Robinhood vs. Webull: How the investing apps compare

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• Robinhood is a great choice for active traders, and it offers a cash management option.
• Webull offers multiple low-cost investment options, including commission-free accounts and IRAs.
• Webull has Robinhood beat in the retirement arena, but Robinhood is better for cash management.
• See Insider's guide to the best investment apps to use right now.

Robinhood vs. Webull: The biggest differences

Robinhood and Webull are two online discount brokerages with similar offerings of commission-free investments, cryptocurrencies, margin accounts, and more. Both investment apps are competitive options for active traders and hands-on investors.

Webull and Robinhood are slightly different when it comes to account types, fees, and investment research resources.

Robinhood provides an array of investment products. These include commission-free stocks, ETFs, and options. The investment app also gives you the option to invest in cryptocurrencies or American depositary receipts (ADRs). On the research side, Robinhood mainly offers Morningstar market analysis for Robinhood Gold members.

Like Robinhood, Webull's $0 minimum requirement and commission-free trading choices make it an attractive option for active traders seeking low costs, but the brokerage also offers extended-hours trading (from 4 a.m. to 9:30 a.m. or 4p.m. to 8p.m.), Nasdaq-level market data, free real-time asset quotes, and cryptocurrency trading.

Keep reading to see which investment app is best for you.

Is Robinhood right for you?

Robinhood has been in business since 2013. Its account selection includes individual brokerage accounts, cash management accounts, and margin accounts.

When it comes to investment choices, you can primarily trade five different types of asset classes: stocks, ETFs, options, ADRs, and cryptocurrencies. Robinhood has a $0 account minimum requirement on its individual brokerage accounts, but you'll need at least $1 to trade fractional shares.

And if you're planning to use a Robinhood Gold margin account to borrow money to trade, you'll need a minimum of $2,000 to get started. Robinhood Gold costs $5 per month, but this membership includes access to Morningstar professional research, market data, and bigger deposits. Margin accounts have a 2.5% annual rate.

Robinhood offers a virtual library that contains an array of financial education articles on investing, options trading, and other topics. The downside is that you won't be able to access additional research and market insights unless you're a Robinhood Gold member.

The investment app also came under intense scrutiny after it temporarily paused trades of Gamestop and other popular stocks. It reopened trading, but this also brought more attention to Robinhood's payment for order flow (PFOF) practices.

On the crypto side, Robinhood lets you trade digital assets like bitcoin, ethereum, dogecoin, and others. However, one drawback about its crypto services is that you can't transfer cryptocurrencies into or out of your account like you can with other crypto exchanges. This could be a disadvantage for crypto traders who want to move existing assets into Robinhood or transfer crypto out of the brokerage.

Overall, Robinhood could be a good fit for active traders, day traders, cryptocurrency traders, or margin traders looking to avoid excessive investing fees. If you're looking for a hands-off experience or more guidance, you may want to consider a robo-advisor or financial advisor.

The Robinhood mobile app is available on iOS and Google Play devices.

Is Webull right for you?

Founded in 2017, Webull specializes in an array of online brokerage services. Among the investment app's wealth-building products are individual brokerage accounts, individual retirement accounts (IRAs), and margin accounts. Margin accounts allow investors to borrow money to place trades. When you borrow from your brokerage, you have to pay back the loan along with an annual margin interest rate. Webull's margin annual rates range from 3.99% to 6.99%, depending on your account balance.

The app's joint offering of $0 account minimums, commission-free trading, and extended hours trading makes it a competitive option for active traders in search of low fees and flexible market access. You'll only need a minimum of $2,000 to use margin accounts (this minimum is the same for Robinhood's margin accounts).

Webull's investment choices include stocks, ETFs, options, ADRs (shares in foreign companies), and cryptocurrencies. The commission-free rule applies to stocks, ETFs, and options, but Webull also works with regulatory agencies and clearing firms that apply small fee deductions (usually no more than $0.050) on each trade.

Cryptocurrency traders should note, however, that Webull also doesn't allow you to transfer crypto into or out of your account. This means that your assets are essentially locked into the brokerage. This prevents you from moving them to a bitcoin wallet or other crypto exchange.

On the retirement side of things, the firm offers traditional IRAs, Roth IRAs, and rollover IRAs. The difference between Webull's standard brokerage accounts and its IRAs is that the retirement accounts only allow you to invest in stocks and ETFs.

One of the drawbacks with Webull is that its investment education resources are limited, which could be a drawback for beginner traders. However, the investment app does offer Nasdaq-sponsored market data and free real-time investment quotes.

Like Robinhood, Webull also paused the buying of Gamestop and other stocks earlier this year. The brokerage - which receives PFOF - also reopened trading on the stocks it had previously restricted.

Webull offers 24/7 customer support. The mobile app is available on both iOS and Google Play devices.

Robinhood vs. Webull: Which is right for you?

When it comes to standard brokerage fees, Webull and Robinhood are very similar. The two mainly differ in account type availability, account features, margin rates, and investment research.

You should consider Webull if you're an active or advanced trader who needs to stay on top of market fluctuations throughout the day. Along with its low-cost products, Webull offers extended hours trading, free real-time quotes, Nasdaq market data, and 24/7 customer support.

While Robinhood and Webull share the $2,000 margin account minimum, Robinhood's annual margin rate of 2.5% is fairly lower than that of Webull's margin rates (margin rates represent the interest brokers charge if you borrow money to invest). This means you'll pay less to borrow at Robinhood. Another thing worth noting is that, while the Robinhood Gold membership costs $5 per month, it allows for instant account deposits of up to $50,000.

There are two other distinctions worth addressing: Robinhood offers cash management accounts, but Webull doesn't. Webull offers IRAs, but Robinhood doesn't.

If you're leaning toward a low-cost combination of investment accounts and cash management options, Robinhood may be the better fit. The app currently offers a 0.30% APY on uninvested cash. But if retirement investing is more important, Webull may be the best choice.