Robinhood vs Webull vs Charles Schwab
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If you’re new to investing, you might want to consider starting with a commission-free trading platform. This way, you can buy and trade stocks on the cheap while learning as you go. To help you decide, here’s a look at three of the most well-known trading platforms online: Robinhood, Webull, and Charles Schwab.
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About each brand
Robinhood
Robinhood is a free-trading mobile app that allows users to trade stocks, options, and exchange-traded funds (ETFs). The platform also offers cash management accounts and cryptocurrency trading. Its account minimum is $0, and new account users are offered one free stock just for signing up.
The platform also offers a Gold account that starts at $5 per month. According to the Robinhood website, the Gold account gives users access to research from Morningstar, Nasdaq, and Nasdaq TotalView Level II Market Data.
Robinhood is available for iOS and Android devices, and creating an account is completely free. Users must enter their social security number, date of birth, citizenship status, mailing address, and bank account information to use the app. For those who prefer a desktop experience, Robinhood also offers a web-based version of its app.
Webull
Webull is a low-cost, easy-to-use platform that offers users $0 trades on stocks and ETFs. The platform also provides $0 option trades and allows users to buy or sell cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), at a $1 minimum.
What’s more? Webull doesn’t require users to have a minimum account balance, either. However, customers who want to short stocks must open a margin account with a minimum deposit of $2,000.
New account holders must be 18 or older to complete the sign-up process. New users are also asked to enter their social security number, mailing address, financial information (including net worth and annual income), marital status, and gender. Webull is available on both desktop and mobile and provides users with a high-level view of the market, in addition to news headlines and consolidated analyst ratings.
Charles Schwab
Charles Schwab offers low prices, educational tools, an easy-to-use interface, and advanced investor options. The company is a brokerage that offers several ways to invest. Whether you want to handle the investments or want to automate them with the help of a robo-advisor, Charles Schwab has the tools and functionality to help you.
Charles Schwab provides investors various trading choices, including common stock, preferred stock, bonds, mutual funds, ETFs, options, and money market accounts. In addition to offering several investment options, Charles Schwab has more than 300 branch offices in the US.
With Charles Schwab, there’s no minimum opening deposit required. It doesn’t charge commission fees on online stock or ETF trades. Charles Schwab acquired the trading platform TD Ameritrade in 2020, and this means all the users of Charles Schwab will now get access to the thinkorswim platform.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Key features
Robinhood’s features
- Account minimum. With Robinhood Instant, there are no account minimum and zero commission fees to buy or sell stocks, ETFs, or options—regardless of how much money a user intends to invest. However, users who’d like to open a Gold account must have a minimum balance of $2,000. Gold account holders must also pay $5 monthly to keep their Gold subscription active.
- Protection. Robinhood Financial and Robinhood Securities are members of SIPC, which protects securities customers of its members up to $500,000. This includes up to $250,000 for claims for cash.
- Fractional shares and recurring investments. Robinhood offers fractional shares, which means users can pay as little as $1 for a portion, or a “fraction,” of a share. Yes, even if that specific share’s full price is in the hundreds. Fractional shares make it easier for account-holders to build a diversified portfolio, even if they’re low on funds.
Webull’s features
- Extended hours. Webull offers a trading solution for aspiring investors with full-time jobs: extended hours. Webull begins its extended hours trading at 4 a.m. EST until the market opens (9:30 a.m. EST). Then, from the market close (4 p.m. EST) to 8 p.m. EST. This means Webull customers can start trading nearly five hours before the opening bell and four hours after the market closes.
- Analysis tools. For those who need trading advice, Webull provides users with charts and graphs on one easy-to-use interface.
- Margin trading. Margin accounts are available to Webull users at no extra cost. To open a margin trading account, users must have a minimum balance of $2,000. According to the Webull website, with a margin account, users may have up to 4x day trade buying power and 2x overnight buying power. Account holders with $25,000 or more in their margin account meet the criteria to be a pattern day trader, which means unlimited day trades.
Charles Schwab’s features
- Educational resources. Charles Schwab is ideal for newbies and seasoned investors thanks to its up-to-date educational resource hub, which includes market news, webcasts, in-depth articles, and how-to guides on how to shape your path as a smart investor.
- Commission-free trading. Charles Schwab offers users a commission-free investing experience, which means $0 commissions on online stock, ETF, and options trades for new and existing customers.
- Investing through intelligent portfolios. Charles Schwab offers intelligent portfolios that can help you build and manage your portfolio through the personalized information it has about you, your goals, and your finances.
Summary of Robinhood, Webull, and Charles Schwab
Company | Account minimum | Stock trades | Options trades | Account fees |
Robinhood | $0 | $0 | $0 | No annual, inactivity, or ACH transfer fees (Gold account costs $5 per month) |
Webull | $0/$2,000 for margin accounts | $0 | $0 | No annual or inactivity fees |
Charles Schwab | $0 | $0 | $0.65 options per contract fees | No annual or inactivity fee |
Costs and fees
Robinhood
Although Robinhood offers commission-free trading, other fees may apply.
- Paper statements are $2 each month.
- Robinhood Gold account holders must pay a monthly subscription fee of $5. Gold members must have a minimum balance of $2,000.
- There’s a Trading Activity Fee (TAF) of $0.000145 per share (equity sells) and $0.00244 per contract (options sells). This fee is rounded up to the nearest penny and no greater than $7.27.
Webull
Like Robinhood, Webull offers $0 commission trading with no minimum balance requirement. Even so, that doesn’t mean Webull is completely fee-free. Here are some of the fees Webull charges:
- Webull users with a margin account must have a minimum account balance of $2,000. For margin rates, visit Webull’s pricing chart.
- Webull charges the same trading activity fee as Robinhood on equity and options sells.
- Users are offered one free wire transfer. After that, wiring less than $25,000 costs $8 per domestic wire and $12.50 per international wire.
Charles Schwab
Charles Schwab offers $0 commission trading, no minimum account balance, and a variety of trading options.
Related: Robinhood vs Stash vs M1 Finance
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Pros and cons
Robinhood pros and cons
Pros
- With Robinhood, there’s no account minimum.
- Robinhood can be used via desktop or mobile. (It’s also super user-friendly!)
- Robinhood offers cryptocurrency trading.
- Users are given the option to open a cash management account that includes a Mastercard debit card. (There are no account minimums, transfer fees, or foreign transaction fees.)
- Robinhood allows users to buy fractional shares as small as 1/1000000 of a share.
Cons
- Unlike Charles Schwab, Robinhood has minimal educational tools/data available.
- With Robinhood, users can only open one type of account: a taxable brokerage account.
- Robinhood doesn’t support mutual funds or preferred stocks.
Webull pros and cons
Pros
- Webull doesn’t require an account minimum, annual fee, or inactivity fee.
- With Webull, users have access to cryptocurrency.
- Webull gives users the option to open a free IRA.
- There’s a trading simulator that allows users to “trade” risk-free.
Cons
- Some users may experience “information overload” with Webull.
- Webull does not support mutual funds.
Charles Schwab pros and cons
Pros
- With Charles Schwab, there’s no account minimum.
- It offers tons of free research and educational materials for beginners to seasoned investors.
- Charles Schwab has phenomenal customer support.
- There’s no annual or inactivity fee.
- Charles Schwab offers a variety of tradable securities, including stocks, bonds, mutual funds, ETFs, options, futures, forex, etc.
Cons
- New users may feel overwhelmed by the number of resources and educational tools.
- DIY investors may not enjoy using their services.
FAQs
Is Robinhood good for beginners?
Robinhood is a commission-free trading platform that makes it easy for anyone to invest, even beginners.
Can you make money on Robinhood?
Yes, you can make money with Robinhood investments. If you’re a new investor, however, it will be more difficult for you than it would be for a seasoned professional. To ensure that you’re getting the most out of your Robinhood experience you should do your research and take advantage of the site’s resource library.
What’s the downside to Robinhood?
Although Robinhood is free to use, the platform has limited options when it comes to account types. For example, Robinhood doesn’t support mutual funds, preferred stocks, or offer retirement accounts.
Is Webull legitimate?
Yes, Webull is a legitimate company. It’s a commission-free trading app that allows active traders to invest in thousands of companies. According to the Webull website, Webull Financial LLC is registered with and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Is Webull really free?
Yes! Webull is a free trading platform. There are no commission fees for trading stocks, ETFs, and options.
Does Webull check your credit?
Webull may run a soft inquiry on your credit for background-check purposes.
How much does it cost to open a Charles Schwab?
There’s no minimum to open a Charles Schwab account.
Does Charles Schwab charge a monthly fee?
No, Charles Schwab does not charge a monthly fee.
Is Charles Schwab good for beginners?
Charles Schwab is ideal for beginners as it provides tons of educational resources and research tools. It’s also free and easy to use!
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
The bottom line
Comparing online brokers isn’t easy, but hopefully, this mini-review will help you make an informed decision. Remember: it’s important to research independently to ensure that the brokerage you choose will meet your investing needs and goals.
If you’re still on the fence, all three options above can be taken for a test drive free of charge.
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Writer
Tabitha Britt is a New York-based freelance writer and editor whose work has appeared on INSIDER, the Huffington Post, and Taste of Home. When she's not glued to her computer screen, she can be found walking her beloved pooch, Biscuit.
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