If you are considering starting trading with stocks and other options, then there is no better way to do so than by using the Webull platform. This brokerage offers zero account minimum and doesn’t charge any fees. Here is a complete guide on how to make money with Webull.
You can make money on Webull by trading with stocks, options, ETFs, crypto, and ADRs. The platform is best for intermediate investors, active, and crypto traders. The platform gives two free stocks to all users, and it is great for those who wish to make passive income through dividends.
Aside from this, there are many different ways you can earn money on this platform, and if you want to find them out, keep reading.
Table of Contents
Open and Fund Your Account
The first thing you need to do is to open an account on this platform. For that, just go on a platform or mobile app and sign up for an account. You will have to wait for Webull’s approval for approximately 24h, and you are good to go. The platform doesn’t charge any fees and the minimum for opening an account is zero. However, even with free stocks, you will have to deposit some money into the account. It takes around five business days for ACH transfer and one to two days for domestic wire transfer. You should also consider whether to open a cash or margin account, as this can make a huge difference in your future trading. For example, with a cash account, there is no day trading or short selling. Here are the main differences between these two accounts.
|Unlimited net account value
|$0-2,000, $2,000-$25,000, $25,000+
|Day trading is not allowed
|Day trading is allowed for $2,000-$25,000 accounts
|Margin trade is not allowed
|Margin trade is allowed for $2,000-$25,000 accounts
|Short selling is not allowed
|Short selling is allowed for $2,000-$25,000 accounts
The Best Tip Is to Set Aside Money for Trade in Advance
If you are a beginner at trading and still have to grasp what day trading is or whether Webull has OTC stocks and other features, the best course of action is to set aside money for trading. In the financial world, this is called setting foundations for trading. It is advisable for beginners to set aside $100 in their brokerage account for a set period of time. Also, it would be good for you to have an emergency account where you can save money for about three to six months worth of expenditures. That is for the worst-case scenario – the case where you lose money or your job. Such an account can be your backup plan.
How to Make Money With Webull? Consider Your Options
Once you have funded your account, it is time to start trading so you can withdraw money from it when you make a profit. You need to consider what kind of securities you wish to trade. For example, this platform doesn’t offer mutual funds or penny stocks trading, but if you are a beginner, you can trade with ETFs. Here is what you can trade:
Get Free Stocks and Practice Trading
As soon as you sign up for this platform, you will get two free stocks. The value of these stocks often changes, so make sure you get the best deal. Another thing that this platform and mobile app offer that is excellent for beginners is something called Paper Trade. A paper trade is a free demo account where traders can learn how the stock market works. You will get one million of pretend money to help you learn how to trade in a simulator. Also, the platform offers a lot of real-time data on individual stocks and funds, including news and analysis of previous performances on the market.
Buy Low Sell High Strategy
The best strategy for new traders is called Buy Low Sell High. With this strategy, you need to have patience because it will take some time for your stocks or ETFs to get higher. But the whole strategy is based on the premise that you will buy, let’s say, ten stocks worth $20 each and sell them in a couple of years when their value is higher than $50.
Invest in Dividends
If you wish to make a passive income and not worry about when to sell your stocks, you can invest in dividend stocks. Most well-established companies pay their dividends annually or quarterly to their investment. Dividends are, in essence, the profit that that company made during the year. Once the dividends are paid, you can either withdraw money or invest it back. And even though Webull doesn’t have DRIP (the system that automatically invests your dividends back into a market,) you can do this by yourself by withdrawing money and investing it again.
Try Trading With Crypto
In recent years, crypto trading has become popular among traders as an excellent way to make money. You can earn by trading in crypto by buying low and selling high. However, since the crypto market is still pretty risky and unstable, you may end up losing a part of or the whole investment. So if you are not familiar with the crypto market, make sure that, before you invest in coins, you put your bet on those you’re certain will gain in value. The platform currently offers more than 60 crypto coins to trade with.
Should You Trade With Webull?
When we talk about trading platforms such as Webull or Binance, we can see that Webull offers more assets for you to trade. Binance only offers crypto trading. Aside from the larger amount of options, this platform also has a zero commission policy which is excellent for beginners, and with its demo account, you can easily learn how the market behaves. So if you are a beginner, there is no better way to grasp financial trading than with this app.