When choosing a trading platform, it’s crucial to consider various factors to ensure a seamless and profitable trading experience.
In this article, we’ll provide an in-depth comparison of two popular platforms, eToro and Webull, highlighting their features, fees, tools, and more to help you make an informed decision.
Introduction to eToro and Webull
eToro is a well-established social trading platform, launched in 2007, which enables users to trade stocks, cryptocurrencies, ETFs, and CFDs. With its unique CopyTrader feature, eToro allows users to mimic the trades of successful investors, making it an excellent option for beginners looking to learn from experienced traders.
Webull is a newer platform, founded in 2017, offering commission-free trading in stocks, options, ETFs, and cryptocurrencies. With its powerful charting tools and advanced trading features, Webull is designed to cater to both beginner and experienced traders alike.
Account Types and Availability
eToro
eToro offers a single account type, which can be used for both real and virtual trading. Users can access the platform through their web browser or mobile app, available for iOS and Android devices.
eToro is available in over 100 countries, including the United States, the United Kingdom, and most European countries. However, certain trading features, such as CFDs, are restricted in some regions.
Webull
Webull provides individual and margin accounts, as well as traditional, Roth, and rollover IRAs for retirement planning.
The platform is accessible through the web, desktop applications, and mobile apps for iOS and Android devices. Webull is available to residents of the United States and China.
Trading Features and Tools
eToro
- CopyTrader: This unique social trading feature allows users to copy the trades of successful investors automatically.
- CopyPortfolios: Thematic portfolios curated by eToro’s experts, providing diversified investment strategies.
- ProCharts: An advanced charting tool with various technical indicators and drawing tools.
Webull
- Advanced Charting: Webull offers powerful charting tools with more than 50 technical indicators and various drawing tools.
- Paper Trading: A virtual trading feature that allows users to practice trading strategies without risking real money.
- Options Trading: Users can trade options contracts with advanced order types and analysis tools.
Fees and Commissions
eToro
- Stocks and ETFs: Commission-free trading for stocks and ETFs listed on US, UK, and European exchanges.
- Cryptocurrencies: Variable spreads starting at 0.75% for Bitcoin and up to 5% for other cryptocurrencies.
- CFDs: eToro charges a spread, which varies depending on the asset and market conditions.
- Withdrawal Fee: $5 per withdrawal, with a minimum withdrawal amount of $30.
Webull
- Stocks, ETFs, and Options: Commission-free trading for stocks, ETFs, and options with no contract fees.
- Cryptocurrencies: Webull charges a trading fee of 1% of the trade value (minimum $1, maximum $5) and a withdrawal fee based on the specific cryptocurrency.
- Account Fees: No account maintenance or inactivity fees. However, margin trading incurs interest charges based on the borrowed amount.
Research and Education Resources
eToro
- Market News and Analysis: eToro provides daily market updates and analysis, helping users stay informed about the latest financial events.
- Economic Calendar: A tool that tracks important economic events, such as interest rate decisions and GDP releases, which can impact the markets.
- Trading Academy: A comprehensive education center featuring video tutorials, webinars, and e-courses to enhance users’ trading knowledge.
Webull
- News and Analysis: Webull offers real-time financial news, analyst ratings, and earnings reports to keep users informed.
- Technical Indicators: Users can access more than 50 technical indicators to support their trading decisions.
- Webull Community: A forum where users can share ideas, ask questions, and learn from other traders.
Customer Support and User Experience
eToro
- Customer Support: eToro offers a 24/5 help center, live chat, and phone support for premium clients.
- User Experience: eToro’s platform is user-friendly and intuitive, with a clean interface that makes navigating the platform easy for both beginners and experienced traders.
Webull
- Customer Support: Webull provides 24/7 customer support via email, live chat, and phone, ensuring users receive prompt assistance.
- User Experience: Webull’s platform is designed for efficiency, offering a customizable workspace with advanced trading features to cater to individual preferences.
Security and Regulation
eToro
- Regulation: eToro is regulated by multiple financial authorities, including the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission (ASIC) in Australia.
- Security Measures: eToro employs industry-standard encryption and two-factor authentication (2FA) to protect user data and funds.
Webull
- Regulation: Webull Financial LLC is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
- Security Measures: Webull uses advanced encryption and 2FA to ensure the security of user information and funds.
Range of Offerings
eToro and Webull both offer stock, ETF, options, and cryptocurrency trading. But that’s where the similarity ends.
- Webull users can access roughly all of the U.S. traded stocks and ETFs and can trade long and short.
- eToro offers a crypto wallet, while Webull is beta testing a crypto wallet.
- eToro users can trade a limited 2,095 stocks, 263 ETFs, and 24 cryptocurrencies.
- 5 Neither platform offers bonds, mutual funds, or other asset classes.
The offerings contest between eToro and Webull is like that of a bicycle and a car. eToro offers a bare minimum of assets while Webull can go head to head with many trading apps.
Neither offer provides the full suite of investments available at a major financial broker like E*TRADE, Schwab, Interactive Brokers, Merrill, or Fidelity.
| Short Sales | No | Yes |
|---|---|---|
| # of No-Load Mutual Funds | N/A | N/A |
| Assets Available to Trade on Website | Stocks, ETFs, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, ETFs, Options, Cryptocurrencies (asset only) |
| Assets Available to Trade on Desktop Software | Stocks, ETFs, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, ETFs, Options, OTCBB, Cryptocurrencies (asset only) |
| Assets Available to Trade on Mobile | Stocks, ETFs, Options, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, Mutual funds, ETFs, Options, OTCBB, Cryptocurrencies (asset only) |
| Max # of Options Legs | 2 | 4 |
| Robo Advisory | No | Yes |
| # of International Exchanges | 19 | N/A |
| Fractional Share Trading | Yes | Yes |
| Fractional Dividend Reinvestments | Yes | Yes |
Conclusion and Final Thoughts
In summary, both eToro and Webull offer unique features and benefits for different types of investors. eToro’s social trading capabilities and user-friendly interface make it an excellent choice for beginners, while Webull’s advanced charting tools and commission-free trading appeal to more experienced traders.
When deciding between eToro and Webull, consider your trading goals, preferred assets, and the importance of features like social trading and advanced charting.
By carefully weighing the pros and cons of each platform, you can select the one that best suits your needs and investment strategy.
Personally, I really like the social “Facebook” aspect of eToro, so if I were to recommend you one over the other I would go with eToro.
You can read my review on eToro here.
You can also read my review on Webull here.
Frequently Asked Questions (FAQs)
1. What types of assets can I trade on eToro and Webull?
eToro allows you to trade stocks, ETFs, cryptocurrencies, and CFDs, while Webull offers to trade in stocks, ETFs, options, and cryptocurrencies.
2. Are eToro and Webull available in my country?
eToro is available in over 100 countries, including the United States, the United Kingdom, and most European countries. Webull is available to residents of the United States and China. It is recommended to check each platform’s website for a complete list of supported countries.
3. How do eToro and Webull make money if they offer commission-free trading?
Both platforms generate revenue through various fees and charges, such as spreads on cryptocurrency and CFD trading (eToro), trading fees on cryptocurrencies (Webull), withdrawal fees, and margin interest.
4. Are my funds safe on eToro and Webull?
Both eToro and Webull are regulated by financial authorities and employ industry-standard security measures, such as encryption and two-factor authentication (2FA), to protect user data and funds.
5. Can I practice trading without risking real money on eToro and Webull?
eToro offers a virtual trading account within its single account type, allowing users to practice trading strategies without risking real money. Webull provides a paper trading feature, enabling users to simulate trades in a risk-free environment.
6. How can I contact eToro and Webull customer support?
eToro provides customer support through a 24/5 help center, live chat, and phone support for premium clients. Webull offers 24/7 customer support via email, live chat, and phone.
7. Are there any minimum deposit requirements for eToro and Webull?
eToro requires a minimum deposit of $200 (or equivalent in your local currency) for most countries, with some exceptions. Webull has no minimum deposit requirements for individual or IRA accounts, but margin accounts require a minimum deposit of $2,000.
