I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolWebull Fees: What You Need to Know
Updated on January 7, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit MittalAt a Glance
- Webull is a free trading platform with certain fees for transactions, margins, and stocks.
- Stock fees include transaction fees determined by SEC and regulatory fees set by FINRA.
- No commission fees for crypto trading, but there is a spread.
- No inactivity fees, and deposit/withdrawal fees vary based on the method used.
Nothing comes for free, especially not when big money is involved. Every trading platform has its fees, which is something that every trader has to familiarize himself with. With that in mind, while nothing is free, it can still be affordable. Is this the case with Webull fees? Can they easily be approached by beginner traders? Well, you are about to find that out.
Is Webull Free to Use?
Webull is free to use, meaning that you can access their platform without having to pay. However, like every good service, you cannot expect it to be completely free. It’s the trading process that you will have to concern yourself with. At the same time, it is much cheaper as compared to other platforms.
Some fees have to be paid for, such as the transactions, margins, the stocks, and so on. As a trader, you might want to expect some fees here and there, because wealth never comes too cheap – you’ll need to invest in it, and reap the profits later.
Webull Trading Fees
Webull is a trading platform, so it makes sense that you’d see a couple of trading fees there. This may include brokerage fees, which you’ll have to pay whenever you make a trade. For instance, a trading fee may be applied whenever you buy stock or ETF.
Depending on the kind of transaction you make, you may be asked to pay a financing rate, a commission, or a spread. Commission rates may either be fixed or based on the volume of the trades.
The financing rate is also known as the overnight rate, and it’s the price to pay for keeping your leveraged position throughout the next day. Last but not least, we have spread fees, which is the difference between the buying and the selling price.
That being said, it is not Webull that charges most of these fees. For example, Webull will not charge any fees for securities that have been listed within a U.S. exchange. However, regulatory authorities such as FINRA, SEC, or OCC may apply certain charges. These charges don’t benefit Webull, but they still need to be applied due to regulatory standards.
Webull Stock Fees
When it comes to stocks, SEC applies a transaction fee onto Webull. The minimum that you’d have to pay is $0.01, but there’s also a formula that will determine exactly how much you should pay: Transaction Fee (SEC) = Total Traded Dollar Amount x $0.0000051.
This means that for every $50,000 stock that you sell, SEC will charge a transaction fee of $0.255. Bear in mind that FINRA will also require a regulatory fee when you sell stocks, which can be anything between $0.01 (the minimum) and $5.95, applied per transaction. Here’s what the FINRA formula looks like – Regulatory Fee (FINRA) – Total Trading Volume x $0.000119.
In other words, if you sell a total of $50,000 shares, you should be charged a $5.95 regulatory fee. This is the maximum allowed for a transaction, which means that even if you sell $100,000 worth of shares, your fee could not get any higher.
Webull Options Fees
Similar to stocks, the regulatory authorities will also apply some fees on options. Here is what users may expect for each type of option fee:
1. SEC Transaction Fee
The formula for the options fees imposed by SEC is the same as with stocks: Total Traded Dollar Amount x $0.0000051. The minimum per transaction is $0.01, and it applies only to sales.
2. Options Exchange Regulatory Fee
To calculate the Options Exchange Regulatory Fee, you need to apply the formula Number of Contacts x $0.0388. There is no minimum or maximum amount for this fee – you pay what you have to pay. It applies to buys and sales alike.
3. FINRA Trading Activity Fee
To get the FINRA Trading Activity Fee, you have to apply the formula Number of Contacts x $0.002. The minimum charge for this transaction is $0.01, which is only applied to the sales.
4. OCC Clearing Fee
To get the OCC Clearing fee, you use the formula Number of Contacts x $0.02. The maximum allowed for this transaction is $55. Like with the Options Exchange Regulatory Fee, the OCC Clearing Fee applies to both buys and sales.
Webull Crypto Fees
The Webull online trading platform also allows you to buy cryptos such as Bitcoin, Litecoin, or Ethereum. That being said, the platform doesn’t charge any commission fees for trading crypto. Users do have to remember that even if no commission fees are applied, each trading side has a 100-basis point spread.
Webull Non-Trading Fees
When you use any type of online trading platform, you might expect a few non-trading fees as well. These are specifically applied by the platform – in this case, Webull. Here is what you have to know.
How Does Webull Charge Transfer Fees?
If you transfer stocks in and out of Webull, then you might receive a fee for it. Technically speaking, if you transfer stocks into the Webull platform, Webull will not charge any fees. Still, the broker that delivers the stocks to you might, which is why you need to talk to them about the delivery costs.
On the other hand, if you send out your shares from Webull, then Webull will charge a $75 fee for every outgoing transaction. Keep in mind that the receiving broker might charge another transfer fee as well, something that won’t be under the control of Webull. You’ll want to obtain that information as well so you know what to expect.
Does Webull Have an Inactivity Fee?
Webull charges no inactivity fees. This means that even if you miss a couple of days or even months of trading, you won’t be charged a fee for it. Also, you won’t be charged an inactivity fee for opening an account but not using it.
Webull Charge Deposit and Withdrawal Fees
Some online trading platforms may charge a deposit or a withdrawal fee. But does Webull charge these types of fees as well? The answer to that is: it depends.
Webull Deposit Fee
Typically, Webull does not charge any withdrawal fees if the transfer was made through ACH. However, if the deposit is returned (for example, because of lack of sufficient funds), then you will have to pay a reversal fee of $5. Wire transfers will have an $8 fee within the same country, a sum that may go to $12.50 if the transfer is international.
Webull Withdrawal Fee
Likewise, if you use the ACH method, there is no withdrawal fee. The only exception is the $5 you might be charged with if the deposit is returned. Wire transfers will cost either $25 for national transfers or $45 for international transfers.
Webull Margin Interest
When you are selling or buying margins on Webull, you will be charged for those transactions as well. The interest is calculated daily, and you’ll need $2,000 at least to qualify for the margins. The fee will only be charged once a month.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Final Thoughts
Compared to other trading platforms, the fees on Webull are quite convenient and low-priced. With a proper investment strategy, traders could easily make a profit by using Webull.
Frequently Asked Questions (FAQ)
1. Are there any fees for opening a Webull account?
There are no fees for opening a Webull account.
2. What are the trading fees on Webull?
Webull offers commission-free trading for stocks, ETFs, and options.
3. Is there a fee for transferring funds to and from my Webull account?
Webull does not charge any fees for transferring funds to and from your account.
4. Are there any fees for inactivity or account maintenance?
Webull does not charge any fees for inactivity or account maintenance.
5. Are there fees for using margin trading on Webull?
Webull charges interest on margin
6. What are the fees for trading cryptocurrencies on Webull?
Webull charges a small fee for trading cryptocurrencies. The fee varies depending on the transaction amount.
7. Are there any fees for accessing real-time market data on Webull?
Webull provides free access to real-time market data for stocks and ETFs.
8. Does Webull charge any fees for dividend reinvestment?
Webull does not charge any fees for dividend reinvestment.
9. Are there any fees for using advanced trading features on Webull?
Webull offers advanced trading features, such as extended hours trading and advanced order types, at no additional cost.
10. What are the fees for wire transfers on Webull?
Webull charges a fee for both incoming and outgoing wire transfers. The specific fee amount can be found in the Webull app.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.