Charles Schwab vs. Webull

(July 2024)

Charles-Schwab-vs-Webull

In This Article

Our Verdict

Charles-Schwab-vs-Webull-Our-Verdict

In this battle of the financial titans, Charles Schwab comes out victorious—winning the trophy over Webull.

Charles Schwab is the winner for offering an enormous collection of commission-free ETFs and mutual funds, 24/7 customer support, and the provision of two platforms where beginners and veteran traders can invest.

If your investment goals involve mutual funds, establishing a self-employed retirement account, or engaging in Forex trading, Schwab emerges as the top choice. Besides, you don’t have to pay maintenance fees or inactivity fees and does not require a minimum deposit.

In 2023, Charles Schwab scored the highest in the J.D. Power U.S. Full-Service Investor Satisfaction Study. To get more details, visit www.jdpower.com/awards.

Conversely, if you seek a straightforward platform for stock trading and retirement investing, Webull may better suit your needs.

To make things easier to understand, you can see areas in which Charles Schwab outshines Webull:

  • Comes with an extended collection of ETFs and mutual funds traded at $0 commission.
  • Has dual platforms designed for newbies and advanced traders.
  • Provides a 24/7 customer support.
  • Offers up to $2,500 bonus for Schwab Investor Reward.

Make no mistakes, both platforms are incredible in their ways but cater slightly to different audiences and have different features.

Choosing between Charles Schwab and Webull depends on factors such as your trading style, investment preferences, level of experience, and the specific features you value in a brokerage platform.

Why Choose Charles Schwab

Who’s Suitable for Charles Schwab

Invest with Charles Schwab if you:

  • Value 24/7 Customer Support: One of Schwab’s selling points is its excellent customer service. You can get in touch with Schwab by phone or live chat—whichever one is most convenient for you.
  • Seek a Secure and Reliable Platform: When it comes to security, Schwab offers some of the best features that ensure you have a safe and secure trading experience. For instance, the company has security features such as voice recognition security calls, two-factor authentication, firewalls, mobile security features, and 128-bit encryption.
  • Need Live Chat Support: Schwab comes with live chat features where you can communicate your needs and problems to customer support in real time.
  • Need a Place to Grow Your Knowledge-bank: From time to time, Charles Schwab releases content such as infographics, videos, articles, and slideshows where you get the latest market news and trends. There’s also a magazine and live webinar the company releases to keep you informed, and knowledgeable.
  • Desire Access to Foreign Markets: If you’re seeking to invest in foreign assets (or non-U.S. equities), you can leverage Charles Schwab’s cash management system that offers equity trading in 30+ foreign markets, allowing you to trade also in seven distinct currencies.
  • Seek an Exciting Range of Tradable Assets: With Schwab, you have access to several offerings including stocks, fractional shares of the S&P 500, bonds, options, futures, ETFs, mutual funds, and penny stocks.

Who’s Not Suitable for Charles Schwab

Don’t invest with Charles Schwab if you:

  • Trade on Crypto Only: If you’re seeking a place to trade cryptocurrencies, know that Charles Schwab does not offer such trading options. You may have to check other alternative platforms that offer such service.
  • Seek Fast Customization Platform: While Schwab offers and incredible customer service, know that its desktop interface takes time and effort to customize. If this is something crucial to your trading journey, Schwab may not be the right place for you.
  • Seek Free Robo-advisor Trading Option: Keep in mind that Charles Schwab requires a $5,000 minimum investment for the Robo-advisor trading option. If you’re on a tight budget, the company may not serve your needs.
  • Want a Paper Trading Platform: If what you seek is a paper trading platform for your investment goals, you can try your hands on other trading companies as Schwab does not offer such.
  • Seek Free Commission on All Mutual Funds: Note that once you’re trading mutual funds outside of the commission-free assets, Charles Schwab charges a commission for that.

Why Choose Webull

Who’s Suitable for Webull

Invest with Webull if you:

  • Seek Margine Trading Option: If you’re eligible, you can borrow funds to leverage your trades using Webull’s margin trading feature. A word of caution, though: Margin trading comes with additional risks along with associated costs.
  • Desire to Paper-Trade: If you’re new to Webull, and probably to trading, Webull has a feature called paper trading that allows you to trade with virtual money before chancing real capital.
  • Want Extended Trading Hours: Webull is well-known for trading outside the traditional trading hours. You can trade before the market’s official opening time and closing time.
  • Need Advanced Trading Tools: The truth is that advanced trading tools help to scale things up in your trading experience. Tools such as real-time market data, technical indicators, and advanced charting tools, among many others—can help you get the best out of your trading journey.
  • Seek a Platform with a Wide Range of Trading Options: If you’re thinking of the asset to invest in, or simply seeking to diversify your portfolio, Webull has that covered for you. You can choose from its options which include stocks, ETFs, Options, and crypto.
  • Desire to Trade Without Commission Fee: Webull attracts most users due to its no-commission offering. When you buy or sell stocks, ETFs, and others with no commission fees.
  • Want to Trade Crypto: One of Webull’s instruments for investment is the popular cryptocurrency. You can buy or sell some of the famous cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin, and lost more.

Who’s Not Suitable for Webull

Don’t invest with Webull if you:

  • Fall Under 18 of Age: The law requires that traders and investors must be 18 or above. So, if you’re creating an account with Webull, wait until you’re of the required age.
  • Are New to Trading and Investment: Webull comes with advanced tools such as charts, candlesticks, etc. The platform may not be conducive for you, considering the complexity thereof. If you must trade on Webull, you must take time to learn how trading works on the platform.
  • Desire Investments with Low Risk: If you cannot absorb shock, then Webull may not be the best place for you. The reason is that Webull is a high-risk trading platform.

Main Differences

Charles Schwab Webull
Ideal For

Traders and investors seeking 24/7 customer support, 100% protection coverage from losses coming from trades you didn’t authorize, $0 commissions on ETFs, and mutual funds, and access to advanced trading tools and features, including customizable charts, real-time market data, and advanced order types.

Traders and investors in need of an excellent mobile platform, competitive margin rates, zero dollar commissions on stocks and EFTs, $0 account minimums, and who are involved in active trading.

Pricing

You’re paying a standard $0.65 fee per contract for options trades.

Charges $0 commissions on stocks, ETFs, and options trades that are listed online.

Requires $0 initial funding for account opening.

Charges $0 fees per trade.

Eligibility Criteria

If you’re below 18 years of age, you’re not eligible to use the Charles Schwab platform.

Must be willing to provide required registration details.

If you’re below 18 years of age, you’re not eligible to use the Webull trading platform.

Be ready to provide information for the accounting opening.

How to Register

Signing up with Charles Schwab is as simple as creating an Instagram account.

Visit Charles Schwap Official Website and click on the signup option.

All you need is details about yourself, including the financial and human verification process.

To join the Webull trading platform, visit their Official Website Webull to sign up.

Provide the necessary details and upload your photo ID for verification.

Standout Features

Charles Schwab

Charles-Schwab-Standout-Features

Offers Round-The-Clock Customer Support

Schwab has a reputation from renowned review platforms such as J.D. Power, for providing excellent customer experience.

Offers No Crypto Trading

While this can be categorized as one of Schwab’s weaknesses, it also serves as its uniqueness. Come to think of it…while others are offering crypto trading features, Schwab chooses not to. So, if you’re a crypto enthusiast, this company may not be the best option for you.

Has Dual Trading Platforms

Schwab stands out in the sense that it spreads its wings to accommodate both categories of traders—the rookies and the veterans—providing two distinct platforms where both (newbies and experienced) traders can conveniently invest.

Offers 100% Trading Coverage

For the record, this coverage is not for all trades. Schwab only provides 100% trading coverage when you incur losses on trades you did not authorize.

Has Voice Recognition Feature

To ensure your account’s safety, Schwab allows you the opportunity to use the voice recognition technology it provides.

Provides SIPC

If you’re a customer on the Charles Schwab trading platform, you stand to enjoy the Securities Investor Protection Corporation of $500,000.

Great Email & Live Chat

If you’re a trader who utilizes the live chat feature or email often, then Schwab might be your best ally for trading and investments.

Offers Advanced Trading Tools and Features

With Charles Schwab, you get great tools and features such as real-time market data, charts for customization, and advanced order types.

Webull

Webull-standout-features

Charges $0 for Inactivity

For some reason, you’re not able to trade for some time and your account remains dormant, Webull forgives you and takes no fees for that. Pretty generous, right? That’s one of the company’s unique selling points.

Takes $0 Fees for Stock, and ETF Option Contract

When you trade option contracts associated with stocks or ETFs, Webull doesn’t take a fee—beyond the standard zero commission.

Requires No Minimum Account Funding

When you open an account with Webull, the company doesn’t require a given amount for that. Also, you’re not required to leave a given percentage of money in your account as the minimum fund.

Has a State-of-the-art Interface

One of Webull’s unique selling points is its ability to offer users intuitive web experiences and seamless trading and investing practices, using its modern-day user interface.

Takes $0 for Commissions

For each trade you make, you pay a $0 trading fee. Incredible, right? This way, you get a cost-effective trading experience.

Pros and Cons of Charles Schwab

Pros-and-Cons-of-Charles-Schwab
  • Provides a 24/7 customer support.
  • Offers two platforms for beginners and experienced traders, respectively.
  • Offers 100% coverage, protecting you from losses in your account that came from trades you did not authorize.
  • Takes no commissions for ETFs and mutual funds.
  • Offers advanced trading tools and features, including customizable charts, real-time market data, and advanced order types.
  • Provides the Securities Investor Protection Corporation (SIPC) of $500,000 for its customers.
  • Provides excellent email and live chat support.
  • Provides account security using voice recognition technology.
  • Requires a minimum investment of $5,000 for the Robo-advisor trading option making it inaccessible for those on a tight budget.
  • Charges commission on mutual funds that are outside of the commission-free funds.
  • Takes time and effort to tailor the desktop interface.
  • Offers no crypto trading option.

Pros and Cons of Webull

Pros-and-Cons-of-Webull
  • Offers round-the-clock customer support.
  • Allows up to 4.5% in matching IRA funds.
  • Allows users to engage in fractional share trading.
  • Utilizes a robo-advisor for investment guidance.
  • Gives up to 5% APY on uninvested cash.
  • Takes no commissions for trading stocks, ETFs, options, and crypto.
  • Offers a user-friendly mobile app where you can access advanced trading tools.
  • Has limited tradable assets.
  • Charges a 0.20% annual advisory fee for Smart Advisor.
  • Takes a monthly $2.99 to access Level 2 data.
  • Lacks a live chat feature for customer interaction.
  • Offers no mutual funds.
  • Has limited account types.

Customer Reviews

Go for Charles Schwab due to its outstanding performance on some of the top review sites.

For instance, on TrustPilot, Schwab holds a 1.6 out of 5 stars rating, from 283 reviews. While ConsumerAffairs provides a 1.1 out of 5-star rating out of 376.

For Webull, Trustpilot presents a 1.5 out of 5 stars rating from 197 reviewers, making it less competitive compared to Schwab.

As you can see, Charles Schwab outperforms Webull based on two factors: the star rating and the number of reviews. In spite of the similar star ratings, there’s a big difference in the number of reviewers, which matters.

This is why customer reviews shouldn’t be the only yardstick to work with. Factor in your trading style, specific needs, and preferences as you make a decision.

Remember to broaden your search horizon; check out other alternatives beyond the two companies compared here.

Competitors

Robinhood

If you’re seeking a platform that takes no commission for trading and has an incredible user interface and responsive mobile app, then Robinhood is your guy.

With this broker, you get an interest rate on your uninvested funds, and IRA with a 1% match. You don’t need the minimum required balance to operate on this platform.

Also, Robinhood takes no commission as you trade on stocks, options, ETFs, and cryptocurrencies.

However, if trading on mutual funds and individual bonds is rudimentary to your trading life, Robinhood may not be the best for you because it doesn’t offer such instruments.

Keep an eye on this company’s customer support, for many reviews from trusted sites like TrustPilot have bad remarks from customers regarding their customer service.

Morgan

J.P. Morgan offers a wide range of investment services and products through its investment banking, asset management, and wealth management divisions.

Think of J.P. Morgan as a mansion that houses a variety of services that cater to various clients, including individuals, corporations, institutions, and government.

You have a variety of tradable securities including stocks, ETFs, options, bonds, and mutual funds.

The company offers a user-friendly interface and charges $0 commissions on trades. You also don’t require a minimum amount of money to open or maintain an account. This is helpful, especially if you don’t have a large sum of money to invest but still want to start investing from the little you have.

Sadly, you need a $2,500 balance to own a Portfolio Builder tool. Also, the company offers limited tools for trading and research, along with a low interest rate of 0.01% on uninvested cash.

In all, check your financial goals and see if this company can serve you well.

E*Trade

E*Trade allows you to trade stocks, bonds, options, exchange-traded funds (ETFs), and over 4,000 mutual funds with no transaction fees through its online platform and mobile app. The platform also supports futures trading and advanced options strategies, accommodating diverse risk preferences and investment goals.

With E*Trade, you have access to tools and resources for research, education, and portfolio management to help you make informed investment decisions.

The company also provides an advanced mobile application, excellent customer support, and a commission-free trading experience on stocks, options, mutual funds, and ETFs.

Take note of the website interface because you may find it difficult to navigate. Also, you earn a low-interest rate on funds you do not invest in.

The company runs a promotion where you get up to $1,000 as you create and fund your E*Trade account. You’re paying $0 fees for every trade you make and enjoy a $0 account minimum.

>>>GET SMARTER: Firstrade vs. TradeStation

Pro Tips

  • Turn on notification on your notifications so you can get the latest update when released.
  • Do not put all your eggs in one basket; in other words, diversify your portfolio to stay safe.
  • Turn on your two-factor authentication to protect your funds from scammers.
  • Avoid emotional reactions to market movements that can trigger you to trade unreasonably.
  • Set clear investment goals, so you can tailor your trading experience.
  • Invest in fixed assets from time to time to leverage dollar-cost averaging.
  • Check available assets before making investments.
  • Assess yourself and know how well you can tolerate risk.
  • Avoid trading on impulse; that can be dangerous.
  • Choose low-cost index funds or ETFs to evade pointless trading fees.

Recap

Charles Schwab and Webull are well-known trading and investment platforms. They both offer some of the best trading instruments.

When it comes to investing in mutual funds, trading in forex, or setting up a self-employed retirement account, Schwab is your guy. Also, Schwab doesn’t charge you maintenance fees, or inactivity fees.

On the other hand, Webull is a user-friendly interface that offers a variety of trading features, including fractional share trading. You can also earn up to 4.5% in matching IRG funds, and a 5% APY on uninvested funds.

Your choice of platform to trade on depends on your financial goals, personal needs, and trading style.

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