Robinhood vs. Stockpile vs. Webull

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Over the past few years, several companies have made huge progress towards removing barriers involved with investing in the stock market. Robinhood, Stockpile, and Webull are online stock brokers that are making it easier than ever to start investing.

In this article, we’ll look at the details of each and see how they stack up against each other.

Although all three of these apps make it easier to invest in the stock market, they go about it in different ways. There are definitely some similarities, but there are also key differences.

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Right now both Robinhood and Webull are offering free stock when you sign up and open a free account. To get the free stock you need to use the referral links below:

Comparison of Investing Apps Robinhood, Stockpile, and Webull

Let’s take a look at each app, one at a time. This chart gives a quick overview of how the apps compare, and there are plenty of details below it.

Robinhood, Stockpile, Webull Investing App Comparison Chart

Robinhood

Robinhood Investing App

Robinhood was started for the purpose of removing common barriers to investing, like fees and minimums. It has grown very quickly to become an extremely popular investing app. The target market of Robinhood is millennials, but anyone who wants to make trading easy will enjoy it and see its value.

Users can manage their Robinhood accounts on the desktop website or through the mobile app (iOS or Android). Making trades on your phone or computer is quick and easy.

Robinhood has used free trading (no fees of any kind) to stand out and attract new users. You can trade stocks, ETFs, options, and cryptocurrencies with no fees. Free trading is what Robinhood is known for, more than anything else. These free trades are especially important when you consider that many trades made through Robinhood are for small amounts. Even a $0.99 fee can be significant if the value of the stock being bought or sold is low.

In addition to free trades, there are also no minimum investments required. The combination of no fees and no minimums makes investing in stocks a realistic option for anyone.

Because Robinhoods takes the approach of simplifying the investing process, that does mean that you’ll make some sacrifices in the form of some advanced tools and features that are not included. Robinhood strength lies in its simplicity, but if you want more advanced tools, including research tools, Robinhood would not be your best option.

From the Robinhood dashboard, on both the desktop version and mobile app, you can view historical information on the stock, links to relevant news articles, analyst ratings, and some other basic info.

Is Robinhood Safe?

Your personal data is protected by 256-bit encryption. Robinhood is a member of the Financial Industry Regulatory Authority (FINRA) and the Security Investor Protection Corporation (SIPC), which gives some security to investors by ensuring that Robinhood is meeting regulations. Of course, investing in the stock market always comes with the risk of losing your investment

How Does Robinhood Make Money?

The free trades and no fees of any kind are great, but it might leave you wondering how Robinhood makes money. Robinhood Gold is a fee-based service that allows you to borrow money to invest, so the company makes money on those fees. Also, many users will have some cash in their accounts that is not currently invested in a stock. Robinhood may make money from interest on the cumulative cash being held in users’ accounts.

Strengths of Robinhood:

  • Free trades of stocks, ETFs, options, and cryptocurrencies
  • No fees for opening or maintaining an account
  • Extremely easy to use
  • Great introduction to investing in the stock market

Weaknesses of Robinhood:

  • No retirement accounts are available
  • No joint accounts are available
  • Limited tools and features

Stockpile

Stockpile Investing App

Stockpile has an interesting story about how and why the company was founded. Founder and CEO Avi Lele wanted to buy stocks as gifts for his neices and nephews. After researching the options, he gave up and bought them toys instead. Originally, Stockpile was started for the purpose of gifting stocks to children. That functionality is still offered, but Stockpile has expanded as well.

Anyone can buy a Stockpile gift card and give the gift of stocks. The recipient can choose the stock that they want to buy, and either buy a full share or a fractional share. For example, if the share price of a stock is $1,000 and the recipient has a gift card for $100, he or she can buy 1/10 of a share of that stock. Stockpile then pools the money from investors together to buy the share.

This presents a very innovative way to teach and educate kids about money and investing. Instead of buying them more stuff that just takes up space and collects dust, you can give them a gift that helps them to learn and has a chance to increase in value.

The cost to buy a gift card is $2.99 plus 3% in credit card fees. The fees are paid by the buyer. So if you are purchasing a $100 gift card for someone else, you will pay $105.99 and the recipient will have $100 to invest.

Gift cards aren’t the only way to use Stockpile. You can also deposit your own money and purchase stocks or ETFs. There are more than 1,000 stocks and ETFs available through Stockpile, which includes the stocks in the S&P 500 as well as some other major stocks and ETFs.

Like Robinhood, Stockpile requires no account minimum balances, and you can get started with as little as $5. Unlike Robinhood, Stockpile charges a fee of $0.99 per trade. That fee is very low in comparison to the leading online brokerages, but if we’re talking about fractional shares and small trades, even a small fee can be significant. There are no fees for opening or maintaining an account.

Also like Robinhood, Stockpile is easy to use for newer investors and can be used on desktop or mobile device.

Is Stockpile Safe?

Like Robinhood, Stockpile uses 256-bit encryption to protect your data. Stockpile is also a FINRA and SIPC member.

Strengths of Stockpile:

  • Ability to purchase fractional shares
  • Low trading fees of $0.99
  • No minimum account balance
  • No fees to open or maintain the account
  • Ease of use

Weaknesses of Stockpile:

  • No retirement accounts are available
  • No joint accounts are available
  • Limited tools and features
  • Limited selection of investments
  • No real-time trading (trades are made at the end of the day)

Webull

Webull Investing App

Webull is a newer company, with its app being released in 2018. While Robinhood and Stockpile offer functionality on desktop and mobile, Webull can be used only through the mobile app at this time. It’s still new, so desktop access to the dashboard may be added in the future.

There are some similarities between Webull and the others, and there are some significant differences. Like Robinhood, Webull offers free trades of stocks and ETFs (Webull does not offer options or cryptocurrency). There is no minimum unless you are trading on margin, in which case the minimum is $2,000.

Although Robinhood and Webull both offer free trades and no minimums, they target different audiences. Webull offers more advanced tools than you will find with either Robinhood or Stockpile. You’ll find news, real-time market data, and analysis tools. In addition to the analysis tools, Webull also offers before market and after market trading (4:00 am – 8:00 pm).

Because of the more advanced features, Webull is better suited towards investors who have some experience.

Another cool feature of Webull is the trading simulator, which allows you to set up with fake money to practice and test your skills.

Is Webull Safe?

Webull is fully encrypted to protect user data. Like Robinhood and Stockpile, Webull is a member of FINRA and SIPC.

Strengths of Webull

  • Free trades of stocks and ETFs
  • No fees for opening or maintaining an account
  • Easy to use
  • Advanced analysis tools not offered by Robinhood or Stockpile

Weaknesses of Webull:

  • No retirement accounts are available
  • No joint accounts are available
  • No options or cryptocurrencies

Which Should I Choose?

Robinhood, Stockpile, and Webull all have a lot of offer, and the decision of which one is best will depend on your personal situation and what you are looking for. They all make trading easy and affordable. They all also lack (at this time) the ability to invest in mutual funds or to hold your investments in an IRA.

Best for New Investors – Robinhood

Robinhood‘s ease of use, free trades, and no minimums make it ideal for newer investors.

Best for Experienced Traders – Webull

Webull offers more advanced tools that new investors may not care about, but experienced investors will appreciate.

Best for Gifting Stock and Buying Factional Shares – Stockpile

Only Stockpile allows you to easily give the gift of stocks to someone else. You can also purchase fractional shares of stocks rather than paying for an entire share.

Don’t Forget Your Free Stock!

Sign up for Robinhood and Webull using these links to get a free stock from each.

Robinhood vs. Stockpile vs. Webull

Robinhood vs. Stockpile vs. Webull: Which is the Best Low-Cost Online Brokerage? These investment apps allow you to buy and sell stock with very low fees, or no fees at all. Stock and ETF trades are free at Robinhood and Webull and only $0.99 at Stockpile. This article compares them to see which is best for your situation. Invest in the stock market easily and conveniently from your mobile phone or desktop. #investing #personalfinance #money