Is Webull Good for Day Trading? Here’s How To Day Trade on Webull

Is Webull good for day trading?

Webull has become one of the most popular stock trading and investing platforms in the U.S. in recent years. The platform offers a one-stop-shop for everything you need to be a successful trader, from sleek charts to a range of trading instruments.

But how good is it really — especially if you’re a day trader? In this guide, I’ll dive into the trading platform and answer your most pressing questions:  

• Can you day trade on Webull? And if so, how to day trade on Webull?
• Is Webull good for day trading?
• How many times can you day trade on Webull?

And much more.

Is Webull Good for Day Trading?

Simply put, Webull is a decent option for day trading thanks to its easily understandable charts and robust trading features.

But “decent” might not be good enough for everyone. If you’re looking for another option with a killer intro offer, I urge you to check out moomoo.

How to Day Trade on Webull:

Back to Webull. If you’re interested, here’s how to get started with Webull:

Step 1: Open a Webull Account

The signup process is similar to most trading platforms where you can sign up with your mobile number or through a social sign-in; you’ll be prompted to respond with a verification code.

After you input the verification code that Webull sends, you’ll be redirected to another page that shares Webull’s insurance and investor protection information.

Next, you’ll input relevant personal details like your date of birth, ID number, and residency information.  

Finally, Webull requires you to upload photos to verify your identity document – which can be either a driver’s license or a valid US passport.

Step 2: Log in to the Webull App

Whether you choose to use the desktop or mobile version, simply download the Webull app on your preferred device.

To log in, you can either use your email or phone number combined with your password.

Once you’re in, you can access all of Webull’s powerful features, including a free 3-month subscription to their Level 2 market data service. This subscription provides valuable insights into the trading order book, giving you greater visibility into the market.

Step 3: Choose Your Day Trading Strategy

Whether you prefer scalping, breakout trading, or something else, it’s important to select a strategy that aligns with your risk tolerance and trading preferences.

Here are a few high-level strategies that you can adapt for yourself:

• Scalping: Traders who use this strategy focus on capturing extremely small, short-term price fluctuations and typically hold positions for only a few minutes or seconds. Scalpers often use technical analysis and rely on indicators to identify favorable entry and exit points.

• Breakouts: Breakout trading is about identifying stocks that are poised to potentially break through a significant level of support or resistance. Traders using this strategy aim to capitalize on the momentum created by the breakout, hoping to catch a significant move beyond the level.

• News Trading: People who employ this strategy keep a close eye on company earnings releases, economic data reports, and other news that can impact stock prices. To profit from news trading, you can either predict price direction with fundamental analysis or base your trades on how the market is reacting in real time.

• Pullbacks: Pullback trading is a strategy that takes advantage of temporary price retracements within an overall trending market. This strategy requires you to wait for a stock to pull back from its recent high or low before entering a trade in the direction of the underlying trend. Pullback traders typically rely on technical indicators and chart patterns to identify potential entry points during the retracement.

• Mean Reversion: Mean reversion trading is popular with algorithmic day traders as these strategies require less discretion. The main concept of this strategy is that prices tend to revert to their average or mean over time. So, traders using this strategy look for stocks that have deviated significantly from their average price in anticipation of a reversion back to the mean. Traders typically use statistical analysis or indicators, such as Bollinger Bands or moving averages, to identify potential entry and exit points.

• Rejections: Rejection trading involves identifying key levels of support or resistance where the price initially breaks through and subsequently reverses. People who trade rejections typically look for long wicks or candlestick patterns that signal reversals at key levels. Some traders may also use overbought/oversold indicators, such as the RSI, to build further conviction in their trades.

Step 4: Deposit Funds

Once you’ve got your strategy down pat, the next step is to deposit funds into your account.

Webull provides two deposit options — ACH and wire transfers.

To fund your account using ACH, you’ll need to provide Webull with your bank account and routing numbers.

After you’ve input your details, Webull makes two micro-deposits of under $1 which you then have to verify. Once you’re done, you’re free to initiate an ACH deposit.

But one thing to consider with ACH is that deposits typically take up to five business days to process – ACH deposits also have a daily deposit limit of $50,000 per account. However, Webull lets you instantly use a portion of your deposit to help you get started faster.

Step 5: (Optional) Virtual Trading

If you’re new to trading stocks, it’s a good idea to familiarize yourself with how the stock market works and understand the basics of trading.

Luckily, Webull offers tons of educational resources for all trading stages, so it’s a good place to start.

You can access the learning center through a book icon located on the left side of the app’s page where you’ll find a wealth of educational materials, including articles, tutorials, courses, and more.

Then, once you’re confident enough, you can make use of Webull’s virtual trading (aka paper trading) feature. It lets you practice your new skills on live market data without risking real money.

In this virtual account, you can practice buying and selling stocks, test different strategies, risk management styles, and refine your trading plan.

This hands-on experience allows you to familiarize yourself with the platform’s interface helping you gain confidence and improving your trading skills risk-free.

But always remember that trading is a continuous learning process.

As you gain experience and become more comfortable with the platform and your trading strategies, consider expanding your knowledge through additional resources such as books, online courses, and webinars.

The more you educate yourself, the more prepared you’ll be to tackle the challenges and opportunities that arise in day trading.

Step 6: Start Trading

If you already have a trading plan, fantastic! If not, here are a few things you should consider:

• Trading Strategies: Regardless of your strategy, you need to clearly define the methods you will use to identify trading opportunities. If you don’t, it can be difficult to find consistency and ultimately, profitability in your trading.

• Market Selection: Your trading universe can include individual stocks, indexes, commodities, or other financial instruments. It’s a good idea to focus on one set of markets at a time until you become profitable as all markets have their own rhythm.

• Trade and Risk Management: Decide how much capital you’re willing to risk on each trade and write down your stop-loss and profit-taking methods. You should also write down how you’ll manage trades while positions are open. For example, using trailing stops or scaling out of positions.

• Record-Keeping: Keeping a trading log is vital as you’ll use it to analyze your past trades to improve your future trading. You want to include your entry and exit points, your reasons for taking trades, and any adjustments you made during the trade.

How to Use Webull’s Charts

Webull offers a charting platform that’s reminiscent of Tradingview. They also offer additional insights into the market’s macrostructure, helping you better understand what is driving market movements.

Despite not being as advanced as TradingView’s charts, Webull’s trading charts are simple to use, offering trading time frames down to one minute. You can add your favorite drawing tools and technical indicators to the chart or change the chart style from candlesticks to bars, lines, or any of the other options.

Webull also offers a host of macroeconomic charts that may help you with your analysis.

These charts and indicators offer you a broader view of the market and include leading and lagging sectors and emerging stock trends. Additionally, Webull provides capital flow analytics which can help you analyze how institutional investors are positioning themselves within the market.

Should You Day Trade on Webull?

Webull’s user-friendly interface and intuitive design make it a suitable platform for day trading – whether you’re a beginner or a seasoned veteran.

While the many screens, graphs, and other features may seem overwhelming at first, the platform’s slick interface allows you to quickly adapt and navigate through the various tools.

Besides the platform itself, Webull offers new users an attractive sign-up bonus – up to 12 free fractional shares valued at up to $3,000 when you open and fund your account!

Here’s how it works:

• You have a 1/100 chance of receiving popular shares from companies like Snap Inc. (NYSE: SNAP), Starbucks (NASDAQ: SBUX), or Facebook (NASDAQ: META), if you don’t fund your account.
• While a deposit of $100 or more allows you to win shares valued between $8 and $1,600. This includes a 1/50 chance of receiving shares from companies such as Alphabet (NASDAQ: GOOGL), Kraft Heinz (NASDAQ: KHC), or Procter & Gamble (NYSE: PG).

So, if you’re lucky, you could gain up to $3,000 in value before you’ve even placed a trade!

And like most popular trading platforms, Webull offers commission-free stock trading – a must for day traders. But there are some small trading fees from government organizations such as the SEC and FINRA.

Overall, Webull offers a user-friendly platform with powerful features and attractive promotions that make it a viable choice for your day trading.

Why Moomoo is Better

While Webull is a popular platform for day trading, Moomoo offers several advantages that could make it a better choice for you.

• One of these advantages is that Moomoo allows you to purchase stocks on the Hong Kong Stock Exchange and China-A shares. While these markets are subject to commissions and platform fees, the opportunity to trade on these exchanges can more than make up for it if you’re looking to diversify your portfolio.
• Moomoo provides you with a wider set of customizable tools than Webull, including free Level 2 market data. While Webull also offers its traders Level 2 market data, it’s only free for a short period of time – three months to be exact.
• Moomoo also offers you additional insights such as daily short volume data from NYSE and NASDAQ, institutional holdings, fundamental valuation tools, financial reporting, and a financial calendar.

However, one of Moomoo’s absolute standout features is its AI-driven stock alerts.

These alerts keep you updated on market changes and potential trading opportunities which you can follow or reverse engineer to create your own strategies.

The bottom line? Moomoo offers both a wider range of markets and analysis tools, giving you a better chance to profit as a trader — they also offer a better sign-up bonus!

But don’t take my word for it…

Moomoo’s Sign-Up Bonus

If you were interested in Webull because of its free stock sign-up bonus, you’re going to love Moomoo.

When you sign up, you can get up to 16 free stocks valued between $3 and $2,000, which includes a guaranteed share of $TSLA or $GOOG if you meet the deposit requirements!

Here’s how much you need to deposit for each reward:

• $100 = 5 stocks + $50 cash reward
• $1,000 = 10 more free stocks
• $5,000 = 1 free share of $TSLA or $EXPE stock

But before you deposit, make sure to read Moomoo’s terms and conditions to check if you qualify.

Final Word: How to Day Trade on Webull

Now that you know the ins and outs of day trading on Webull, all that’s left is for you to take action.

Overall, you can’t go wrong with day trading on Webull as the platform provides everything you need to be successful along with some decent first-deposit bonuses.

But in my opinion, it’s not the best day trading platform on the market.

After researching both Webull and Moomoo, I believe that Moomoo offers better value with its sign-up bonuses and more advanced trading features.

At the end of the day, though, you can’t go wrong with either platform!

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