Interested in investing, but not sure if Webull charges fees? You’re not alone. Many people are curious about this before signing up for an account. In this post, we’ll break down the fees that Webull charges and what you can expect as an investor. By the end, you’ll know whether or not Webull is a good fit for you.
Does Webull Charge Fees? Webull does not charge fees. There are no account maintenance fees, inactivity fees, deposit or withdrawal fees, or any other hidden fees on Webull. Plus, all stock and ETF trades are commission-free.
That said, data charges may apply if you use certain real-time market data feeds. Webull also charge fees for deposits (both incoming and outgoing wires), short selling, and margin interest.
Overview of Webull Fees
Do you want to start investing but are worried about the fees? You’re not alone. Fees can add up quickly and eat into your profits.
Let’s take a look at the Webull fee structure starting with deposits and withdrawals.
Webull Withdrawal Fee
Withdrawals and deposits are non-trading activities that can be performed in Webull. Webull is quite cost effective when it comes to charging fee for the non-trading activities.
Yes, Webull does enforce fee charges for withdrawals and deposits of funds. But, these charges are totally dependent on the region where the transaction is done. The charges are exactly not by Webull. They are charged by Webull’s clearing firm.
ACH withdrawals and deposits in US Bank accounts are free of any fees. However, you have to pay charges in following cases transactions.
|Transaction Type||Fee charged per transaction|
|Deposit via Wire Transfer with US Bank Account||$8|
|Withdraw via Wire Transfer with U.S. Bank Account||$25|
|International Deposit via Wire Transfer (Non-U.S. Bank Account)||$12.5|
|International Withdraw via Wire Transfer(Non-U.S. Bank Account)||$45|
All these fees charges are basically the brokerage fees and other charges not related to purchasing and selling assets.
Webull Short Selling Fee
A short Selling fee is charged for a short position. A short position is when an investor bets against the market and earns profits by selling stock on prices decline. It is a risky way of trading but may get you good profits if you are carefully observing the correct investing options.
Webull charges fees for such kind of trading. You first borrow the shares and then sell them. The short sale cost defines the fee since the stock loan rate changes daily guided by the market status.
Due to the dynamics of the market regulating the stock, the short sale cost is calculated and charged daily. The formula for this cost is-
Daily Margin Interest (Short Position) = The Daily Market Value of the Borrowed Stocks when Market Closes* Stock Loan Rate for That Stock/360.
If Webull is fees-free, then why ADR Fees is Charged?
Webull does not charge for Stock issued within the US. If you are trading in a stock that is issued overseas (non-US) in the US through ADR then the ADR depositary bank charges the ADR fees.
ADR Fees are considered only custody fees to let the depositary banks charge the investors for inventorying the non-U.S. shares. Other activities involved in such trading like registration, compliance, dividend payment, communication, and record-keeping services contribute to the ADR fees.
ADR fees charged by depository back are between $0.01 and $0.03 per share.
Webull Transfer Fees
Stock transfer is a frequent activity when you do stock trading. Webull allows stock transfer and charges fees accordingly.
- On transferring stock to Webull, the clearing agency will not charge any fee but a contra broker will.
- On transferring stock from Webull, you need to pay $75 per to the clearing firm for every Outgoing Stock Transfer. In the case of a transfer through a contra broker, you need to pay as per his standard charges.
In both these transfer actions, Webull does not make any profits.
Webull Crypto Fees
Cryptocurrency prices are always fluctuating, and it can be hard to keep track of all the different fees associated with each one. Webull offers commission-free trading in over 7,000 stocks and ETFs. But what about their crypto fees?
Does Webull charge crypto fees? Webull does not charge crypto fees. You can trade cryptocurrencies on Webull commission-free.
Cryptocurrencies are becoming more and more popular, and Webull is leading the charge in commission-free trading.
With no crypto fees, you can trade Bitcoin, Ethereum, Litecoin, and all of the other major cryptocurrencies without paying a cent extra. You can find out more about crypto buying power here.
So if you’re looking to invest in cryptos, look no further than Webull.
Margin Interest Charges on Webull
Webull allows up to 4x day-trade buying and 2x overnight buying power with a margin account. Only those users who maintain minimum $2,000 debit balance qualify for this.
In Webull, the Interest on margin trading calculation is done daily for leveraged positions held overnight. However, the payment of interest is on monthly basis. The margin rate is dynamic and calculated on the basis of the size of the margin loan.
The formula for calculating daily interest for a long position is
Daily Interest = Borrowed Cash * Margin Rate/360
More is the debit balance lesser will be the annual margin rate.
|Debit Balance||Annual Margin Rate|
How Does Webull Make Money?
Webull is a commission-free app and it does not charge the trading clients as its commission like the brokers do.
So how does Webull make money?
Webull makes money in several ways, including payment for order flow, margin lending, and paid data subscriptions. In payment for order flow, Webull receives payments from market makers in exchange for directing its customers’ orders to them. This allows market makers to fill their orders more quickly and efficiently, and they are willing to pay a fee for this service. Webull also earns interest on the margin loans that it extends to its customers. And finally, the company charges subscribers for access to certain premium data products.
While allowing fee-free trading transactions for its clients Webull earns its revenue by selling its order flow to market makers.
Whenever you place an order with Webull that order is sent to one of the many market maker partner firms associated with Webull. The order flow is used by the partner firm for its high-frequency trading (HFT) strategies.
Webull earns by other methods of client activities that include-
- Interest revenue earned against the loan to short-sellers
- Interest income on credit balances
- Paid subscriptions
- Margin interest payments
- International deposit and withdrawals via Wire Transfer (Non-U.S. Bank Account)
In a Nutshell
When it comes to commission-free stock trading, Webull is hard to beat. Not only do they offer free trading in over 7,000 stocks and ETFs, but they also don’t charge any crypto fees.
And if that’s not enough, they also have no margin interest charges.
So whether you’re a seasoned investor or just starting out, Webull is the perfect platform for you. So what are you waiting for? Sign up today and start trading!