Brokers

New Broker Webull SG Offering Fractional Shares and Commission Free Trading for US Market

Calvin Lo

Singapore stock broker wars is heating up with another new player entering the fray, Webull. Investors in Singapore are getting spoilt for choice with many low-cost brokers entering the market recently, e.g. Tiger broker, moomoo (Futu SG), Interactive Brokers, and even robo-advisor Syfe recently also throwing their hat in the ring with Syfe Trade. I love it. The more the merrier, the better it is for us retail investors.

Key Features

The 2 main features that make Webull SG attractive as a broker are:

  • Zero commission for US market
  • Fractional shares trading from as low as USD5

Other good features:

  • No deposit minimum
  • Full extended hours trading (not available for fractional shares trading)
  • Singpass-enabled account opening
  • eDDA or FAST deposit for SGD
  • Welcome rewards worth up to USD100 (limited time only)

Must-haves:

  • Licensed and regulated by MAS
  • Large existing user base (more than 20M global users)

Main Drawbacks

I’ve only recently opened and funded an account, so I can’t comprehensively over the drawbacks. As I use the platform more in coming months, I’ll update again in another post.

However, there was only one drawback or reservation I had is that Webull is that it’s parent company Fumi Technology is not publicly-listed. So, their financials are not accessible. In comparison, most other brokers like FSMOne, Tiger, moomoo (Futu SG), Interactive Brokers are all publicly-listed.

According to Crunchbase, Fumi Technology has so far secured $238M in funding so it’s still pretty small.

Source: Crunchbase

My Quick Thoughts

This is just a brief run through, not a full review. From what I see so far, Webull offers a pretty compelling platform. The interface is intuitive and clean, but the features appear pretty basic. That said, I’ve yet to really dive deep into the app and desktop so I’ll stop there.

The combination of fractional shares and zero commission/platform fee trading for US markets makes this offering unique. IBKR offers fractional shares but charges commission (you can also achieve this using FSMOne RSP). Moomoo also no longer charges commission/platform fees for trading in US markets but doesn’t offer fractional shares. The closest is probably Syfe Trade which offers both also but zero commission is only for 2 trades/month.

I like fractional shares because it gives my control over how much I want to buy, instead of having to decide based on stock price. I just find it easier. For example, I can just decide to buy SGD100 of Google (GOOGL) every month instead of waiting 2 years+ for enough capital. Btw, not a great example because Google will be doing a 20-for-1 stock split on 15th July 2022, but you get my point.

So far I’ve just bought USD5 of GOOGL.

Referral Link

Since Webull provides additional value I’m willing to give it a shot. Depositing SGD2,000 and making 6 buy trades on US stocks, ETFs or Options within 30 days qualifies me for USD100 worth of Apple (AAPL) fractional shares (offer ends 30th June 2022). That’s a nice little ROI of ~6.8% up front.

If you’re interested to try it out, you can sign up below using my referral link below.

Sign up for Webull account

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Disclaimer: This is not financial advice. I am not professional financial advisor nor do I work in the finance industry. Anything I write here is purely my personal opinion. Please do your own research and due diligence before investing into anything. All investments come with associated risks. Best to consult a financial advisor if you’re still unsure.

For more investing resources, see my Referrals page.

Disclosure: This post may contain affiliate links and I may get a commission when you click on the links or open an account through the links, at no additional cost to you. I only recommend products or services that I have personally tried and have found useful.