Webull Fees: What You Need to Know

Posted by Frank Gogol

Nothing comes for free, especially not when big money is involved. Every trading platform has its fees, which is something that every trader has to familiarize himself with. With that in mind, while nothing is free, it can still be affordable. Is this the case with Webull fees? Can they easily be approached by beginner traders? Well, you are about to find that out.

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Is Webull Free to Use?

Webull is free to use, meaning that you can access their platform without having to pay. However, like every good service, you cannot expect it to be completely free. It’s the trading process that you will have to concern yourself with. At the same time, it is much cheaper as compared to other platforms.

Some fees have to be paid for, such as the transactions, margins, the stocks, and so on. As a trader, you might want to expect some fees here and there, because wealth never comes too cheap – you’ll need to invest in it, and reap the profits later.

Webull Trading Fees

Webull is a trading platform, so it makes sense that you’d see a couple of trading fees there. This may include brokerage fees, which you’ll have to pay whenever you make a trade. For instance, a trading fee may be applied whenever you buy stock or ETF.

Depending on the kind of transaction you make, you may be asked to pay a financing rate, a commission, or a spread. Commission rates may either be fixed or based on the volume of the trades.

The financing rate is also known as the overnight rate, and it’s the price to pay for keeping your leveraged position throughout the next day. Last but not least, we have spread fees, which is the difference between the buying and the selling price.

That being said, it is not Webull that charges most of these fees. For example, Webull will not charge any fees for securities that have been listed within a U.S. exchange. However, regulatory authorities such as FINRA, SEC, or OCC may apply certain charges. These charges don’t benefit Webull, but they still need to be applied due to regulatory standards.

Webull Stock Fees

When it comes to stocks, SEC applies a transaction fee onto Webull. The minimum that you’d have to pay is $0.01, but there’s also a formula that will determine exactly how much you should pay: Transaction Fee (SEC) = Total Traded Dollar Amount x $0.0000051.

This means that for every $50,000 stock that you sell, SEC will charge a transaction fee of $0.255. Bear in mind that FINRA will also require a regulatory fee when you sell stocks, which can be anything between $0.01 (the minimum) and $5.95, applied per transaction. Here’s what the FINRA formula looks like – Regulatory Fee (FINRA) – Total Trading Volume x $0.000119.

In other words, if you sell a total of $50,000 shares, you should be charged a $5.95 regulatory fee. This is the maximum allowed for a transaction, which means that even if you sell $100,000 worth of shares, your fee could not get any higher.

Webull Options Fees

Similar to stocks, the regulatory authorities will also apply some fees on options. Here is what users may expect for each type of option fee:

1. SEC Transaction Fee

The formula for the options fees imposed by SEC is the same as with stocks: Total Traded Dollar Amount x $0.0000051. The minimum per transaction is $0.01, and it applies only to sales.

2. Options Exchange Regulatory Fee

To calculate the Options Exchange Regulatory Fee, you need to apply the formula Number of Contacts x $0.0388. There is no minimum or maximum amount for this fee – you pay what you have to pay. It applies to buys and sales alike.

3. FINRA Trading Activity Fee

To get the FINRA Trading Activity Fee, you have to apply the formula Number of Contacts x $0.002. The minimum charge for this transaction is $0.01, which is only applied to the sales.

4. OCC Clearing Fee

To get the OCC Clearing fee, you use the formula Number of Contacts x $0.02. The maximum allowed for this transaction is $55. Like with the Options Exchange Regulatory Fee, the OCC Clearing Fee applies to both buys and sales.

Webull Crypto Fees

The Webull online trading platform also allows you to buy cryptos such as Bitcoin, Litecoin, or Ethereum. That being said, the platform doesn’t charge any commission fees for trading crypto. Users do have to remember that even if no commission fees are applied, each trading side has a 100-basis point spread.

Webull Non-Trading Fees

When you use any type of online trading platform, you might expect a few non-trading fees as well. These are specifically applied by the platform – in this case, Webull. Here is what you have to know.

How Does Webull Charge Transfer Fees?

If you transfer stocks in and out of Webull, then you might receive a fee for it. Technically speaking, if you transfer stocks into the Webull platform, Webull will not charge any fees. Still, the broker that delivers the stocks to you might, which is why you need to talk to them about the delivery costs.

On the other hand, if you send out your shares from Webull, then Webull will charge a $75 fee for every outgoing transaction. Keep in mind that the receiving broker might charge another transfer fee as well, something that won’t be under the control of Webull. You’ll want to obtain that information as well so you know what to expect.

Does Webull Have an Inactivity Fee?

Webull charges no inactivity fees. This means that even if you miss a couple of days or even months of trading, you won’t be charged a fee for it. Also, you won’t be charged an inactivity fee for opening an account but not using it.

Webull Charge Deposit and Withdrawal Fees

Some online trading platforms may charge a deposit or a withdrawal fee. But does Webull charge these types of fees as well? The answer to that is: it depends.

Webull Deposit Fee

Typically, Webull does not charge any withdrawal fees if the transfer was made through ACH. However, if the deposit is returned (for example, because of lack of sufficient funds), then you will have to pay a reversal fee of $5. Wire transfers will have an $8 fee within the same country, a sum that may go to $12.50 if the transfer is international.

Webull Withdrawal Fee

Likewise, if you use the ACH method, there is no withdrawal fee. The only exception is the $5 you might be charged with if the deposit is returned. Wire transfers will cost either $25 for national transfers or $45 for international transfers.

Webull Margin Interest

When you are selling or buying margins on Webull, you will be charged for those transactions as well. The interest is calculated daily, and you’ll need $2,000 at least to qualify for the margins. The fee will only be charged once a month.

Final Thoughts

Compared to other trading platforms, the fees on Webull are quite convenient and low-priced. With a proper investment strategy, traders could easily make a profit by using Webull.


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