What is the best investment app for you?

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If you want to start trading stocks, there is no shortage of different applications. Unlike traditional trading platforms, they are usually free and allow you to invest with very small amounts. They are also designed to be easy to use for beginners.

Robinhood and Webull are two of the most popular options. Robinhood is the better known of the two, but Webull offers many of the same features. So how do they compare and which one is right for you?

What is Robinhood?


Robinhood on the phone

Robinhood is arguably the best-known trading app. It was launched in 2013 and now has over 20 million users. Anyone can join and you can buy fractional shares, which is great if you want to start trading without risking a lot of money. Robinhood allows you to buy stocks, options and cryptocurrencies without charging a commission.

To download: Robin Hood for android | iOS (Free)

What is Webul?


webbull app information
Webbull

Webull launched in 2018, offering many of the same features as Robinhood. It’s not as popular, but that’s partly because it hasn’t been around that long. It offers a similar selection of assets to invest in and, like Robinhood, it aims to build a user base by offering free trading with no minimum deposit. Webull is mainly used on smartphones, but it also has a desktop application.

To download: WeBull for android | iOS (Free)

Robinhood vs. Webull: How do they compare?

Robinhood and Webull are very similar and have many identical features. There are, however, some important differences.

Assets available

Both Robinhood and Webull let you trade stocks, ETFs, and options. Both apps allow you to invest in cryptocurrencies, but Webull is arguably better suited for this purpose as it has more coins.

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Costs

Both Robinhood and Webull offer commission-free trading. There is no minimum deposit, you pay no fees on individual transactions and there are no mandatory monthly fees. It’s free to withdraw money from either platform, but they both charge $75 to transfer an asset, like a stock, out of your account.

Margin

Both trading apps allow you to trade on margin. This means that they lend you money to invest, and if your trade is successful, you can earn a lot more. It is important to note that margin trading is considered a high risk activity as it also allows you to lose your money much faster, multiplying your losses!


Robinhood charges $5 per month for access to margin trading, while Webull provides the service for free. Robinhood charges 2.5% on all the money you borrow, while Webull charges 6.99% on the first $25,000.

apps

Both platforms are arguably best known for their mobile apps. They are both easy to use, highly rated, and require no prior trading experience. The two apps, however, take a slightly different approach.

Robinhood aims to make trading as easy as possible. It has a very minimal interface and avoids any unnecessary information that beginners might not understand. The app includes access to the maps, but they’re simplified and aimed at novices. This allows anyone to buy a stock without knowing more than the stock they want to buy.

Webull isn’t difficult to use, but it takes a much more information-rich approach. It gives access to more informative charts. They include the ability to see additional indicators, view index overlays, and recent buy and sell prices. This makes it more suitable for beginners who want to learn more about trading and understand why stocks have particular prices. However, this additional information can be overwhelming for newbie traders.

Webull also offers paper trading, which basically allows you to make virtual investments without risking real money. You can then track the performance of each of these investments. Paper trading is often used by novice traders, but professionals can also use it to experiment with new strategies.

Both platforms offer online trading, but only Webull offers a dedicated desktop app. This could be an important distinction if you plan to trade primarily on your computer.

Current account

Neither Robinhood nor Webull offer a checking account, but Robinhood does offer a similar cash management feature. Cash management is available to all customers and includes the ability to deposit your paycheck directly into your account. Any money deposited but not invested earns 0.3% interest. Robinhood also allows you to sign up for a debit card, which is not an option with Webull.

The cash management feature is especially useful if you often invest part of your salary or sell stocks to pay for expenses. Either way, the money is readily available to you without any additional transfers.

Robinhood vs. Webull: Which is Right for You?


investment charts on a sheet of paper

Both Robinhood and Webull are recommended for beginners in trading. Of course, which investment app is right for you depends on your personal preferences.

Robinhood is easier to use, so its popularity with newbies is easy to understand. If you want an app that makes trading as easy as possible, Robinhood is the obvious choice. The availability of what is very similar to a current account is also a significant advantage.

Webull provides much more information. This makes it popular with professional traders, but it can also be useful for beginners. If you want to make more informed choices about which stocks to buy, Webull is arguably superior.

The availability of paper trading on Webull is also an important point. This can provide a valuable opportunity to avoid losing money before you figure out what you’re doing.

Neither app promises investment success

Both Robinhood and Webull are very reputable and offer similar features. Of course, there are differences, but whichever investment app you choose, it will provide a wide range of potential investments accessible using a reliable interface.

Perhaps more important is your choice of individual investments to make. It is important to note that most retail investors lose money over the long term, and you should never invest what you cannot afford to lose. If you follow these tips, both apps are worth using.


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