Webull is an online trading platform that started in 2017 as a research platform. Since 2018, the company has been competing with Robinhood in the online brokerage space.
Webull is available as both a desktop app and a mobile web-based app. Once a user establishes an account they have access to both versions. Consumers can choose one of three accounts.
- A cash account has no minimum deposit requirement
- A margin account that offers short selling and limited day trading
- A margin account that offers short selling and unlimited day trading
Webull is Similar To Robinhood
The appeal of Webull, as with Robinhood, is the ability for traders to execute zero-commission trades. This is a strategy that has allowed an app like Webull to capture the minds, and wallets, of millennial investors.
So why are they choosing apps like Webull. These would-be traders may not be familiar with the stock market, but they are familiar with social media and digital apps. This generation has been raised with the idea that there truly is an app for that.
And like Robinhood, Webull offers traders the ability to execute zero-commission trades. This is one way that, for better (and some say) or worse that Webull promotes the gamefication of stocks. The ability for these traders to execute trades without commission takes away some of the risk of buying and selling stocks.
Now as we’ve already established, Webull was appealing to a different kind of investor. Nevertheless, there were some customers of major brokerage houses that were pulling a portion of their portfolio onto an app like Webull.
And they were doing this for two reasons. First, the zero-commission trades. And second, because Webull is known to offer more robust research and analytical tools for more sophisticated investors.
And as the major brokerage houses began to understand the threat that sites like Webull posed, many have moved to a zero-commission strategy as well. However even though zero commissions has become table stakes, sites like Webull still have a couple of arrows in the quiver. And one of them is the ability to offer free shares.
The Most Powerful Word in Marketing
The most powerful word in marketing is “free.” And while you might not think so, it’s as true in the online brokerage space as it is in e-commerce. I don’t think it’s fair to say that investors flock to an app such as Webull or Robinhood because of their ability to receive a free share of stock. But it sure doesn’t hurt.
In fact, it’s a very on-brand tactic for Webull, which like Robinhood is appealing to the “gamefication” of stocks. The apps have a user experience that is familiar to the digital generation that makes up their primary audience. They are used to instant gratification and the opportunity to receive free stuff for their participation.
Can You Receive Free Shares From Webull?
New traders can receive up to two free shares of stock when they join Webull. The stock will be selected by an algorithm that culls Webull’s Reward Program Inventory of settled shares. Companies must have a minimum market cap of $10 billion and trade on either the New York Stock Exchange (NYSE) or the NASDAQ
In many cases, traders will receive a penny stock (i.e. a stock valued at $5 or less). In fact the odds of receiving such a stock are 1 to 1.02. And the very first free share that traders receive will be valued at no more than $300.
The odds of their first share being within a defined range is as follows:
- $3 to $5 stock – 1 to 1.02
- $10 to $50 stock – 1:55 to 6
- $50 to $300 stock – 1:500
How To Claim Your Free Share on Webull
The first thing traders must do is to register for their free Webull account. This requires basic information and can be completed in minutes. The most detailed information you will need is information from a form of identification such as a driver’s license or passport.
After that, they need to download the Webull mobile app. The Webull app is available on both iOS and Android platforms.
Once they’ve completed that step, they need to open the app and select “Trade”. This will allow them to set up their account.
From the menu (which is in the bottom right corner, they will select the “My Free Stock” option and then select “Get” at the top of the screen.
It’s that simple. The share will appeal in their account in within five trading days.
New Users Can Also Get a Second Free Share
You may realize something by reading the instructions above. The first stock that traders receive is an absolutely free share. It doesn’t require them to put any money into their account. However, when they do, they have an opportunity to receive a second free share. This is called the deposit bonus.
When traders fund their account with $100 within the first 30 days of opening their account they receive a second free stock. This share will be worth between $4 and $1,000. As with the first share, the odds are likely that this will be a penny stock. Here are the odds:
- $4 to $8 stock – 1:1.02
- $8 to $100 stock – 1:74
- $100 to $200 stock – 1:166.7
- $200 to $1,000 stock – 1:2000
But Wait, There’s More
That’s right the Webull app gives users the ability to continue to earn free shares. The app has a feature called Bonus Guide. When users click on this they will see that they can receive up to two additional free shares when they invite a friend to use the app and that friend registers and deposits at least $100 into their account.
When they register (again with no financial commitment), you will receive a free share just as if you signed up. And if they fund their account with at least $100 within 30 days, you will receive a second free share.
These shares will be valued at between $1,200 and $1,400.
Webull runs promotions throughout the year that may increase this referral bonus as well.
Free Shares Can Be Traded Like Other Stocks
Once the free shares are in the user’s account, they can be traded like any other stock. This is appealing because, at times, a user may get a share of stock from a company they are not interested in or simply don’t want to own. In this case users can sell that stock and bank the proceeds to use to buy additional stock.
At this time, Webull does not offer the ability to buy fractional shares. However, there are many quality stocks that are available at a low price. Penny stocks can be risky, but they can also be very profitable. The key is knowing which is which. And that leads to the final point.
Why Should Traders Choose Webull?
The single biggest reason that an investor should choose Webull above another zero-commission app is not for the free stock. It’s for the depth of research and analytical tools that are available on the app.
Many zero commission sites have been criticized because they speculate in risky penny stocks. That’s true. But not all penny stocks are a bad value. And Webull has the research tools and an easy-to-use interface that can help traders separate the bad from the good, if they’re patient and disciplined enough to learn.
And Webull offers a paper trading mode that allows traders to simulate stock trading without putting any of their money at risk.
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