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Webull and TD Ameritrade are two popular trading platforms that allow for commission-free trading on stocks, exchange-traded funds (ETFs), and options. They have a lot in common, and both are attractive brokers for regular traders. But there are also some critical differences between the two, which we’ll explore further. Here’s our Webull vs TD Ameritrade Comparison.
With so many online brokerage firms available these days, it can feel overwhelming trying to choose the right one. You have to consider your investing needs, as well as other factors such as cost, customer service, and security.
TD Ameritrade and Webull Quick Comparison
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|---|---|---|
| Our Rating | 7/10 | 9/10 |
| Bonus | Two free stocks when you open an account with $100 or more | Cash bonus when you open an account with more than $250,000 |
| Trading Hours | 4 a.m. to 8 p.m EST | 7 a.m. to 8 p.m. EST |
| Demo Account? | ||
| Minimum Deposit | $0 | $0 |
| Day Trading? | ||
| Margin Rates | 3.99% – 6.99% | 7.50% – 9.50% |
| Trading Fees | None | $0.65 contract fee on options |
| Security Features | Encryption and SIPC insurance | Encryption and SIPC insurance |
| Minimum/Maximum Trade | None | None |
| Payment Methods Allowed | ACH and wire transfer | ACH, wire transfer or check |
Quick Introduction to Each
About Webull
Webull is an online trading platform founded in 2017. And though it’s much newer than many of its competitors, it’s quickly made a name for itself in the investing world.
Webull is an app-based platform available for iPhones, Android, and desktops. Webull offers commission-free trading on stocks, options, and ETFs. It offers trading on cryptocurrencies such as Bitcoin, Ether, and more. Webull also offers to trade in taxable brokerage accounts and individual retirement accounts (IRA).
About TD Ameritrade
TD Ameritrade is a brokerage firm founded in 1975. It’s one of the top brokerage firms in the country, with over 11 million clients and more than $1 trillion in assets under management.
TD Ameritrade offers a wide range of products, which investors can access via the website, desktop app, or mobile app. TD Ameritrade offers commission-free trading on many investments and has a diverse asset mix to choose from.
Unique Features Comparison
Webull
- Cryptocurrency: Webull offers cryptocurrency trading, where you can buy and sell popular cryptocurrencies like Bitcoin, Ether, litecoin, and more.
- Online community: Webull is a community-driven platform. The app includes a community space where users can interact with each other to share stock thoughts and insights.
TD Ameritrade
- Education: TD Ameritrade has a robust library of educational tools and resources to help users learn about investing and other aspects of the financial picture.
- Managed portfolios: For investors who don’t want to choose their own investments, TD Ameritrade offers managed portfolios. You can choose between a selective goal-oriented portfolio or a highly personalized portfolio.
- Local branches: Before TD Ameritrade was an online trading platform, it was a more traditional brokerage firm. Today, it has more than 175 branches throughout the nation where you can get professional, one-on-one help.
How Are They the Same?
Both Webull and TD Ameritrade are popular online trading platforms that have some major features in common.
- Commission-free trading: Webull and TD Ameritrade both offer commission-free trading on stocks, ETFs, and options trades.
- Multi-platform support: Both Webull and TD Ameritrade offer both desktop and mobile app options, so you can invest in the way that best suits your needs.
- Minimum investment: Neither Webull nor TD Ameritrade requires a minimum investment, making them accessible for everyone.
How Are They Different?
While Webull and TD Ameritrade have a few similarities, they also have some critical differences that make them better suited for different types of investors.
- Investment options: Webull has a fairly limited list of investments to choose from. You can currently only invest in stocks, options, ETFs, and cryptocurrencies. TD Ameritrade offers far more investment options, including stocks, options, ETFs, mutual funds, futures, forex, bonds, annuities, and more.
- Types of accounts: Webull only offers taxable brokerage accounts and individual retirement accounts. TD Ameritrade has an extensive list of options that includes taxable brokerage accounts, individual retirement accounts, custodial accounts, and 529 plans.
- Customer service: TD Ameritrade has easily accessible customer service, available via phone, email, online message, and even in-person at their branches. Webull has more limited customer service options, with phone and email options.
Pricing and Plans Comparison
Both Webull and TD Ameritrade offer commission-free trading on stocks, ETFs, and options. Webull also offers commission-free cryptocurrency trading, making it an entirely commission-free platform. You will pay extra fees for wire transfers and paper statements.
While TD Ameritrade does offer commission-free trading on some platforms, you may still be subject to fees. For example, while TD Ameritrade offers commission-free trading on options contracts, there is a $0.65 contract fee. Additionally, there may be commissions or fees on some of the other investment products that TD Ameritrade offers.
Further Reading: What are Discount Brokers?
Paper Trading Comparison
Both Webull and TD Ameritrade offer paper trading, which is a type of simulated trading that allows new investors to practice investing before entering the market with real money.
To start paper trading on Webull, you can open an account and log in through the app. You’ll have to open a legitimate trading account first, but then you can open the paper trading section of the app and start trading.
TD Ameritrade’s paper trading feature is called paperMoney and can be found on the company’s thinkorswim trading platform. To start, you’ll have to open a TD Ameritrade app, download thinkorswim, and slide the toggle to paperMoney before logging in. You’ll have access to most of the same tools and charts as you would if you were actually trading.
Mobile Apps Comparison
Both Webull and TD Ameritrade have mobile apps where investors can access their accounts and trade stocks and other investments. Webull’s app has excellent reviews, with 4.5 of 5 stars on the Google Play store and 4.7 stars on the Apple app store. TD Ameritrade’s app has 4.5 of 5 stars on the Apple app store, but just 3.2 stars on the Google Play store.
Customer Service
When it comes to customer service, TD Ameritrade has a huge leg up on Webull.
- First, TD Ameritrade offers 24/7 phone support, as well as phone technical support during business hours.
- The company also offers customer service via fax, paper mail, and online chat.
- Finally, because TD Ameritrade has branches around the country, you can receive in-person assistance from a TD Ameritrade representative.
Webull has more limited customer service options. The help tab on the company’s website directs you to resource articles. And while you can contact the company via the help tab on the company’s Help Center, online comments indicate customer service isn’t responsive.
How Safe Are Webull and TD Ameritrade?
Webull and TD Ameritrade have safety features in place to keep your personal information and your money safe. First, both companies have security measures and high-level encryption designed to protect all information stored on the platform.
Both companies also take measures to keep your money safe. Investments with both Webull and TD Ameritrade are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000.
Who Are They Best For?
Ultimately, Webull and TD Ameritrade are both popular online brokerage firms that make it easy to invest without paying a commission on your trades. But each is best suited for very different investors.
Webull is well-suited to experienced investors who have basic investing needs. Someone using this app likely already knows the basics of investing and feels comfortable making their own investing decisions. However, because of Webull’s fairly limited investment options, it’s best suited to investors without extensive financial needs.
TD Ameritrade, on the other hand, is suited for a wider variety of investors.
- First, TD Ameritrade offers a library of educational tools and resources that make it attractive for investors who are just learning the ropes. And because it has managed portfolios, you don’t need to choose your own investments.
- TD Ameritrade is also ideal for investors with greater investing needs. The platform offers many different types of accounts for personal investing, retirement savings, college funding, and more. It also has many more investment options to choose from, including mutual funds, bonds, and annuities.
Other Alternatives and Competitors
Webull and TD Ameritrade are two popular trading platforms on the market, but they aren’t the only ones. There are plenty of alternatives investors can consider:
Robinhood
Robinhood is a commission-free trading app, similar to Webull. The app allows for the trading of stocks, ETFs, options, and cryptocurrencies. It also allows investors to earn interest in a cash management account.
Further Trading: Charles Schwab vs TD Ameritrade vs E*TRADE
Public
Public is another investing app that allows you to buy trade stocks and ETFs without paying a commission. One of the big selling points of Public is the ability to buy fractional shares, which make some of the more expensive stocks more accessible.
E*TRADE
This brokerage firm was the first to really embrace online trading. E*TRADE offers commission-free trading on stocks and options. Like TD Ameritrade, it also offers mutual funds and has many types of accounts to choose from, including IRAs, custodial accounts, trusts, and joint accounts.
Ally Invest
Ally Invest is a great trading option for both new and experienced traders. It offers commission-free trading with no minimum balance requirements. It offers many types of accounts, and investment options above and beyond just stocks, ETFs, and options.
Further Trading: Ally Invest vs Robinhood vs TD Ameritrade
Charles Schwab
If you’re looking for another brokerage firm that can offer the personal touch that TD Ameritrade does, Charles Schwab is worth considering. Like TD Ameritrade, it has physical branches around the country. It’s one of the top brokerage companies and has just about every feature and investment option you’d want from a trading platform, including commission-free trading.
Further Reading: Charles Schwab vs TD Ameritrade
The Bottom Line: Which is Best?
Thanks to their robust features and commission-free trading, Webull and TD Ameritrade are two of the top trading platforms for investors to purchase stocks, ETFs, and options. Both have some notable features, but they’re really best suited to two different types of investors. Webull is best for experienced investors and day traders who feel comfortable choosing their own investments.
Thanks to its managed portfolios and a large library of educational resources, TD Ameritrade is ideal for new investors. And because it has a wide variety of investment and account options, it’s also best for experienced investors who need more than just day trading features from a brokerage firm.
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