If you'd like to start trading stocks, there's no shortage of different apps to choose from. In contrast to traditional trading platforms, they are typically free to use and allow you to invest with very small amounts. They are also designed to be easy to use for beginners.

Robinhood and Webull are two of the most popular options. Robinhood is the better known of the two, but Webull offers many of the same features. So how do they compare, and which one is right for you?

What Is Robinhood?

Robinhood on Phone

Robinhood is arguably the best-known trading app. It was launched in 2013 and today has over 20 million users. Anyone can sign up, and you can buy fractional shares, which is ideal if you'd like to start trading without risking a large amount. Robinhood allows you to buy stocks, options, and cryptocurrencies, and it does so without charging a commission.

Download: Robinhood for Android | iOS (Free)

What Is Webull?

webull app information
Webull

Webull launched in 2018, offering many of the same features of Robinhood. It's not quite as popular, but this is partially because it hasn't been around as long. It offers a similar selection of assets to invest in, and, like Robinhood, it aims to build a userbase by offering free trading with no minimum deposit. Webull is primarily used on smartphones, but it also has a desktop app.

Download: WeBull for Android | iOS (Free)

Robinhood vs. Webull: How Do They Compare?

Robinhood and Webull are highly similar and have many identical features. There are, however, a few important differences.

Available Assets

Robinhood and Webull both allow you to trade stocks, ETFs, and options. Both apps allow you to invest in cryptocurrencies, but Webull is arguably better suited for this purpose as it has more coins available.

Fees

Robinhood and Webull both offer commission-free trading. There's no minimum deposit, you don't pay a fee on individual trades, and there's no mandatory monthly charge. It's free to withdraw cash from either platform but they both charge $75 to transfer an asset, such as a stock, out of your account.

Margin

Both trading apps allow you to trade on margin. This means that they lend you money to invest, and if your trade is successful, you can make significantly more. It's important to note that margin trading is considered a high-risk activity because it also allows you to lose your money significantly faster, multiplying your losses!

Robinhood charges $5 per month for access to margin trading, whereas Webull provides the service for free. Robinhood charges 2.5% on any money you borrow, while Webull charges 6.99% on the first $25,000.

Apps

Both platforms are arguably best known for their mobile apps. They are both easy to use, highly rated, and don't require prior trading experience. Both apps, however, take a slightly different approach.

Robinhood aims to make trading as straightforward as possible. It has a very minimal interface and avoids any unnecessary information that beginners may not understand. The app includes access to charts, but they are simplified and aimed at novices. This allows anyone to buy a stock with no more knowledge than the stock they want to buy.

Webull isn't difficult to use, but it takes a much more information-heavy approach. It provides access to more informative charts. They include the ability to see additional indicators, view index overlays, and recent buy and sell prices. This makes it more suitable for beginners who want to learn about trading and understand why stocks have particular prices. However, this added information can be overwhelming for first-time traders.

Webull also offers paper trading, which basically allows you to make virtual investments without risking real money. You can then keep track of how each of these investments performs. Paper trading is often used by novice traders, but professionals can also use it to experiment with new strategies.

Both platforms offer web-based trading, but only Webull offers a dedicated desktop app. This could be an important distinction if you plan on trading primarily on your computer.

Checking Account

Neither Robinhood nor Webull offers a checking account, but Robinhood does offer a similar Cash Management feature. Cash Management is available to all customers and includes the ability to deposit your paycheck directly into your account. Any money deposited but not invested earns 0.3% interest. Robinhood also allows you to sign up for a debit card which isn't an option with Webull.

The Cash Management feature is particularly useful if you often invest a portion of your paycheck or sell stocks in order to pay expenses. In either scenario, the money is readily available to you without an additional transfer.

Robinhood vs. Webull: Which One Is Right for You?

investment graphs on piece of paper

Robinhood and Webull are both recommended for trading beginners. Of course, which investment app is right for you depends on personal preferences.

Robinhood is easier to use, and its popularity with beginners is therefore easy to understand. If you want an app that makes trading as straightforward as possible, Robinhood is the obvious choice. The availability of what is highly similar to a checking account is also an important advantage.

Webull provides significantly more information. This makes it popular with professional traders, but it can also be useful to beginners. If you want to make more informed choices about what stocks you should buy, Webull is arguably superior.

The availability of paper trading on Webull is also an important point. It may provide a valuable opportunity to avoid losing money before you understand what you are doing.

Neither App Promises Investment Success

Robinhood and Webull are both highly reputable, and they provide similar functionality. Of course, there are differences, but whichever investment app you choose will provide a wide range of potential investments that can be accessed using a reliable interface.

What's arguably more important is your choice of individual investments to make. It's important to note that most retail investors lose money in the long run, and you should never invest what you cannot afford to lose. Provided you follow this advice, both apps are worth using.