Investors should be aware of several notable distinctions between TD Ameritrade and Webull before signing up with any of these top-rated brokers. Comparing TD Ameritrade vs. Webull will show you the essential similarities and differences between the two brokerages, so you can decide if one is right for you.
Webull has been around for a while, but it is still a relative newbie to the world of brokerages. TD Ameritrade is a staple among brokers across the US, integrating high-quality internet trading services with its brick-and-mortar financial advice business, now part of Charles Schwab. TD Ameritrade supplies traders with superior trading platforms, PC clients and mobile apps, and high-quality trading tools absent at Webull.
While both companies provide IRA accounts, TD Ameritrade offers a broader range of trading instruments, allowing investors and traders to diversify their portfolios across many asset classes. Unlike Webull, a low-cost execution-only broker, it continues to invest in high-quality research and teaching. TD Ameritrade also allows algorithmic trading and offers managed portfolios, which are lacking at Webull.
Table of Contents
TD Ameritrade Overview
TD Ameritrade complies with the SEC and FINRA’s rules and regulations as a US brokerage. As a member of the TD Bank Group, the firm is a NASDAQ-listed financial services provider. In the year 2020, Charles Schwab will have bought the firm. Between April and September of 2023, customer accounts will be converted.
TD Ameritrade has been around for decades, debuting as First Omaha Securities in 1975. Charles Schwab purchased it in 2020, and TD Ameritrade will continue functioning as an independent firm.
One of TD Ameritrade’s most prominent selling factors — the thinkorswim trading tool— is here to stay. thinkorswim and TD Ameritrade’s extensive array of assets and shares is a reason for its popularity. Read the full Betterment vs. TD Ameritrade comparison review.
Webull, created in 2017, is a mobile-first online stock trading platform. With zero-commission transactions, no deposit minimums, and cheap costs, it has already earned its reputation. Webull’s sophisticated trading platform is one of its most striking features.
Webull is a cheap US stockbroker licensed by the top-tier US SEC and FINRA, as well as the Hong Kong SFC.
With the addition of IRAs in 2019 and cryptocurrency trading in 2020, Webull has expanded its feature set since its inception. Webull now offers stock, option, ETF, and cryptocurrency trading. Margin trading, IRA Roth, regular, and rollover investing are options. Read the full eToro vs. Webull comparison review.
TD Ameritrade vs. Webull Service & Feature Comparison
Costs, Fees & Commissions
Commission-free stock and ETF trading are available via Webull and TD Ameritrade with no minimum deposit requirements. Commission-free stock and ETF trading is a significant lure for any brokerage business, especially considering that they provide many technical analysis tools. Notably, Webull and TD Ameritrade provide the ability to trade these instruments, as do many other brokerage firms. Options trading is free on Webull; however, TD Ameritrade charges a $0.65 fee for every contract traded.
When it comes to commissions, Webull is better affordable than TD Ameritrade. Margin rates are also far cheaper in this business, making it an excellent choice if you wish to use margin trading.
There are no minimum balances for accounts hosted on Webull. The sole exception is for traders who favor margin trading. In this situation, a minimum account balance of $2,000 is necessary. Except for margin accounts, which need a minimum amount of $25,000, TD Ameritrade does not demand a minimum balance for most accounts.
Both systems enable you to create a standard investment account or conventional or Roth IRA accounts. SEP IRAs, education savings accounts, individual pensions, corporate accounts, and trusts are available through TD Ameritrade.
TD Ameritrade offers a robo-advisor account and a free online bill-paying cash management account. However, we will not explore these alternatives in depth.
Margin trading is free with Webull and TD Ameritrade if you have a balance of at least $2,000 in your account. Webull, on the other hand, offers much lower margin rates. Up to $25,000, the broker charges a fee of 6.99 percent, whereas TD Ameritrade charges a fee of 9.25-9.50 percent.
If you search for more than an individual brokerage account or IRA, TD Ameritrade provides every account option you might want. Webull’s accounts and IRAs are too small to compete in this market.
TD Ameritrade offers the following kinds of accounts for customers to choose from:
- Standard accounts
- Retirement accounts
- Education accounts
- Specialty accounts
- Managed portfolios
Education and Research
Webull’s website offers few resources, but the broker’s mobile app includes a wealth of information. An equities profile page, for example, contains news stories from multiple sources, order flow, press announcements, dividend information, short interest, projections of future performance, institutional holdings, and more.
TD Ameritrade also features a wide range of resources. We discovered suitable materials on its website, mobile platforms, and desktop software. Free stock reports in pdf format are available on its website, while Webull makes no such offer. In addition, the broker’s internet stock screener offers more search criteria than Webull’s smartphone screener.
Customers of Webull do not have access to the TD Ameritrade website’s general investment learning area.
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Range of Assets, Securities & Investments
Trading in US equities, ETFs, and options is available through Webull and TD Ameritrade. Both brokers provide a wide range of stocks and ETFs to trade, with Webull offering more than 5,000 different stocks and ETFs. In comparison, TD Ameritrade provides more than 2,300 ETFs, more than 1,000 American depository receipts for overseas companies, and access to OTC marketplaces in the US. While TD Ameritrade does not provide fractional shares, Webull allows you to acquire them for as little as $5 per trade.
Webull offers a broad range of cryptocurrencies for crypto trading. TD Ameritrade presently only supports Bitcoin trading and solely through futures contracts.
A wide range of securities, ETFs, mutual funds, futures, and options are available for eligible accounts at TD Ameritrade. Not all investors are looking for exotic assets but having access to mutual funds and bonds will help you develop a wonderfully varied portfolio.
TD Ameritrade also features over 4,000 no-transaction-fee mutual funds.
Financial Advice & Services
Dividend Reinvestment Program: TD Ameritrade offers a DRIP program to convert dividends into equity shares. Webull, on the other hand, does not.
Traditional and Roth IRAs are available with Webull. TD Ameritrade provides these plus SIMPLE and SEP accounts.
Fractional-share Trading: Not yet accessible on any self-directed platform through TD, Ameritrade employs fractional shares in its robo program.
IPO Availability: Both brokerage firms give access to equities IPOs. On the other hand, TD Ameritrade requires $250,000 in assets (or 30 trades in the preceding quarter) to participate. This is not a prerequisite for Webull.
Trading Technology & Platforms
TD Ameritrade has two primary trading platforms and a related mobile version. TD Ameritrade’s trading platform is ideal for newer or casual investors. There is research from Morningstar, Thomson Reuters, and CRFA, as well as the ability to evaluate and trade assets. There is also a system to track capital gains and losses to help you prepare your taxes.
The thinkorswim app is the choice for serious investors. On this powerful site, you will find a wide range of resources for technical analysis. These resources include anything from real-time news and quotations to customizable screeners and charts.
You may trade FX and futures with thinkorwim, a professional-level trading platform. You may also use options to trade with pre-programmed support and multi-leg methods. It offers 400+ technological tools, and you can even develop custom algorithms.
Webull maintains a complete trading platform for active investors that includes real-time quotations, a macro picture of the market showing which sectors are behind and leading, and various charting choices.
Webull does have essential research and analysis products from TotalView, Reuters, Refinitive, Lipper, and OPRA.
TD Ameritrade’s platform provides more than Webull. It is more advanced than most brokerage apps, and separating the platform between seasoned and ordinary users ensures everyone can feel comfortable with their desired selections. Webull’s only advantage is that its user interface is more intuitive. Compared to Webull, the TD Ameritrade trading platform received a lower overall rating from the industry experts. They discovered that TD Ameritrade gives customers access to significantly more markets and products, but Webull’s research and teaching are of lesser quality.
It is simple to see why these applications have received such high marks from their users. TD Ameritrade maintains ratings of 4.5 and 3.4 out of 5 stars on the App Store and Google Play store, respectively. And Webull’s ratings are considerably better at 4.7 and 4.5.
Options trading and currency trading are two of TD Ameritrade’s most well-known specialties, and the company’s top-notch thinkorswim trading interface caters to the more experienced client. The App Store and Google Play ratings of 4.7 and 3.8, respectively.
Prospective consumers may test-drive the trading platforms of both TD Ameritrade and Webull with fully working “play money” demo accounts. As a result, the best method to determine which platform is ideal for you is to use them all.
Charts in the Webull app give a variety of helpful features. These include technical oscillators and indicators like exponential moving average and Bollinger Bands. There are eight distinct types of graphs to choose from, with a time horizon of up to 50 years. It is also possible to see in horizontal mode. The app’s trade ticket is less complicated, enabling merely market and limit orders.
Each of TD Ameritrade’s three mobile applications offers its capabilities. For futures and currency trading, thinkorswim software is excellent. Another program can trade mutual funds, deposit a check, analyze option chains, and access Level II quotations, amongst other capabilities.
Other Services & Features
Webull maintains extended trading hours that are three hours longer than TD Ameritrade. Webull’s site features real-time quotations, analyst ratings, charts, and the financial calendar. They have an app that provides information on worldwide markets and overseas securities, but you cannot trade in them.
TD Ameritrade enables communication through iMessage, Amazon Echo, and Apple Watch. There is an Apple Watch app for it. It also provides a free dividend reinvestment program (DRIP) that transforms payouts into fractional shares. Webull does not have any of these services. Webull has outstanding market research knowledge. TD Ameritrade does the same, providing a wealth of educational resources for investors and market research. Webull provides some instructional information, primarily on the broker’s app, but it does not compare to TD Ameritrade’s.
My Preference: TD Ameritrade Wins Over Webull – Maybe?
TD Ameritrade is a staple in the stockbroker landscape and has something to offer about every style of investor and trader. The broker’s extensive trading tools and features appeal to experienced stock market investors.
However, TD Ameritrade falls a bit short of promoting trendier assets. You cannot invest in fractional shares, for example. You can only trade Bitcoin futures in the crypto space.
Webull is a suitable alternative if you want an all-in-one platform that supports stock and crypto-assets. Additionally, if you plan to invest in many companies or exchange-traded funds (ETFs) with fractional shares, this is something to keep in mind. However, you should not select Webull if you wish to invest in mutual funds.
TD Ameritrade vs. Webull: The Bottom Line
Webull and TD Ameritrade combine commission-free trading with trading systems that focus on technical analysis. With TD Ameritrade’s robust charting platform and Webull’s mobile-first interface, users may access significant cryptocurrencies. Since TD Ameritrade offers more account kinds and complex trading capabilities, we believe it is a superior overall option for traders.
It is not easy to compare TD Ameritrade and Webull because they both have their advantages. Traders with a more short-term, speculative outlook may find a home at Webull, an online brokerage. TD Ameritrade can help the same kind of trader, but it can also help investors more concerned with the long term.