Webull vs TD Ameritrade: Which is Better for Stocks and Options Trading?

Buying stocks and trading options has never been easier. Thanks to platforms like Webull and TD Ameritrade, it’s only ever a few clicks away. These two platforms give you everything that you need for crypto, stock trading, and options – all from the convivence of your smartphone. You can build your wealth online without needing to rely on a stockbroker.

Our guide takes an in-depth look at these two popular broker platforms to help you decide which one will work for you.

What is Webull?

Webull is a commission-free online broker platform that is widely popular due to its lack of a minimum balance. However, if you’re interested in a margin account, you’ll need to have a minimum balance of $2,000 due to industry regulations. With Webull, you have access to traditional and Roth IRA accounts, alongside taxable accounts to trade stocks and options.

Through Webull, you’ll be able to trade over 6,000 different EFTs and stocks at a competitive margin rate, along with cryptocurrency. The popularity of Webull comes from its ability to put you in control of your stocks and options trading, allowing you to decide exactly what to do with your funds and portfolio.

Webull does not charge a commission fee for any trades, including options trading. Domestic and international wire transfers do involve a fee. You can also expect to be charged interest if you’re using a margin account through Webull.

Want to find out more about Webull? We have a dedicated guide for all things about Webull that you can check out in our Webull Review.

Webull Referral Program

Before we move onto Webull’s stocks and options trading, it’s worth pointing out their referral program that can help you maximize your potential on the platform. You can receive 5 free stocks worth anywhere from $3 to $9,600 when you sign up to Webull through their unique referral link.

With their current  Webull referral promotion, you’ll receive 2 free stocks valued up to $300 when you sign up with a Webull referral link and get the three 2nd free stocks worth $8-$3000 each when you make an initial deposit of any amount. For more information about Webull’s referral program visit our in-depth guide in our Webull referral article. 

Webull Stocks Trading

Once you sign up for Webull, you can start trading stock immediately with zero commission. It’s worth noting that the minimum investment for fractional shares is $5, making it higher than competitors like Trading 212 that allows for as little as $1. You can also use Webull’s platform to access customizable charts and real-time data to keep your finger on the pulse of the markets.

Currently, Webull only facilitates trading with EFTs and US stocks – which can be a disadvantage if you’re looking to create a diverse portfolio of international stocks. It takes only a few hours to set up your Webull account, meaning that you can start trading almost instantly. While you’re waiting, you can practice trading stock in real time using a demo account.

Webull Options Trading

One of the major incentives for using Webull is their zero-commission options trading that includes 0% assignment and contract fees. Webull charges you $0, whereas most brokers would traditionally charge $0.65 per contract.

You can use Webull for basic and complex options trading – although only certain investors can trade more complex options. Your access will depend on the account level assigned to you by Webull, which directly relates to your experience on the platform.

What is TD Ameritrade?

TD Ameritrade is owned by Charles Schwab, a former competing brokerage for TD Ameritrade. The platform makes it easy to invest in any almost any form of instrument, including cryptocurrency, bonds, mutual funds, stocks, futures, and options. The trading platform within TD Ameritrade is known as ‘Thinkorswim’.

You can use TD Ameritrade to access a variety of non-proprietary investment choices, including stocks and options. You’ll also receive personalized support and get access to third-party research and insight when planning your strategy to build a future-proof portfolio.

TD Ameritrade offers a one-of-a-kind AI-powered experience that provides educational tools to help you grow as an investor. You can find content that is tailored to your investing, trading, and options goals. You can also get information and analysis from independent third parties, including the CFRA, TheStreet, and Morningstar.

While the platform offers you a broad selection of investment opportunities, you may struggle with a lack of specialization between each instrument that you’ll find on other online trading platforms, such as Tastyworks.

TD Ameritrade Referral Program

With TD Ameritrade’s referral code program, friendships have never been more rewarding. You can earn up to $1,000 when you sign-up using someone’s referral code to help you open and fund your TD Ameritrade account. This amount will depend on how much you deposit into your account when you open it, with the minimum deposit being $50,000 to take receive $125 free.

If you’re planning on making a large individual deposit of $50,000+, TD Ameritrade may be the best platform to choose for stocks and options trading due to its referral policy. If you’ll be depositing less than $50,000, you won’t be able to take advantage of their existing referral program.

You can open your TD Ameritrade account within as little as 15 minutes. For more information about TD Ameritrade’s referral program, visit our guide about the platform here.

TD Ameritrade Stocks Trading

TD Ameritrade charge $0 on stocks and EFTS with a $0.65 opening commission and $0.65 closing commission. Most traders on TD Ameritrade will find themselves primarily dealing with the basic elements of the platform’s fee schedule. One benefit of using TD Ameritrade for stocks trading is that they offer order routing that is continuously seeking price improvements across the board.

If you want to invest in bonds, mutual funds, and stocks – alongside having access to the foreign exchange market, TD Ameritrade is your best choice. It also provides you with limited access to cryptocurrency investing to diversify your portfolio.

TD Ameritrade Options Trading

With TD Ameritrade, you’ll get access to $0 commissions on options trades. You’ll only be able to access US exchange-listed stocks, EFTs, and options. You can expect to pay $0.65 per option contract. Its options trading utilizes a limited number of trading tools, primarily a basic calculator, that allows you to look at different ratios and statistics before deciding what to invest in. TD Ameritrade’s main selling point for options trading is that you can exclude complex multi-legged options trades with their thinkorswim platform. You can use these options statics to improve your options with put-call ratios and by identifying which options are trading at low or high volumes. These statistics also help you weigh up the potential cost and benefits of particular trades.

The TD Ameritrade platform provides you with an analyze table to keep track of statistics and ratios visually through an easy-to-understand graphic. This information can help you weigh up the risk and reward of certain trades.

Webull vs TD Ameritrade – Final Thoughts

Webull is one of the simplest trading platforms to use, thanks to its beginner-friendly user interface. Its referral program is considered one of the most generous of any online trading broker and is ideal for those who are starting out with stocks and options trading for the first time.

You can utilize their commissions-free brokerage platform to trade over 6,000 EFTs and stocks, alongside options and cryptocurrency. If you want to diversify your platform, Webull is an ideal option for you.

Although TD Ameritrade allows you to trade with almost every instrument – with the exception of small futures – it lacks the additional tools that can help you make the right investments. This is a disadvantage for options trading as it helps to have analysis for this form of investing. You won’t be able to access analysis tools or additional research within the platform to help you decide which stocks and options to invest in.

If you’re interested primarily in stock trading, we recommend using Webull. TD Ameritrade is a better all-around platform that has excellent potential for options trading – however, you may be left feeling like you need to do your own third-party research due to a lack of information on the platform for specific instruments. Both Webull and TD Ameritrade are safe and trustworthy platforms with stellar reputations. It’s up to you to decide which online trading platforms will help you build your stocks and options trading portfolio the most.  Each platform offers you commission-free trades with no deposit minimums, hidden fees, or trading minimums.

Whichever platform you choose, decide which online trading platform works with your trading preferences and goals.

You can take control of your financial future today by starting to build your stocks and options portfolio. With the help of Webull or TD Ameritrade, you can utilize the stock market to grow your financial freedom. Do you want to compare more online trading platforms? Check out our Webull vs. Tastyworks review here.