Webull Is Now Available in Canada and I Tested It For You!

If you’re a Canadian investor looking for new trading platforms, you might have heard about Webull. With its sleek design and advanced features, it’s no wonder many people were eager to use it in Canada. Since the beginning of 2024, Webull is available to Canadians, so I’ve decided to try it. In this article, I’ll explore what Webull is all about, its pros and cons, and offer some excellent Canadian alternatives for your trading needs.

Is Webull for beginners?

The simple answer is: not really. Webull Canada is an online trading platform that allows users to trade stocks and ETFs with no minimum deposit. The app is very user-friendly. However, they charge $2.99 per trade and they do not offer registered accounts such as TFSAs, RRSPs and FHSAs, which young investors and beginners might want to prioritize given the tax break they can get you.

I, on the other hand, have a decent experience with self-directed investing and I use non-registered accounts on a regular basis. Webull seems like a good option for my needs.

How to open a Webull account?

First, I downloaded the Webull app. They asked for my phone number and sent me a verification code. To open my account, I had to verify my identity using my driver’s license. They also asked for a SIN, address and a bunch of other personal information. Some of this seems required for tax purposes, but some questions seemed excessively intrusive, like my marital status, employment, income, etc. And it was impossible to open my account without answering, so I just wrote whatever came to my mind.

Then I had to choose between a margin acount and a cash account. I went for cash. I had to wait for the confirmation that my account was opened. So far, Webull’s process to open an account isn’t the best. It takes quite some time and it is not clear how they use my personal information. Still, it was good enough for me to keep exploring the app.

How to trade on Webull?

To get a taste of Webull Canada while I waited, I started using their paper trading feature.

You can too, and you should do it before you apply for an account if you are unsure this is the best broker for your needs.

As soon as I started trading, I received offers, such as access to level 2 data for free (allowing me to see real-time micro changes in bid and ask).

Be careful, becaure they do not ask for a confirmation once you click on “trade”.

However, at the bottom of my screen, I could cancel or modify my order during a few seconds. The “filled” icon appears at the top right corner once my order is completed.

After a trade, I have to use the arrow to return to the main screen, which is something that could be improved to make the app better.

Webull features and promotions

A couple features on the Webull app are worth mentioning. First, the alerts will help you never miss a trade. If I am looking to buy Apple stocks, I could decide to jump in once the stock reaches beyond its last resistance level. The app lets me get alerts when a stock moves up or down (in $ or %), when it reaches a certain volume, when it is at a 52-week high or low, etc.

I also like the economic calendar. It helps me follow economic news and companies’s earnings that often have an impact on stock prices. I can also synchronize the news with my personal calendar.

However, it is not possible to filter for Canada, so if you have money on the Canadian stock market, you have to choose “all” regions.

At the time of writing, I had access to three promotions. The first one is a 90-day 0 commission promotion.

The second promotion says I could get a $100 cash reward if I deposit and maintain $1,000 in my account. The third one is receiving 10 gift boxes for referring friends (conditions apply).

How much do I have to pay?

Webull Canada charges $2.99 per trade, in CAD or USD depending on the market. This mean it will be very expensive if you trade often. However, if you simply need a non-registered account to invest for long-term and do not buy new stocks too often, $2.99 is actually a decent price compared to most brokers charging $5-$9.

If you open a margin account, you’ll have to pay interest: 9.2-9.7% for canadian accounts and 10.5-11% for US accounts. There are also foreign-exchange fees of 1.5% and a maintenance fee of $10 per year, plus some withdrawal fees.

Alternative to Webull: WealthSimple Trade

Wealthsimple Trade stands out as a great alternative to Webull for mobile trading in Canada. With its user-friendly interface and a wide range of features, Wealthsimple Trade has gained popularity among Canadian investors. One of the key advantages of Wealthsimple Trade is its commission-free trading. Users can buy and sell thousands of canadian stocks and ETFs without incurring any fees, making it an attractive option for cost-conscious investors. Additionally, there are no account minimums, allowing users to start trading at their own pace with as little as $1.

Another notable feature of Wealthsimple Trade is the ability to invest in fractional shares. Investors can buy shares of companies they believe in for as little as $1 and set up recurring investments to automatically purchase more shares on a schedule. This feature allows users to diversify their portfolios and invest in high-priced stocks without needing to buy whole shares.

Alternative to Webull : Questrade

Questrade is one of the best online brokers in Canada that has been serving the Canadian markets for over 22 years. It offers way more products and accounts than Webull, including most registered accounts, Forex, CDFs and options. Accounts like a Registered Retirement Savings Plan (RRSP), a Tax-Free First Home Savings Account (FHSA) and Tax-Free Savings Account (TFSA) are available for tax-efficient investing, maximizing returns. However, there are minimum deposits on certain accounts.

In terms of trading fees, Questrade offers competitive pricing. For stock trading, pricing can be as low as 1¢ per share, with a minimum order fee of $4.95 and a maximum of $9.95 per order. ETF purchases have no fees, and short-selling ETFs incurs a low fee of 1¢ per share, again with a minimum order fee of $4.95 and a maximum of $9.95 per order. Options trading is slightly more expensive at $9.95 per order plus an additional $1 per contract.

Alternative to Webull: Qtrade

Qtrade is an excellent alternative to Webull for long-term investing in Canada for several compelling reasons. One of Qtrade’s standout features is its array of industry-leading portfolio analytics tools designed to empower investors. Users can build, evaluate, and test their portfolios with ease and confidence. These robust calculators and tools help investors identify opportunities and make informed decisions.

Qtrade also offers extensive learning resources, including articles, FAQs, how-to guides, and videos. This wealth of information equips investors with the knowledge they need to make informed decisions and navigate the world of investing effectively. Another advantage of Qtrade is its lack of minimum funding requirements.