I opened a WeBull account today. Or, I applied at any rate. I was expecting to be able to open it, fund the account and get the “6” free stocks valued at between $2.50 and $1500, or whatever the amounts were. Apparently, I will get 2 stocks as soon as the account is approved and funded. The remaining “4” stocks will be issued on December 28th, 2020. I’m not sure of the significance, if any, of that date, but I’ve gone ahead and taken the bate.
I applied to trade stocks and ETFs but not options. I like the idea of options and did try trading them at one point in the past but I don’t think they are made for everyone. Very short term, in and out.
Overall, the stock market or most investments should be long term. The short term stock market is rigged, literally, for complicated trading systems. If you think you are going to jump in and out of a stock during the day and you are not a human supercomputer, you might as well forget about it.
I tried it and definitely liked being able to get gains of often thousands of dollars in a single day. The downside was that I could also lose thousands of dollars per day. As a friend of mine who became a stock broker 20 years ago said, the only one who is guaranteed to make money is the stock broker.
WeBull is making money somehow. I’m not sure how but I think it is a mixture of selling their trading data to other firms and making a small amount of money on margin accounts. If a user has stock in their account, I think it is very possible that WeBull also sells the options for the underlying stock and makes that money also, but I’m not 100% sure.
Robinhood is a competitor in the zero fee game and they are going gangbusters right now. They are making so much money right now because of the pandemic that they are poised to go public over the next six months. An early investor in Robinhood hosts a podcast and his balls are tingling right now just thinking about it.
I have a Robinhood account also, mainly because I was sent an invitation by someone I know. They received $5 and I did also. This WeBull offer is a bit more rich. Instead of a single $5 stock, they are offering 2 stocks valued at at least $2.50 but they could be more. There are some other stocks in the mix though.
At this point, I created an account and will fund it if approved. I’ll post an update about the stocks I receive and other issues, good or bad, that happen.
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