Webull

Webull IRA (ROTH/Traditional) Accounts Review (2022)


Webull IRA Roth IRA, SEP/Simple IRA, traditional, and 401K rollover IRA. Webull retirement account rating, cost, fees, and offers.


A Review of Webull’s IRA Options and Features


Webull Financial is a SIPC insured broker that was founded in 2017. It has quickly become one of the most popular e-platforms for the trading of stocks, ETFs, and options, amassing at least 13 million registered users in just over three years. This is largely thanks in part to the platform’s commission-free structure—$0 on the vast majority of transactions—along with its easy-to-use mobile app and web-based trading systems.

What few of its mostly younger user base may be aware of, however, is that its platform also allows clients to save for retirement via an individual retirement account (IRA). An IRA is a retirement savings account initiated by an individual on their own behalf. Whereas IRAs are often conflated with a 401k—the latter is a separate type of retirement account sponsored by employers on behalf of their employees through a percentage of pre-tax salary.


Types of IRAs Webull Offers


Webull offers three distinct types of IRAs to its customers, including Traditional IRAs, Roth IRAs, and Rollover IRAs. What separates them from one another is largely how they are funded in terms of using pre-or after-tax dollars.

It is important to remember that each IRA will have different rules when it comes to required minimum dispersions and deductions for tax purposes.


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Associated Fees of an IRA by Webull


One of the primary differentiators Webull enjoys from its traditional competitors is its nearly frictionless fee structure. Users of the platform enjoy commission-free trading for most routine financial transactions such as buying or selling stocks. This benefit extends to their IRA offerings as well.

Webull’s IRA offerings have zero fees associated with opening, closing, or incoming transfers to an account. Though there may be fees assessed by clearing firms or third-party brokerages (from which transferred assets can come).

However, Webull does charge a $75.00 fee for any outgoing transfers, whether they are partial or complete.

Registering for an IRA on Webull is as easy as answering a few simple questions to gauge your investing acumen, goals, and financial status. If you already have an investment portfolio on the platform, many of your answers will be prepopulated, and you won’t have to undergo additional identity verification.


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Webull’s Available Investments for Contributions to its IRAs


Typically, an IRA allows for investment in stocks, bonds, ETFs, mutual funds, real estate, annuities, UITs, and even some securities.

However, currently, Webull supports trading in only two categories within its IRA offerings: stocks and ETFs. Additionally, trading on margin or shorting securities is prohibited when using a Webull IRA. Once you have opened an IRA with Webull, you are able to make contributions to it.

Webull currently supports three different types of contributions to its IRAs:

Annual contributions: Limited to $6,000 for tax years 2020 and 2021 (limit is $7,000 for those 50 and older).

Roll-over and direct roll-over contributions: Those that are able to may “rollover” distributions from other IRAs, or certain further retirement accounts, tax-free.

Trustee-to-trustee transfers: Such transfers are advantageous as they have no annual limit. Additionally, Webull does not report trustee-to-trustee transfers to the IRS.

Depending on the type of contribution that is being made, account holders are can utilize ACH, wire transfer, or cash roll-over deposits. For transfers between trustees, options include both cash and stock contributions.


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Using Webull’s Investment Tools


In addition to IRA investments, Webull also offers standard individual investor accounts. These accounts offer access to a comprehensive list of securities such as stocks, cryptocurrencies, and ETFs, which investors can use to build their portfolios on the platform. Webull may also grant investors access to advanced trading options.


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These more advanced trading options include:

Options trading: When Webull’s requirements are met, options trading is available and allows investors to make calls and puts on stocks, just as they would with any other brokerage firm.

Trading on margin: For those that qualify (accounts with a value over $2,000), Webull allows trading on margin with rates that differ based on the margin loan. The lowest rate is 3.99% and there are fees associated with short sales.

Access to IPOs: Webull provides its investors with a calendar that offers access to trading a variety of the most popular upcoming IPOs.

Crypto-currency trading: Trading in crypto coins—including all the most popular ones such as Bitcoin, Ethereum, and Dogecoin—is available.

Investors may need to qualify to unlock the ability to use some of the above advanced tools on Webull.


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Helpful Features of the Webull Platform


After using Webull for any amount of time, one is struck with the thoughtfulness of the user interface’s design and the wealth of information the platform provides for its traders.

For those that seek it out, there is a great amount of data and other materials available to help make informed trades. However, the platform doesn’t hold investors’ hands, as most of the required research that will be needed to make informed trading decisions largely falls to each individual investor’s initiative. Failing to do one’s due diligence may make trading overwhelming due to the sheer amount of information available.

To help investors form a sound investment strategy, Webull provides access to several helpful tools:

P&L Charts: These charts are useful when tracking portfolio growth and allow for percentage comparisons with indexes such as the Dow Jones or S&P 500.

Partial Shares: Webull provides investing in the fractions of stocks. This is helpful for high-priced stocks such as Amazon.

Use of NASDAQ’s TotalView NOII: Webull provides a complimentary 3-month subscription to NASDAQ’s Level 2 market data. Traders can use this to see the last 30 bids and offers made for a particular stock on NASDAQ. This is helpful when trying to gain a fuller picture of a stock’s true demand.

Access to stock analysis: Webull provides analyst ratings and buy recommendations for most U.S. traded stocks.


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Final Thoughts on Webull IRA


While not right for everyone, Webull maintains great utility for investors that want access to a wide range of markets, trading tools, and services—most of which are offered without fees.

Advanced traders may balk at some limitations imposed by the platform, for example, an inability to trade futures or having fewer IRA trading options available. But, for those that are comfortable putting in the work to understand the market and develop their own trading strategies, the Webull platform remains a great brokerage option.


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