Webull：The Best Online Broker for commission free stock trading
By narrowing your focus to those that match your primary investment goals and experience level, you’ll spend less time on frustrations and more time on choosing your next winning investment.
Fueled by massive stock buybacks, growing earnings, and increasing consumer confidence, the market has been on a tear this past year and there are lots of reasons to expect stocks to continue their determined climb.
Whether you’re investing through an IRA, an individual trading account, or even trading the forex market, choose the best online trading brokerage and you’ll gain the edge you’ll need to grow your investments.
Why Use an Online Brokerage?
For decades, investors consulted financial advisors or personal brokers to manage their investments. Financial advisors continue to provide value but for many investors, modern online brokerages provide all the tools needed to invest successfully — and to learn to identify your own opportunities.
Whether it’s an individual trading account or a trading account aimed at retirement planning, you’re building toward a brighter future.
Utilizing the tools available through an online brokerage gives you control over the direction of your investments — and it makes you more nimble.
If the market changes suddenly, you have the ability to react quickly. With a financial advisor or a firm, which may have hundreds or even thousands of clients, you may not have the same flexibility. Costs are another strong consideration.
Many financial advisors or money managers take a small percentage of your portfolio as a fee. In years where your market gains are smaller, these fees can make it harder to build your nest egg. Make no mistake, online brokerages charge fees as well.
However, the fees for online brokerages tend to center around per-trade costs as opposed to a fixed management fee, making trading costs less of a concern for traders who don’t trade in and out frequently.
In general, you can expect to pay between $4 to $10 per trade if you’re trading common equities or exchange-traded funds (ETFs). Discount trades are no longer the exclusive territory of no-frills online brokerages.
In the past two years, many top-tier names have lowered their trading fees considerably, bringing industry-leading research tools and cost-effective trading together. Add a few points to your gains (or more) by reducing your trading costs can add up to thousands over time. When it comes to investing in your future, no one has a greater vested interest than you.
First, Understand Your Goals
It’s important to know your goals and define your priorities before choosing a broker. If you’re a buy-and-hold investor and expect you’ll only have a few stocks or funds, research tools are probably a stronger consideration than saving a dollar per trade. An informed trading decision will have a larger impact on your investment account than an occasional dollar or two in trading fees.
However, if you trade frequently and follow financial news through multiple sources, you might place a higher priority on the cost of trading. A wide variety of investment options can be important as well. In general, you can expect to be able to trade all major stock and ETFs through any online broker.
Mutual funds are often available as well but the selection will vary from one broker to the next, particularly since some top brokers also sponsor their own portfolio of mutual funds. Saving for retirement, saving for education, or trading for the fun of it can steer your needs in different directions.
What to Look for in an Online Broker
Depending on your experience level and how often you trade, you might have different priorities than others when choosing a broker. Technical traders may be less interested in whether a broker has a large selection of mutual funds than in how flexible the charting tools are, for example. Here are some of the common considerations:
1. Research tools and news
2. Trading tools and charts
3. Wide selection of securities or funds
4. Affordable fees and minimum investments
5. Banking services, including automatic investing
6. Positive customer reviews
What to Watch Out for in an Online Broker
Unlike at the beach where a red flag warns of universal danger, some red flags for brokers might be a concern for some investors but not for others. Still, it’s always good to be aware of potential drawbacks before choosing an online broker.
Account or Investment Minimums
Some brokers or funds may require a minimum investment amount. Account minimums or investment minimums can obviously be a concern if you don’t have enough money to meet the minimum requirements but minimum requirements can also limit your flexibility if your intention was to scale into an investment slowly rather than invest a larger amount. In particular, be wary of brokers or funds that charge fees if your balance falls below a certain value.
Maintenance or Inactivity Fees
If you’re a buy-and-hold investor, imagine how frustrating it can be to see fees charged to your account for maintenance or due to inactivity. It pays to read the fine print. Maintenance or inactivity fees can become silent partners who take a percentage of your investment earnings without contributing value.
Premium Research Access and Premium Features
It can also be frustrating to learn that some features advertised by an online broker are locked behind a paywall. Competition has made many features — which previously had been premium features — free through many leading online brokerages. Unless the type of trading you do is highly specialized or you need a less commonly-used charting method to time your trades perfectly, there likely isn’t a need to pay for premium services.
It should go without saying the traders who choose to trade on margin (credit) should understand the costs involved and the possible risks. High margin fees for some online brokers can create a headwind that may be difficult to overcome.
Best for Commission Free Stock Trading: Webull
1. Active traders
2. Intermediate traders
3. Advanced traders
Webull is best known for free stock trading, or their commission-free stock and exchange-traded funds. Their extensive offerings to traders include technical indicators, economic calendars, margin trading and short-selling and ratings from research agencies.
Thought Webull’s trading platform is targeted for more of an intermediate to experienced traders, beginning traders can greatly benefit from their tools, price, and platform. Along with their amazing pricing, Webull is known for their easy-to-use desktop and mobile app, trading courses, and exceptional insurance policy.
Webull offers trading on more than 5,000 U.S. stocks and ETFs and allows you to trade the stocks during extended trading hours. These including pre-market and after-hours.