Cryptocurrency Trading Is Coming To Webull! (I Called It)


In the first video I made about Webull on my YouTube channel I talked about how Webull has been scaling their platform quicker and better than Robinhood. For those unaware, Webull and Robinhood are fee-free investing apps that offer high quality trading products and services without the high trading fees typically associated with most brokers. Since then, the trend has been to cut fees. Mainstay brokerages such as Vanguard, Etrade, Fidelity, and Charles Schwab have recently followed suit and slashed their normal trade fees to zero.

The Fight

Robinhood was the first brokerage to offer zero-commission trading and has maintained that promise with their add-ons such as options trading. However, shortly after the success of Robinhood, many competitors started to encroach their territory. Brokerages such as M1Finance and Webull sprouted up, and seemingly overnight, these two companies started to grow rapidly and outpace Robinhood. Sure, as a first-mover, Robinhood arguably is the biggest of the three. But in my opinion, M1Finance and Webull offers superior products, better services, and much better promotions. Not only that, they are also scaling with higher quality products at a faster pace than Robinhood.

Not long ago, there was some controversy at how Robinhood routes their trade orders. As I'm sure Webull also does, Robinhood routes orders through marketmakers, like Citadel Securities, who provide market liquidity. The problem that most found was that Robinhood's order flow was significantly slower than their competitors. Their trades were routed seconds slower than other brokerages, and as a result, many traders got "OOFed!" out of winning trades. I've had that happen to me as well. Additionally, they've had some issues with their platform locking people out of their accounts for going against pattern day trade limits, due to either technical errors on Robinhood's part or other things.

Competitors

M1Finance  mainly focuses on portfolio investing using modern portfolio theory. They have branded themselves as the premier neo-investing app that provides fee-free (for the life of their company) investing-made-easy pre-made portfolios for novices, and the ability to also buy and hold a large amount of stocks or ETFs through building your own portfolios (for more experienced people). They have the free-for-life account which provides 1 trading window (at 10 AM EST every business day) or 2 trading windows for pro-users. They have recently passed the $1billion AUM mark (per-coronavrius market collapse) and have since expanded into new products such as M1Finance spend which also offers users their very own M1Finance visa debit card to spend with.

Webull is Robinhood on steroids. They are a younger company and started maybe 2 or 3 years after Robinhood was created, but they've scaled at a much quicker pace and also provided higher quality products than Robinhood. When I first used Webull 3 years ago, I remarked at how quickly orders were routed. Even for low-liquidity stocks, which Robinhood normally would have trouble finding liquidity on, Webull pulled orders on those stocks quick! As I mentioned, there was a lot of controversy going on about how Robinhood was not exactly "free" seeing as how their orders for all stocks, not just penny stocks, were much slower. This meant that they were making money off of the spreads between order time and actual execution time. With Webull, they offered free level 1 price quotes and time and sales data. They also significantly bulked up on their trading software. Now they not only offer it for iPhone & Android users, they also have a Mac and Windows trading software that is growing rapidly with more indicators! On my first ever Webull YouTube video, I mentioned how I noticed that in the trading software, cryptocurrency prices were being shown. I mentioned that this was exciting because I see how crypto trading might be on the horizon for Webull in the future. Sure enough on March 10, 2020, they officially announced the cryptocurrency trading waitlist (which you can find the link for on their mobile app. Not only does Webull offer shorting (or short selling), they now offer options trading, premier pricing tools, and now cryptocurrency trading is in the future. To top it all off, they offer promotions of free stocks for each new sign up. IF you use my referral link you might be able to win stocks valued from $2.5 to $1,400

Final Thoughts 

I'm excited at the idea of Webull introducing cryptocurrency trading to their platform. I just hope that they are able to scale just as quickly, and with as much precision as they have on their other products. I also hope they get regulated in New York and other heavily regulated states with ease.

In the future, should cryptocurrency trading be available in my state, I will test it out and see how it performs. Knowing Webull, I know they will not skimp out on performance like Robinhood does. And if you have seen my first ever video on Webull before, you'll know that I recently moved my entire fiat bag from Gemini (a crypto exchange) in order to trade blockchain centric companies. But now that they are introducing cryptocurrency pairs very soon, I will be able to have the option of being able to short sell stocks, trade options, and buy crypto assets all in one platform. Hopefully unlike Robinhood, they will offer deposits and withdrawals for crypto assets as well. More to come as more information unfolds.

Thanks so much for reading; don't forget to check out all of my links on my linktree located at https://linktr.ee/dividendraptor Till next time; I blog every single day and create videos 3 times a week!

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