Webull Review for IPO Investing

In May 2019, ClickIPO and Webull announced a partnership to provide IPO access to Webull customers directly through the Webull app. This Webull review addresses the IPO access functionality of the trading app.

Webull is a zero-commission stock and cryptocurrency trading platform that started as a smartphone-app similar to Robinhood. It has since launched a beta desktop platform as well.

Since announcing a partnership with ClickIPO, you can utilize the Webull app to get access to IPOs for a minimum of $100 deposit into your account.

BONUS: When you open an account with Webull and deposit at least $100, you’ll receive two free stocks. Learn more here.

Why Webull?

Zero-commission isn’t so enticing these days after Charles Schwab dropped its commission rates to zero, triggering a waterfall effect in the entire brokerage industry:

• Etrade
• TradeStation
• Fidelity and
• Interactive Brokers

all followed the lead.

Charles Schwab made a brilliant move. The real intent was to devalue its competitors, ultimately leading to the acquisition of one of the best brokers of the bunch: TD Ameritrade.

Of course, Robinhood, M1 Finance, and Webull have all offered commission-free trades for years now. Since the rest of the industry has caught up, brokers now need to differentiate themselves.

Webull has chosen to differentiate themselves by integrating IPO and secondary access into their platform to empower ordinary investors, while the largest brokers continue to reserve IPO access for their wealthiest clients.

As a mobile-first platform, you can invest in IPOs from your smartphone with a few taps. Here’s how it works.

Webull Review for IPO Investing

I’ve had a Webull account for the past few months now and tested out the interface. It’s the simplest way to invest in IPOs I’ve seen so far.

You’re still never guaranteed an allocation, and the number of deals is limited, but you can participate in IPOs for as little as $100.

That said, the functionality is more of an add-on than a feature. The app is not the most user-friendly experience overall, but it is highly functional.

To get started with IPO investing in the Webull app, tap the Markets tab on the bottom. Then Explore at the top. Scroll down to see the IPO Center.

If you tap “View All”, you’ll see three tabs at the top: Offering, Filed, and Listed.

Here is where you can place orders, look at new filings, and see when expected deal dates and prices.

 

From the Offerings tab, tap on any deal to get more information.

Upcoming IPOs have a timeline and some basic data.

Secondaries to directly to the stock quote page where you can choose to place an open market order or invest in the secondary.

And finally, from the Offering tab, if you tap Order Now, you’re taken to an order page. Type in how much money you want to request, acknowledge some fine print, then place your order.

You must have cash in your account to place an order. The minimum is $100.

Once you get to the IPO Center, it only takes two screens to place an order. Placing an order is an indication of interest. You are not guaranteed to get an allocation.

ClickIPO bases its allocation priority on the number of shares they receive for distribution and the proprietary Investor Score.

Webull vs. ClickIPO

As of now, to invest directly through the ClickIPO app, you need to have an account with TradeStation. More brokers may come on board in the new year.

You’ll need to download the ClickIPO app and place orders from there. Orders then automatically update your TradeStation account.

I’ve heard from several readers who joined TradeStation for the sole purpose of investing in IPOs and are pleased with the experience. But some have mentioned a lack of deal-flow quality.

Whether you invest through ClickIPO/TradeStation or directly through Webull, access to deals is the same for both. ClickIPO controls the pipeline once deals arrive from underwriters.

It also maintains an Investor Score for every investor on both platforms. The score measures how long you typically hold an IPO stock. A better Investor Score rating increases the odds of receiving an allocation for a high-demand deal.

The Webull app works for IPO tracking and researching individual deals. However, I prefer to use the ClickIPO app directly for research and monitoring. It’s much easier to access the S-1 filings. The interface is built specifically for IPOs, while IPOs are more of an add-on for Webull.

Signing up with Webull feels like a smaller commitment because of its mobile-first platform. TradeStation is meant for active traders and has a powerful desktop platform for serious traders. Webull is more for beginner to immediate investors with the same customer profile as Robinhood users.

In other words, if you’re happy with your primary broker and don’t want to switch and transfer assets, Webull may be more suitable. However, with the rolling out of the Webull desktop trading platform, I expect these products to be competitive in the second-tier online brokerage space.

About Webull

Webull Financial LLC was founded in 2016. It’s a registered broker-dealer with the SEC and a member of FINRA and the SIPC. Like all SIPC broker-dealers, accounts are protected up to $500,000.  The company uses Apex Clearing Corp as its clearing firm.

Webull’s parent company is Fumi Technology, a Chinese fintech startup that was incubated by a large mobile phone company called Xiaomi. The technology team is based in Hunan, China, while it’s customer-facing and brokerage teams are based in New York, according to CEO Anthony Denier.

Now that Schwab and the rest of the online brokers have gone commission-free, these no-fee trading apps face much greater competition. Since Webull is the only Chinese deep-pocketed venture-backed online broker making headwinds in the United States, I expect it to keep aggressively taking market share.

Note: Access IPOs is an affiliate partner with several online brands, including Webull. If you sign up through a link on this website, Access IPOs may be compensated at no additional cost to you. Joining a broker that offers access to IPOs does not guarantee a share allocation, especially in high-demand IPOs.