Are you looking to grow your wealth in these times of high inflation? The stock market can be a great place to start, but before you jump in, there’s one thing you need to know: trading in overseas markets, like the United States, can be expensive.
Full-service brokers may charge a minimum commission amount, which can be higher than the standard commission rate if you invest a small amount. On top of that, you might have to pay platform fees and other corporate action fees to keep your overseas stocks with them.
Fortunately, self-directed or discount brokers have made trading more affordable in recent years. But the latest entrant in the Singapore market, Webull, is going one step further by not charging any commission or platform fee* for trading US stocks. That’s right, zero fees!
Find out how opening a Webull brokerage account could be the most cost-efficient way for you to trade in the US markets.
Who Is Webull?
Founded in 2017, Webull is a zero-commission, zero-fees*, no minimums, self-directed US broker-dealer.
It has over 35 million global users and operates in six countries, including a Singapore branch, Webull Securities (Singapore), which was incorporated in 2021. It is regulated by the Monetary Authority of Singapore (MAS) and holds a Capital Markets Services (CMS) licence under the Securities and Futures Act 2001.
Singapore investors are able to open one of two types of accounts—Cash or Margin—and trade in three markets, namely the United States, Hong Kong, and Chinese A-Shares, using Webull’s award-winning investment platform.
Source: Webull
Attractive Fee Structure – Zero Commission And Platform Fees*
One of the main selling points of Webull is its fee structure, especially for US stocks, compared to other brokers in Singapore.
US Markets
New clients opening a Webull account can enjoy 0% commission costs for 183 days from the date of account approval*. There are no limits imposed on the number of shares or total amount that you can trade during this period.
Thereafter, you will need to pay a low commission rate of 0.025% of the total trade amount, or a minimum fee of US$0.50. This is still much lower than the typical online commission rates of around 0.18% or at least US$27 charged by full-service brokerages.
This is an important differentiating factor for Webull. Sometimes, due to the minimum commission fee, we may invest more than we would want to in a particular stock so as to make it more cost-efficient for us. However, we won’t have to face such a dilemma with Webull, as the minimum fee of US$0.50 is more than affordable for even small investors. It is also more palatable for us to dollar-cost average into our favourite stocks, even if the total value amounted to less than US$2,000 per order.
For instance, this comes in handy as Webull offers fractional trading for shares and Exchange Traded Funds (ETFs) for as little as US$5, or a minimum of 0.01 shares per order. You can DCA into popular and expensive stocks like Apple, Tesla, or the S&P 500 based on a small amount of your means without losing a lot to commission fees.
Source: Webull
Similarly, Webull also does not charge any platform fees, unlike other discount brokers, which, though they may offer zero commission costs, might charge a platform fee of US$0.99 for each order. In this scenario, Webull is definitely more cost-efficient if you trade less than US$4,000 per order, as your total commission fee would still be under US$1.
However, as with any brokerage, we still have to pay for other trading-related fees, such as the 8% GST, exchange regulatory fees, and clearing fees.
Hong Kong Markets
For the Hong Kong market, Webull charges a commission rate of 0.03% of the total trade value or a minimum fee of HKD 12. This means for any trade valued at less than HKD 40,000 (or around SG$6,800), you will need to pay the minimum commission fee. But like the US market, there are no platform fees charged for the time being, and you will need to pay for the other miscellaneous trading-related fees.
Chinese Market
You can also invest in A-shares on Webull through the Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect, which are traded in lots of 100 shares each. You will need to pay 0.02% of the total trade amount as trading commission or a minimum of CHN 12 per trade. As in the other two markets, though there are no platform fees, but you still need to pay for other trading-related miscellaneous fees.
Read Also: Singapore Online Stock Brokerage Account Fees Comparison (2023 Edition)
Intuitive Trading Platform –Available On Desktop And Mobile Application
The Webull platform is available on both the desktop (Mac and Windows) and mobile applications (Apple iOS and Google Android).
The platform offers an intuitive design, making it easy for any new user to navigate and begin trading. It offers powerful trading tools that users who rely on technical analysis may find useful to analyse stocks. This includes drawing tools and popular trading indicators such as moving averages, VWAP, MACD, and RSI.
For users who prefer looking at fundamental data for their analysis would appreciate the useful charts on key FA indicators such as earnings per share (EPS), return on assets (ROA), net margin and others over the last 5 quarters, making it easier to interpret the data. This includes other data such as the level 2 order book details, order flow distribution, analyst ratings and price target to get unique insights on the particular stock.
Other Investments Available On Webull – Options, Mutual Funds, And Moneybull
As an all-in-one self-directed investment platform, Webull also allows users to trade options, invest in mutual funds and open a cash management account that could complement your stock investments.
Options
If you invest in US stocks, you may also wish to complement your trading strategies with US options. This is possible on Webull, which again offers these services at zero commission*, platform fees*, assignment fees, or exercise fees. There is also no minimum deposit required, though you still need to pay for the relevant regulatory and exchange fees.
The customisable options chain features single-leg option quotes, real-time charts, and smart trading tools like volume statistics and probability analysis, making it simple for all option traders to use. If you’re starting out, you can learn more about options trading from the educational resources under the Learning tab in the Webull app. You could also test your knowledge and strategies with the Webull options paper trading to build your confidence before trading with real money.
Mutual Funds
You can also invest in a wide selection of mutual funds such as Cash Funds, Equity Funds, Fixed Income Funds and Multi-Asset Funds on the Webull platform due to its partnership with global fund houses. Using the Morningstar ratings, you can easily sieve through the list of funds based on their performance.
There is no minimum redemption amount and no subscription or redemption charges (yes, zero* fees!) for all the mutual funds available on Webull.
Moneybull
If you have a margin account with Webull, you can subscribe to Moneybull, a wealth management tool that lets you automatically earn a yield on your idle cash. It invests in low-risk cash funds such as the Fullerton USD Cash A or Fullerton SGD Cash A, while still giving you the liquidity and flexibility to invest in stocks, ETFs, options, and mutual funds within the platform.
You can invest in Moneybull, which has a 7-day yield of up to 4.87%** p.a. from as little as SGD 1/USD 1 with no additional fees charged.
Source: Webull (screengrab as of 24 April 2023)
Opening A Webull Trading Account
Anyone above 18 years old can open a Webull trading account by simply completing the in-app application using their Singpass. It takes around 1 to 3 business days for the account to be approved if the application details are submitted accordingly.
With a Webull account, you can easily access the US, Hong Kong, and China markets in a cost-efficient manner. You can also complement your stock portfolio by investing in options, mutual funds, and the cash management solution offered under the Webull trading app.
Best of all, the intuitively designed trading app provides many useful charts, indicators, and educational information to help you succeed in your trading journey. Check out the latest offers for opening a Webull account to start growing your investments today.
Disclaimers:
*Terms and Conditions apply. For detailed terms and conditions and full disclaimer, please refer to our website at https://www.webull.com.sg/. This advertisement has not been reviewed by the Monetary Authority of Singapore.
**Figures shown are based on 7-Day Yield (P.A.) as of 24 April 2023 and not an indication of future performance.
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