Webull recently just marked its 4th anniversary in the United States. Being known as one of the most popular brokers in the US, Webull is finally coming to Singapore.
With so many new brokers entering Singapore’s online brokerage scene, let us take a look at what the latest one-stop online brokerage brings to the table and what you can expect from its ongoing promotion.
Overview of Webull
Originally founded in 2017, Webull is owned by a Chinese fintech company, Fumi Technology. The brokerage was subsequently launched in the United States (US) in 2018 and entered Hong Kong (HK) in 2020.
Having incorporated in 2021, Webull is currently regulated by the Monetary Authority of Singapore (MAS) and holds a Capital Markets Services (CMS) Licence under the Securities and Futures Act 2001.
In May 2022, the firm announced that it will be extending its services to Singapore under Webull Securities(Singapore) Pte Ltd.
Fees structure
Webull offers competitive rates that can be matched to brokers that are already available in Singapore. One of the charges to note is the withdrawal fee.
US Markets
| Name of charge | Rates | Charged by |
| Commission | 0 | Webull |
| Platform | 0 | Webull |
| Transaction Fee (Sell Trades only) | USD $0.0000229 * Total Trade Amount (Min. USD 0.01) | US Securities and Exchange Commission (SEC) |
| Trading Activity Fee (Sell Trades Only) | Stocks and ETFs: USD $0.00013 * Total Trade Volume (Min. USD $0.01, Max. USD $6.49 per Trade) Options: USD $0.00218 * No. of Contracts (Min. USD $0.01) | US Financial Industry Regulatory Authority (FINRA) |
| Options Regulatory Fee | Options: USD $0.02915 * No. of Contracts | Options Exchanges |
| Clearing Fee | Options: USD $0.02 * No. of Contracts (Max. USD 55 per Trade) | Options Clearing Corporation (OCC) |
| American Depositary Receipt (ADR) Custody Fee | USD $0.01 – 0.03/Share | US Depository Trust Company (DTC) |
* All the rates above are obtained from the Webull official website and are subject to future updates.
* A 7% Goods and Services Tax (GST) will apply to all the above fees and charges as levied by the Singapore Government.
HK Markets
| Name of charge | Rates | Charged by |
| Commission | 0 | Webull |
| Platform | 0 | Webull |
| FRC Levy | 0.00% | HK Financial Reporting Council (FRC) |
| Stamp Duty | 0.13% (Min. HKD 1; Rounded up to the nearest dollar) Exempted: ETFs | HKSAR Government |
| Transaction Levy | 0.0027% (Min. HKD $0.01) | HK Securities and Futures Commission (SFC) |
| Settlement Fee | 0.002% (Min. HKD $2, Max. HKD $100) | HK Securities Clearing Company Limited (HKSCC) |
| Trading Fee | 0.005% (Min. HKD $0.01) | Stock Exchange of Hong Kong (SEHK) |
| Trading Tariff | HKD $0.50/Transaction | Stock Exchange of Hong Kong (SEHK) |
* All the rates above are obtained from the Webull official website and are subject to future updates.
* A 7% Goods and Services Tax (GST) will apply to all the above fees and charges as levied by the Singapore Government.
Unique Selling Points
True Zero Commission and Zero exchange fees
One of Webull’s main selling points is that it offers true zero commission for the US market. This means that the broker does not charge any commission, platform, or membership fees. However, relevant regulatory and exchange fees charged by the respective governing bodies may still apply to your trade.
Furthermore, according to the official website, there are also no currency exchange fees when you are converting currencies.
Ability to purchase fractional shares
Before Webull entered Singapore, Syfe and Interactive Brokers were the only brokerage firms that offered fractional share trading.
What is fractional share trading? This form of trading allows investors to buy and own a stock position with a quantity of less than one whole share. This grants you the flexibility to own shares based on the dollar amount you wish to invest.
Webull currently supports fractional share trading from as low as USD $5 for most US stocks and ETFs available on their platform.
User-friendly interface
For those who are familiar with the user interface of Moomoo and Tiger broker, Webull’s trading platform is providing a similar user experience. The design is modern and easy to navigate around.
The mobile platform also serves as an analysis tool without any initial deposit requirements. Users can access stock-specific financial information and news. This allows new investors to familiarise themselves with the application before committing to an investment.
Potential Downsides
Limited financial products
One downside that might deter potential new users is that Webull only offers access to the US and HK markets. Investors are only able to invest in companies listed in the two selected markets at the moment.
This could be a temporary limitation as its US counterpart does offer a wider range of financial products. Hence, there is a high chance that Webull will allow its Singaporeans users to diversify into other trading products in the future.
Lower currency exchange rate as compared to its competitors
While it offers zero currency exchange fees, the rate is slightly lower as compared to its competitors. This may not be an issue for retail investors who trade in smaller quantities as the savings from the trading fees could be more than the difference in exchange rates.
However, for investors that make frequent high volume trades, the difference in exchange rates has an impact on the return on investment.
Account Opening
For Singapore Citizens, Permanent residents as well as foreigners living in Singapore who are holding on to permits or a pass, Webull allows you to create an account using MyInfo via Singpass. This reduces the hassle of manually filling up your personal information into the online form. The overall sign-up process is fast and the account can be expected to be ready within a day.
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Conclusion
With the increasing number of brokers in Singapore, the expectations of newcomers are bound to be higher. Although Webull has its competitive edge with its attractive zero commission rates and fractional shares trading, the brokerage is still a work in progress.
Webull is still a young company with little track record as compared to existing players in the market. However, it is also important to note that being regulated by MAS and obtaining necessary licenses are steps in the right direction and signs that Webull is here to stay.
If you are comparing to see which brokerage is suitable for you, do check out our review on Moomoo, Tiger Broker and FSMOne.
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