WeBull brokerage account types offered and differences: individual, joint, retirement (Roth IRA, Traditional, Simple, SEP, Custodial), Education/College-Saving Plans, 529, HSA.

WeBull Accounts Types Overview

If you are looking to open a Webull account, you may be wondering what different types of accounts are supported on their platform. We were surprised to learn how few account types they actually offer. This article will highlight your options for a Webull account as well as offer a few alternatives that might better suit your financial goals.

Standard Webull Account

Webull currently only offers the standard, taxable individual investment account. You can choose between either a basic cash account or a margin-enabled account if you plan to trade frequently. Their standard cash account is ideal for the long-term investor who doesn’t need constant access to capital for day trading and isn’t looking to employ leverage or short positions in their strategies. If you are a more frequent trader who would like access to leverage or the ability to short stocks, Webull’s margin account would be better-suited for you. With a margin account, you can short stocks, employ leverage to increase your exposure beyond that of your cash balance, and can place multiple day trades within a week without breaching regulatory constraints around day trading. The only catch is with a margin account you are required to have at least $2,000 in your account.

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Other Webull Account Types

Webull also offers Traditional IRA, ROTH IRA, and Rollover IRA. These also come with $0 account fees.

If you were looking for other account types with Webull, such as Coverdell Education Savings accounts, custodial accounts, or business accounts you are out of luck as Webull doesn’t currently support these. As an alternative we would recommend you check out Ally Invest’s offerings as they fill in many of the gaps left by Webull. Next, we’ll briefly touch on some of these offerings from Ally Invest and let you know where you can do further reading on Ally Invest’s offerings if you are interested.

Retirement Accounts/IRAs

Ally Invest offers both Traditional and Roth IRAs on their platform, both free of any account fees or commissions. Each of these retirement accounts offers the investor a unique tax advantage and incentive to save more. A Traditional IRA is funded with pre-tax dollars, which lowers your taxable income in the years you make contributions and also allows your IRA balance to grow faster and tax-free until you withdraw money during retirement, at which point it is taxed. A Roth IRA, on the other hand, is funded with after-tax earnings but your withdrawals in retirement are 100% tax-free.

Custodial Accounts

If you were looking to invest some money for the benefit of a child or other minor, you may want to consider opening a custodial account with Ally Invest. Parents often setup and fund custodial accounts to help a child with college costs or to give them a financial head start in life once they reach adulthood. These accounts offer some tax benefits, such as the first $1,000 in annual investment earnings being untaxed and all earnings being taxed at the child’s tax rate once they reach adulthood. The Coverdell Education Savings account is setup with the similar purpose of funding a child’s future education and offers its own unique set of tax advantages.

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Other Ally Invest Accounts

This article covered two of the more popular account types outside of the standard individual account – IRAs and Custodial/Education Savings accounts - that you can open with Ally Invest. Ally Invest offers a good selection of account types considering they are a commission-free broker.

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