Online brokerage investor
Webull and Coinbase are two of the leading online investment platforms. Webull offers a relatively new online brokerage that mainly trades cash. Webull is a favorite of young millennial investors just starting out, but it also attracts mid-sized and advanced traders because of its low fees. Coinbase is an online brokerage that focuses exclusively on cryptocurrencies. It offers many cryptocurrency related services. We compare Webull to Coinbase in terms of their fees, services, online experiences, mobile features and more.
Consider working with a financial advisor to choose the online platform that best suits your goals and interests.
Webull vs. Coinbase: Overview
Webull is a US-based fintech startup regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It was launched in 2017. At first it was mainly a mobile app, now there is a desktop and a web-based version. It’s especially popular with the millennial generation. Webull has grown rapidly and is one of the most popular online brokers. Webull has a limited selection of investment products, but allows some trading in cryptocurrencies.
Coinbase is one of the leading US cryptocurrency exchanges. It offers a wide range of cryptocurrency investments, many payment options, and advanced merchant applications. If you are looking for analytical tools and technical trading applications, Coinbase is for you. Coinbase has its own cryptocurrency wallet and even its own stable cryptocurrency coin called USD Coin. The USD coin is backed by US dollars. The company offers several digital products and services that you normally won’t find unless you check out other online brokers that specialize in cryptocurrency as an investment product. Coinbase has been around since 2012 and recently went public.
Webull vs. Coinbase: Products
Webull offers four types of assets, stocks, exchange traded funds (ETFs), options and cryptocurrencies. It has a limited supply of digital tokens and you must sign up for the privilege of trading cryptocurrencies on Webull. Webull also offers fractional stock trading, which is often appealing to young investors.
The story goes on
Webull’s account types include cash and margin accounts. IRAs are available if you already have an individual account with Webull. It supports traditional and Roth IRAs along with rollover IRAs. Webull does not offer long term investment products such as bonds and other fixed income securities.
Coinbase only offers trading and investments in cryptocurrencies. It provides access to over 100 digital coins or tokens, including its own USD Coin. Webull has a very limited selection of digital coins and no stable coin. It also doesn’t have a digital wallet, which Coinbase does. Since Webull does not offer a digital wallet, you cannot transfer your cryptocurrency holdings from its platform.
Webull vs. Coinbase: Fees and Payment Methods
Webull offers commission-free trading and no minimum deposit or minimum balance for accounts, with the exception of a $ 1 deposit fee for cryptocurrency accounts. It requires a $ 2,000 deposit to open a margin account. Webull’s margin rates start at 6.99%. It also charges a trading account fee of $ 0.00019 on sales only and has a maximum of $ 5.95 per trade. There are no fees for options contracts.
Webull offers one free transfer per customer. After that, if you send less than $ 25,000, the cost will be $ 8.95 per domestic transfer and $ 12.95 for international transfers. Webull does not charge any inactivity fee or fees for deposits or withdrawals. Webull is one of the most affordable online brokers. It accepts the generally accepted order types for an online brokerage.
Coinbase has a fairly complex fee structure. With the Coinbase Standard Platform, you pay for more services and more cryptocurrency options. Coinbase charges a flat fee of 0.50% for the spread. Transactions typically cost 1.49% when using a linked bank account or digital wallet and 3.99% when using a debit or credit card. The 3.99% fee is one of the highest among crypto exchanges. The fee structure is lower and different when using Coinbase Pro. When you use Coinbase, it is often worth subscribing to the Coinbase Pro platform.
Both platforms allow an investor to buy fractional coins. Webull only accepts US dollars for transactions. Coinbase accepts US dollars, the euro and the British pound. Coinbase accepts buy, sell, send, receive and exchange orders. It doesn’t allow limit orders unless you’re using Coinbase Pro.
Webull vs. Coinbase: Education and Research
Young Asian woman is checking her broker account
Webull has a relatively strong research presence on its platform. It specializes in technical analysis and offers some tools for fundamental analysis. Some technical indicators are a paid upgrade. Webull has a powerful investor dashboard with available warning and watch lists as well as real-time streaming rates and analyst reviews. Portfolio management tools are missing.
Coinbase has an extensive library of educational content. It has a special program called Coinbase Earn that provides incentives to use it. Coinbase has developed a series of video classes and exams that teach you about cryptocurrencies and how to trade them. By taking the courses and exams, you can earn a certain amount of the cryptocurrency that you are learning about. Coinbase Pro also offers advanced charting functions.
Webull vs. Coinbase: Platforms and Online Experiences
The Webull platform has mobile, web-based and desktop functions. Investors find it intuitive and easy to use. There is a customizable workstation that provides news, technical trading tools like charts, fundamental analysis, a stock screener, and analyst reviews. Webull also offers extended trading hours, which are particularly important to many investors. In order to use Webull, investors need to be relatively knowledgeable and self-sufficient due to the lack of tools for managing investment portfolios. Customer service is difficult to reach by phone and there is no chat function.
Coinbase offers the original Coinbase platform and Coinbase Pro, which is intended for advanced users. The original platform enables the trading of cryptocurrencies with US dollars. Coinbase Pro also enables crypto-to-crypto exchange, has advanced charting functions and enables market, limit and stop orders. Coinbase Pro enables more digital coins to be traded than the basic Coinbase platform. In terms of customer service, Coinbase has been criticized for its lack of phone support and poor customer service in general. In response, many customer service agents have been added to provide phone support. It’s now easier to reach them by phone, but they don’t offer email support. Instead there is an online contact form.
Webull vs. Coinbase: Mobile Apps
Webull has a good mobile app that is consistent with both web-based and desktop platforms. There are some design differences to accommodate the smaller screen. Watchlists can be created just as easily via the mobile app as on the other platforms. You don’t have to set up multiple platforms. You can also customize the trade ticket information in the mobile app. Research is available when you use the mobile app.
Coinbase offers a mobile app for the IOS and Android operating systems. Customers rate these mobile apps very well. It has many of the same features as the Coinbase desktop site.
Webull vs. Coinbase: Security Measures
Both Coinbase and Webull use two-factor authentication. Both companies are covered by the Federal Deposit Insurance Corporation. Webull has it on all accounts, while Coinbase only has it on US accounts. Webull does not use a digital wallet for coin storage and does not offer cold storage, while Coinbase does. About 98% of all investor money with Coinbase is stored in the cold store, the safest way to store cryptocurrencies.
The bottom line
Using an online brokerage account
Webull is developing a sophisticated platform for trading cryptocurrencies, but at the time of writing, there are relatively few digital coins and no digital wallet available. However, the services are free. You cannot transfer cryptocurrency from the Webull accounts either. Coinbase is one of the leading cryptocurrency exchanges and a full-service broker for cryptocurrencies. Both companies take security seriously, even though Webull has no way of putting investor money in cold stores.
Do you need a guide on investing in cryptocurrency? If you want to know how investing in cryptocurrency will affect your portfolio, you should speak to a financial advisor. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool will match you with up to three financial advisors in your area, and you can survey your adviser matches for free to decide which one is right for you. If you’re ready to find an advisor, get started now.
If you want to see how different types of investments would improve your portfolio, take a look SmartAsset’s asset allocation calculator.
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The article Webull vs. Coinbase: How They Compare first appeared on the SmartAsset blog.