Webull has arrived in Canada recently. The buzzy stock trading platform, which has 11 million customers around the world, announced on January 2 that it was accepting applications for Canadian accounts. Should you use Webull?
Is Webull available in Canada?
Yes. Webull Corporation, a popular Cayman Islands-owned and -operated digital brokerage, opened for business in Canada in January 2024. Prospective clients are invited to join a waitlist to set up an account at webull.ca. Like some other financial institutions, Webull uses a waitlist to manage the pace of new client onboarding and avoid glitches. Generally after two business days, you can access the app and website with your account.
Earn between 2.5% and 4% interest on your savings. Plus, use the pre-paid card for everyday purchases and free ATM withdrawls.
$0 commission on all transactions. No minimum deposit needed.
Interest rate: 5.40%
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Can you use Webull in Canada?
The big difference between Webull Canada and the Webull version in the U.S., where it’s been operating since 2018, is its commission structure. Basic trades in the U.S. are free, but Webull Canada charges $2.99 per trade for Canadian-listed stocks and USD$2.99 for stocks listed on American exchanges following a 90-day commission-free period for new clients.
Why is that? “Canada, as a whole, is… more expensive (in the broker/dealer world) in terms of costs and fees to do business than the U.S.,” explains Michael Constantino, CEO of Webull Securities (Canada) Limited. He also noted that Webull charges commissions in most of the countries where it operates. Still, the commissions were a disappointment to a lot of Canadian investors commenting on Reddit.
Webull desktop vs. Webull app
Webull has a cellphone app you can download via Apple’s App Store and Google Play, and the login process is easy. You get the sense it’s geared for wireless generally. You can also access your account by desktop, which boasts bigger, more readable graphics, but the pages can take a bit of time to load. Weak wifi? You may have issues.
Webull promises 24/7 support by email and phone.
Webull trading
Webull Canada only supports stock trading for now, not its award-winning options trading platform available stateside. (Also, cryptocurrency trading is available through a separate app called Webull Pay.) On the positive side, though, there are no charges for deposits and withdrawals from your Webull Canada account. The company’s clearing firm charges a fee for wire transfers, however. On margin accounts, it charges interest rates a tad below 10%.
In addition to equity trading, Webull offers users real-time quotes and market data, more than 20 charting widgets and 60 indicators and paper trading for practice.
Know that Webull is a member of the Canadian Investor Protection Fund, meaning any cash or assets sitting in your account are insured in case the firm becomes insolvent.
Webull pros and cons
The good, the bad… the bull.
Pros:
- Around the world Webull is recognized for its ease of use, good graphic design, social media-style community and general friendliness to newbie investors.
- The commission structure in Canada makes it one of the more affordable brokerage options.
Cons:
- It’s not free, like in the U.S.
- Also, it does not offer tax-advantaged registered account types, such as the tax-free savings account (TFSA) and registered retirement savings plan (RRSP), which should be the first goal for Canadian investors starting out.
- Webull is often criticized abroad for its paucity of research and investor education content.
- And when we asked Webull, it could not confirm that it would issue Canada Revenue Agency-compliant tax documents at year-end, meaning active traders might have to spend a lot of time at their calculators come tax time.
Read: How to file your taxes when you own ETFs
Alternatives to Webull
Canada now has a handful of brokerage services offering free or near-free basic trades, including Wealthsimple Trade, National Bank Direct Brokerage, Interactive Brokers Canada and Moomoo Financial. Several more offer free purchases of a selection of exchange-traded funds (ETFs). True, Webull is offering free trading for 90 days on new accounts. But, if cost savings are your priority, there are better options available.
At the higher-service end of the scale, Webull can’t compete with Questrade, Qtrade, CI Direct Trading or the bank-owned brokerages either. These providers offer a full range of registered accounts, complete tax paperwork at year-end, non-equity products such as bonds, guaranteed investment certificates (GICs) and mutual funds as well as in-depth research tools.
Should you use Webull?
So, as it stands, Webull’s offering to Canadian investors is neither fish nor fowl. It doesn’t offer a standout selling proposition, other than perhaps continuity for people who’ve had a Webull account in another country.
Webull Canada CEO Michael Constantino promises better things to come.
We’ll be watching.
Read more about investing in Canada:
- The best dividend stocks in Canada
- The best online brokers in Canada
- The best robo-advisors in Canada
- The best ETFs in Canada
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