Etoro Vs Webull Which Is The Best Broker
Both eToro and Webull are popular online brokers that serve US clients. When opening an account with these platforms, you will have access to a wide variety of stocks, crypto, ETFs, and more all at super-low fees. But, is eToro or Webull best for you?
In this eToro vs Webull comparison, we cover each and every metric that you need to be aware of such as tradable markets, fees, payments, user-friendliness, tools, customer support, and more.
How Good Of An Exchange Webull Really Is
Well, passing the final judgement on something is never easy or simple.
On one hand, Webull represents a great opportunity with lots of options for beginners and casual traders because of its simple and intuitive graphic design and user interface that puts highlight onto ease of use, especially when compared with some of its competition such as Robinhood.
On top of that, it charges no commissions for trading and this is more than commendable, for beginners, casuals, and seasoned veterans alike.
On the other hand, certain experienced and expert crypto day traders might find the offer that is limited to around 20 crypto coins a bit limited.
Mass-scale traders and those who invest heavily into crypto usually have very diverse portfolios with dozens, sometimes even hundreds of different crypto coins, tokens, and other types of digital assets.
Another extremely limiting fact is that Webull does not allow its users to transfer their crypto funds away from the platform itself.
Yes, security is Webulls top priority and the chances of breaches happening are very slim, but still those who dedicate tens of thousands worth of $USD sleep better when their funds lie in a hardware wallet under their pillow .
This is one of the main reasons why some people leave Webull to look for other, more versatile exchanges and platforms.
However, this is a tiny portion as every day the Webull community grows with more and more eager traders.
Strategy : Focus On A Small Number Of Markets
Another proven crypto day trading strategy is to focus on a small number of markets. In doing so, you will have an intimate understanding of how the respective pairs operate.
- For example, you might find that BTC/USD attracts huge support at the $42,000 level and mass resistance at $44,000.
- Similarly, you might find that ETH/USD typically performs well when the RSI sits above 40.
The key point here is that by becoming an expert in a small number of crypto markets, you stand the best chance possible of making consistent profits.
Otherwise, by attempting to become a Jack of all trades, you might find that you are entering positions in the dark.
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How To Trade Cryptocurrencies On Webull
When you first open the “Exchange” tab on the Webull website, you will see a list of all the available cryptocurrencies that can be traded on the exchange.
To buy a cryptocurrency, select the coin you want to buy and then enter the amount you want to buy.
Be sure to use the “USD” tab at the top of the screen to see how much your purchase will cost in US dollars.
Once you have entered all the information, click on the “Buy” button, and your order will be placed.
If you want to buy a different cryptocurrency, no problem. Just click on “Exchange” at the top of the screen and select another coin from the list of available cryptocurrencies for trading.
You can buy as many or as few coins as you like on any given day .
Remember, the price of cryptocurrencies can go up or down, so be sure to do your due diligence before making any trading decisions.
Webull is a commission-free stock and cryptocurrency trading app available for Android and iOS devices.
Strategy : Consider Copy Trading
If the thought of spending months or even years learning the ins and outs of how to day trade crypto is overwhelming, there is another option to consider.
Put simply, SEC-regulated broker eToro offers an innovative copy trading tool that allows you to actively speculative on the digital currency markets without needing to do any of the legwork.
This is because you will elect to mirror the buy and sell orders of an experience crypto day trader. In essence, any positions that they enter and exit will subsequently be replicated in your own portfolio but at a stake that is proportionate to your original investment.
Heres an example of how the copy trading tool works at eToro:
- You decide to invest $3,000 into a crypto day trader that has a long-standing track record on the eToro platform.
- The first position that the trader enters is a buy order on BTC/USD. The trader risks 10% of their portfolio on this position.
- In turn, eToro will automatically copy the trade in your portfolio but at a stake of $300 .
- The crypto day trader closes the position a few hours later at gains of 6%
- Your position is also closed and in total you made a profit of $18
The most attractive thing about the above copy trading example is that you were able to make gains of 6% without needing to place any orders. Moreover, you were not required to do any research either.
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Are There Any Fees For Trading Crypto On Webull
There are two positive aspects to the Webull platform in terms of crypto trading fees. The first is that Webull crypto fees are low, in some cases super-low, as low as zero. There are, for example, no extra commissions applied to crypto trades. The second positive point is that Webull is incredibly transparent about the other unavoidable charges, which do need to be factored in.
As is often the case, brokers that are comfortable with their pricing tend to be most willing to freely share information on what charges do apply. Webull does not charge for trading crypto. There is a 100-basis point spread on either side of a crypto trade
Adopting a refreshing approach to the subject, Webull lays out all of the admin fees that might apply to trading. By reducing the risk of clients coming up against hidden charges, the broker allows its investors to design fully-informed strategies.
Online statements are provided free of charge but if you want hard-copy statements, there is a fee to pay.
- Paper confirm fee Apex : $2/Confirm
- Paper statements fee Apex : $5/Statement
- Paper prospectus fee Apex : $2.5/Mail
There are also some banking fees relating to cash deposits and withdrawals, though it should be repeated that Webull is in a good position compared to its peer group on these.
How This Broker Makes Money From You And For You
With the race towards no commission trading, understanding how brokerage companies generate revenue has become more opaque. Webull is unabashed in telling investors how they make money that allows them to provide a sophisticated platform and zero fee trading.
- Payment From Order Flow: Webull is clearly all-in on the continuing race towards no commission trading even options are free to trade on Webull now – and they are very transparent in stating at the top of its pricing page that PFOF is the primary reason they can offer no commission trading and no fees for access to their well-built platforms. Webull receives an average of $0.00024 per share for its order flow, and an average of $0.525 per options contract Webull’s price execution improvement averages are $0.0056 per share, and $1 per option contract.
- Interest on Cash: Another important revenue stream for Webull is its ability to generate income from cash in its traders’ accounts, as the company does not pay interest on cash balances. When you have cash in your account, the interest generated by Webull is kept by Webull.
- Stock Lending Program: Webull does offer a stock lending program, sharing the revenue generated with the investor lending the securities. The interest paid through the lending program depends entirely on the market demand for your securities.
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Binance Day Trading Crypto Platform With Low Commissions
If youre looking for the best crypto day trading platform for fees, Binance stands out from the crowd. This is because since the platform was launched in 2017, Binance has offered a headline commission rate of just 0.10% per slide. And, if you find yourself trading larger amounts throughout the month, this commission is reduced. A 25% reduction in commission is also offered for those paying their fees in BNB.
If youre based in the US, you will have access to 60 cryptocurrencies on the Binance website. All other nationalities have access to over 1,000 markets. Either way, you can easily deposit funds into your Binance account with fiat money. US clients, for example, can deposit funds via ACH, domestic bank wire, or a debit/credit card. Crypto deposits are also supported. Once your account is funded, you can then choose between the classic or advanced Binance platform.
The classic platform is suited for those that are just starting their day trading crypto journey. On the other hand, if you seek highly sophisticated trading features, customizable charts, technical indicators, and drawing tools then the advanced platform will appeal. Moreover, if youre based outside of the US or UK, Binance also offers a wide range of crypto derivatives. This includes the ability to trade digital currencies with leverage.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Can You Trade Crypto On Webull
Webull entered the online broker market in 2017. The timing is important because it meant Webull crypto trading could incorporate all the good things about existing platforms, but the leveraging of its Fintech pedigree has allowed it to also introduce a range of innovative new features designed to enhance the crypto trading experience.
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Webull Crypto Review: Platform Highlights
- Users can buy and sell crypto within the same app they already use to buy stocks
- The interface for Webull Crypto will be very familiar to existing Webull users
- Webull Crypto currently offers 21 different cryptocurrencies to invest in
- Unlike stocks, Crypto in your Webull account is not protected by SIPC insurance
- On the Webull platform, you are not able to transfer your crypto to an outside wallet
Webull is a new entrant into the world of cryptocurrency. It currently offers this service on their mobile application after a user submits an application. The cryptocurrencies available are Bitcoin , Bitcoin Cash , Ethereum , Litecoin , Dogecoin , Zcash , Stella Lumens , and Ethereum Classic .
Once your application to buy and sell cryptocurrency is accepted, you can trade at any time of the day and any day of the week. This is because cryptocurrency is not regulated by a commission that sets the regulations.
The cryptocurrency transacting platform on the Webull app is made just like the experience for trading equities. There is a lot of research available but it isn’t overwhelming like many other advanced brokerage firms.
- Only 8 crypto options available
- Unable to transfer cryptocurrencies without liquidating the assets
How To Buy Crypto On Webull Step By Step Guide
The following are how to buy crypto on webull:
- Open an account on Webull
It is one way on how to buy crypto on webull. If you are a starter, you need to create an account on Webull. Like most brokers, you have to provide your details and, most times, add your KYC, meaning know your customer or client detail in line with SEC regulation.
- Request for Permission
It is another step on how to buy crypto on webull. After opening an account, you must ask permission to purchase or trade crypto through the Webull app. To request approval, make sure your Webull app is in the latest version. Then do the following steps:
- Then click on Crypto Trading to ask for permission.
Once your request to purchase and sell crypto is accepted, you can trade at any time on the app because, unlike the stock market, there are no fees for crypto regulation.
- Fund your account.
There are a lot of choices available to help you fund your accountwebull assists electronic transactions from your bank, as well as a wire transfer. Electronic transactions are free on Webull, but they may take up to 5 days to settle and be available for use.
- Select the cryptos you want to purchase
After funding your account, click on crypto under the market tab. You will carry out purchases with either a limit order or a market order.
A market order is an order to purchase crypto immediately at the current market price at the transaction time.
- A limit order
- Monitor your cryptocurrencies
How to Sell Crypto on Webull
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How To Get Crypto Buying Power On Webull
First, users need to set up an account with Webull. Like any other broker, basic information is required to activate the account. After opening an account, permission to buy or trade crypto via the Webull app must be granted. Once accepted, users can trade at any time on the app.
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Webull Review 202: Pros Cons And How It Compares
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Etoro Vs Webull User Experience
When it comes to the user experience, we found that both eToro and Webull offer a trading platform that is suitable for all skillsets.
For instance, if you are a complete beginner, you will appreciate both platforms for the simplicity in which you can open an account, make a deposit, and find your favorite stocks.
In fact, eToro and Webull allow you to find stocks via a search bar, so you dont need to scroll through thousands of markets unnecessarily.
Moreover, in terms of placing an order, both eToro and Webull simply require you to enter your stake and confirm the position.
If, however, you are a seasoned trader, then you will like that both eToro and Webull offer advanced tools such as customizable charts and technical indicators.
If we were to separate the brokers in this department, we would have to point out the ease in which eToro allows you to verify your account.
This is because eToro uses automated technology, so the KYC process takes less than a minute to complete. Then, you can instantly deposit funds with a debit/credit card or e-wallet.
Webull accounts can take a couple of days to open. Plus, when you deposit funds via ACH, it can take up to four working days to settle. As such, onboarding at Webull can be cumbersome.
Day Trading Crypto Taxes
Just like stocks, index funds, forex, or any financial instrument for that matter you can be certain that your country of residence has a taxation policy on crypto profits.
Other than a few exceptions, most jurisdictions will tax you in the form of capital gains. This refers to the profit element of a trade. For example, if you place a $1,000 trade on EOS/USD and make a profit of 10%, then your capital gains amount to $100.
With that said, taxes on crypto day trading positions are complex so you should speak with a qualified professional to assess where you stand.
Cryptoassets are a highly volatile unregulated investment product.
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How Can I Get Cryptocurrency Out Of My Webull Account
Unfortunately, this is one of the most significant disadvantages of purchasing cryptocurrency on Webull. Webull does not presently accept direct cryptocurrency transfers out of the platform. There are, nevertheless, several workarounds. Youll have to sell your cryptocurrency and transfer the proceeds in fiat to a different platform.
Make sure you have a Coinbase account first. Sell your crypto assets on Webull. Then, using the Transfer and Withdraw tab, you must withdraw your cash from the site. This can take up to a day with an ACH withdrawal. Navigate to Coinbase and deposit your funds into your Coinbase account once your funds have been sent to your bank account. You can then use Coinbase to buy a cryptocurrency and withdraw your funds into Coinbases wallet.
What Cryptocurrencies Available On Webull
Webull has a decent volume of cryptocurrencies available on the platform.
Webull does not charge fees to trade crypto. However, as with any crypto exchange, there is a 100-basis point spread on each side of the crypto trade. This is determined by the market and would not be considered a commission fee of Webull.
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Etoro Vs Webull Regulation & Security
Both eToro and Webull are heavily regulated brokers that have the legal remit to offer brokerage services to clients in the US. As such, there should be no concerns in this department and there is nothing to separate the two platforms.
- With that said, while Webull only serves clients in the US, eToro is an international broker that can be accessed in over 100 countries. As such, eToro also holds tier-one licenses by bodies outside of the US.
- This includes the FCA , ASIC , and CySEC .
- Although protection from bodies based overseas has no relevance to US clients, this does add an extra set of regulatory eyes to the platform.
When it comes to insurance, both eToro and Webull offer US clients FDIC coverage on cash balances up to the first $250,000.
Both platforms are also covered by the SIPC. This means that if either platform ceased to exist, US stocks held in your brokerage account would be covered up to the limits installed by the SIPC.