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Webull vs. E*Trade: How They Compare

Byline profile imageWritten by Rosemary Carlson
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Byline profile imageEdited by Marie White, CEPF®
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Webull and E*TRADE are two popular online investment platforms, each offering a different approach to investing. Webull is a relatively new online brokerage dealing mostly in liquid assets and offers securities for investors who trade frequently. It’s a favorite among the millennial generation and is excellent for beginning investors interested in becoming active traders. On the other hand, E*TRADE is a user-friendly program that welcomes beginners but is powerful enough for active traders. To help you decide between Webull vs. E*TRADE, we compare the two brokerages based on crucial factors like services, fees, user experience and mobile features. 

Consider working with a financial advisor to develop the right investment that best suits your goals and interests.

Webull vs. E*TRADE: An Overview

Webull is a U.S.-based fintech startup that is regulated by both the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is a relatively new online brokerage, only launched in 2016, and is especially popular with the millennial generation. Initially only a mobile app, it has since expanded to include both a desktop and web-based version. Indeed, Webull has grown rapidly, and today, it is one of the best online brokerages. Webull has a limited line of investment products, but they do allow cryptocurrency trading.

E*TRADE, a full-service online brokerage, has been around since 1982 and was one of the first brokerages to establish an online presence. It made its first online trade in 1983 and went public in 1996. E*TRADE, which began offering commission-free trades in 2019, has something for everyone. It has an innovative trading technology that appeals to advanced traders, and it has a vast wealth of educational resources for beginner investors. It has minimum fees and investment securities that span the broad market.

Webull vs. E*TRADE: Products

There are some significant differences in the services available between Webull vs. E*TRADE. Webull offers several types of investment securities, including equities, exchange-traded funds (ETFs), options, futures and money market funds. Webull also offers cryptocurrencies. There is a limited offering of digital tokens, and you must sign up to invest in cryptocurrency on Webull. Webull also offers the trading of fractional shares, which often appeals to young investors.

Webull’s fixed-income investments include U.S. Treasury bonds, plus fractional bond trading. Webull also offers other types of accounts, including cash management accounts, margin accounts and money market accounts. Also available are individual retirement accounts (IRAs), including traditional IRAs, rollover IRAs and Roth IRAs. 

Webull’s products often appeal to young investors and speculators because they encourage frequent trading.

E*TRADE’s product offerings are similar to many other full-service online brokerages, attracting both passive and active investors. It offers stocks, bonds, ETFs, mutual funds, options and futures. It does not offer cryptocurrency directly, but you can trade Bitcoin futures. 

If you are interested in forex or international investing, E*TRADE may not be the brokerage for you because it does not offer these investment vehicles. However, neither does Webull. For forex trading, you will be better served by a forex trading platform like FOREX.com, Charles Schwab and IG.

Webull vs. E*TRADE: Fees

Webull offers no-commission trading and no minimum deposit or balance for accounts except a $1 deposit fee for fractional shares and cryptocurrency accounts. It requires $2,000 in equity to open a margin account, and rates range from 4.65% to 8.74%. 

Webull charges $8 in the U.S. for each wire transfer (and $12.50 for international wires). The brokerage also charges $25 for withdrawals in the U.S. and $45 abroad. Webull does not charge an inactivity fee.

In comparison, E*TRADE offers no-commission trades and no account deposits or minimums except for margin accounts. The margin accounts require a $2,000 deposit, like Webull. Options contracts are $0.65 per contract, although the rate decreases to $0.50 per contract if you make more than 30 trades per month. There is no transaction fee for no-load mutual funds. Futures contracts carry a $1.50 per contract. E*TRADE’s margin rates start at an 11.20% annual percentage rate and go down from there.

Webull vs. E*TRADE: Education and Research

Webull falls behind E*TRADE with its educational material. While it does offer some educational material for investors, it does not compare to E*TRADE’s vast library. Webull has a reasonably strong research presence on its platform, specializing in technical analysis with some tools available for fundamental analysis. However, many advanced features require a paid upgrade. Webull does have a strong investor dashboard with alerts and watch lists, along with real-time streaming quotes and analyst reviews. Overall portfolio management tools are lacking, though.

E*TRADE has a huge library of educational material aimed at beginner investors just getting started, but it is useful for more experienced investors, as well. Its “Thoughts on the Market” podcast is full of timely information, along with online investing courses. In fact, E*TRADE’s market research and data are widely known to be among the best in the business.

Webull vs. E*TRADE: Platforms and Online Experiences

An investor comparing Webull vs. E*Trade.

Webull’s platform has mobile, web-based and desktop capabilities. Since it is relatively new, its interface is fresh and interactive, and investors largely find it intuitive and user-friendly. There is a customizable workplace station that provides news, technical trading tools like charting, fundamental analysis, a stock screener and ratings from analysts. It also offers paper trading so new investors can build their experience without risking their own money.

Webull also offers extended trading hours, which can be particularly important to many investors. E*TRADE does not have this feature. To use Webull, investors have to be relatively knowledgeable and self-sufficient since it lacks portfolio management tools. Webull does not offer robo-advisors, a dividend reinvestment program (DRIP) or any recommended portfolios; in contrast, E*TRADE offers all three. It can be difficult to reach customer service by phone, and there is no chat feature.

E*TRADE allows users access via mobile app, a web-based platform and a desktop program. Its platforms are among the best in the business, and E*TRADE maintains a long-standing commitment to investor education. Their E*TRADE platform supports beginning investors with market research and data, basic trading instruments and the ability to buy and sell most financial instruments. 

POWER E*TRADE is more advanced and includes charting tools and other technical analysis instruments, risk analysis and powerful portfolio management tools. It is aimed at more sophisticated investors and active traders to meet their needs. E*TRADE’s Core Portfolios are a robo-advisor offering.

Webull vs. E*TRADE: Mobile Apps

Webull offers a convenient mobile app that is consistent with its web-based and desktop platforms. Watchlists can be created through the mobile app as easily as on the other platforms, so you do not need to set up multiple platforms. You can also customize trading ticket information on the mobile app, and research is readily available to help.

E*TRADE may have the most efficient mobile app, with its POWER E*TRADE geared toward active day traders. You can access market research and educational material, and you can make trades directly on the app with mobile check deposit in case you need to add funds before investing. The E*TRADE mobile app is for more inexperienced traders and investors, providing excellent access to market research. It is a major reason why E*TRADE’s platforms are considered some of the best of all online brokerages.

Webull vs. E*TRADE: Account Types and Retirement Options

When comparing Webull vs. E*TRADE, it is important to think beyond just what you can trade and instead, consider the types of accounts each platform supports. The right account type can make a big difference in your long-term financial planning, especially when you are investing for retirement.

Webull primarily offers taxable brokerage accounts and margin accounts. In addition, investors can open traditional IRAs, Roth IRAs and rollover IRAs. However, Webull does not provide custodial accounts, SEP IRAs, SIMPLE IRAs or 401(k) plans, which limits its usefulness for investors seeking more robust retirement planning options. Webull’s strength lies in active trading rather than comprehensive wealth management.

E*TRADE, on the other hand, offers a much broader lineup of account types. In addition to taxable brokerage and margin accounts, investors can choose from several types of retirement accounts, including traditional, Roth, rollover, SEP and SIMPLE IRAs. E*Trade also supports custodial accounts for minors and small business retirement plans, such as solo 401(k)s. This makes it better suited for investors who want to integrate their trading with long-term retirement savings and broader financial planning.

If your main goal is short-term trading or dipping into retirement investing with a basic IRA, Webull could be sufficient. However, if you are seeking flexibility in retirement accounts and want your brokerage to grow with you over time, E*TRADE offers significantly more options.

Bottom Line

A green button on a keyboard reading "invest."

When comparing Webull vs. E*TRADE, it is clear that Webull is more for active traders and speculators. While E*TRADE also attracts active traders, it considers long-term investors, too. The E*TRADE platform is for all levels of investors and traders, while Webull has more speculators and active traders. Webull’s limited range of investment products appeal more to active traders, while E*TRADE is a full-service brokerage offering most investment products. However, neither platform offers international investing. Both companies offer no-commission trading and no minimum account balances except for margin accounts. They also both provide highly usable mobile apps. At the end of the day, E*TRADE gains an edge on Webull with its superior products, user experience, research and education, as well as customer service.

Before deciding between Webull vs. E*TRADE, consider talking to a financial advisor who can help you develop the right investment strategy based on your long-term financial goals.

Tips on Investing

  • Consider obtaining professional help in choosing the right online brokerage for you. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • When investing, always consider the capital gain’s effect on income taxes. Use SmartAsset’s capital gains tax calculator to assist you.

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