Webull is the newest online broker app that focuses on commission-free trades. The platform offers commission-free ETF, US stock, and options trading. Now you must be thinking that if they do not charge a commission fee, then how does the platform makes money? So, let’s have a look at some of the ways Webull makes money:
The first way in which the Webull trading platform makes money is simply by offering paid subscriptions. With paid subscriptions, users can get complete access to the advanced trading features of this platform that aren’t available with the free version. It is a feasible option since Webull is targeted towards advanced and intermediate investors instead of novices. Since they are helpful, the paid subscriptions are liked by both the intermediate and advanced traders and are available at $53.99/year or $4.99/month.
Margin Trading Fees
With Webull, you can trade on margin, especially beneficial for the active traders. People who trade many times daily can benefit from margin trading as it lets you put trades without needing to wait for financial transfers. To do so, Webull charges a margin fee through which it makes money. The margin fee at Webull starts from 3.99%.
Short Seller Fees
Webull also earns interest by lending shares to short sellers. Short selling refers to selling stocks that the investors don’t own. The short sale cost is the interest or fee sustained for borrowing the specific stock. Webull changes the interest it charges for every stock daily and it charges the interest on an everyday basis.
Webull also makes some money by selling the order flow security. So, when other brokers have a lot of sales and buy orders, then they request Webull to process the trades and in turn pay money to Webull.
Interest From Idle Cash
If there is extra cash in the client’s accounts, Webull invests it in money market accounts. Such investments do not affect the account holders, but Webull runs a commission-free trading platform with the help of this feature. The amount that Webull invests is quite small on an individual basis, but when thousands of accounts are combined, it offers a great income source for Webull.
Other General Fees
Though Webull doesn’t charge any commission or trading fee, you need to be aware of some miscellaneous fees. While transferring stock to an outer broker from Webull, a fee of $75 is charged for every outgoing transfer. This is another way Webull makes money.
ebull is an exceptional trading platform that offers most of its features for free. The various added features available on the platform lets them make money. The features like paid subscriptions and margin trading also efficiently help the traders. Thus, Webull earns money in many different ways that add up and let Webull run a healthy business and make profits.