
Webull Charges Deposit and Withdrawal Fees
A deposit fee applies when you send money to your account directly from your bank. A withdrawal fee is just the opposite – a charge that may be imposed when you take money out of the online trading platform.
Does Webull charge deposit and withdrawal fees? Here is a quick summary:
Webull Deposit Fee
Webull does not charge any deposit fees for any transfers made via ACH. However, if the ACH deposit is returned because of insufficient funds or any other reason, you will have to pay a $5 reversal fee.
Deposits made via wire transfer will require an $8 fee per the Apex Clearing firm, and this fee will increase to $12.50 for international wire transfers.
Webull Withdrawal Fee
There are no withdrawal fees on Webull if you use the ACH transfer method. As a result, the amount you see posted to your bank will be the same as the transfer you requested. The $5 reversal fee for insufficient funds or other reasons also applies to withdrawals.
If you choose to withdraw your funds through a wire transfer, you will be charged $25 per transaction. Similarly, if you request an international wire transfer to withdraw funds, the charge will be $45 per transaction.
Webull Margin Interest
When you buy or sell on margin, you will be charged interest on those transactions. Webull gives you up to 4x day-trade buying power in addition to 2x overnight buying power – note that these transactions are only allowed within a margin account.
You need at least $2,000 to qualify for margin trading, and the interest is calculated daily. However, you only need to pay the margin interest fee once per month. The rates vary by the size of the margin loan and other economic factors, but this table provides a helpful summary:
Debit Balance
Annual Margin Interest Rate
Less than $25,000
6.99%
$25,000 to $100,000
6.49%
$100,000 to $250,000
5.99%
$250,000 to $500,000
5.49%
$500,000 to $1,000,000
4.99%
$1,000,000 to $3,000,000
4.49%
Greater than $3,000,000
3.99%
As you can see, the margin interest rate decreases if you have a larger debit balance.
Short selling fees are also charged the same way. For these transactions, you are borrowing shares to sell them – and the stock loan rate will be charged daily. The rates change every day since they are based on market conditions, but you can use this formula to determine the cost:
Daily Margin Interest = (Daily Market Value of Stock at Market Close x Loan Rate) ÷ 360
Webull Fees Example
To review, here is an overview of all the fees charged by Webull:
Stock Trading Fee
$0
Options Fees
$0
Crypto Fees
$0
Inactivity Fees
N/A
ACH Deposit Fee
$0
ACH Withdrawal Fee
$0
Wire Transfer Deposit Fee
$8
Wire Transfer Withdrawal Fee
$25
Margin Interest
3.99% to 6.99%
Now that you understand the fees associated with buying and selling securities on Webull, let’s review a few examples that can make things clearer.
Stock Transaction
If you want to purchase 10 shares of stock XYZ that is trading at $5 per share, it will cost you $50:
10 shares x $5 per share = $50 Total Cost
There are no transaction fees, and the regulatory authorities do not charge anything on buy transactions.
Cryptocurrency Transaction
Webull does not charge transaction fees for cryptocurrency trades. When you purchase $100 worth of a digital token, you will not see a fee on your account – the 100-basis point markup is already built into the cost of the crypto you are buying or selling.
Options Transaction
When you purchase an option, Webull does not impose any transaction fees. You will pay the cost of the options contract, plus the regulatory and clearing fee required by regulators.
If you buy one option contract for $15, you will also owe the following fees:
$0.02 x 1 Contract = $0.02 Clearing Fee
$0.0388 x 1 Contract = $0.0388 Options Regulatory Fee
That means purchasing a $15 options contract will cost $15.0588.
Webull vs Robinhood: Fees Comparison
One of Webull’s main competitors is Robinhood. Both are online trading platforms that are very similar – they aim to provide low and zero commissions for their users. So, how do these two brokers compare? Here is a table that compares the fees charged by each of the brokers:
Webull
Robinhood
Stock Trading Fee
$0
$0
Options Fees
$0
$0
Crypto Fees
$0
$0
Inactivity Fees
N/A
N/A
Wire Transfer Deposit Fee
$8
$25
Wire Transfer Withdrawal Fee
$25
$25
Margin Interest
3.99% to 6.99%
2.50%
How Does Webull Make Money
At this point, you may be wondering, how does Webull make money? They don't charge commissions or trading fees, but they are still a business that must generate revenue – so, where does it come from? This is a common question that comes up when analyzing online trading platforms with low or zero fee structures.
Webull makes money just like every other broker does, but the main difference is that they don’t have the revenue line associated with commissions. Instead, they rely on fees from margin loans, interest on credit balances, and payment for order flow.
Their largest revenue stream is payment for order flow, which refers to routing trades to a particular vendor to be executed. When a customer does not directly instruct Webull where to send their trades, the platform selects the execution venue on their behalf.
For example, Webull will receive payments from Virtu Financial Inc. for directing orders to them. The payment amount will vary based on the time the order is placed, its size, and the type of securities being traded. In Q4 of 2019, these payments averaged $0.00026 per dollar of the executed value.
They work with other partners as well, including Citadel Securities, Two Sigma Securities, Jane Street Securities, and Apex Clearing Corp. Each time that they route orders for execution to one of these vendors, they will receive a payment for that order flow.
Is Webull Safe?
Another common question users have about Webull is whether it is safe. Online trading platforms are relatively new, so many have concerns about the legitimacy of this technology – especially since it can directly affect their money and investments!
Webull is a fintech startup that is based in the U.S., so it is regulated by the Securities and Exchange Commission (SEC) and FINRA, the Financial Industry Regulatory Authority. As such, they are required to comply with all rules and regulations that govern securities trading and protect consumers.
For example, they are covered under SIPC, which stands for the Securities Investor Protection Corporation. This protection scheme is almost like an insurance for consumers since it will cover $250,000 worth of cash per account should something happen to Webull.
Similarly, Webull provides a maximum of $500,000 of investor protection to ensure that their users feel safe and secure when utilizing their platform.
Although this does not guarantee safety in the market – meaning that investment values can fluctuate, and it is possible to lose money – it does mean that the platform is safe to use. The one downside is that they have not yet implemented two-fact authentication for login, but many other brokers do not require that either.
Webull is an online trading platform that offers zero-commissions trading. That means they do not impose any fees for buying or selling stocks, options, or cryptocurrencies. As a result, they are one of the most affordable platforms available and a favorite of many investors!
Since they don’t charge any commissions or trading fees, you can get the most out of your investments. Although other regulatory charges may be imposed by FINRA or the SEC, these apply to all brokers – so Webull is no different. They make their money on margin loans interest and payment for order flow, so it does not come directly out of your pocket.
FAQs
Is buying crypto on Webull free?
Yes, Webull has not provided for a commission for cryptocurrency trading. There is only a 100 basis point spread on the platform (1% of the value of the cryptocurrency).
Is Webull good for crypto?
Yes, on the platform you can trade cryptocurrency 24/7, transactions are not subject to commission. The only negative is the impossibility of transferring cryptocurrencies from Webull to another platform.
Does Webull have any hidden fees?
No, there are no hidden fees on the platform (service fees, inactivity, etc.).
What is the commission for trading stocks on Webull
Broker Webull does not charge a commission for trading stocks
Is it profitable to trade cryptocurrency on Webull?
Yes, on Webull you can trade cryptocurrency with a commission of 0%
What commission will I pay for depositing and withdrawing an account on Webull?
When transferring ACH, the commission is 0%. Commissions are charged only for bank transfers - 8% for deposits and 25% for withdrawals.
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
