Compare Charles Schwab versus WeBull: IRA, commissions, investing fees, trading tools, account differences, pros and cons. Which online broker is better in 2022?

Overview of Charles Schwab and WeBull

Webull is the upstart in the brokerage industry. Can it outperform the warhorse Charles Schwab? Use the following categories to see the reality:

Comparison Table

Charles Schwab Review
Rating Charles Schwab rating Webull Rating
Stocks $0 $0
Options (per contract) $0.65 $0
Mutual Funds $49.99 na
Initial Funding Requirement $1,000 $0
Inactivity Fee $0 $0
IRA Annual Fee $0 $0
Full Account Transfer $50 $75
Partial Account Transfer $25 $75
Account Closing Fee $0 $0
Trading Experience & Technology brokerage ratings brokerage ratings
Mobile brokerage ratings brokerage ratings
Research Amenities brokerage ratings brokerage ratings
Portfolio & Analysis Reports brokerage ratings brokerage ratings
Customer Service and Education brokerage ratings brokerage ratings
Open an account Open Schwab account and get $0-fee stock trades. Grab your last chance to get 12 free stocks valued up to $30,600.


First Category: Investing Choices

The type of trading you plan to do should determine to a large extent the brokerage firm you choose. These two firms are quite different in this area, so consider these facts:

Schwab:

Schwab offers both self-directed and managed accounts. For the latter option, the broker-dealer has both robo and traditional formats. The computerized system of course is the cheapest, starting at an unbeatable 0.0%, but offers only exchange-traded funds.

Self-directed customers get a much larger selection of tradable products, including stocks, bonds, mutual funds, closed-end funds, futures, option contracts, and annuities. Schwab customers will also be able to trade forex when TD Ameritrade merges with the company (sometime in 2023).

Webull:

The first difference between these two companies is that Webull only delivers self-directed accounts. Assets available for purchase include:

- Equities
- Options
- ETFs and closed-end funds
- Cryptocurrencies

Many of the investment vehicles available at Schwab, including futures, annuities, bonds, mutual funds, and over-the-counter stocks, remain unavailable to Webull clients. The one area where Webull outperforms is in cryptocurrencies, although crypto futures are available at Schwab.

Winner: Overall, it clearly is Schwab

Second Category: Website Trading

A broker’s website is often (although not always) a good place to begin a trading regimen. These two firms don’t disappoint in this category as they both offer a great deal of trading power straight from their websites.

Schwab:

During our investigation, we found Schwab’s website easy to navigate with lots of trading resources. First up is a trade bar. Sitting at the bottom of the screen, it delivers real-time data on an entered ticker symbol, an absolute must for short-term trading, and a pop-out chart. But the widget doesn’t offer order entry, the tool’s one major flaw. Instead, it creates a web page where an order can be entered.


StreetSmart Edge


While Schwab’s website trading ticket isn’t overly simple, a quick upgrade will be found with StreetSmart Central. This is the broker’s browser platform. It has many great features, including full-screen charting with tick-by-tick price action, an economic calendar, an advanced order ticket, several research tools, and more.

Webull:

Webull’s website doesn’t have any trading capability, nor does it have nearly the same number of resources as Schwab’s. For example, the Schwab site has much more information on the tradable products the brokerage firm offers plus a large selection of self-service tools. Webull’s site simply doesn’t offer these amenities.


Webull Trading Platform


But Webull does have a web-based trading platform. It can be launched after logging into the website (just click on the TRADE link at the top of the site). With this user-friendly piece of software, you’ll be able to create watchlists, use technical indicators on charts, and practice trading in a simulated mode (something that StreetSmart Central doesn’t offer).

Winner: Schwab

Third Category: Desktop Software

If neither browser system appeals to you, desktop software is available from both companies.

Schwab:

Schwab offers a completely different trading experience with StreetSmart Edge. The program has many widgets pre-installed, including technical analysis from Recognia and a live feed of CNBC.

Edge’s trading ticket provides direct-access routing (albeit to just 2 venues), a trailing order, and bracket orders. An infinite number of layouts can be created, and Schwab this time included a demo mode.

Webull:

Webull decided to keep its desktop program almost identical to its browser platform. The advantage to this setup is that the desktop system is easy to learn. Surprisingly, it has fewer tools in some areas compared to its browser cousin; for example, the browser platform has more drawing tools. Other missing features on Webull’s desktop platform include video news and direct-access routing.

Winner: Again, it’s Schwab

Fourth Category: Mobile Apps

Neither brokerage house disappoints in this category, either. Many hours must have been spent designing both apps because they are very good.

Schwab:

Schwab has actually rolled out two apps. One we can call the regular app, while the other is modeled after StreetSmart Central. This latter platform is the only app that can trade futures contracts.


WeBull vs Schwab


The regular app delivers a host of useful features, including a Media Center where videos and podcasts from CNBC and Schwab make appearances. We also very much like the mobile check deposit widget, free bill pay, and heat maps.

Webull:

Webull only has one app, but it packs many great features. These include:


Schwab vs WeBull


- A demo mode (which neither Schwab app has)
- Ongoing bonuses and promotions
- Advanced graphing program
- Community forum

Despite the app’s highlights, it lacks some of the features we like on Schwab’s, including check deposit.

Winner: Webull

Fifth Category: Margin Borrowing

A margin account can be had at either firm. Here are the details:

Schwab:

A sliding scale of 8.125% and 9.825% is what Schwab currently charges on margin debits. Unfortunately, its software doesn’t display important margin details on a security.

Webull:

Webull customers pay between 3.99% and 6.99% for margin loans. Plus, all 3 of the broker’s platforms display important margin details, such as leverage and maintenance requirements.

Winner: Webull wins its second category

Sixth Category: Miscellaneous Services

Banking Tools: Available with a Schwab account but not with a Webull account.

IPO Availability: On Webull’s mobile app (and nowhere else) we found multiple upcoming Initial Public Offerings. It’s easy to sign up for them.

Fractional-share Trading: Schwab offerings whole-dollar investing in the 500 stocks that make up America’s most famous index. Fractional shares are available at Webull not just for stocks but for ETFs too.

IRAs: Individual Retirement Accounts are available at both firms. Schwab has more IRA types, including custodial and inherited versions.

Dividend Reinvestment Program: Only Schwab provides an automatic dividend reinvesting service.

Extended Hours: Webull has longer hours.

Automatic Mutual Fund Investing: Available at Schwab.

Winner: Schwab

Incentives

WeBull: Grab your last chance to get 12 free stocks valued up to $30,600.

Charles Schwab: Open Schwab account and get $0-fee stock trades.


Recommendation

Small Accounts: Webull.

Mutual Fund Trading: Schwab is the only option here.

Stock/ETF Trading: Schwab has better ETF research materials but Webull has better margin rates and $0 cost options.

Beginners: New traders will find a larger selection of educational materials at Schwab. Webull is easier to learn.

Long-Term Investors and Retirement Savers: Schwab is the only choice for annuities, target-date mutual funds, and solo 401(k) plans. It also has much better retirement resources on its website.

IRAs: On top of more IRA types, Schwab also offers more IRA resources on its website. These include calculators, quizzes, and lots of educational articles.

Charles Schwab vs WeBull Summary

Schwab is the outperformer overall. Webull has better pricing and it's catching up with a larger rival with astonishing speed.

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