Day trading on Webull in 2025 offers commission-free trades on stocks, ETFs, and options, but there are additional costs you need to account for. These include regulatory fees, margin interest rates, and account-related charges. For example, a $1,000 trade incurs about $0.23 in regulatory fees, and margin accounts come with interest rates starting at 8.74% for balances under $25,000. The Pattern Day Trader (PDT) rule also applies if you trade frequently with less than $25,000 in your account.
For futures, fees range from $0.25 for micro contracts to $1.25 for CME Group regular contracts. Webull’s execution quality is high, with a 98.96% success rate for trades up to 99 shares, but additional fees like wire transfers and account transfers can add up.
Investing in high-performance hardware, such as systems from DayTradingComputers, can improve trading speed and reliability, though these setups start at $3,569. Combining Webull’s low trading costs with a reliable computer setup can help manage expenses and improve efficiency. However, the choice depends on your trading volume, budget, and technical needs.
Is Webull Worth it for Day Trading? (My Honest Review & Platform Demo)
Webull Day Trading Costs and Rules
This section breaks down the fees and rules that impact your trading costs on Webull. While the platform’s fee structure appears straightforward, day traders should be aware of hidden costs that can add up quickly.
Commission-Free Trading and Regulatory Fees
Webull offers commission-free trading on U.S. stocks, ETFs, and options. However, regulatory fees still apply to every transaction. When selling stocks or ETFs, you’ll encounter a SEC fee of $0.0000278 per dollar traded and a FINRA fee of $0.000166 per dollar traded. There’s also a CAT regulatory fee of $0.000040 per dollar of trade volume for all trades.
For options trading, while there’s no per-contract fee for equity options, several regulatory charges apply:
- $0.02675 per contract from options exchanges
- $0.025 per contract from the Options Clearing Corporation
- $0.0046 per contract for CAT regulatory fees
Non-equity options come with an additional $0.55 fee per contract.
Futures Trading Costs
Webull charges specific fees for futures contracts:
- E‑Mini contracts: $0.70 per contract
- Micro contracts: $0.25 per contract
- CME Group regular futures: $1.25 per contract
- Cryptocurrency futures: $0.50 per contract
- Nano crypto futures (via Coinbase): $0.13 per contract
These costs can add up, so it’s essential to factor them into your trading strategy.
Margin Account Requirements and Costs
To open a margin account, you’ll need a minimum equity of $2,000. This account type provides up to 4× day-trade buying power and 2× overnight buying power, but margin interest rates will affect your overall costs.
For Webull Standard accounts, the margin rate is a flat 8.74%, regardless of balance. Webull Premium subscribers benefit from lower rates, starting at 5.95% for balances up to $25,000 and dropping to 4.65% for balances over $25 million.
| Balance Range | Webull Standard Rate | Webull Premium Rate |
|---|---|---|
| Up to $25,000 | 8.74% | 5.95% |
| $25,001 – $100,000 | 8.74% | 5.75% |
| $100,001 – $500,000 | 8.74% | 5.20% |
| $500,001 – $1,000,000 | 8.74% | 5.15% |
| $1,000,001 – $10,000,000 | 8.74% | 4.95% |
| $10,000,001 – $25,000,000 | 8.74% | 4.90% |
| Over $25,000,000 | 8.74% | 4.65% |
Pattern Day Trader (PDT) Rule
The Pattern Day Trader rule, enforced by FINRA, applies if you make four or more day trades within a rolling five-business-day period, and those trades exceed 6% of your total trades in a margin account. If your margin account balance falls below $25,000 after being flagged, Webull will restrict further day trades until you restore your equity to at least $25,000. Maintaining a balance of $25,000 or more allows unlimited day trading.
Cash vs. Margin Account Implications
Your account type significantly affects trading frequency and fees. Cash accounts are simpler and not subject to the PDT rule, making them suitable for traders with less than $25,000. However, cash settlement rules apply, meaning you’ll need to wait two business days (T+2) after a trade for funds to settle before reusing them. This can limit your trading activity.
Margin accounts, on the other hand, offer greater flexibility with leverage and unlimited day trades (if your balance exceeds $25,000). However, they come with added complexities like margin requirements and interest charges. While margin accounts allow a full range of options trading strategies, cash accounts only support basic strategies like long puts, long calls, covered calls, and cash-secured puts.
Account-Related Charges
Webull keeps most account maintenance free, but certain transactions incur fees:
- ACH transfers: Free for deposits and withdrawals
- Wire transfers: $8 for domestic deposits, $25 for domestic withdrawals
- International wire transfers: $12.50 for deposits, $45 for withdrawals
- ACAT transfer fee: $75 for transferring your account to another broker
There’s no minimum deposit required to open an account, and you can earn 3.75% APY on uninvested cash.
"Webull ranks among the best in terms of costs, with free stock and options trades and no equity options contract fee." – NerdWallet
Webull’s execution quality also stands out, with a 98.96% success rate for trades of up to 99 shares, helping reduce the impact of poor fills on trading costs. Understanding these fees and rules can help you determine if Webull aligns with your trading goals and budget.
1. Webull Trading Fees
Fee Structure
Let’s break down the fees that come into play when trading on Webull, covering everything from stock trades to account-related costs.
For stock and ETF trades, you’ll encounter a few regulatory fees:
- SEC fees: $0.0000278 per dollar traded (minimum $0.01)
- FINRA fees: $0.000166 per dollar traded (minimum $0.01, maximum $8.30 per trade)
- CAT regulatory fees: $0.000040 per dollar of trade volume
Options trading adds another layer of charges:
- Regulatory fee: $0.02675 per contract
- Clearing fee: $0.025 per contract
- CAT regulatory fee: $0.0046 per contract
- Trading activity fee: $0.00279 per contract (minimum $0.01)
- Index options fee: An additional $0.55 per trade
If you’re trading futures, here’s what you can expect:
- E-mini contracts: $0.70 per contract
- Micro contracts: $0.25 per contract
- CME regular contracts: $1.25 per contract
- Cryptocurrency futures: $0.50 per contract
Beyond trading fees, margin interest rates and transfer fees also play a role in your overall costs. Margin interest rates start at 8.74% for smaller balances and drop to 4.74% for larger balances. If you’re a Webull Premium subscriber, you’ll enjoy reduced rates across all tiers.
For transfers:
- Domestic wire deposits: $8
- Domestic wire withdrawals: $25
- ACATS transfers: $75
- ACH transfers: Free
Day Trading Rules
If you’re classified as a Pattern Day Trader (PDT), you’ll need to maintain at least $25,000 in equity, which can significantly impact your capital allocation. However, cash accounts are exempt from PDT restrictions and margin interest charges. Keep in mind, though, that T+2 settlement rules apply, which could limit how frequently you can trade.
Webull boasts an execution quality of 98.96% for trades up to 99 shares, outperforming the industry average of 96.95% as of October 16, 2024. This high level of execution can help minimize the impact of unfavorable fills, especially during frequent trading.
For those involved in short-selling, be aware of hard-to-borrow fees. These fees fluctuate based on demand and can quickly add up, especially if you’re holding short positions for extended periods.
While each fee might seem small on its own, they can pile up fast with frequent trading. Keeping a close eye on these costs is key to understanding the true expense of your trading strategy.
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2. DayTradingComputers Hardware Solutions
Hardware Optimization Support
When you’re day trading on Webull, your hardware setup can have a big impact on your trading results. Webull offers advanced charting tools and real-time data, but to make the most of them, you need a system that can keep up. For day traders, having a high-performance computer isn’t just a luxury – it’s a necessity.
To handle Webull’s detailed analytics, you need serious processing power. The platform lets you trade directly from charts and provides tools that break down data to a single tick. If you’re juggling multiple positions across various timeframes, this kind of precision demands a system with strong computational capabilities.
DayTradingComputers meets these needs with three tailored setups:
- Lite System ($3,569): Features an NVIDIA GeForce RTX 3070 Ti SUPER and 32GB of DDR5 RAM.
- Pro Model ($4,569): Upgrades to an RTX 4070 Ti SUPER and 64GB of RAM.
- Ultra Configuration ($5,569): Offers top-tier performance with an RTX 4090 SUPER, 128GB DDR5 RAM, and 4TB of NVMe SSD storage.
Managing your visuals is just as important as raw processing power. Webull’s platform is packed with technical indicators and drawing tools, which many traders prefer to spread across multiple monitors. Each DayTradingComputers system supports up to two monitors, giving you the flexibility to use one screen for live charts and another for order management or scanning the market.
Speed is critical in day trading, and these systems are built to minimize delays. Ultra-low latency configurations and 24/7 VPS support ensure that your trades are executed as quickly as possible, reducing the gap between making a decision and placing an order.
Each system comes pre-installed with Windows 11 and works seamlessly with not just Webull but also other popular platforms like NinjaTrader, TradeStation, and MetaTrader. This makes it easier for you to adapt as your trading strategies evolve.
Storage is another key factor, especially for traders who rely on historical data and backtesting. While Webull is user-friendly for casual and intermediate traders, more advanced traders often need to store large amounts of market data locally. The Pro and Ultra setups include 2TB and 4TB NVMe SSDs, respectively, giving you plenty of space for data-heavy applications.
Finally, reliable technical support is included with each system to address any hardware issues that might disrupt your trading. When every second counts, having dependable hardware and support can make all the difference.
Pros and Cons
Knowing the strengths and weaknesses of these platforms is key to making smart decisions about your trading setup. Below, we break down the benefits and trade-offs, building on the earlier discussion about fees and hardware.
Webull’s Fee Structure Benefits
Webull is ideal for traders who want to keep costs low. Its commission-free trading model significantly reduces per-trade expenses. For instance, on a $1,000 trade, regulatory fees are just about $0.23. The platform also boasts an impressive 98.96% execution quality for trades up to 99 shares, surpassing the industry average of 96.95%.
Webull’s Limitations
That said, Webull isn’t without its downsides. Certain fees, like margin interest rates and withdrawal charges, can add up over time. For example, wire transfers cost $25 for U.S. accounts, while debit card withdrawals come with a 1.75% fee on the withdrawal amount.
DayTradingComputers Hardware Advantages
DayTradingComputers specializes in trading systems designed for ultra-low latency, a must for quick trade execution. Their tiered pricing – starting at $3,569 for the Lite system and going up to $5,569 for the Ultra system – caters to a range of trading needs. These systems feature premium components and undergo rigorous stress testing to ensure stability during high-pressure trading scenarios. Plus, they come with multi-platform compatibility and pre-installed Windows 11 to simplify integration with platforms like Webull.
Hardware Investment Considerations
The main drawback of these high-performance systems is the hefty upfront cost. The entry-level Lite system starts at $3,569, which can be a significant barrier for newer traders or those with smaller accounts.
| Aspect | Webull Pros | Webull Cons | DayTradingComputers Pros | DayTradingComputers Cons |
|---|---|---|---|---|
| Cost Structure | $0 commissions on stocks, ETFs, and options | Margin interest rates start at 8.74% for balances below $25,000; $75 ACAT fee | Potential to improve trade execution efficiency | High upfront investment ($3,569–$5,569) |
| Performance | 98.96% execution quality; low regulatory fees | Reports of slow fund transfers and customer service delays | Ultra-low latency optimization | – |
| Flexibility | Very low per-trade costs | Limited transparency on some fee details | Multi-platform compatibility | – |
| Support | Affordable for beginners | Some delays in service | 24/7 technical support with pre-installed Windows 11 | – |
The blend of Webull’s cost-effective platform and DayTradingComputers’ high-performance hardware offers a strong setup for day traders. However, the best choice depends on your trading volume, budget, and technical needs.
Conclusion
Webull’s 2025 fee structure delivers a cost-effective solution for day traders, offering commission-free trades on stocks, ETFs, and options, along with micro futures pricing at $0.25 per contract.
To truly capitalize on these savings, traders also need reliable, high-performance hardware. As highlighted in the hardware analysis section, systems from DayTradingComputers are designed for ultra-low latency, which can make a critical difference when markets shift quickly. Combining Webull’s cost advantages with advanced trading hardware creates a strong foundation for navigating fast-moving markets.
This synergy between reduced trading costs and cutting-edge hardware performance makes Webull a solid choice for intermediate to advanced traders, especially those looking to minimize risks tied to slower execution during periods of high market volatility.
FAQs
What additional costs should I consider when day trading on Webull besides commission-free trades?
While Webull provides commission-free trades, it’s important to consider some additional costs. One notable factor is payment for order flow, which could impact the quality of your trade executions. There are also fees for optional add-ons, like advanced market data subscriptions. If you’re trading on margin, keep in mind that margin interest rates vary depending on how much you borrow and can add up over time, potentially increasing your overall trading costs.
Being aware of these expenses can help you refine your trading strategy and keep your costs under control.
What is the Pattern Day Trader (PDT) rule, and how does it impact my Webull account if my balance is under $25,000?
The Pattern Day Trader (PDT) rule is a regulation that restricts the number of day trades you can make if your account balance is under $25,000. Under this rule, you’re limited to three day trades within a rolling five-business-day period. Go over this limit, and your account could be flagged as a pattern day trader, which may lead to trading restrictions.
To sidestep these restrictions, make sure your account balance stays at or above $25,000. If it drops below this amount, you won’t be able to continue day trading until your balance is back to $25,000 or higher.
How does investing in high-performance hardware improve day trading efficiency on Webull?
To get the most out of day trading on Webull, upgrading to high-performance hardware can make a world of difference. A powerful processor, ample RAM, and multiple monitors allow you to analyze charts, track market trends, and execute trades seamlessly – all in real-time.
This kind of setup reduces lag, helping you react to market shifts instantly and avoid missing key opportunities. With the right hardware in place, you’ll be better equipped to make quick, informed decisions in Webull’s fast-moving trading environment, giving your performance an edge.
