Webull vs. Coinbase: Which Is Right for You? | The Motley Fool (2024)

Webull vs. Coinbase: Fees

Trading fees are the lowest using Coinbase's advanced trade tool, where they cost between 0% to 0.60% per order.

Webull doesn't charge fees for trading crypto, but it does charge a spread of 100 basis points. That's equal to 1%, so that's what you can expect to pay in fees overall when buying or selling crypto on Webull.

Coinbase charges different fees depending on which of its trade tools you use. If you use advanced trade, which is recommended, fee amounts are based on your trading volume. Its fee structure also has a maker-taker model. On orders that are filled immediately, Coinbase charges the taker fee. On orders that aren't filled immediately, it charges the maker fee.

Here's the full fee structure for advanced trades on Coinbase:

Simple trades on Coinbase are considerably more expensive. If the order is $205 or more, Coinbase generally charges a variable percentage fee of almost 1.5%. On smaller order amounts, the exchange charges a flat fee as follows:

• Up to $10: $0.99
• Up to $25: $1.49
• Up to $50: $1.99
• Up to $205: $2.99

For an example of how fees work on these platforms, let's say you want to place a $1,000 cryptocurrency order. That would cost you:

• $0 to $6 in trading fees with Coinbase's advanced trade tool, depending on your fee tier
• About $10 in spread fees on Webull
• $14.68 in trading fees on Coinbase's simple trade tool

Webull vs. Coinbase: Cryptos available

In terms of cryptocurrency selection, Coinbase is far ahead of Webull and most other platforms. It lets you buy and sell over 200 cryptocurrencies, which include a mix of the biggest coins on the market and smaller projects.

To Webull's credit, it offers a solid lineup of more than 40 types of cryptocurrencies. The broker has also done a good job of expanding its selection over time.

You'll have access to the most popular cryptocurrencies on Webull and Coinbase. They both offer Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and quite a few other big names. The most notable crypto you won't find on Webull (but will on Coinbase) is Polkadot (DOT). Other than that, where Webull is lacking is mainly its selection of mid-size and smaller cryptos.

Webull vs. Coinbase: Wallets

The biggest drawback of Webull is that it doesn't offer any sort of wallet function. That means it doesn't allow you to transfer crypto into or out of your account. All you're able to do is buy and sell. You can't actually use crypto you buy on Webull, and you can't move it to your own crypto wallet so it's under your control. It will always be in Webull's possession.

Coinbase offers a custodial and a non-custodial crypto wallet. Both types of wallets can send and receive crypto from external wallets. The difference is that a custodial wallet is controlled by the exchange -- in this case, Coinbase. If you buy crypto and keep it on Coinbase, then it will be in a custodial wallet.

A non-custodial wallet is controlled by the user. Coinbase offers this with Coinbase Wallet, a free app anyone can download. If you move your crypto to Coinbase Wallet, then you're in complete control of it. You can also transfer crypto you buy on Coinbase to other crypto wallets, if you have a different one that you prefer.

COMPARE OPTIONS: Read The Ascent's guide to the Best Crypto Wallets.

Webull vs. Coinbase: Security

Coinbase is one of the safest crypto exchanges, and it provides more information than Webull about its security measures.

Webull uses a company called Apex Crypto for crypto trading and custody services. When you buy a cryptocurrency on Webull, Apex Crypto executes the transaction and stores those funds. It's hard to evaluate how secure this is, because there's nothing available from Webull or Apex Crypto about the type of crypto storage used.

Coinbase, on the other hand, handles its own crypto trading and storage. It also provides ample information on the measures it takes to keep crypto funds safe. Here are the steps Coinbase takes to safely store cryptocurrency:

• It keeps over 98% of crypto funds offline in cold storage.
• It uses secure cold storage facilities that are guarded and monitored 24/7.
• It maintains an extensive crime insurance policy to protect a portion of digital assets held across its storage systems against losses from theft.

Both platforms offer two-factor authentication (2FA), and Coinbase requires it. With 2FA enabled, it's much harder for anyone to gain unauthorized access to your account.

They also both offer insurance coverage for cash deposits. Coinbase has FDIC insurance that covers up to $250,000 per individual. Webull is a member of the SIPC, which protects securities customers of its members up to $500,000 ($250,000 in cash). The broker's clearing firm, Apex Clearing, has purchased an additional $150 million insurance policy covering securities and cash, but not crypto.

Final take

If you're serious about investing in crypto, Coinbase is the better option over Webull. It offers a much larger selection, so you'll be able to buy bigger and smaller coins. You can feel confident that your crypto is safe and insured on Coinbase. The exchange also has low fees if you use its advanced trade tool.

Most importantly, Coinbase doesn't restrict what you can do with your crypto. Once it's in your possession, you can move it to a wallet, transfer it to a different exchange, or send it to someone else.

Webull offers more types of investing, and it has an excellent mobile platform. If you're looking for stock trading apps that also let you add crypto to your portfolio, then Webull is worth checking out. Just keep in mind that it doesn't have all the features you'd get from a full-fledged crypto exchange.