Overview of Charles Schwab and Webull
If you’re thinking about opening a new investment account, Schwab and Webull are worth considering.
Although they have similarities in some areas, there are important differences in others.
Comparison Table
|
|
|
| Rating |
|
|
| Stocks |
$0 |
$0 |
| Options (per contract) |
$0.65 |
$0 |
| Mutual Funds |
$49.99 |
na |
| Initial Funding Requirement |
$0 |
$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 |
|
|
| Mobile |
|
|
| Research Amenities |
|
|
| Portfolio & Analysis Reports |
|
|
| Customer Service and Education |
|
|
Assets and Accounts
Schwab has both self-managed accounts and investment-advisory accounts. The latter setup comes in two formats: robo and full-service. Self-directed and full-service accounts will have the lion’s share of tradable instruments. These include:
- Futures contracts
- Equities
- Options
- Closed End Funds
- ETFs
- Mutual Funds
- Bonds and other fixed-income securities
Schwab’s stock category includes both OTC (over-the-counter) and foreign assets.
Like Schwab, Webull has both advisory and self-directed accounts. However, Webull doesn’t offer
traditional human-managed accounts. It only has a robo service. The broker’s self-directed accounts
lose mutual funds, but gain cryptocurrencies. Webull has OTC stocks but not foreign stocks. Any account
with the investment firm can be opened in joint, individual, or IRA format. Schwab goes a little further with estate, charitable, business, Coverdell, 529, and custodial accounts.
Winner: Schwab
Banking
Schwab is more than an investment firm. It operates its own bank (Charles Schwab Bank) that has FDIC insurance. A host of resources are available here, including mortgages and checking and savings accounts with lots of bonuses. One example is a Visa debit card with unlimited ATM fee refunds around the world.
Webull doesn’t have its own bank, although it does use an FDIC-sweep program for its customers’ cash
balances. Currently, there is a $1 million insurance limit on this program, which is 4 times as much
as Schwab’s. And Webull pays
4% APY
on uninvested cash. Schwab’s bank products, by comparison, pay 0.1% at best. But Webull doesn’t have a debit card, checkwriting, or many of the features that are available at Schwab.
Winner: Debatable
Websites
For asset research, account management, and actual trading, both investment firms have user-friendly websites. Webull’s has a Market tab in the top menu that delivers lots of information on markets, indexes, and top movers. These have charts and graphs of various kinds. Stocks have profiles with option chains, press releases, analysts’ ratings, and price targets.
Webull’s website proper has no trading capability. For this, a browser platform needs to be launched (the necessary link is under the Platforms tab). There are a lot of useful tools here, including several sophisticated order tickets, full-screen charting with many gadgets, a security screener, time & sales data, simulated trading, alerts, and multiple watchlists.
Unlike Webull’s website, Schwab’s site has actual trading tools on it. These include some of the same tools we saw on Webull’s web-based platform. Here are some examples: charts with many tools, a pop-out trade ticket with several order types, alerts, watchlists, and many option tools.
Like Webull, Schwab has a browser-based platform. Called thinkorswim, it has better charting and order entry than the website. For example, a graph can be displayed the full height and width of the screen, and there are some really advanced trade types, such as OTO (one triggers the other). Schwab’s software does not have simulated trading, however.
Winner: Schwab
Incentives
Webull:
Up to $7,500 bonus and 20 free stocks at Webull!
Charles Schwab: Satisfaction guarantee and $0-fee trades at Charles Schwab.
Mobile Apps
Moving on to mobile apps, we find another close comparison. Webull’s mobile software has a community forum called Feeds. It delivers a digital bulletin board where Webull traders can discuss the day’s market action.
There are two order tickets on the app (one for rapid-fire trading and the other for regular trading), integrated option spreads, and horizontal charting with several useful tools.
Schwab has two apps. One is designed for futures trading (although it can trade stocks and options, too), while the other has useful resources like mobile check deposit and live streaming of video news. Combined, they deliver horizontal charting with tools and some high-level order tickets with integrated option spreads. thinkorswim has the following order types:
- Contingent on price
- Trailing stop
- OCO (one cancels the other)
- OTO
- Market on close
- Stop limit
Webull’s app combines OTO and OCO into an OTOCO order. It has other advanced orders such as stop limit and trailing.
Winner: Schwab
Desktop Software
The highest level of trading will be found at both firms using desktop programs. Schwab calls its platform thinkorswim. It certainly does give an edge to advanced trading with profit-loss diagrams, live streaming of CNBC, technical analysis from Recognia, multi-leg trading, advanced charting, direct-access routing, and integrated option spreads. In total, we counted 24 option strategies plus a custom feature to create a trade of any 4 legs.
Although Edge is not difficult to master, there is a demo mode for extra practice, and a live-help widget sits at the top of the platform.
Webull’s desktop program also has simulated trading and a messaging widget. There is a Learning Center if these resources aren’t quite enough. For actual trading, Webull has full-screen charting, several order tickets with all sorts of bells and whistles, integrated option spreads, P/L diagrams, heat maps, and a stock screener. We counted 11 integrated option spreads.
Both platforms provide the ability to create custom layouts. Both have pre-installed layouts for a variety of purposes, such as options or day trading.
Winner: Schwab
Margin
Brokerage customers at both firms can trade on a cash or margin basis. Interest rates at Webull are
consistently lower (8.74% versus 12.575% at the lowest rung). Both firms show margin details on their software for entered ticker symbols. Webull’s software shows more data points, like day-trading leverage and short maintenance requirement.
Winner: Webull
Incentives
Webull:
Up to $7,500 bonus and 20 free stocks at Webull!
Charles Schwab: Satisfaction guarantee and $0-fee trades at Charles Schwab.
Add-on Services
Automatic Mutual Fund Investing: Available at Schwab.
Fractional Shares: Webull customers can buy and sell cryptocurrencies and securities in whole dollars. Schwab offers fractional-share trading only in the 500 stocks that compose the S&P Index.
IPO Service: It’s possible at either firm to get in on primary stock offerings before they hit the secondary market.
Fully-Paid Stock Lending: Both firms offer the ability to earn extra income by loaning out shares of securities.
Extended-hours Trading: Schwab and Webull both offer pre-market and after-hour trading in select securities. Cryptocurrencies at Webull trade almost 24/7, while futures at Schwab trade 24/6.
DRIP Service: Available at both brokers.
Individual Retirement Accounts: Although both firms have IRAs, Schwab has more IRA types. These include Custodial and Inherited IRAs.
Winner: Schwab
Recommendations
Small Accounts: Webull’s robo service requires $100 to start, while Schwab’s automated program has a much steeper $5,000 minimum. Neither brokerage firm has any minimums for self-directed accounts. Because Webull offers fractional-share trading for more securities, it would be a better choice for small self-directed accounts.
Long-Term Investors & Retirement Savers: Who has financial planning, annuities, lifecycle mutual funds, bond ladders, small business retirement plans, branch locations, and much more? Only Schwab.
ETF/Stock Trading: Charles Schwab's thinkorswim platform is the best for active trading.
Beginners: For obvious reasons, an investment-advisory account is better for newbies. We lean towards Schwab because it has human investment advisors, which Webull lacks.
Mutual Fund Trading: Only Schwab has mutual funds.
Webull vs Schwab Verdict
Schwab has a moderate lead overall. Webull is the clear winner for crypto trading, while Schwab is
the top dog for active trading and financial planning.
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Updated on 1/1/2025.