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Wallets for alternative cryptocurrencies are critical to the development and operation of cryptocurrencies. This kind of best altcoin wallets offer both security and convenience in terms of sending and receiving payments.
Wallets for cryptocurrencies operate in the same manner as Bitcoin wallets. In reality, a vast majority of alternative cryptocurrency wallets support the world’s biggest cryptocurrency.
We’ll go through what makes one Altcoin wallet superior to another, and why. In addition, we will give you a selection of the best Altcoin wallets for you to choose from.
What is the significance of selecting the best Altcoin wallets?
Altcoins (alternative cryptocurrencies) began to rise throughout the globe shortly after Bitcoin was created. The success of each currency was predicated on the fact that it made improvements to the Bitcoin protocol.
For example, Ethereum took the Blockchain idea and turned it into a decentralized platform. Now, it provides a platform where anybody may create unique applications for the network.
For its part, Litecoin is a cryptocurrency that is comparable to Bitcoin in many aspects. However, it has quicker transaction times, making it more convenient to use for payments.
Popular Altcoins in 2022
While many Altcoins were developed with the intention of being superior to Bitcoin, others were merely made as a joke or, worse, as a hoax to defraud investors.
In a similar way, there are hundreds of best Altcoin wallets accessible. Although many of them are reputable and legitimate, some are amateurish. There are yet others that are just a front for criminals to hide behind.
The finest Altcoin wallets will guarantee that you do not fall prey to a criminal’s trap. In addition, it provides you with better functionality and support for alternative cryptocurrencies.
Which cryptocurrency wallets are the most reliable?
Choosing the Best Altcoin Wallet
It is crucial to note at this moment that there is no one wallet that can meet the demands, skill levels, and coin support requirements of every person.
While some users may be seeking a wallet to keep the rare Altcoin, others may be hoping to make a profit on a regular basis via frequent trades and transactions.
Various Types of Bitcoin Wallets
Because there are so many various types of Altcoin wallets accessible, it is a good idea to categorize them in a number of ways.
One of the most common methods of doing this is by dividing Altcoin wallets into two categories: cold and hot. Cold wallets are physical devices that are small enough to fit in the palm of your hand, but not necessarily.
They are not free. However, they do offer improved security by being unplugged from the Internet for the majority of the time. On the other hand, a hot wallet is often free. However, this also implies that it is less safe than a cold wallet.
Hot wallets may be divided into the following categories:
Desktop Wallet
It is a type of bitcoin wallet that can be installed on your PC. Such wallets may be compatible with a variety of operating systems. Some may restrict to Windows, Mac, or Linux only.
Mobile Wallet
With the help of a simple Wi-Fi connection, you may transfer and receive coins using your mobile wallet. It is simply loaded on your smartphone. The best cryptocurrency wallets for mobile devices are those that function on both iOS and Android smartphones.
Browser Wallet
This wallet allows you to access your money and make transactions straight from your web browser, eliminating the need to download any software or other software-based solutions.
Price
Another crucial factor to consider is the cost of the wallet. With a few exceptions, the vast majority of hot wallets are free, but the vast majority of cold wallets are not.
The decision on which choice to choose is mostly influenced by the level of security necessary. It’s possible that a hot wallet will be sufficient if you’re just going to hold a tiny amount of Altcoins.
In contrast, if you want to invest in the finest Altcoins and hold on to them, a safe cold wallet (also known as a hardware wallet) is preferable.
Currency Exchange
One feature that some of the best Altcoin wallets provide is integrated solutions that allow you to swap currencies quickly and easily.
The end result would be that you’d be able to purchase and sell multiple supported currencies through an exchange, with cash immediately leaving and entering your wallet as needed.
As an added convenience, certain wallet providers may also handle cryptocurrency exchanges, making the whole transaction easier and sometimes more cost-effective.
6 Best Altcoins Wallets
Wallet
Type
Number of Currencies
Recovery Option
Private Key Access
Storage Type
Security Level
Ledger Nano S
Hardware
1100
Yes
No
Cold
High
Guarda
Desktop Mobile Web
49
Yes
Yes
Hot
Medium
Coinbase
Desktop Mobile
100
Yes
No
Hot
Medium
Trezor
Hardware
1180
Yes
No
Cold
High
Exodus
Desktop Mobile
103
Yes
Yes
Hot
Medium
Indacoin
CEX
100
–
–
–
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Crypto Wallets Comparison
Ledger Nano S
Because of its elegant look and robust functionality, the Ledger Nano S is one of the most recognizable cryptocurrency wallets on the market.
With the ability to accept more than 1,100 different Altcoins and ICO tokens, it is very user-friendly and suitable for both novice and expert users. The Nano S is a hardware wallet that features tamper-alert software to detect unauthorized access.
The wallet retails for a fairly reasonable price considering the features it offers. For reasons of security, you must have the device with you at all times in order to authorize transactions.
However, in order to increase convenience, Ledger offers a mobile application that makes browsing and execution of transactions more straightforward.
Pros
User-friendly
Supports more than 1100 coins and tokens
Provides an excellent value for money
Lightweight
Portable
Cons
Doesn’t provide any private key access
Difficult navigation
Guarda
Guarda is a popular digital wallet that has the particular feature of being compatible with a wide range of devices and browsers.
Additionally, Guarda offers a Chrome extension, as well as Ubuntu, Mac, and Linux software, in addition to functioning on iOS and Android devices as well as Windows computers.
This free worldwide Altcoin wallet may link to partner exchanges to give a quick method to purchase and sell currencies. It is simple to set up and literally anybody can use it.
Guarda is undoubtedly one of the top best Altcoin wallets for beginners due to its ease of use and simplicity. Due to the fact that it is an online wallet, it is not as secure as a hardware wallet. The total experience, however, may be had for a far lower investment of money.
Please bear in mind that Guarda is a non-custodial wallet.
It means that users are completely responsible for keeping their passwords and recovery phrases private and secure.
Because Guarda is unable to act, you will be unable to access your cash if these documents are lost.
Coinbase Wallet is the second regulated wallet on our list of the best Altcoin wallets. It is also the one we most widely use. Coinbase Wallet, which is owned by one of the major Bitcoin brokers in the world, is completely free to use and very simple to set up.
Despite the fact that it is a popular mobile wallet, it is safeguarded by extensive security safeguards, some of which are similar to those found in banks.
When utilizing the Coinbase Wallet, you have the option of connecting with an online exchange in order to automatically transfer and receive other currencies.
While one of these exchanges is Coinbase itself, you are not restricted to using just this particular exchange.
This wallet also allows you to connect with Decentralised Apps that are built on the Ethereum blockchain directly (DApps).
Pros
User friendly
No setup fee
Available on Android and iOS
Supports recovery option
Cons
No private key access
Supports a small number of coins
Trezor
Trezor is a well-known maker of bitcoin wallets that are both safe and dependable. It was established less than a year after the birth of Bitcoin and now supports more than 1,000 other cryptocurrencies and tokens.
The Model One wallet is the most affordable of the company’s major wallets, retailing at €59. The navigation buttons on this model, as opposed to the touch screen of the more costly Model T, allow for easier navigating.
Trezor’s Model One is a simple device that is suitable for both beginners and more experienced users alike. However, even though hardware wallets like this are inherently more secure than other options.
Trezor includes two-factor and FIDO2 authentication mechanisms to further increase their security. When you link this gadget to your smartphone, the possibilities for its use become almost limitless.
Using this method, you will discover an increasing number of applications that enhance the functionality and convenience of your Model One.
Pros
User friendly
Safe and reliable
Supports more than 1000 coins
Provides good value for money
Cons
Difficult navigation
No private key access
Exodus
Exodus Altcoin Wallet
Exodus is a desktop and mobile wallet. It has the rating as one of the best Altcoin wallets in terms of overall usability. The online wallet, which is popular among Altcoin traders, features real-time price charts as well as the opportunity to purchase and sell Altcoins directly.
It supports more than 100 different currencies and tokens. Moreover, Exodus also provides a selection of alternative applications to improve your trading experience and manage your money.
This Altcoin wallet is non-custodial, which means that it is primarily the responsibility of the user to keep their passwords and recovery phrases secure and confidential. If you don’t have them, you’ll be unable to access money in the future.
If you’re a trader who is eager to invest in Altcoins, Exodus has a lot to offer, including the ability to trade while on the road straight from its mobile application.
Pros
Free Setup
Supports more than 100 coins and tokens
Available on desktop, Android, and iOS
Trading apps and live charts available
Cons
Higher conversion fees
Less secure
Indacoin Wallet
For Android and iOS smartphones, Indacoin Wallet is a mobile cryptocurrency wallet that supports a variety of cryptocurrencies. This wallet has received favorable feedback from its customers, and it provides a free method for getting access to a wallet in seconds.
Indacoin Exchange is owned by this organization, and this wallet allows you to trade Altcoins as well as purchase them using a debit or credit card.
The Indacoin Wallet is simple to use, making it an excellent choice for novices. A total of over 100 different currencies and tokens are accessible via the wallet. Account activation is as simple as providing a cellphone number, and customer service is accessible around the clock.
This is particularly critical in the event that you lose access to your wallet due to a password forgetting incident.
Pros
Supports more than 100 coins and tokens
Direct Altcoin purchase or conversion
Available on Android and iOS
Supports recovery option
Cons
Android app has bugs
Less secure
Conclusion
As cryptocurrencies continue to develop, so will the best Altcoin wallets, which will become more and more sophisticated.
In addition to the wallets listed on this page, there are countless more platforms where you may purchase, sell, and store cryptocurrencies and tokens.
However, the wallets we discussed about on this page are super dependable, respectable, and trustworthy. Picking a wallet provider you can rely on, much like choosing a bank account, may save you time, money, and frustration.
Is Webull Safe in 2022 ? Webull is one of the newest online brokers, founded in 2017 and debuted in May 2018 with just a mobile app. Stocks, ETFs, options, and cryptocurrencies are all available at Webull.
This smaller collection of assets aims the younger and more self-directed clients.
Meanwhile, the more conscious investors cannot help wondering :Is Webull Safe to Invest with in 2022 ?
Is Webull Safe | What Is Webull
Webull Financial LLC provides a commission-free electronic trading platform for stocks, exchange-traded funds, options, margins, and cryptocurrencies, accessible by mobile app and desktop computer.
Who Owns Webull?
Wang Anquan owns Webull’s parent business, Fumi Technology.
He controls roughly 35% of the organization.
Xiaomi ranks second with roughly 14 percent, followed by Noah Holdings Ltd. with around 9%.
So far, Anthony Denier’s ownership share has remained unknown.
How does Webull Make Money?
Webull is a FinTech startup that allows customers to trade financial commodities like stocks and exchange-traded funds (ETFs) without paying a fee.
Payments for order flow, short selling fees, subscription fees, interest paid on margin, and earnings gained by investing funds on balance are all ways that Webull generates money.
Webull does not charge any kind of commission.
But even no-commission platforms, must generate money in some way.
Here’s how Webull goes about it:
Payment for order flow
This is a contentious but frequent technique in which trading applications generate money. They do so by routing clients’ orders to high-speed traders.
Stock Loans
Some investors engage in a technique known as short-selling.
It involves betting on a company’s stock price falling.
Webull generates money by lending investors’ shares to short-sellers.
They then sell the borrowed shares to third-party investors in the hopes of repurchasing them at a lower price later.
Interest on Free Credit Balances
A free credit balance is the amount of money that a broker has to pay you on-demand.
This includes the money you deposit in an account or dividends.
Brokerages profit from the idle cash in your account by lending it to other parties.
They collect the interest on it.
Margin Interest
Users who have at least $2,000 may create a margin account.
It allows them to borrow money to purchase stocks.
Customers get more purchasing power, but they also take more risk.
The amount of the margin loan decides the margin rate.
Webull charges interest every month.
A debit amount of up to $25,000, for example, has an annual margin rate of 6.99%.
Webull Growing Popularity
Webull is touching new heights of popularity in the stock market.
The criticism against Robinhood Markets’ trading limits may be sending users to Webull Financial, one of the brokerage’s fastest-growing competitors.
New account signups were 1,548 % greater than the seven-day norm, according to the Chinese-owned brokerage.
The company’s trading app, which had a previous standing at 60th.
Hence, it is now the second-most popular free iPhone app in the United States, behind only Robinhood.
Google Trends Stats Worldwide Search
Before the year 2021, the Google trends for Webull were not so encouraging.
However, over the course of last 12 months, there has been amazing fluctuations particularly in the month of January.
We can expect the same in the January 2022.
So, let’s look forward to it.
Webull worldwide trends over the past 12 months
Google Trends stats USA
Similar to what we discussed for the worldwide trends, the Webull trends in the USA have been really promising.
We can hope to expect some bigger things in the coming year!
Webull trends 2021
Compare Webull Popularity to Nemesis Robinhood
Millions of users have flocked to Webull and Robinhood, two of the most popular investing apps, for their ability to swiftly trade and monitor stocks, options, and cryptocurrencies.
In several critical areas, Webull compares well with Robinhood, if not outperforms it.
Moreover, Webull provides helpful charts, better customer assistance, and still gets the job with no fees.
Looking at the Google trends Search for the two millennials trading platforms, Robinhood is 6 to 7 times more popular that Webull as depicted on the chart below.
Webull vs Robinhood Web Searches by Google Trends
Robinhood is fantastic for no-cost trading, an innovative mobile app, and fractional shares, whereas Robinhood is great for no-cost trading, a slick mobile app, and fractional shares.
Although the cryptocurrency market is open 24 hours a day.
Webull’s extended hours trading function allows users to trade conventional assets such as stocks and ETFs from 4 a.m. to 9:30 a.m. or 4 p.m. to 8 p.m.
The stock market’s typical hours are 9:30 a.m. to 4 p.m. Eastern Time.
This feature is making Webull more popular than Robinhood.
Is Webull a Legit Trading Platform
All of the key financial regulators regard Webull to be a legit trading platform.
In general, any brokerage’s safety may be determined by the level of protection you have as an investor and the broker’s history. And on these counts, Webull is unmistakable.
Is it Safe to give Webull your SSN?
When you are creating your Webull account for the first time, you will be asked your physical residence.
Then short after, you will be required to provide your Social Security Number (SSN).
Many people are surprised by this request and feel quite uncomfortable.
Giving your SSN to a trading platform is a requirement because Webull like many other trading platforms must reports your earnings at the end of the year to the Internal Revenue Service.
The SSN collected that Webull collects are part of a huge data base of personal information.
This information needs to be secured enough to avoid any breach on people personal info.
How is Webull Regulated in the USA?
Webull is a licensed broker-dealer with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
The SIPC, since 1970, is a non-profit, nationally required, and member-funded organization that has guaranteed funds placed with US-registered brokerages.
The Securities and Exchange Commission (SEC) of the United States has launched its official website to safeguard investors and ensure fair, orderly, and efficient markets by preventing fraud, manipulation, excessive speculation, and insider trading.
However, Webull customers may invest in over 5,000 US-listed stocks, ETFs, and other assets without paying a fee.
Investors may use the app to access trading services encompassing market data from over 100 exchanges in 90 countries.
Everything is there: stocks, bonds, commodities, foreign exchange, options trading, and cryptocurrencies.
Webull Regulations in other countries?
In the USA, the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulate Webull.
However, outside the USA i.e. in China and Hong Kong, Hong Kong Securities and Futures Commissions (SFC) are undertaking its regulation.
Which other countries have access to the platform today?
At present, other than the USA there are very few countries in the world that have access to Webull.
These few countries are China and Hong Kong, Korea, India, Japan, Malaysia, Turkey, Brazil, and The Philippines.
So, it is very clear that Webull operates in different countries in the world, and it may become operational in some other countries also.
How do different regulators control Webull?
Webull is regulated by federal securities regulations that guarantee that all investors are treated fairly. The SEC zealously enforces all federal securities laws and holds everyone responsible for any violation.
On the other hand, FINRA’s purpose also includes investor protection.
As a government-authorized non-profit, they protect the integrity of the financial markets by monitoring all brokerage firms in the United States.
However, every business that distributes securities products and the securities of their advertising is licensed and tested by FINRA. FINRA analyzes billions of market events every day.
Is Webull Secure Enough to Invest with?
When choosing an online trading platform, look into what financial authorities control the site to ensure its reputation.
As you can see, many top-tier organizations are behind the regulation of Webull.
This guarantees that it complies with all US, UK, and international laws ensuring the protection of investors.
Webull is Reliable
How are stock investors protected?
Webull is a member of the SIPC – Securities Investor Protection Corporation.
It means that clients have a cover-up of $500,000 ($250,000 in cash) if the brokerage goes out of business. It is also relevant in the case of loss of assets.
The brokerage’s clearing business, Apex Clearing, has extra insurance coverage that covers securities and cashes up to a total amount of $150 million.
This is subject to maximum restrictions of $37.5 million in securities and $900,000 in cash for each client.
However, bear in mind that this coverage won’t prevent you from just losing money in the market, which is why investing sensibly is so crucial.
How are Crypto investors protected?
An account with Apex Crypto is a must-have to trade cryptocurrencies. Apex Crypto is not a broker-dealer that has the registration with the SEC.
It handles Webull’s crypto trading and custody.
Moreover, Apex Crypto performs the transaction and maintains the coin money when you purchase a cryptocurrency on Webull.
While Apex Crypto seems to offer secure crypto storage, there are a few points to keep in mind:
Its bitcoin assets are not covered by insurance.
Its risk statement states that in the case of technical issues, it may not have enough financial coverage to compensate for bitcoin losses.
What Can You Do to Keep Your Webull Account Safe
While Webull does its part in keeping your account and personal information protected, you can help as well by following the safety tips below:
Here are a few tips:
• Ignore suspicious calls, texts or emails that request personal information or payment. Webull will never ask you for your passwords and will never call you to seek personal information.
• Ignore and report any calls, texts or emails that ask you to transfer money. Webull will never request that you wire money to any Webull account.
• Be sure you know who an email or text message is from before you click on a link or open an attachment. Hover over links to reveal the website’s URL and see where the link really goes. Do not click on links that don’t match the sender or don’t match what you expect to see.
• Pay close attention to the email address and sender’s name, which may be off by just a character or two if it’s a phishing attempt. Webull will only contact you from verified Webull domains: Webull.com or Webull-us.com. Other domains, like webullxa.com, are fraudulent and you should not engage with them.
• Be careful of suspicious calls, texts or emails that imply a sense of urgency or ask you to act quickly.
• Only download apps from legitimate app stores (like the Apple App Store, Google Play App Store).
• Enable two-factor authorization and review your trusted devices in order to protect access to your account.
• More information is also available at https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams
What Do Users Say About Webull?
Webull is ideal for the trader or aggressive investor who does not want assistance.
It also appeals to individuals who wish to trade since there are no additional expenses.
There is no account minimum, competitive margin rates, and zero fees on stocks, ETFs, options, and cryptocurrencies.
Is Webull trusted by Investors?
Since its inception in 2017, Webull has seen consistent development.
Not only has it survived the COVID-19-facilitated 2020 crisis, but it has also managed to grow its service offering during that period.
Webull has allowed its traders to utilize cryptocurrencies as trading instruments from the end of November 2020.
Who is Webull Target demographic?
Webull’s most significant target demographic, millennials, were reflected in the mobile-first launch.
Webull serves the newer and more active traders.
In addition, Webull welcomes people who take interest in a platform that offers a wide variety of free services, such as no account minimums, commission-free stock/ETF, and options trading and numerous cryptocurrencies.
Moreover, customers of Webull receive a lot of bang for their buck: a beautiful platform with a lot of valuable tools and features, as well as attractive profit rates.
Is Webull Really Free?
Webull does not charge commissions on any transactions, including the purchase and sale of cryptocurrencies such as Bitcoin and the trading of options.
Robinhood popularized commission-free trading, which is now the industry standard, even among major brokerages like Charles Schwab and Fidelity.
According to Webull’s website, regulatory bodies like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) may still charge extremely tiny fees, such as $0.02 per transaction.
Is Webull Good For Beginners?
Webull is an excellent broker for newcomers.
First and foremost, their online platform is ideal for any newcomer, as it offers a wide range of order types, good customizability (workspace, charts), and is ultimately user-friendly.
Also, with two-step authentication, the Webull mobile platform is secure.
However, many newbies to trading are afraid of expenses, so the no-fee for options, ETFs, and equities is a massive plus for them.
A simple account registration procedure is another reason why this platform is a good location for new traders to start.
There is no minimum deposit, you can enjoy Webull Instant Deposit and everything is entirely digital and very quick.
FINAL THOUGHTS
This article provided arguments to answer the question : Is Webull Safe for new investors in 2022?
Depending on your investment type, you can feel secure to invest with Webull as many regulations are in place to protect your money.
As for cryptocurrencies product, Webull current clearing firm Apex Crypto does not provide the security to the many traders who embark in this new endeavor.
Until time will tell how people will feel about that part of Webull not knowing what may happen t their money should some awry happens down the road.
Binance vs Kraken – Both are two well-known worldwide exchanges that provide cryptocurrency trading, staking, margin trading, institutional services, and various other services.
Advanced trading choices, cheap costs, and mobile applications are all available on these two crypto exchange platforms.
Furthermore, both have aimed at intermediate or advanced users. Binance, on the one hand, has somewhat cheaper costs, a more comprehensive selection of currencies, and more options to deposit and withdraw money.
On the other hand, Kraken is recognized for its excellent security standards, has just received Wyoming bank charter approval, and plans to go public in 2022.
Binance Exchange Quick Overview
Binance, the world’s biggest cryptocurrency exchange by trading volume, was created in 2017.
The exchange began in China. It now has over 13.5 million active users and operates in the United States, Europe, and other parts of the globe.
Binance trades approximately 500 cryptocurrencies, including two coins it created: BNB (Binance Coin) and BSC (Binance Security Coin) (Binance Smart Chain).
Trading on leveraged tokens, cryptocurrency futures, and a decentralized exchange are all available on the platform (Binance DEX).
Kraken
Kraken was one of the first significant cryptocurrency exchanges, having been created in 2013 in San Francisco.
After the Japanese cryptocurrency exchange, Mt. Gox went bankrupt in 2014, and consumers were forced to open an account with Kraken to recover their funds.
Moreover, Kraken currently supports over 70 coins for trade. It has cheap costs and a wide range of sophisticated trading options, including futures, margin, and over-the-counter (OTC) trading.
Furthermore, Kraken is known for its impenetrable security – the platform has never been hacked.
Binance vs. Kraken: Which one is easy to use?
Binance and Kraken may both be accessed using a web browser or a mobile app.
When it comes to simplicity of use and Binance vs. Kraken, Kraken comes out on top.
For first-timers, every crypto trade might be a weird and unfamiliar experience. However,
Binance’s user interface does not make things much simpler for the typical novice.
Binance
The Binance web interface presumes that visitors are familiar with how to use a cryptocurrency exchange. There are three viewpoints available: “basic,” “classic,” and “advanced.”
In the basic view, converting one crypto to another should be straightforward enough for everyone, given the display has two dropdown selections.
The advanced view is designed for skilled traders and may be beneficial to experienced users.
Kraken
Kraken is more enticing to those who aren’t acquainted with exchanges. The interface is more user-friendly and clearly explains how to complete tasks. Users may make a purchase or sell order by selecting the “new order” option. The procedure is also made simpler by the style, colors, and bigger text.
Binance vs. Kraken: Which is more secure?
Binance vs Kraken – Security
Without any doubt, the most critical factor to consider when selecting a cryptocurrency trading platform is security. This remains true in this Binance vs. Kraken comparison, as well as every other crypto-related comparison you may encounter!
However, you risk losing all of your assets if you put your funds into a less secure exchange. Although most of the top-tier cryptocurrency trading platforms have their security mechanisms in place, it’s still worth remembering!
Binance
Hackers got into Binance in 2019 and stole $40 million in cryptocurrency.
While no more security breaches have happened afterward, the incident raises concerns. Those inquiries have also gone unanswered by the corporation.
Binance does not provide all of the facts of how it protects its crypto assets.
Kraken
Kraken has never been hacked, and its security policies are open and transparent.
In fact, the company’s website has an entire page devoted to explaining its extensive security features.
The exchange maintains 95 percent of its cash in air-gapped cold storage, keeps its servers under 24-hour video monitoring, and encrypts all sensitive account information at both the system and data levels.
Binance vs. Kraken: Good Features
In terms of trading, both platforms provide a lot of the same functionality.
The purchasing, selling, and converting of cryptocurrencies are the main things for which most people utilize crypto exchanges.
If all you want to do is convert some fiat cash to cryptocurrency, any exchange will suffice.
Binance
Peer-to-peer (P2P) trading, margin lending, futures trading are all available on Binance. Advanced charting and technical analysis tools are also available.
Specific transaction types, like margin trading, are not accessible on Binance for US customers but are available on Kraken.
Kraken
For some of the most popular proof-of-stake currencies, such as DOT, ATOM, and XTZ, Kraken provides simple staking options.
Users of Kraken have access to a unique platform called Cryptowatch, which allows them to trade on various exchanges simultaneously.
Binance vs. Kraken: Range of Currencies
Binance vs. Kraken – Range of Currencies
Around 7000 distinct cryptocurrencies are presently accessible for consumers to investigate, analyze, and exchange.
Even crypto beginners nowadays want to start building varied portfolios right now. However, you’ll need to be able to buy a variety of cryptocurrencies to do so.
Both Binance and Kraken provide USD/crypto trading pairings, allowing various cryptocurrencies to be exchanged for dollars directly on the exchange.
Binance
For international customers, Binance supports over 500 currencies and various stablecoins such as DAI, Tether, and Binance USD (BUSD). It also takes 19 fiat currencies, including the USD, AUD, Hong Kong dollar, Euro, GBP, and Indian rupee.
Residents of the United States, on the other hand, are restricted to 47 cryptocurrencies and only USD fiat money.
Kraken
There are 69 currencies available on Kraken, including three stablecoins: USD Coin (USDC), DAI (DAI), and Tether (USDT) (USDT). It accepts seven fiat currencies:
The US dollar
The Euro
The Canadian dollar
The Australian dollar
The British pound
The Swiss franc
The Japanese yen
The number of coins available to US investors is restricted to 52.
Binance vs. Kraken: Affordable Fee
Binance and Kraken utilize a maker-taker pricing structure, which allows them to charge substantially cheaper costs than other prominent platforms like Coinbase.
At first appearance, Kraken costs seem to be lower than Binance’s, with maker-taker fees ranging from 0% to 0.26 percent vs. 0% to 0.10 percent on Binance.
Binance
Binance’s trading fees are as low as 0.1 percent. Withdrawals are 3.5 percent of the balance, with a $10 minimum.
As is the case with most exchanges, cryptocurrency withdrawals vary by currency.
Binance is the obvious winner when it comes to reduced fees.
Binance Coin (BNB) clients may save funds on trading fees by using Binance’s exchange token.
All customers have to do is keep BNB in their accounts, and fees will be automatically deducted infractions of the currency.
Customers get a 25% discount when paying fees using BNB.
Kraken
Kraken charges a fee of up to 0.26 percent on each transaction.
A user’s activities determine the actual amount over the previous 30 days.
The smaller a trader’s fees are, the more money they trade.
Kraken and Binance both provide mobile applications that allow you to trade while on the move.
Binance
Binance has just one app; however, it has two different modes: Lite and Pro.
The app’s Lite edition has a primary interface that allows you to keep track of cryptocurrencies you’re interested in, make immediate buy/sell orders, and manage your account.
The Lite mode is relatively simple to use if you’re new to Binance or cryptocurrency trading platforms in general.
Advanced traders may utilize Pro mode, which contains several Binance online platform’s charting tools and features.
Full-screen charts with hundreds of technical indicators and depth charts are available.
You may also use Pro mode to access all of Binance’s trading modules, including futures and options trading.
Kraken
Kraken offers two separate applications that fulfill comparable functions to the Binance Lite and Pro versions.
Using the simple Kraken app, you can rapidly purchase cryptocurrency in pre-defined sums such as $20 or $40.
It also provides basic line charts to examine price data without needing to do extensive technical analysis.
The Kraken Pro app is a little more complicated, and it’s not nearly as smooth.
While it has many similarities to the Binance app’s Pro mode, we found the Binance app to be more user-friendly.
Furthermore, having both Lite and Pro modes in one app rather than navigating between two separate applications was a huge advantage.
Binance vs. Kraken: Buying Limits
You can only transact a certain amount of money every day on Binance and Kraken.
Binance Transactions
Your transaction limitations on Binance are determined by how many identity verification procedures you have completed.
You may purchase and sell up to $300 worth of cryptocurrency every day by providing your name, address, and date of birth.
However, your daily purchase limit is boosted to $5,000 when you add an ID to your account and verify it with a recent picture.
You may trade up to $50,000 every day provided you verify your address.
What are Kraken Transactions Limits
Kraken does not have buying limits.
However, it does set deposit and withdrawal limits depending on your account level. Starter account users may make monthly deposits of up to $9,000 and daily withdrawals of up to $5,000.
Pro account members can deposit and withdraw up to $10 million per day or $100 million per month.
Binance vs. Kraken: Wallets
Binance Wallets
The Binance Trust wallet, available for iOS and Android smartphones, is Binance’s cryptocurrency wallet.
Binance supports over 500 cryptocurrencies, including all of the tokens accessible for trade on Binance.
It also supports non-fungible tokens (NFTs) and lets you purchase and trade cryptocurrency right from your phone.
Moreover, the Binance wallet has a Web3 browser that allows you to access decentralized financial applications (dApps).
Binance also allows you to transfer money to anybody, anywhere on the globe, immediately and with no costs.
Kraken
You cannot utilize Kraken’s cryptocurrency wallet.
To be clear, you don’t need a wallet to use Kraken to purchase cryptocurrency.
Because the exchange has built-in storage for users, your coins will remain secure in your account.
More than 95% of Kraken’s coins are kept in cold storage, so you can rest easy knowing that your money is safe.
Summary of Binance vs Kraken Review
It’s difficult to go wrong when choosing between Binance and Kraken as your bitcoin exchange.
Both exchanges allow you to trade a wide variety of coins. You may also purchase and sell digital currencies on margin or trade bitcoin futures.
Specifications
Binance
Kraken
Ease of Use
Complex to understand
Simple to Use
Security
Good Security
Foolproof Security
Trading Fee
Less than 0.1%
Up to 2.6%
Features
P2P Feature Available
Cryptowatch Feature Available
Currencies
More than 500
More than 69
Withdrawal Fee
3.50%
$60
Mobile Apps
One App; Two Modes
Two Apps
Buying Limits
Up to $50,000 Per Day
Up to $10 Million Per Day
Wallet
Available
Cold Storage Available
Binance’s extensive selection of cryptocurrencies appeals to international customers. Residents in the United States, on the other hand, will be less charmed by the lack of options.
However, Kraken provides better transparency, emphasizes security, and offers a reasonable number of currencies for US customers, even with considerably fewer coins for foreign users than Binance.
Binance is a better option than Kraken since it accepts credit and debit card payments, has a larger selection of cryptocurrencies to trade and has cheaper spot trading costs.
Congratulations, you just created your Webull trading account.
But Before you can place your first trading order for that stock or crypto (Shiba inu I guess ?),
you will need first to add money to your Webull account.
This easy simple tutorial will guide you step by step with the process of How to Add Money to your new Webull account.
How To Add Funds to Webull
In order to start trading on Webull for the first time, you will need to deposit funds into your account.
That process is described below and can be done from your Mobile app.
Step 1. Click on the Center icon from your main screen as shown below.
How To Access the Transfer Page on Webull App
Step 2. Select the “Transfers” Menu on the Top on the Right of Orders
On the Transfer page, you will be given the choice to enter your brand new bank account you want to link to your Webull account.
You cannot use credit cards to Fund your Webull account.
Neither can you use pre-paid cards, PayPal or other types of bank accounts at this time.
You will need a checking account to your name.
This is very important because for your first time establishing this bank account on Webull, you will need to verify your ownership of the bank account.
Webull First Time Deposit verification
This can be done in real-time verification or with micro-deposit of $1 .
The second method takes 1 or 2 business days so the real-time verification process is much better.
Webull recently introduced the option to deposit money to your Webull account by wire transfer.
However, given the paperwork associated with it, you will be very likely to make a mistake so I do not recommend it at all unless you absolutely do not have any other choice.
How Much Can you Deposit on Webull Daily?
Your daily maximum deposit from your bank account to your Webull account is fixed to $50,0000.
The verification process described above is in effect for the first time only.
Therefore, for all your subsequent deposit to Webull account, the process is much easier.
How Long Do Webull Deposits Take ?
After you have followed the steps to deposit funds into your Webull account, the Webull team will send you an acknowledgment email that looks like this one below.
Webull Deposit Confirmation Email
This Email will confirm how much money you requested to transfer to your Webull account .
More importantly, you will be advised of the time it takes for your transaction to process.
It takes up to 5 business days. Yikes !
But does that mean that you have to wait until the transaction ahs cleared to start trading on your webull account ?
Can you Trade on Webull Account Before Your Transfer is Completed ?
You guessed it, you do not have to wait until the full transaction between Webull clearing house and your bank settle the funds
The very next business day or on the same day (if you initiated the funding request before 4pm EST) ,Webull is kind enough to grant you Instant buying Power.
The amount is usually a fraction of the money you are transferring from your bank to Webull trading account.
In the example above, $100 was credited s instant buying power before the funds were settled.
While your deposit is still in transit, you have the possibility should you change your mind to cancel your deposit to Webull.
I have not tried this before to tell you how effective this process is but I know that the option is there for you just in case.
Below is the screen capture showcasing how to cancel a Webull deposit while still in transit within five business after initiation.
How To Cancel Webull Deposit (In Transit)
Risks To Deposit Money to Webull
Because Webull provide you with trading capital before your funds are fully transferred to your trading account, there are some risks you need to be aware of.
In the event that your bank account does not have enough money to satisfy the amount of funds you requested, you will be charged a $5 reversal fee by Webull clearing firm.
You may run into this issue if your banks has a limitations on the number of ACH transactions per month.
Please check with your bank to ensure that you are authorized a sufficient number of ACH transfers each month.
$5 Reversal Fee For Insufficient balance
An even worse scenario could be the one where you start trading with Webull Instant buying Power.
Then you lose some of or all of that money and your transfer never settle because of an issue as mentioned above with your financial institution.
Webull will come after you for that money and can even close your account.
You maybe thinking that $5 is not a big deal and you are probably right.
However, may I remind you that you can buy 10,000 Shiba inu coin with $5 !
How To Withdraw Money From Webull Account
Just below the Deposit icon inside the Transfer page of the Webull App, you will find the Withdraw options.
Webull will always tell you right there how much you can withdraw.
all you have to do is to click on Withdraw and enter how much of your available withdrawable balance you want to transfer to your bank.
Notice that it has to be the same bank you linked to your Webull account when you initially setup at the start of this process.
Withdraw Option on Webull
Alternatives To Deposit on Webull
It is always good to have a backup trading account.
Chances are your main trading platform can encounter an outage one of these days.
Webull App and Desktop provide a stock screener to help traders find suitable stocks. From long term investing through swing trading and stock or options day trading, Webull stock screener is well positioned to help you take your trading to the next level. Webull Stock Screener on Mobile App One of the biggest challenge aspiring and veteran traders share with me in my Discord room is how to pick stock to trade. Often, I discover that a lack of a …
Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. What Is Level 2 Data On Webull ? Level 2 market data in trading is a view of buyers and sellers intend through their respective orders. It provides the depth of how many shares traders are buying and selling as well as …
If you are new to stocks or options trading, reading stock charts is one of the most intimidating skills to master. Hopefully, Webull platform introduces very intuitive stock charts. This easy step by step guide will bring you an in depth view into how to read Webull charts so that you can easily focus on growing your account. How To Read Webull Charts | Webull Charts Overview Whether you are using the Webull App or its desktop version, setting up …
The new Webull Trading App offers plenty on new tools and features to help stocks and options traders. In this discussion, we will be focusing on How to Use the Webull Volume Analysis feature. With the intended goal to incorporate this tool into your trading strategy to help grow your account. How To Use Webull Volume Analysis | What Is Volume in Stock Trading Volume in stock trading is the sum of the number of shares sold plus the number …
Webull Options trading has been lacking for a long time. Finally, the platform has decided to step up to its many customers requests and introduce a slew of features in 2021 including Options Tradings. By the end of this tutorial on How to Trade Options on Webull App or Desktop, you will be equipped with the knowledge to set up your Webull options trading App or the Dashboard, access the training course offered on the App version of Webull, take …
So you just signed up for Webull and downloaded the App on your Mobile Device.
You are eager to start making trading on Webull.
But before you do so, you need to learn how to use Webull App for beginner traders or investors.
This step by step tutorial will guide you through all the initial steps so that you can graduate from a rookie Webull beginner to a confident trader who is about to take their account balance to the NExt Level.
Webull App For Beginners | Setting It Up
Before one can walk ( on the moon – smile if you got the reference) , one must learn how to crawl.
In our context, this equates to going through the baby steps of the Webull App.
One such initial endeavor is to choose the market(s) you want to trade on the Webull mobile App.
How To Choose Markets To Trade on Webull App
Webull App currently offers trading in several markets across the globe.
If yours is not available, it is just a matter of time before you are able to enjoy trading on this App.
The United States, Canada, Singapore, Finland, Hong Kong are the main markets you can choose from as shown below.
The Menu to setup your markets look as shown below.
How To Access more markets in Webull App
From there, you can click on the icon on the far right with the horizontal line to unveil further market you can select as displayed below.
Webull Full List of Markets
Market Analysis Using ETFs
A good place to start to get a feel about your overall market is through the ETFs offered in that market.
What Are ETFs ?
ETFS are Exchange Traded Fund that track basket of stocks in a given market.
For instance, in the US markets two very popular such ETFs are SPY (entire 11 sectors of the markets) and QQQ (technology company).
They are heavily traded by most investors and short term traders alike.
To avoid any potential confusion, let’s me clarify that S&P500 is the the same as SPY ETF while QQQ tracks exactly as the NASDAQ.
To access the list of big moving for for each ETF, Click on the ETF, then the chart and select Peers.
The first screen looks as the one below:
Major US ETFs | Down Jones, S&P 500 and NASDAQ
Then after clicking on the chart above the listed three ETFs, you will see the Top moving stocks for your selected ETFs.
In the view below, I selected the S&P 500 for illustration purpose.
S&P500 Top Movers for Nov 2
How To Select Stocks On Webull App
There are over 8000 stocks to trade from in the US markets.
This number does not even take into account the booming Cryptocurrencies.
Therefore, it is a real challenge for beginners to find out which stocks they should be trading.
Where To Find Stock To Trade On Webull App ?
Hopefully, Webull app makes it a little bit easier to navigate by creating the following 3 categories.
1. Top Gainers
2. Top Losers
3. Most Active
You can sort the most active stocks by volume, %Turnover and %Range.
The default view below is by volume with the pre-market % Change below the price.
Webull Most Active Stocks Screener by Volume
How To Build Watchlist On Webull App ?
Creating a watchlist for Stocks may be straightforward for most traders.
However, if you find yourself looking for a good way to track options on a watchlist, then the following short step by step video will help you do just that.
Is Webull Popular Stocks a Trading Strategy ?
Trading and investing is becoming more and more like a social experiment.
Webull and other stocks media platforms are offering traders and investors alike the leverage to finf out what other like minded people are thinking and doing on specific stocks.
What is Webull popular ranking ?
I can understand the value provided by stocks popularity rankings especially for beginner traders.
The market can be quite confusing as first asking when you are trying to get yourself situated.
It is much easier and comfortable to follow the crowd.
According to Webull platform, these rankings are updated evey10 minutes taking into account the following variables: number of comments, posts and views.
How To Access Webull Popularity Ranking
Webull is quick to add that the ranking do not constitute a form of investment advice and it should not be used as a basis for an investment decision.
So what is it for then ??
Anyways, here is how you get to the Webull ranking.
On the page of any stock, click on the “comments” menu to get the view below.
Webull Top Ranked Stocks as of October 31 2021 – 2pm PST
Can you Use Webull Popularity As an Edge in your Trading ?
At the time of the writing of this article, #SHIBUSD is the Top ranked stocks on Webull followed by #DOGEUSDand # BATUSD.
This makes sense given that the market is closed on this Halloween day while Crypto markets worldwide are open.
On a regular’s trading day Monday through Friday, this Webull Top ranked is will provide you with the most watched or traded stocks.
Typically, if a stocks is moving, it is certain to be followed by a great deal of trader and thus its ranking is bound to trend.
Should you and I consider such stock or instrument as a trading edge ?
I put it to the test last week for you and traded CEI bullishly as it was breaking above $2.
Well, my friends that stock violently reversed and put and end to my short experiemnt.
Granted, I could have made a decent return trading puts options on it.
However, this is not part of a strategy I have tested and believed I can consistently get an edge in this market.
Buying full shares on Webull is easier than buying fractional shares.
The order ticket will guide you through this simple process by selecting one of the 4 available order types we are describing below.
How To Automate your Trade on Webull App ?
There are 4 Order Types you can use to trade shares of stocks in Webull.
Limit Order
Market Order
Stop Loss Order
Stop Limit Order
Many traders often get confused with the Limit order.
Simply, it means that you are deciding a fixed limit price you are willing to pay for the stock.
You are willing to pay as much as that Limit, let’s say $10.
If the market price is 9.98, then you can get filled for lower than your Limit price.
If the on-going market price is higher than you Limit order of $10, then you will not get a fill.
Buying Fractional Shares on Webull App
Many stocks are very expensive nowadays.
Hopefully, fractional shares make it possible to buy a small piece of a whole shares.
Imagine that you can be owner of a slice of AMZN stock even with just the price of a movie ticket.
Our full Tutorial on Webull Fractional Shares is available to further scrutinize this investing milestone.
Below is the Full video to show you how you can purchase fractional shares on Webull App.
Trading Options On Webull
I do not use Webull as my primary platform for options trading .
Should you decide to go this direction, I am providing the full review on this blog post titled : How To Trade Options on Webull
In fact, I have this ecosystem of Webull knowledge I strong encourage any beginner trader to indulge on so that you may be closer to mastering the steps of becoming a successful options trader.
In the eyes of many cryptocurrency investors, Coinbase represents the first step into the crypto-verse, which is a much wider realm. Coinbase provides an excellent user experience, particularly for newcomers to the platform.
However, fees on Coinbase might become prohibitively expensive, prompting many investors to seek the top 5 Coinbase alternatives in 2022.
Are you considering making the transition away from Coinbase? Here is a list of the best Coinbase alternatives available right now.
Webull #1 Alternative to Coinbase
Webull Crypto Market
Founded in 2017, Webull is one of the more recent internet brokers, having launched with only a mobile application in May 2018.
This mobile-first launch was symbolic of Webull’s most significant target market: millennials.
With no account minimums, commission-free trading of stocks/ETFs and their options, as well as several cryptocurrencies.
Webull is positioned itself to serve newer and more active traders.
Moreover, those attracted to a platform that offers a wide variety of services for free.
Who Is Webull For?
Webull is designed for investors who wish to enter the financial markets with no minimum account sizes and no commissions.
Given the fact that Webull is not a full-service broker, its customers must take a more hands-on approach to some areas of portfolio management.
Webull consumers have skewed younger than at other brokerage companies.
The broker’s no-cost strategy will also appeal to aggressive traders. Webull’s free options trading will particularly appeal to active options traders.
As other brokers, including ones that have adopted free stock and ETF transactions, such as Schwab, continue to charge commissions on each leg of options trades.
#2 Alternative to Coinbase: Binance
Binance – Exchange the World
What Can Binance Do For You?
Trades wishing to avoid the sometimes-outrageous expenses associated with other brokers or exchanges may want to take a hard look at Binance US, which has among of the lowest fees in the cryptocurrency business.
An extensive spectrum of cryptocurrency traders should find the exchange useful. Particularly those who wish to go further into the industry beyond simply the top few brands.
While the costs are nominal, you might have to pay for them by receiving little or no customer service.
Remember, this exchange is established in the United States, not its parent company, which is based in Hong Kong and operates outside of the nation.
Overall, Binance – the name we’ll use to refer to the company’s U.S. operation – is a compelling method to get started with cryptocurrency trading and investing.
Offerings on Binance Exchange
Although Binance may not have the widest range of cryptocurrencies, it does provide far more than the more general financial applications such as Robinhood and Webull, which have been making inroads into the cryptocurrency market.
With a total of 59 cryptocurrencies accessible on its site, you’ll be able to locate the most well-known brands in the industry.
It includes Bitcoin, Ethereum, Binance Coin, Solana, and many others.
Along with that, you’ll discover dozens of different cryptocurrencies, including several that you’re unlikely to be familiar with.
Who Is Binance For?
To attract as many users as possible, Binance has created a user interface that is simple and straightforward.
The exchange is easy to use for beginners, but it also has enough currencies and features to satisfy the needs of experienced traders as well as beginners.
Binance is a cryptocurrency exchange that I would suggest to crypto traders of practically any degree of experience.
The only people that may have difficulty navigating Binance are those who are new to the platform.
These users are unlikely to have any cryptocurrencies and are unlikely to be familiar with the fundamentals of cryptocurrency trading.
Is Robinhood a Good Alternative to Coinbase ?
In its early phases, Robinhood distinguished itself as a game-changing disruptor in the stock brokerage market.
Its most significant competitive advantage was the fact that it did not charge commissions on stock, option, and cryptocurrency trading.
As a result of the elimination of fees by the majority of the brokerage sector, that advantage has been offset.
Due to a simple design and user experience that emphasizes the fundamentals, Robinhood has created a strong brand and niche market among young, tech-savvy investors despite rising competition on pricing.
In an effort to attract new consumers and improve the financial connection with existing customers, the broker recently introduced cash management services and a recurring investment option.
Despite the fact that Robinhood’s user base has risen at an exponential rate in recent years, the company’s success has resulted in increased scrutiny of the organization.
It has also been under fire in recent months for unexpected outages and purposeful trade limitations.
All of this occurred during periods of high volatility on the market.
Who Is Robinhood For?
With more than 13 million members, the average age of whom is 31 years old.
It is apparent that Robinhood is emerging itself to be the go-to platform for younger investors looking to invest in the stock market.
Even if it means investing in modest amounts through fractional shares.
Because of Robinhood’s inherent simplicity, both the app and the website are clear and simple to use.
If you’re thinking about trying your hand at cryptocurrency investment, Robinhood can assist you.
You will be able to trade Bitcoin, Ethereum, and other cryptocurrencies on their platform. Robinhood has also extended its options trading platform, making the broker a potentially attractive alternative for options traders.
But there are some worries regarding the quality of trade executions.
#4 Alternative to Coinbase | KuCoin
A well-known name in the cryptocurrency sector, KuCoin has succeeded in establishing itself as a leading one-stop-shop for all types of crypto-related transactions and transactions.
In August 2017, the exchange launched with over 200 cryptocurrencies and more than 400 markets.
It has since developed into one of the most vibrant cryptocurrency centers on the internet.
The platform provides bank-level security, a slick interface, a user-friendly user interface, and a wide range of crypto services.
It includes margin and futures trading, a built-in P2P exchange, the ability to buy crypto with a credit or debit card, instant-exchange services, the ability to earn crypto by lending or staking via its Pool-X, the opportunity to participate in new initial exchange offerings (IEOs) via KuCoin Spotlight, and some of the lowest fees.
KuCoin – People’s Exchange
Who Is KuCoin For?
A vast range of coins, including lesser-known cryptocurrencies, as well as significant profit-sharing incentives – up to 90 percent of trading fees are returned to the KuCoin community through the use of KuCoin Shares (KCS) tokens, make KuCoin a popular choice among investors.
After experimenting with KuCoin for the first time, I was pleasantly surprised to see that the site is really user-friendly. In my opinion, everything from placing a deposit to concluding a deal is rather straightforward.
Aside from casual traders, the KuCoin exchange is a fantastic choice for more professional traders. Since it offers a variety of tools for analyzing pricing trends, such as candlestick bars.
The typical trade volume at KuCoin, on the other hand, is in the tens of millions. It is significantly lower than that of larger exchanges like Binance.
Crypto.com | Another Alternative to Coinbase
The cryptocurrency platform Crypto.com may be suitable for you if you’re seeking an economical, all-in-one cryptocurrency platform.
The more the amount of Crypto.com coin (CRO) you are able to stake, the greater the number of rewards you will receive from this exchange.
The crypto exchange is a strong low-fee option even without the CRO incentives. Moreover, it has over 60 cryptocurrencies available in most of the United States. Especially if you wish to utilize a crypto debit card.
Who Is Crypto.com For?
The exchange is one of the most cost-effective fiat-to-crypto gateways available. Using the exchange to trade cryptocurrencies will incur a tiny maker/taker charge, which you will pay out of your profits.
A decentralized cryptocurrency exchange, on the other hand, is provided by the DeFi wallet, which allows you to trade cryptocurrencies with other users.
Crypto.com Is the Ultimate Trading Platform for Crypto
It’s possible that the trading interface on Crypto.com will be overwhelming to those who are new to cryptocurrencies.
When you try to be everything, it’s normal to become overwhelmed by the amount of information on your website. There’s a lot to take in and a lot of jargon to learn, especially if you’re just starting in industry.
Even with the relaunch of the website in 2021, there will be a great deal to do. Any website that contains a large number of items and services is likely to be tough to browse through.
Summary
Below is the comparison of the top 5 best crypto market alternatives of Coinbase in 2022. The comparison is based on two major factors, the fee per trade and account minimum.
Shiba inu coin is the latest crypto currency to take the investing world to the next level.
In this tutorial, I will show you how you can easily buy Shiba inu coin on Webull.
Plus, I have a free Shiba Excel Calculator you can download to help you manage your investing in Shiba crypto.
Can You Buy Shiba inu Coin On Webull ?
Webull offers traders and investors to buy crypto on their trading paltform.
In fact, you do not even need a ton of money to get started in investing in crypto on Webull.
With as little as $1, you can become owner of shares or cons of you favorite crypto today.
Which Crypto Coins Can you Buy on Webull
As of this writing, Webull offers you 15 different Coins you can trade.
These range from Bitcoin (BTCUSD) , Dodge, Ethereum , Shiba inu (SHIBUUSD) , Dash, Litecoin just to name a few.
Available Crypto Coins tradable on Webull
Is Trading Shiba inu Coin on Webull Safe?
Webull warns every investor in crypto that the clearing firm the used called Apex Crypto is NOT FDIC insured therefore you must understand the risk in this investment.
Nevertheless, should you decide to assume the risk, let’s introduce a simple Shiba inu coin calculator you will need to buy Shiba coins.
Buy Shiba Coin on Webull Using My Free Calculator
I introduced this free calculator to help you determine how many Shina coins you can afford with your budget.
You simply enter the Dollar amount you want to invest and my Excel spreadsheet gives you how may coins you will get with that money.
Otherwise, you will have to guess every time how many coins to enter on your order form.
Here is what it looks like:
Easy Shiba inu Coin Excel Calculator to Buy Shiba on Webull
The chart on the right hand side of the Shiba inu coin calculator gives you a quick answer to the question : How many Shiba inu coins can you buy for different investment amounts.
For instance, we can quickly glance that with $5, you can buy over 70000 coins of Shiba inu coins.
Watch Me Buy Shiba inu Coin On Webull Live
I recorded a Live purchase of Shiba inu Coin on Webull today.
Here is the full video for you to follow Along.
When on the Webull order Ticket for Crypto, the ticket has a button with a percentage of your buying power.
Let’s say to have $100 of buying power on your Webul laccount.
If you want to buy Shiba inu coin, you can slide the cursor to signify that you want t ouse 10% of your buying Power for this transaction.
10% of $100 is $10 and therefore you will expect using the above Shiba inu Excel calculator to buy over 140,000 coins of Shiba.
How Much Is a Shiba inu Coin ?
To help you up to the minute Live quotes on the the price of Shiba inu, here is a Live Chart you can come to and follow along regularly.
This daily chart of Shiba inu auto update and you can follow the technical indicators for Shiba inu right on it.
The price of Shiba inu coin which you can track from our above auto updatable chart is so attractive compared to any potential upside, it is a no brainer of an investment.
You can start with as little as $1.
The Excitement of it is that you will quick hold millions of Shiba inu coins with just a few hundred dollars.
Webull App and Desktop provide a stock screener to help traders find suitable stocks.
From long term investing through swing trading and stock or options day trading, Webull stock screener is well positioned to help you take your trading to the next level.
Webull Stock Screener on Mobile App
One of the biggest challenge aspiring and veteran traders share with me in my Discord room is how to pick stock to trade.
Often, I discover that a lack of a systematic approach is the main reason for this issue.
Webull platform aims to solve this problem by providing a very versatile stock scanner.
How To Find Stock To Trade On Webull
As traders, we need to find stocks that are moving to make money.
Now, I am going to tell you what I have been repeating in my coaching sessions.
Because I trade options, I do not really care about the direction the stocks are moving.
Why ?
Because I can make money with calls when the stock in going up and I can make money with Puts when the stock is going down.
Sometimes, I am able to make money both directions on the same stock on the same day.
Option # 1 : Using the Webull Calendar
Just below the Search Menu in Webull app, you can get to select one of the ways to find stock totrade on Webull.
The Calendar of events is the most obvious way to find stocks to to trade on Webull because these events will bring news that is likely to cause the concerned stocks to move.
Screener , Top Gainers and Calendar Menu on Webull App
Once you select the calendar, the next view will display an Earnings, Dividends and Splits Menu.
Below is the Earnings view list of company set to release quarterly Earnings in the morning of this writing.
Earnings Calendar on Webull App
If you want to save these stocks in a watchlist, click on the “+” icon on the top right and you will be able to select from the list which ones to include in your watchlist of choice.
Option #2: Find Stocks Using the Webull App Screener
If you are new to screener or scanner, these are very easy set of conditions you provide to a search tool to select all the stocks that meet your pre-defined conditions.
Such conditions can be based on technical analysis as well as fundamental of the companies.
Webull Filters for Easy Stock Screener
Examples of technical settings are how are the EMAs (Moving Average) in regard to the price or RSI (Relative Strength Index).
For Fundamental criterias, you can select from P/E ratio, EPS, Dividends yield, Net MArgin or Debt to Asset.
Webull Penny Stock Screener
If you are interested in creating a penny stock screener on Webull App, the main filter you need to decide on is the Price of the stocks.
Here are the steps to create your first Webull Penny Stock Screener:
You can leave the market region as United states.
2. Then proceed by clicking on price to see the following view.
3a. Move the slider (blue line) to the left and right until you are satisfied with your price ranges. Notice how the estimated matches vary.
3b. You can simply type the lowest price on the left box and the highest price in the right box
4. Click on Save then Save your Screener with an Easy to remember . I like to use the the price range in the case of penny stocks screeners.
Webull Penny Stock Screener from $2 to $10
Webull Screener for Swing Trading
For Swing trading, the filter to use on your Webull screener should be mostly technical.
Webull provide up to 9 technical indicators you can combine to get your desired screener.
I have used the three highlighted on the chart below with great success.
3 Powerful Filters For Webull Swing Trading Screener
These 3 filters happen to be for bullish setups.
MACD Golden Cross | This one is when the Moving Average convergence Divergence starts trending up s price is looking to go up
MA 5 Cross Over MA 10 | The moving average 5 period is the recent momentum and therefore a bullish indicator when it start leading the older momentum MA10
Bullish Engulfing | The name says it all – here the current green candle must absorb the previous day candle
Webull Stock Screener For Day Trading
Day trading is all about current momentum so the settings we gather for this Webull have to capture the up to the moment movement.
If like me, you want to know which strategies perform the best so that you can invest more into those, then this automated options trading Excel Template is right for you.
Download My Options Trading Journal Excel Spreadsheet below.
Paper Trading Options is a great Way to build confidence in your strategies.
Either you are a beginner options trader or a veteran who is testing to validate a brand-new trading strategy,
You will need to learn how to paper trade Options before going Live with real money.
In this discussion, we will show you the best place to Paper trade Options as an alternative to Webull.
Can you Paper Trade Options on Webull?
Webull recently introduced the Beta version of Options Paper trading on the Webull App.
This means that for the time being, you will not be able to paper trade options on the Webull Desktop platform.
I know how of an inconvenience this may be for some traders but given that the majority of users really use their Mobile devices nowadays to trade, the impact should not be that bad.
The Webull Options Paper Trading Account comes with a nice feature which enables you the trader the reset the account to any amount you would like as depicted on my step-by-step video below.
Why Is Paper Trading Options So Important?
The first reason you should paper trade options as an experienced traders is to test and validate brand new trading strategies.
With the goal to see how effective a specific trading methodology is – traders can avoid loss of time and time while pursuing a new way to make money trading options.
The second reason to paper trade options is for beginner traders to build their confidence even on already proven options strategies.
Recently, a new trader joined our Discord room and started learning about out our 10-Baggers trading System.
My advice to her was to spend a few weeks at least getting familiar with the ordering process and the nuances of trading options.
We agreed that she would be doing so without risking really money.
Trader in Our Discord Room made over $400 Day Trading BABA Options after Paper Account Trading Boost
Therefore, she started Paper trading options with Successultradings.com 10-Baggers Trading system.
She traded #AFRM options on her paper account for so much profit that the next day, she decided to trade with really money.
Just to give you an idea about our system, here are the last few weeks summary results.
Great confidence in the strategy led this trader to make over $500 the very next day on BABA and #AFRM on her live account
Just like this trader, you can easily emulate our successful trading strategies first on Paper trading account which Webull does not provide for options but from the alternatives to Webull Options Paper Trading below.
Webull Paper Trading Options is Only on Webull app
Some traders are not yet able to access the beta version of Webull paper trading.
Here are the steps to contact Webull for options paper trading and other inquiries:
Goto Help Center
If your question is not listed as shown below, click on Contact us
A New Window will come up where you can type you message
How To Contact Webull for Paper Trading Options
Alternative # 1 To Paper Trading Options on Webull
The easiest options Trading Paper account you can start today is E*Trade.
It comes with $100000 for Paper trading Options and stocks.
You will be able to reset it anytime for an unlimited funding so that you can practice and refine your options trading strategies.
How to Paper Trade Options On E*TRADE
A trader recently on my Discord channel asked me if I could recommend him a good paper trading options platform.
Without hesitation, I said: sure, E*TRADE is the best place for that.
Then he said to me, but it is not realistic because he would not start with that much money in his real trading account.
Eventually, I got to explain to the trader that the amount of money provided by the paper trading account does not matter that much.
His focus and yours should be on mastering the skills of options trading within the paper options trading account.
How to Launch Options Paper Trading on ETRADE
Power ETRADE Paper Trading Contact
Once you create an options trading account on ETRADE, it automatically comes with your paper trading for stock and options.
The above screen shows how you will launch the Options paper trading account on Power ETRADE.
For that first that, you will have to activate it and that is it.
In case you need Power ETRADE Paper trading contact, customer service is available 7 days a week 24 hours per day.
You can either chat Live or be super patient to reach Power contact though one of the numbers below.
Call ETRADE 24/7
Employee Stock plans
Regular Mail
Overnight Mail
1-800-ETRADE-1 (1-800-387-2331)
1-800-838-0908
E*TRADE Securities LLC PO Box 484 Jersey City, NJ 07303-0484
E*TRADE Securities LLC Harborside 2 200 Hudson Street, Suite 501 Jersey City, NJ 07311
From outside the U.S. +1 678 624 6210
From outside the U.S. + 1 650-599-0125 12:00 a.m. Monday – 11:59 p.m. Friday ET
Power ETRADE Customer Service including Paper Trading Contact
Advantages of Paper Trading Options on Power ETRADE
In the case of ETRADE, both the real account and the paper trading one are exactly the same.
Better yet, the watchlist you create in your real account are also visible on the paper trading account.
Here is my Full tutorial on how to Trade Options on E*TRADE from your Paper account.
Lessons From Paper Options Trading on E*Trade
As an options trader beginner, there are some basic skills you will get out of paper trading options.
The main one is really the confidence of doing something new.
Then, the practical aspect of entering your trades: where should you click to buy calls and puts.
Webull App and Desktop provide a stock screener to help traders find suitable stocks. From long term investing through swing trading and stock or options day trading, Webull stock screener is well positioned to help you take your trading to the next level. Webull Stock Screener on Mobile App One of the biggest challenge aspiring and veteran traders share with me in my Discord room is how to pick stock to trade. Often, I discover that a lack of a …
Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers. In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level. What Is Level 2 Data On Webull ? Level 2 market data in trading is a view of buyers and sellers intend through their respective orders. It provides the depth of how many shares traders are buying and selling as well as …
If you are new to stocks or options trading, reading stock charts is one of the most intimidating skills to master. Hopefully, Webull platform introduces very intuitive stock charts. This easy step by step guide will bring you an in depth view into how to read Webull charts so that you can easily focus on growing your account. How To Read Webull Charts | Webull Charts Overview Whether you are using the Webull App or its desktop version, setting up …
The new Webull Trading App offers plenty on new tools and features to help stocks and options traders. In this discussion, we will be focusing on How to Use the Webull Volume Analysis feature. With the intended goal to incorporate this tool into your trading strategy to help grow your account. How To Use Webull Volume Analysis | What Is Volume in Stock Trading Volume in stock trading is the sum of the number of shares sold plus the number …
Webull Options trading has been lacking for a long time. Finally, the platform has decided to step up to its many customers requests and introduce a slew of features in 2021 including Options Tradings. By the end of this tutorial on How to Trade Options on Webull App or Desktop, you will be equipped with the knowledge to set up your Webull options trading App or the Dashboard, access the training course offered on the App version of Webull, take …
Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers.
In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level.
What IsLevel 2 Data On Webull ?
Level 2 market data in trading is a view of buyers and sellers intend through their respective orders.
It provides the depth of how many shares traders are buying and selling as well as their corresponding prices.
This means that if you are able to correctly read Level data, then you can infer the direction of the trade on any stock, commodity or instrument you are trading.
Therefore, you can turn this Webull Level 2 market data into an edge since it provides you an advice view of price levels.
How To Get Webull Level 2 Market Data
Webull Level2 market data features Level2 Advance, a premium data feed from Nasdaq Total View.
The easiest way to get the Webull Level 2 Subscription is to go to “Help Center”.
Then you click on “Subscribe to Level” as shown on the Screen below.
How To Subscribe to Webull Level 2 From the Help Center
2. The following screen shows up and you can Choose Level 2 Subscription at the bottom of the page.
Difference between Level 1 and Level 2 Market Data on Webull
Level 2 market data from Webull provides further in-depth view of orders.
Up to 30 bid and ask prices are used to generate orders distribution chart we will be dissecting in the next section.
How Much Does Webull Level 2 Cost ?
If you are a new trader on Webull, there is a 3-month free access to Webull Level 2 Advanced market data.
After which, your monthly recurring cost for Webull Level 2 will be $2.95.
I really think this extra Webull Level2 cost is worth the price for traders who want to get an edge in their trading.
For the price of this Webull Level 2 information, it is a no-brainer that each trader must have.
I know of other trading platforms where you cannot get to have access to this feature.
Therefore, my recommendation is to ignore the Webull Level 2 cost as you will make it up and then some with your first winning trade.
What To Look For In Webull Level 2 Data
Webull representation of Level data is meant to further help traders compared to other providers.
Let’s break down the different insights you need to look for when studying Webull Level 2 market data.
Buyers vs Sellers Orders Volume on Webull Level 2
The originality of Webull Level 2 Advance market data is from the Top chart of the orders Level.
It looks as shown in the image below.
QQQ Level 2 Market Data on Webull | October 6 2021 Pre-Market
On the right hand side in red, the sellers orders (30 orders are used to summaries this view) volume is what is represented on the vertical axis.
The horizontal axis describes the price of the stock, in this case, QQQ was trading at $352.06.
The left hand side column captures the volume of all buying orders.
In the above view, the red shaded area (volume of selling orders) is much higher than the left green area.
This means that there is more selling volume that buying volume.
Therefore, the current momentum in bearish.
Price for QQQ is then expected to slide lower to the left should the bearish momentum continues.
This graphical representation of Level 2 Market data on Webull is dynamic as buyers and sellers orders come in.
As an example, later on, I capture this similar view when buyers took control and the price moved up from $352 to $353.6.
Buyers in Control on QQQ Level 2 Market Data from Webull
Dynamic of Webull Level 2 Market Data
Unlike Level 1 where you can only see the best Bid and Ask prices and the corresponding shares, Level 2 Advance on Webull provides a deeper view of the market.
What I like to pay attention is the dynamic movement of the orders.
Typically, when there is a strong momentum on either side (buying pressure or selling pressure), the chart updates very quickly.
This is a sign for traders to know that the stock or instrument they are trading is attracting a great deal of traders.
Thus, we can expect bigger moves compared to a stock where the movement of the orders is not as rapid.
Here is short video depicting this phenomenon on QQQ towards the closing.
How Many Orders Can You See on Webull Level 2 Market Data
We know that Webull Level 2 Advance orders are ranked 1 through 30.
How many a trader need to display is a matter of personal preference.
I personally prefer to show only the first 10 orders on the Webull Level 2 view below as you saw in the video.
Webull Level 2 gives you the choice to decide how much depth of the order book to display.
How To Change The Number of Orders displayed on Webull Level 2
Here is how you can modify how many orders on both sides as depicted on the above image.
Click on the blue number to the right of shares – current numbers of orders
A Small window popup that offers multiple choices menu: 1, 3, 5, 10, 20 and 30
Select one of the 6 choices above – I Always Use 10
How To Spot a Bullish Momentum on Webull Level 2
Whenever I am analyzing Webull Level 2 Advance market data on a stock I would Like to trade on the bullish side, my focus is on the bottom right hand side.
So a bullish momentum with great strength is confirmed when order number 9 and 10 start flashing higher and higher prices.
This means that the Ask prices are getting accepted and the stock is likely to sustain a great buying pressure.
In this scenario, the left hand slope (green line volume) needs to be higher than the red line slope as depicted on the second image above for QQQ.
How to Recognize Bearish Momentum On Webull Level 2
For the bearish momentum or selling pressure, the slope of the red line must be above the slope of the green line.
Such is the case on the first image.
Now, using the same technique as above, I am looking at orders 9 and 10 and need to see lower prices flashing in there.
Then we can anticipate that the price is likely to reach those lower prices should the selling pressure continue.
Orders 9 and 10 Help Anticipate Future Price Levels
It also must be noted that the higher the size of the shares at this lower prices the more conviction is in the bearish momentum.
Last but not least, in both the bullish and bearish momentum, the range difference between Order # 1 and the bottom orders 9 and 10 is also forthtelling of the amplitude of the move.
How To Use Webull Level 2 Market Data In Options Trading
Since I mostly trade options through our proven 10-Baggers Trading System, I usually find myself scrutinizing Level 2 to help determine of I need to scale into a position further.
Let’s say I am trading Calls/Puts on QQQ or SPY in the middle of the Expiration day , Level 2 market data on Webull can quickly help me confirm whether I should buy more contracts in that winning direction.
Webull calls its Level 2 market Data Level 2 Advanced and deserves this appellation.
You will be able to get great insights in tot he depth of the orders for any instrument you are trading.
This feature is of a great help in opening a position or providing a confirmation to further scale into an already existing position.
IF you are serious about taking you trading to the next level, I can coach you master technical analysis like Level 2 breakdown we described in this article. Click on the Link below to get started Today.
I have been trading SPY Options for more than 7 years.
Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward.
Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level.
SPY vs QQQ – The Popularity Contest
If you have been trading US stocks or options for awhile, chances are you have come to learn about SPY ETF (Exchange Traded Fund).
If not, you can certainly add to the popularity of this instrument over its tech peer QQQ.
According to Google trends, SPY is 10 times more popular in searches than QQQ with their respective score 62 (SPY in blue) vs 4 (QQQ).
The above view represents a comparative live worldwide view of SPY vs QQQ.
For non traders, this popularity contest presents QQQ as secondary trading instrument compared to ins counterpart SPY.
However, you and and I know than this could not be further away from the truth.
Therefore, one can really wonder what’s going on here ?
Let’s try to get you some answers below.
Who Trades SPY and QQQ
Let’s try to find out if Google Trends data may be skewed by the fact that the word
SPY can appear in searches not related to trading ( yeah there are movies about SPY – singular).
In order to do so, I researched data from two popular trading medium.
One is the social media of stock market known as Stocktwits.
The other is none other than the high profile growing trading platform Webull.
Both have this common trending indicator on how many traders are watching each specific stock.
SPY vs QQQ Traders in Stocktwits and Webull Platforms
Instead of just pure searches from Google, I now can present you the real attractiveness of SPY vs QQQ using real traders from Stocktwits and Webull trading platform.
Which one HAs the Edge SPY or QQQ ?
The “traders” numbers may not be as one sided in favor of SPY as Google Trends data but nonetheless, SPY is still clearly leading QQQ ETF.
Just in case you may be wondering what is the big deal about this data on which one of these two ETFs is more popular than the other, please allow me to remind you of the context.
Should you find out that one instrument you are interested in trading can provide more value than a similar counterpart, well you would have discovered an edge that you can take advantage of.
As you may know by now, having an edge is what trading is all about and my goal from this point on is to show you that one of these two has an edge over the other one.
SPY
QQQ
SPY vs QQQ Ratio
Google Trends
62
4
15:1
StockTwits Traders
363K
112K
3:1
Webull Traders
160K
81K
2:1
SPY Vs QQQ Popularity by Medium | Google Trends vs Stocktwits vs Webull Platform
Once I establish that edge from data and my actual trading, all you will have left to do will be to emulate my Trading System to start making money consistently day trading one of these two ETFs.
First, let me show you some similarities between SPY and QQQ.
It has been a year since QQQ Options have introduced intra week expirations. Once the sole privilege of SPY options, Trading QQQ Options with Mondays, Wednesdays and Friday’s expiration has provided more opportunities for day and swing traders alike. My intent is to show you step-by-step how you can leverage Day Trading QQQ Options in 2022 and beyond to take your Trading to the Next Level. Day Trading QQQ Options | What Is QQQ ? Invesco Powershares is the official …
I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. SPY vs QQQ – The Popularity Contest If you have been trading US stocks or options for awhile, chances are you …
QQQ Options recently introduced daily Options just like its SPY counterpart. The prospect of being able to trade cheaper options contract on QQQ ETFs should excite many day traders. In this Day trading Tutorial, we will share our step-by-step strategies on how we can now day trade QQQ Options for big profit. Ticker Tape by TradingView How To Trade QQQ Options | What is QQQ ETF QQQ is an Exchange Traded Fund (ETF) launched by Invesco on March 10 1999. …
The goal of this discussion on SPY Trading System is to show you winning methods you can use this year to successfully trade SPY. The biggest Exchange Trading Fund in the US markets has enough volume and liquidity to make it an attractive vehicle for both bullish and bearish Day/Swing traders. SPY TRADING SYSTEM: OVERVIEW What is SPY ? SPY is the Exchange Traded Fund (ETF) for the Standard and Poor 500 (S&P500). This weighted index represents the biggest 500 …
In this tutorial, we will share numerous examples of how to safely day trade Spy Options for Profit on expiration days. We do this with different techniques. One of which is by using to the Dark Pool Prints for 100% profit in less than 30 minutes. Impressive you may think. But the truth is that Day Trading SPY Options can lead to much bigger payouts. Want to find and learn how you can do it yourself ? Keep reading below. …
Aside from the obvious fact that SPY and QQQ are both Exchange Traded Funds (ETF), they have a big common characteristic that you and I need to explore.
As ETFs, SPY and QQQ are tobe seen as a basket of selected stocks in which each stock has a weighting.
Think of this as ya basket of fruits where some of the fruits have a higher representations.
Such baskets can have 3 apples, 2 pears, one papaya, one orange , one pineapple 🙂
In this case, the fruits are stocks.
Therefore as the importance of some stocks grow higher so will the direction of the ETF be dictated by those stocks.
Now, what if I tell you that even though SPY represents 500 of the USA most powerful stocks, only a handful actually influence the direction of this ETF.
Furthermore, these very few stocks are the same ones that have the highest weighting on the Techs ETF QQQ.
In the Table below, I am summarizing the Top10 Holdings for SPY and QQQ with their respective weighting (importance) in each ETF.
Rank
Stock
QQQ Weighting (%)
SPY Weighting(%)
1
AAPL
11%
6.1%
2
MSFT
10.2%
6%
3
AMZN
7.8%
4%
4
TSLA
4.2%
1.7%
5
Alphabet
4.1%
2.1%
6
NVDA
3.9%
1.5%
7
Google
3.8%
2.3%
8
FaceBook (FB)
3.7%
2.3%
9
PayPal (PYPL)
2.3%
N/A
10
Adobe Inc
2.1%
N/A
Top 8 Holdings of QQQ are also Top 8 of SPY
SPY vs QQQ Top Holdings Review
The first glance at this data reveals that the Top 8 stocks in terms of weight (importance) on both SPY and QQQ are identical.
Let’s spell these technologies stocks out so that it is crystal clear for all that trading (or investing for that matter) SPY or QQQ is basically trading technology stocks.
Apple | Microsoft | Amazon | Tesla | Alphabet | NVDA | Google | Facebook are the most important stocks inside the QQQ ETF.
These only 8 stocks accounts for 49% of the total ETF.
Yes, you are reading this correctly. This same group weights 26% inside of SPY.
Given that SPY has 500 stocks, I do not know about you but seeing that less than 2% of the stocks in SPY ETF account for more than a quarter (26%) of its price is a big eye opener.
In Summary, we have 8 stocks that drive QQQ each and every day while being of great importance in the broader market index SPY.
Hence, once could infer that SPY mostly derives its price from QQQ given that the latter is one of 11 sectors of SPY yet 8 of its stocks have a combined contribution of 26%.
Historical Returns of SPY vs QQQ
In my goal to prove that despite having similar Top 8 holdings, QQQ and SPY differ in their benefits for day traders, I would like to offer you Exhibit # 1 in the form of the the last 10 years returns for each ETFs.
QQQ vs SPY Chart Over Last 10 years
In the view below, I trended both QQQ and SPY from April 2011 to October 2021.
The top line is QQQ while the bottom line is SPY.
The results is very clear.
QQQ vs SPY 10 Year Growth Rate | Advantage to QQQ
QQQ grew 527% over this timeframe vs 225% for SPY.
Which means that as an investor, you would have made 1.3 times more money investing in QQQ than in SPY.
From this data alone, QQQ offers a 134% edge over SPY.
Now, you may be thinking over 10 years is a long time and more importantly, how does this edge translate into day trading SPY vs QQQ.
Because after all, the main objective is to find an edge that is actionable in the immediate future.
QQQ vs SPY Charts Since 2020 | Best Era For Day Traders
In the above 10 year chart comparison of QQQ vs SPY, one detail that was not lost to my eyes is the acceleration of the growth starting in 2020.
We know that the pandemic brought a record number of new traders into the stock market in th e spring of 2020.
Is this the reason for the sudden spike in volatility ?
I am not so sure but regardless of the reason, I have data to show that the last 18 months have provided more opportunities for day traders to make money trading QQQ and SPY options.
More Volatility in QQQ and SPY since 2020
In my research for this article, I gathered daily price actions (Open, High, Low and Close) for QQQ and SPY from 2018 to now.
With this information, I was able to determine the average move (also know as the ATR or Average True Range) for each eTF.
The great insight I can provide is that I further broke these daily moves for QQ and SPY into bullish and bearish studies.
This means that I am able to tell by how much the average daily moves are on bullish days vs bearish days.
Average Daily Bullish Move (QQQ)
Average Daily Bearish Move (QQQ)
2018
0.76%
-0.89%
2019
0.55%
-0.57%
2020
1.06%
-1.08%
2021
0.76%
-0.92%
QQQ Average Daily Moves Spiked in 2020
In comparison to 2018 and 2019, 2020 average daily volatility spike above 1.06% and -1.08%for bullish and bearish days respectively.
This means that options traders made more money day trading QQQ in both market conditions because the moves were bigger.
2018-2019 vs 2020-2021 Volatility
Though that trend subsided a little bit in early 2021, the recent numbers are still higher than 2018 and 2019 averages by at least 17% .
For the bullish days (+0.76% vs 0.65% in 2018-2019) and 26% for the bearish days (-0.92% in 2021 vs. 0.73% in 2018-2019).
Now, if I was able to provide similar data for SPY, we will really be able to determine which one of the two ETFs has an edge over the other one for day trading of options.
Lord behold, I have that data as well.
Here it is.
Average Daily Bullish Move (QQQ)
Average Daily Bearish Move (SPY)
2018
0.55%
-0.89%
2019
0.42%
-0.46%
2020
0.91%
-0.79%
2021
0.54%
-0.92%
SPY Average Daily Moves Spiked in 2020
What does the SPY Daily Average moves study from 2018 to 2021 tell us ?
A great deal.
SPY Volatility Spike in 2020
First of all, the same spike in 2020 we described on QQQ is also true in SPY when comparing volatility in 2018-2019 vs 2020-21.
So yeah SPY options traders have been makin more money recently over the last 18 months.
However, the meat of the data is the fact that QQQ daily moves even prior to 2020 are far higher than SPY average daily variations.
This is true for both the bullish and bearish days when we read the QQQ table and SPY table over the same year.
How much of an Edge does QQQ offer to Options Day traders ?
Here is the Summary view below year after year in each market condition.
QQQ ATR better than SPY ATR by(%)
2018
2019
2020
2021
Bullish Days
38%
31%
16%
40%
Bearish Days
44%
24%
37%
76%
QQQ Average Daily Moves Compared to SPY by year by Market Condition (Bullish and Bearish)
The above table is the main take away I want to give you today on why day trading QQQ options over SPY Options is better for you as a trader.
On bullish days, QQQ options will give you in average 40% more profit compared to your fellow SPY traders.
I do not know about you but that is all I need to make QQQ my favorite ETF to day trade Options with in 2021, 2022 and beyond.
There is just one major fact I need to reveal to you to fully close this tutorial.
What Makes SPY and QQQ Attractive for Options Day Traders
The main reason I trade SPY more than any other stock is the availability of mid week options.
Meaning that we do not have have to wait until Friday for Expiration.
Why does that matter ?
Because with closer Expiration date on Mondays, Wednesdays and Fridays, the cost of options is small.
Which menas that you do not need thousand of dollars to trade otpions.
Better yet, you may not even need hundreds of dollars to do so as illustrated in the short video below showcasing how I am able to trade very cheap options as low as with $1 !
How To Trade SPY Options for Profit
In case you are new to this blog, may I suggest you read this expose on how to trade SPY options for profit that I have been using to consistently get great results.
It is a very simple and effective technique that leverage the volatility of weekly options.
As supporting evidence, there are the many videos I shared on my YouTube channel about this very methodology on weekly SPY Options.
WHY IS QQQ Options Trading More Lucrative Than SPY Since MAy 2021
Since 2018, SPY has been the only ETF to provide mid-week expiration for options.
Until May of 2021 when Market Makers finally decided to to introduce Mondays | Wednesdays | Fridays Expiration for QQQ options.
This is a big game changer for this options trader.
Why ?
Remember how I spent the majority of this discussion explaining that QQQ daily move are higher than SPY ones ?
Consequently, with the introduction of mid-week options on QQQ, this means that QQQ traders will make more money day trading QQQ options on expiration days in lieu of SPY.
QQQ Options Payout in Our Discord Since Introduction of Mid-Week Expiration
QQQ vs SPY Story Inside My Discord Room
That is exactly what I have been doing since the first week of May 2021.
Even though I still keep an eye on SPY, 99% of my day trade on Mondays, Wednesdays and Fridays expiration have been on QQQ.
Do not get me wrong, there is still money to be made on SPY Options on expiration day
However, since the research data I provided earlier shows that there is even more money to be made day trading QQQ options on Expiration days, why not focus exclusively on this technology ETF.
SPY vs QQQ | Change of Discord Room Name
Let me share this cute story from last week regarding SPY vs QQQ options trading.
One of the Room in My Discord channel is was named “The SPY that Pays Us” when I first created the channel.
Recently, given the slew of QQQ options trades we have been enjoying ( see videos on YouTube here ), Nick a new trader simply asked me: “Why are we still calling this channel the SPY that Pays US ?
Recent Name Change of former SPY Discord Room to ” The QQQ That Pays Us”
I did not even think about it twice and said: yeah, I agree.
We needed a name change and so we did.
The new room where I post the strategies related solely to QQQ is called ” The QQQ that Pays US” 🙂
Statistics of Numbers of Trades SPY vs QQQ
Just from may Discord channel using the Data posted in the newly renamed “The QQQ that Pays US” room, I have gathered all the outstanding trade on QQQ since early May.
The data features 30 trades on QQQ with average profit of 760% !
Our strategy consist of entering trade on Gaps in the morning .
We setup strangle with strike price about $3 away from current price in each directions.
Then at the close, we can do a similar technique in the last hour or simply follow the closing momentum.
Trading stocks on margin entails borrowing money from a broker in order to make a transaction. But is it worth trading on Margin? Let’s find out.
A margin account improves purchasing power while also allowing investors to utilize someone else’s money to raise financial leverage by borrowing money from other investors.
Margin trading has a higher profit potential than regular trading, but it also carries a higher level of risk.
Is It Worth Trading On Margin | What is Margin Trading?
Buying stock on margin implies borrowing money from a broker in order to make a transaction. As a result, you might consider it a loan from your brokerage.
Margin trading permits you to purchase more stocks than you would ordinarily be able to do. A margin account is required in order to trade on margin.
This differs from a traditional cash account, in which you trade with the money that is now in the account. To create a margin account, your broker will acquire your signature.
The margin account may be included in your normal account opening agreement, or it may be a completely different arrangement from your standard account opening deal.
A minimum initial investment of $2,000 is necessary to open a margin account, however certain brokerages may ask for a higher amount. The minimum margin is the amount of money that you put down as a deposit.
How Does Margin Trading works?
Observing how margin trading could play out in the real world is the most effective approach to learn about its complexities.
Consider the following scenario: Jerry has $5,000 in cash on hand, and he wants to purchase a stock that is worth $100 a share. He proceeds to purchase 50 shares of the stock.
One year later, the stock price has increased to $120 a share, and Jerry chooses to sell all of his remaining shares for a total of $6,000.
How Margin Trading Works?
Jerry generated a $1,000 profit on his initial investment, resulting in a $1,000 profit. Generally speaking, this is how the stock market operates.
But first, let’s go back to the beginning of the narrative. Following margin regulations, Jerry could put down $5,000 and then borrow an additional $5,000 to purchase 100 shares of the stock he was interested in buying.
Jerry would gain $12,000 if he performed that leverage trade and then sold all of his shares a year later at the same $120-per-share price, resulting from that margin trade.
Jerry would wind up with a little less than $2,000 in profit after he pays back the $5,000 he borrowed (plus interest) on his loan.
That sounds fantastic, doesn’t it? Not so fast, my friend! Keep in mind that while your winnings are larger, your losses are also larger—this is the downside of margin trading.
A decline in Stock Price
What if the stock price dropped to $80 per share after a year and Jerry decided to sell and take his losses?
Even if Jerry was able to sell all 100 of his shares for $8,000, he would still be required to repay the $5,000 he borrowed (again, plus interest).
After subtracting this amount from his initial investment, Jerry is left with less than $3,000, which indicates he has taken a $2,000 loss. Yikes. If he had just continued to invest his $5,000 in 50 shares, he would have only suffered a loss of $1,000.
Buying on Margin
Purchasing stocks on margin is similar to borrowing money from your broker in order to purchase shares.
The use of margin increases your prospective returns, both for good and for worse, and it is critical for investors to grasp the implications and potential ramifications of doing so.
First and foremost, borrowing money on margin entails paying interest to your broker on the money you’ve borrowed.
For example, at Fidelity, the interest rate on margin balances up to $24,999 is 8.325 percent. With the maximum rate being $24,999. Consider the difference between that rate and the possible yearly return of 9 % to 10 % on stocks.
You’ll quickly see that you’re taking on the risk, but the broker is reaping the profits to a significant extent.
In order to take advantage of margin, you must be concerned about your net profit margin. Which is the amount of money left over after paying interest. And which will be less than the amount of money gained through investing.
Investors should also be aware that brokerage firms have initial margin requirements, also known as minimum margin requirements. It requires the investor to deposit a certain amount of money into their account before they may borrow money.
To utilize margin at Fidelity, you must first deposit $2,000 into your account. The margin requirement for purchasing an individual stock is 50 percent. Which means that if you wish to purchase stock worth $10,000, you must put up an additional $5,000 in equity.
In addition, there are maintenance margin requirements of at least 25 % equity. Which would apply when account values decrease. And that rate may be modified based on how the account performs and overall market volatility, among other factors.
Margin Call
When you have a margin loan that is still owing, your broker may issue what is known as margin call. Which is particularly useful if the market swings in your favor.
When you receive a margin call, your broker may require you to either provide additional funds or sell positions that you presently hold in order to meet the call. If you are unable to cover the call. Your broker will sell your positions in order to make up the difference.
However, if your broker begins to sell off your positions, that broker isn’t concerned with your tax status, your assessment of the company’s long-term prospects, or anything else other than meeting the call.
If the market turns against you in a significant way. For example, if the business whose stock you purchased on leverage went bankrupt and the shares became worthless. You’ll still responsible for the money you borrowed.
What are the Benefits of Margin Trading?
The following are some of the benefits of Margin Trading:
The opportunity to leverage assets
In order to enhance the amount of your investment, you may buy stocks on margin and use the value of the assets you currently own to leverage the size of your purchase.
If the value of your investment grows, you will be able to potentially increase your returns as a result of this strategy.
The ability to profit from share price declines
Short selling is a complex investment technique in which an investor attempts to profit from a decreasing stock price by selling shares at a loss.
You must first borrow shares of stock from a brokerage business in order to sell a stock short. This requires that you have a margin account approved by the brokerage firm.
Win-Win Situation
After borrowing shares, you sell them and then repurchase them at a later period at a cheaper price. Assuming that the price has dropped.
Your profit would be equal to the difference between the proceeds of the initial sale and the amount necessary to purchase back the shares.
The capacity to diversify a portfolio
If your portfolio contains a significant block of stock from a single company. Such as a current or previous employer, you may be placing too many eggs in one basket and risk losing your investment.
The use of your shares as collateral for a margin loan. On the other hand, maybe possible through the use of a margin account.
Once you get the loan funds, you can invest them in other investments. Rather than selling the stocks that you originally purchased with them.
A significant unrealized capital gain and the desire to maintain it that way might make this method particularly advantageous.
A flexible line of credit
A margin loan can be taken out at any time once your account has been approved for margin borrowing. You will not be required to submit any extra paperwork or applications.
It may be advantageous to have immediate access to cash in a variety of situations, such as when you are jobless, when you have an unexpected medical cost, or when you require a rapid means to access cash for any other reason.
If your brokerage account includes a checking account, you may simply write a check to cover the transaction.
Interest rates are at historic lows
With a margin loan, you will be subject to interest charges in the same way that you would with any other loan.
As a result, because margin loan rates tie to the federal funds target rate. Your interest rate may be lower than what you would pay for a credit card cash advance or a loan. Particularly if you have a big amount.
It is possible that margin rates are competitive with rates on home equity loans. But without the hassle of paperwork and application costs.
Flexibility in terms of repayment
As long as your debt does not exceed your margin maintenance requirement. You are free to choose your own repayment plan for your loan.
Interest that is tax-deductible
The interest that accrues in the account may use to reduce taxable income in the future. For further information about your specific tax position, consult with your tax expert.
Participation in advance option strategies
Being approved for both a margin account and options trading gives you the ability to make sophisticated options orders on stocks, ETFs, and indexes, such as spreads, butterflies, and uncovered options on these instruments.
What are the Risks Associated with Margin Trading?
The concept of putting lipstick on a pig isn’t something we’re going to do here; margin trading is a pretty bad idea. This is a terrible concept. Debt is already a bad investment in and of itself—but attempting to invest with debt? That takes dumb to an entirely new level.
One of the most widespread misconceptions is that billionaires gained their fortunes by taking large financial risks with their money.
When Trading On Margin Goes Wrong
Wrong! While it is true that virtually all investments include some level of risk, millionaires keep their risk-to-reward ratios in line by sticking with tried-and-true assets that have a proven track record over a lengthy period of time.
A large portion of the millionaires in the world owe their fortunes to their plain old 401(k) and IRA accounts! The affluent individuals we know do not rely on debt—or, pardon us, “leverage”—to achieve their financial success.
Here’s the deal: every time you put yourself into debt in order to invest. You are putting yourself at risk of financial ruin, and it is just not worth it.
When it comes to margin trading, a few bad decisions might result in the loss of your whole portfolio.
Interests on Margin Accounts
Not only do you run the danger of losing your whole investment if your stocks take a plunge. But you must have to repay the margin loan you took out, plus interest if your stocks continue to decline.
Because of the interest payments and charges you must pay in order to execute your transactions. You might potentially lose more money than you initially invested in some circumstances.
Millionaires understand that accumulating wealth takes time and that there are no shortcuts to success. They don’t take needless chances with their money, and you shouldn’t either.
Failure of Margin Trading
According to media sources, a 20-year-old student in the United States committed himself recently after discovering a $750,000 negative balance in his trading account, according to the report.
The student was trading options through the use of an app that was popular among ordinary investors in the United States.
Interest Rates on Margin Accounts
You’ll be required to pay interest on the amount of the margin loan, just as you would on any other loan you’ve obtained.
Margin interest rates are generally lower than those charged by credit cards and unsecured personal loans; nonetheless, you should conduct your own comparison.
Based on a tiered schedule that is defined by the amount of margin loan taken out, the interest rate is adjustable. If you have a large amount, you will be charged a reduced interest rate.
Debit balance
Margin interest rate
$1 million +
4.000% (3.075% below base rate)
$500,000–$999,999
4.250% (2.825% below base rate)
$250,000–$499,999
6.575% (0.500% below base rate)
$100,000–$249,999
6.825% (0.250% below base rate)
$50,000–$99,999
6.875% (0.200% below base rate)
$25,000–$49,999
7.825% (0.750% above base rate)
$0–$24,999
8.325% (1.250% above base rate)
Ways to Avoid Margin Trading Risks
Consider establishing a cash buffer in your account to assist decrease the risk of receiving a margin call in the future.
Take steps to prepare for volatility; structure your portfolio such that it can sustain large swings in the total value of your collateral without dropping below your required minimum equity.
Invest in assets with high return potential; the securities you purchase on margin should, at a bare minimum, have the ability to earn more than the cost of the loan’s interest payment.
Decide on a personal trigger point, and have additional financial resources on hand in case your balance reaches the minimum required to maintain your margin account balance.
Pay down interest charges on a regular basis; interest costs post to your account on a monthly basis. So it makes sense to pay them down before they balloon to unmanageable proportions.
Alternative to Margin Accounts
A cash account is the only alternative to a margin account. A cash account is a kind of brokerage account in which the investor is required to pay the entire amount of money for the securities that are bought.
Quite simply, your money represents your purchasing power in a cash account. In order to trade, you cannot borrow money.
Keeping track of your settled funds and unsettled monies is essential while operating a cash account. Money has been collected.
Most of the cash collected from liquidation holdings over the past two days is included in the unsettled funds’ category. It becomes settled money once it has been settled.
It is not necessary to count day trades while using a cash account. With your settled money, there is no restriction on how many day transactions you may make.
Please bear in mind that trades are done in a cash account takes 2 business days for the funds to fully settle before they may be utilized to purchase and sell in the same account again. Two business days are added to the date of the trade.
When funds are used to acquire securities that have not yet settled in the account, it is considered a good-faith breach. Because of this, it is quite easy to obtain good-faith violations if you engage in day trading with a cash account and do not have sufficient settled money (GFVs).
Margin Trading – A Quick Summary
Here is a quick summary of Margin trading that will help you to decide whether it is worth it or not:
Margin trading entails a considerably higher level of risk than traditional investment. It is possible that you will lose even more money than you initially invested if the transaction does not go well for you.
However successful your trading is, interest costs on money borrowed might eat away at your profits in the long run.
Assuming that you are completely aware of the dangers and expenses associated with margin trading. It has the potential to improve your earnings and return on investment. It may also make it possible for you to invest in a wider choice of assets.
Acorns is one of the most popular round-up investing applications available, and it is among the finest in the business. It’s simple to use, offers a fantastic education platform for novice investors, and has simple, upfront costs, among other things. But, Is Acorns investing worth it? Let’s find out!
Is Acorns Investing Worth It | What is Acorns Investing?
Acorns is a fintech company best known as a micro-investing platform. It allows users to set up automated investments into a portfolio through Round-Ups: Acorns rounds up a debit or credit card purchase made on a linked card to the nearest dollar and invests the change on behalf of the member.
Investments are made into one of five portfolios carrying different levels of risk. Acorns is one of many fintech companies focusing heavily on millennial investors, including Robinhood Markets, Inc. and Stash Financial, Inc.
It appeals to millennials and other people new to the world of investing, who may not have significant capital to put toward their retirement. Acorns’ goal is to enable users to invest early and often and with minimal effort. The average Acorns member invests more than $30 per month through Round-Ups, the company’s signature program.
When was Acorns Investing launched?
Acorns is an Irvine, California-based financial technology and financial services business that specializes in micro-investing and Robo-investing. Acorns had 8.2 million clients and $3 billion in assets under management in 2020, according to Fortune’s Impact 20 list.
It was first released in 2014 as an iOS and Android app. The portfolio choices available to users created in collaboration with Nobel Laureate and paid adviser Harry Markowitz.
Who created Acorns Investing App?
Walter and Jeff Cruttenden, a father-and-son business partnership, established Acorns in 2014. Walter, the father, established investment banking company Roth Capital and was the founder and CEO of E-Trade’s investment banking division.
Shlomo Benartzi, a behavioral economist, named head of an Acorns behavioral economics committee in 2018. He is working on the Money Lab project, which would perform field tests on customer spending.
CEO Noah Kerner, who formerly headed creative branding firm Noise and served as Chief Strategy & Marketing Officer at WeWork, now leads the business. Acorns intends to go public in May 2021 via a merger with Pioneer Merger Corp, a blank-check business.
How Does Acorns Work?
Acorns is a platform that allows members to invest by saving small amounts of money regularly; a method known as micro-investing to save for retirement. Essential banking services are also available on the website for a low fee.
The company’s services are divided into three areas. The first allows members to invest their spare cash in exchange-traded funds (ETFs). The second feature allows users to create and fund an IRA directly through the platform, and the third gives members access to a debit card provided by Visa, Inc.
Acorns offer five distinct Robo-related products for Invest, Later, Spend, Found Money, and Early.
Invest
A taxable investment account in which you may invest in exchange-traded funds (ETFs) based on your risk tolerance and financial objectives.
Round-ups and dollar-cost averaging are two methods to keep the account funded indefinitely. You may set up regular donations to your account for as little as $5 with the latter. As previously stated, the former invests “spare change” from a connected account.
Acorns Mobile App
Later
Retirement is referred to as “later” by Acorns. You’re meant to invest for the long term, and selling your assets too often may be expensive.
Perhaps Acorns should assume that their client base understands what “retirement” entails. In any event, “Later” is just a method to deposit funds into an IRA, which is a requirement for any Robo-service.
Spend
A checking account that includes a debit card and waives several fees, including one for maintaining minimum balances.
Some ATM costs are also reimbursed. Smart Deposit is another tool that enables you to automatically drain money from a direct deposit in your Spend account into other accounts, such as Invest.
Found Money
A website that gives you a tiny percentage back on purchases made at hundreds of big stores, including Walmart. The money you save when you purchase on Found Money goes into your Invest account.
Early
Acorns’ most costly tier offers access to a UTMA/UGMA account, enabling parents to open up accounts for their children without dealing with complicated paperwork.
What are the features of Acorns investing?
You can set up regular payments of larger amounts, receive referral incentives, and earn additional cash to invest by shopping via Found Money, the main Acorns app’s rewards program, to increase your Acorns balance, but these features aren’t as well promoted as the ability to invest your change. The features of acorns include:
Diversified portfolios.
Automatic rebalancing.
Access to Acorns Earns partners to earn while you shop.
On-the-go accessibility through our mobile and web app.
Investment support from our dedicated support team.
Access to Acorns Later, an easy way to save for retirement.
Access to Acorns Checking, the only debit card that saves, invests and earns for you.
How Can You Benefit From Acorns?
“The ideal moment to start investing was ten years ago. Today is the second-best time”. This is a saying you’ve probably heard before, and it couldn’t be more accurate.
Compound interest has more time to act to your advantage the sooner you start investing.
For a student, is Acorns investing worth it? Acorns offer a great deal. It may be a fantastic method for students with large debt loads or modest salaries to start creating money for their long-term future.
Acorns are well-known for its ability to invest your extra cash, and for a good reason. It’s a fantastic concept, and Acorns makes it simple.
Acorns Mobile App
The majority of individuals are unaware that investing isn’t limited to spare cash. You have the option of making more significant donations, which may be done automatically.
You may set up an account to automatically invest a modest but regular amount of money each month. You’ll have a far more significant effect if you combine automatic contributions with round-up investments.
Keep in mind that you’ll have to pay a monthly charge to utilize Acorns. To make the entire thing worthwhile, you’ll want your investments to be more than your charge.
Rounds Up Method
Acorns is well-known for its “Round-Ups” method, which allows you to invest your spare change anytime you use a connection card. Let’s suppose you spend $9.45 on lunch at your favorite restaurant. You may use Acorns to round up to $10 and invest the additional 55 cents in your Acorns account.
Acorns has taken Round-Ups to the next level. You may choose to increase your “spare change” amount by up to 10 times. As a result, instead of spending 55 cents, you may invest up to $5.50 in that one transaction. This is a great habit to develop if you want to save more money every day.
In this instance, “Acorns Earn” refers to one of the Acorns’ most incredible and most potentially effective features, rather than any dimes or pennies you may discover on the pavement.
The way it works is that every time you use your Acorns-linked debit or credit card at a participating shop, that retailer will contribute to your Acorns investing account.
We’re not even talking about off-brands here. These are presumably companies where you already spend money.
Checking Account
Acorns also provide an Acorns Spend checking account. With their Smart Deposit service, you may have a part of your paycheck automatically deposited into your checking, investment, or retirement account. It’s a way to put money into yourself without even thinking about it.
Acorns Spend also includes a Visa debit card, which you may use to make purchases and deposit round-ups into your investing account. You also get access to 55,000 fee-free Allpoint ATMs throughout the United States.
Plus, if you sign up for direct deposit into your Acorns Spend account and get two installments, you can earn $75 right now. That’s an additional $75 you may put toward your investment account, retirement account, or have some extra spending money.
You’re well on your way to getting the most out of the Acorns app if you’ve signed up for Round-Ups and automatic contributions. You may get a bit more out of it if you connect your credit cards.
We aren’t usually lovers of utilizing credit cards. After all, getting out of needless consumer debt is a key to financial success.
Rewards Program
Credit cards with substantial rewards programs, on the other hand, may increase your Acorns advantages if you avoid keeping a revolving amount.
Let’s suppose you go to Starbucks and spend $2.95 on a large coffee. Acorns will round up to the nearest 5 cents and deposit the difference in your account.
However, if you have a Round-Up booster set, you may round that number up to $5 and save even more money in your account.
If you pay using your Starbucks credit card, the money will be credited to your rewards account as well.
You’re working your way toward complimentary drinks on top of the additional $2.05 you’ve placed in your Acorns savings account. If you do this every day, it will mount up over time, both in terms of your Starbucks addiction and your money.
Of course, depending on your credit card program, you may utilize this method to earn frequent flyer points and perhaps cashback.
There’s no better way to invest your extra cash and receive the odd store reward than Acorns, mainly since it provides IRA accounts. Acorns’ automated roundups simplify saving and investing, and most investors will be astonished at how fast their pennies add up.
What are the other users saying about Acorns Investing?
Is acorns investing worth it or not can be known by looking at the figure that the business has received about $100 million in venture capital financing since its inception.
Jennifer Lopez, Alex Rodriguez, Bono, Ashton Kutcher, and Kevin Durant were among the prominent investors in Acorns as of August 2019. PayPal, BlackRock, and NBCUniversal are among the company’s investors.
How to buy a subscription of Acorns?
For your financial requirements, Acorns provides three distinct subscription levels.
Acorns Lite costs $1 each month- Are you ready to get started? With a simple, automatic investing account, you can invest spare change, set up recurring investments, and more.
Personal Acorns – $3/month- Your financial health system, complete with all-in-one investment, retirement, and checking accounts, as well as a metal debit card, financial counseling, and more!
Acorns Family- $5/month- There are investment accounts for an infinite number of children per family! Also included are a personal investment, retirement, checking accounts, bonus investments, financial counseling, and more!
While those costs seem to be reasonable, they’re very costly when calculated on an annual % basis, as many other investing apps and Robo-advisors do.
Acorns Pricing
Younger employees just starting—the kinds of investors Acorns aims to attract—will pay more than rival robos.
Assume you have $100 to put in a new investing account. Your yearly fee would be $0.25 if you utilized Betterment, which charges an annual percentage rate of 0.25 percent for its essential Betterment Digital product. The cost of that $100 investment over a year would be $12 if you established an Acorns Lite account.
Consider a $10,000 investment in an Acorns Personal account, which would cost you $36 per year, or 0.36 percent, making it more costly than Betterment.
Naturally, when you invest more, the fees become a lower and smaller percentage of your total amount, but this may take time.
Expenditure Ratio
The expenditure ratios for investment expenses vary from 0.03 percent (VOO) to 0.25 percent (two ESG funds). If you invest in Early, Invest, or Later, you will pay this amount.
A brief word on Spend: While Acorns’ checking account is technically free, the fact that you must spend $36 per year to get access to it is less than ideal, primarily because other robos, like Betterment, provide access without such restrictions.
Even so, you could see the checking account as a bonus to get into the $3 tier, in which case the cost is less important.
How to cancel the subscription of Acorns?
If due to any reason, a question arises in your mind that “is acorns investing worth it or not?” and you like to cancel your subscription. Follow these steps while operating from your phone:
Tap the menu (avatar) in the top left corner of the screen after signing in to your account.
Tap “Settings,” then “My Subscription,” then “Manage.”
Follow the steps to liquidate and cancel accounts by tapping “Cancel subscription.”
And if you are operating through the web and the same question hit your mind that “is acorns investing worth it or not?” and you want to cancel your subscription. Follow these steps to cancel your subscription of acorns:
After signing in to your account, go to the top right corner of the screen and select the menu (avatar).
Select “Profile & Settings” from the drop-down menu.
Select “My Subscription” from the drop-down menu.
Scroll down to “Manage” and click it.
Select “Cancel Subscription” from the drop-down menu.
To liquidate and cancel accounts, follow the instructions.
How to reach customer care of Acorns if having any inquiry?
If you have any queries, feel free to contact the Acorns Support team:
Phone: (855) 739-2859.
Email: support@acorns.com
What are the alternatives to Acorns?
Is acorns investing worth it alone, or do an investor have any other option too? The answer to this question comes up with several alternative options.
There are several alternative applications, which are operating on the principle of acorns. Some of them are Betterment, Wealthfront, and wealth simple. Let’s discuss a few details of these apps.
Betterment simply levies a fee. It charges a flat cost of 25% per year for its lowest pricing tier, which works out to only pennies a month while you build up your portfolio.
What about Wealthfront, another Robo-advisor? You will require a $500 minimum balance. They do, however, provide free account management for the first $10,000 of each account. Wealthsimple, a Canadian Robo-advisor, charges up to.50 percent in fees but also provides a personal touch.
But an alarm beeps in the mind that is acorns investing worth it more than the others? The answer is, the five investment portfolios Acorns offers to maximize your profits while minimizing your risk.
Moreover, Acorns does not operate on commission. Therefore there are no account minimums. Acorns aims to provide you with the resources you need to take the best possible care of your finances.
We believe that everyone should have access to financial health, so we make it simple to invest in yourself. You can start investing early and frequently with Acorns without making major lifestyle adjustments. You may get start with as little as $5.
Pros of Acorns App
The answer to the question “Is Acorns investing worth it?” has two aspects. One is that the best investing approach is to get started right away—Acorns strives to make this as simple as possible.
With no account minimum, you can start making regular contributions right away. You can also round up your purchases on connected accounts to contribute even if you do not consider yourself an investor.
However, setting up your savings is straightforward, thanks to an intuitive interface, and you won’t be overwhelmed with a confusing variety of ETFs.
You’ll spend relatively little in fees if you stick to a primary account without ESG funds. If you need a little push to get start, Acorns’ automated service makes a lot of sense.
Cons of Acorns App
The other aspect of the answer to the question “Is Acorns investing worth it?” is that Acorns has a handful of significant flaws.
The first is the tiered charge structure, which is prohibitively expensive for individuals who are just getting started with modest balances. It’s a terrible bargain to pay $36 a year to access an IRA when you have a few hundred dollars invested.
While many Robo-advisors have a $500 or $1,000 account minimum, Betterment offers a no-minimum, lower-fee option.
It’s a difficult pill to take that you have to pay $3 to gain access to your bank account, and there’s no way to speak to a real-life financial adviser.
Meanwhile, although some parents may prefer a UTMA/UGMA account, anybody saving for college may wish 529 accounts were available.
Furthermore, there are no tax-loss harvesting tools, which will be helpful if you have more money in your account and need to balance the tax consequences of selling winners.
Is Acorns Investing Worth It? – Quick Summary
We have reviewed the Acorns Investing thoroughly above, but does it really worth it? We have devised a quick guide to help you focus on the major factors that will help you decide if you really should use it or not.
Account minimum
$0 to open account; $5 required to start investing.
Investment expense ratios
0.03% to 0.18%.
Automatic rebalancing
Free on all accounts.
Tax strategy
Not available.
Portfolio mix
The portfolio mix is generally well-diversified but lacks significant exposure to international bonds. A sustainable portfolio is available for free.
Account fees (annual, transfer, closing)
$50 per ETF to have them transferred to another broker when you close your taxable Acorns account; no charge to sell your investments and have the resulting cash transferred.
CONCLUSION
The only way to fight inflation and make your money generate more money is to invest. Even though the markets are turbulent, you are more likely to earn money if you concentrate on long-term investment.
Unfortunately, investment is often seen as a problematic and challenging concept to grasp, or at the very least, a time-consuming process to begin. This is why, before risking your real money, it’s a good idea to practice investing with paper trading.
Acorns is generally not a suitable match for people who are well into their careers unless they need to play significant catch-up with investing.
If you’re in your 40s or later and haven’t begun saving for retirement, you should look into other ways to invest. Acorns are an excellent method to begin increasing your taxable assets, which are an essential component of every retiree’s portfolio.
Overall, Acorns is an excellent method to start investing and developing a portfolio without dealing with the headaches that come with HR. Using these methods to optimize your app use after you’ve gotten started, and you’ll notice your money start to increase quickly.
Investing vs trading in 2021 are two very distinct ways of trying to profit in the financial markets. Both investors and traders seek gains via market involvement.
In general, investors seek higher returns over a longer time via purchasing and holding. Traders, by contrast, take advantage of both rising and falling markets to join and exit positions within a shorter time period, reaping smaller, more frequent gains.
Differences Between Investing and Trading
The following are the 5 key differences between investing and trading:
Basic Difference
Trading usually carried out by individuals who engage in intraday trading and are always on the lookout for growth investment opportunities, in which case technical analysis techniques are used.
They are able to anticipate whether the movement will be greater or lower. On the other hand, an investor is seeking a good return on his or her investment. Moreover, he or she is willing to hold onto their investment for an extended period of time.
Risk
Because there is no hedge against this kind of transaction, the risk associated with this technique is very high, and the amount of money at stake is extremely large due to the lack of downside protection.
On the other hand, an investor may have a suitable portfolio in which the downside of one item will offset by the upside of other assets in order to hedge against the losses.
Market Change
The movement of the market and the indexes is usually due to high quantities of trading activity, and traders. As opposed to investors, have a significant role in changing the market values in this situation.
Strategies
Traders have a preconceived notion of what is going to happen on the upside or the downside. They trade in accordance with this; they have many kinds of trading strategies like the Butterfly, Short sell, Long Straddle, Strangle, and many more.
While an investor has a straightforward and vanilla approach to hold the asset while investing: keep the asset.
Predictability
Because buying and selling transactions take place on a daily basis, returns in trading are both unpredictable and rapid. As a result, an investor must wait a long time before seeing a significant return.
Investing vs Trading in 2021 | Trading Time Horizon
Time Horizon
Day trading requires a daily commitment of at least two hours, which is customary.
The first hour after the United States’ stock markets are formally opened for business is usually considered to be one of the greatest periods to profit from big price movements.
As New York’s lunchtime approaches, the stock market’s activity tends to slow down.
When trading full-time, your overall time commitment should be about 15 hours per week on the low end. And up to 40 hours per week on the high end (if you’re trading the most of the day).
The busiest period for stocks, currencies, and futures in the United States market is around the time of the market’s opening each morning.
Alternatively, global markets (particularly currencies and European equities) tend to be active in the hours leading up to the European open.
What Type of Investors should consider trading?
If you want to opt to trade, you’re far more concerned with the short term and less concerned with the company as an enterprise. You will almost certainly perform any or all of the following activities, for example:
You’re less concerned with whether or not the underlying company will succeed and more concerned with whether or not the stock will generate profits for you.
You want to know what other people think about a transaction because you aren’t just betting on a stock or a mutual fund; and you are also betting on the other individuals at the table.
You may look at short-term price fluctuations, even monitoring the charts by the minute. In order to forecast the optimum moment to buy or sell.
Share price movements influence your decisions rather than the fundamentals of a company.
Age retirement?
In order to be successful in early retirement, you must keep your costs as low as possible while still employed.
After retirement, you may save a few thousand dollars on your season ticket and you won’t have to purchase another custom suit any time soon, but it’s unreasonable to expect to save a lot of money on energy costs.
If you are willing to take chances and trade on your own account, your money will go further.
To be successful in trading, however, you must be realistic about your prospects of making a profit: can your approach truly survive outside the environment of a hedge fund or without the flow of orders that you see on the buy-side, for example?
You might wind yourself duplicating all of the pressures of your day job for a lesser income; this is one of the reasons why my own trade is completely computer-controlled.
Investing Time Horizon
It is possible to invest for the long term (as well as do the study necessary for it) at any time, even if you work long hours in an office job.
When you’re ready to invest in stocks, you may anticipate spending a few hours each month searching for companies that are consistent with your investment plan.
Finding or developing an investing plan will require more time in the early stages of the process.
Some individuals prefer to be more active, devoting a few hours each week to research and other activities (especially if they have lots of capital and are looking for multiple opportunities).
Every few months, or maybe just when they are ready to make another purchase, an investor who prefers to “set and forget” may need to do some research or check on their assets.
What type of Investors is Investing Suited For?
Your concern about investing may stem from a lack of understanding of the market or from the intimidating nature of the first investment choices available in many mutual funds.
If you want to start investing as soon as possible, it’s best to do so as soon as possible. However, there are a few things you should consider before you begin developing your investment portfolio.
The following people should start investing:
You are financially stable
You know where to invest wisely
Investment options are available to you
You are patient enough to adopt the “Invest and forget” strategy
What Are the type of Investments they can consider?
Following a year of decreased spending and a handful of stimulus cheques from the federal government, many Americans are sitting on a large pile of cash in their bank accounts.
Moreover, although the reopening of the economy may result in increased spending on postponed holidays and other pastimes, many people will be searching for ways to put their newly discovered excess to work.
The stock market, as well as almost every other asset class, is flourishing right now, and it may be daunting to dip your toes into the investment waters if you haven’t done so before.
High-yield savings accounts
This may be one of the most straightforward methods to increase the return on your money above and above what you would receive from a traditional checking account.
Customer access to their money is maintained through high-yield savings accounts, which are frequently opened through an online bank.
High-yield savings accounts, which are often opened through an online bank, tend to pay higher interest rates on average than standard savings accounts, while still allowing customers regular access to their money.
The money you’re saving for purchase in the next couple of years, or money you’re simply hanging on to in case of an emergency, maybe put to good use in this account.
Certificates of deposit (CDs)
CDs are another option for earning extra interest in your savings. But they will need you to keep your money in the account for a longer period of time than a high-yield saving account.
When purchasing a CD, you may choose from a variety of terms such as six months, one year, or even five years. However, you will usually be unable to retrieve your money before the CD expires without incurring a penalty.
If you buy one via a federally insured bank, you will be protected up to $250,000 per depositor, per ownership category, if you purchase one through a federally insured bank.
401(k) or another workplace retirement plan
This may be one of the most straightforward methods to get started in investing, and it comes with a number of significant benefits that might be beneficial to you both now and in the future.
In most cases, your company will match a part of the amount you agree to set aside for retirement from your regular salary. If your company provides a match and you do not join in the plan, you are essentially turning away free money from your employer.
Contributions to a conventional 401(k) are made before being taxed. And the funds grow tax-free until the participant reaches retirement age.
Some companies offer Roth 401(k) plans, which enable employees to make contributions after they have paid their taxes. If you choose this option, you will not be required to pay taxes on withdrawals made during your retirement.
Employee pension plans are excellent savings vehicles since they are automated after you have completed the necessary setup steps and enable you to make regular investments throughout your career.
Target-date mutual funds, which manage their portfolios in accordance with a particular retirement date, are another option for you to consider.
As you move closer to the goal date, the fund’s allocation will shift away from riskier assets to account for the fact that you will be investing for a shorter period of time in the future.
Mutual funds
Mutual funds provide investors with the option to participate in a diversified portfolio of stocks, bonds, and other assets that they may not be able to put together on their own otherwise.
Among the most popular mutual funds are those that follow indexes such as the S& P 500, which is made up of about 500 of the biggest corporations in the United States.
Index funds often charge extremely low or no fees to the funds’ investors, and in certain cases, no costs are charged at all.
Due to these low expenses, investors are able to retain a larger portion of the funds’ profits for themselves, which may be a fantastic method to accumulate wealth over time.
ETFs
Unlike mutual funds, exchange-traded funds (ETFs) maintain a diversified portfolio of assets and are traded on a stock exchange throughout the day, much like a stock would.
ETFs do not have the same minimum investment requirements as mutual funds, which are usually in the range of a few thousand dollars to several hundred thousand dollars.
Investing in exchange-traded funds (ETFs) may be done for as little as the cost of one share plus any costs or charges connected with the transaction, but you can get started with even less if your broker enables you to buy in fractional shares.
Both exchange-traded funds (ETFs) and mutual funds (MFs) are excellent assets to own in tax-advantaged accounts such as 401(k)s and IRAs.
Individual stocks
Investing in individual businesses’ stock is the riskiest of the investing options mentioned here. But it may also be one of the most lucrative.
Nonetheless, before you begin trading, you should evaluate if purchasing a stock is a good investment for you.
Consider if you are investing for the long-term, which is usually at least five years. And whether you are familiar with the company in which you are making the investment.
Stocks are valued every second of the trading day, and as a result, individuals who own individual stocks are often tempted to adopt a short-term trading mindset when they invest in them.
However, since a stock represents a portion of ownership in a genuine company. Your wealth will grow in tandem with the fortune of the underlying company in which you invested.
If you don’t think you have the knowledge or the stomach to ride out a bear market with individual equities. You may want to explore the more diversified strategy provided by mutual funds or exchange-traded funds (ETFs).
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When it comes to trading and investing, there is always a risk. The trick is to understand how much money you can earn in comparison to how much money you can lose.
Trading
You may be able to earn anything from 0.5 percent to 3 percent each day (on the high end). Even while this may not seem like much, it may amount to anywhere between 10 percent and 60 percent in profit each month.
When dealing with smaller accounts, higher return percentages may be achievable; nevertheless, as your account size rises, the likelihood of receiving a return of less than 10 percent each month increases.
If you engage in day trading, you will see your profits multiply fast. Suppose you start with $30,000 and earn 10% each month.
At the end of the month, you will have $33,000 to start the following month. If you earn 10% again, you’ll have $36,300 in your account. If you earn 10 percent each month for a year, you will have almost $95,000 in your bank account.
Even if you have seven days of losses followed by seven days of wins. You may still end up with a loss overall.
How Much Do You Need TO Gain ?
However, if you’re losing 1 percent or 2 percent of your money each day. Your day trading account may begin to deteriorate very quickly.
For example, if you lose 1 percent each day over the course of seven trading days. Your account might drop from $30,000 to $27,961.96—a loss of about 7 percent of your initial investment.
You would end up with $28,955,43 if you were to start gaining at a rate of.5 percent per day for the next seven trading days after that losing run.
However, you would still be in the red. You’d need another seven days of profits of 1 percent or more to make up for your losses and generate further gains.
Stocks vs Options vs Crypto?
When it comes to trading, selecting between stocks, options and crypto is a hard call. So, here is what each of these choices is all about:
Stocks
The long-term potential for growth (capital appreciation) in stocks is the highest among all investment options available.
Strong, positive returns have often been earned by investors who are willing to hold onto their investments for extended periods of time, such as 15 years or more.
Stock prices, on the other hand, may go down as well as up. As a result, there is no assurance that the business whose stock you own will expand and prosper. And thus there is a risk of losing money if you invest in stocks.
Options
It may be difficult to trade stock options, which can be even more difficult than stock trading.
When you buy a stock, all you have to do is determine how many shares you want to purchase, and your broker will complete the order at the current market price or a limit price you have established for yourself.
Options trading requires a thorough knowledge of sophisticated techniques and the process of establishing an options trading account. It entails a few more steps than the process of opening a traditional investing account.
The main reason why you must learn how to trade options even if it is not your primary source of investing is the very low barrier to entry.
US stocks are becoming more and more expensive.
However, through options trading, you do not need thousands of dollars to become an investors albeit a short term investor.
Check out Our recent return trading very cheap options for as low as $1.
Crypto
In recent years, cryptocurrency has developed as an asset class that offers investors the opportunity to make significant returns on their investments.
These assets, despite the fact that they are not back by the government, have gained enormous appeal in recent years.
The prospect of making large profits in a short period of time has prompted investors to get on the cryptocurrency bandwagon in droves.
The long-term investor has always come out on top when the market has seen a fall in value. For longer periods of time, the Dow Jones Industrial Average spends more time rising than falling. Allowing for more gains than losses on an annual basis.
When it comes to investing, extensive time frames are necessary. And failure to hold an asset during a prolonged slump may result in losses.
Anyone year may see results that are much greater or lower than 10%. (with negative returns occurring about one out of every four years). Some stocks may never be worth what you paid for them when you bought them.
What are some of the Tools to Start Investing? [Is Automatic Investing an opportunity for you?
Even the most successful investors had to start out someplace, and that was at the beginning.
Knowing where to begin and which route to follow, on the other hand, maybe difficult to discern.
We’ve compiled a list of 3 tools to make the investing process a bit less difficult for individuals who are just getting started.
Personal Capital
Personal Capital is an excellent place to begin your research. The company provides a complete financial dashboard to assist you in evaluating your portfolio’s asset allocation.
It also consolidates your bank accounts, credit cards, and loans into a single location. It allows you to manage everything from a single location.
Betterment
Betterment is one of a growing number of algorithm-based “Robo-advisors” that make investing simple and affordable.
Betterment’s website is simple to use, and it employs straightforward asset allocation strategies to distribute your money across a variety of low-cost exchange-traded funds (EFTs).
WealthFront
Wealthfront, like Betterment, is a Robo-advisor that simplifies and makes investing more accessible for individuals.
It requires a $500 minimum deposit to establish an account, does not sell US government bonds, and provides its customers with access to a unique tax-loss harvesting tool known as the Wealthfront 500, among other things.
How to Limit Exposure to volatility?
When it comes to the markets, volatility often elicits a high level of caution. In fact, market volatility may be visible in both a good and a bad light depending on your perspective.
Low volatility indicates a more stable market (and, therefore, a more stable investment); nevertheless, it also indicates a longer period of time until the financial benefit realized. This is often the case when it comes to the stock market.
Large trading volumes help to improve the stability of the stock market and make it less susceptible to the moves of ‘big fish’ investors.
Nonetheless, because of its ties to governments and businesses all around the world. The stock market is often influenced by geopolitical developments.
In contrast, cryptocurrency exchanges are more volatile than traditional stock markets. Given that this market is still in its infancy, its highs and lows are particularly prominent, making the cryptocurrency marketplace particularly susceptible to the trading moves of ‘whale’ traders.
Whale traders are those who have a huge quantity of bitcoin in their possession. As a result, the whole market may be susceptible to the trading choices of individuals who have a significant amount of money involved.
For example, when news broke that influential investor Elon Musk had invested $1.5 billion in Bitcoin in January 2021. The price of bitcoin surged by 17 percent to a new all-time high, setting a new record.
On the contrary, cryptocurrencies are independent of governments and other global institutions. They are – at least in part – immune to political influence.
What Should You DO: Trading or Investing
Investing vs Trading in 2021
The discussion is usually clear that investing is a strategy that is more effective for the vast majority of individuals than other options.
Is it possible for certain individuals to regularly outperform the market? Without a doubt, there is no question. However, for the majority of individuals, being an investor is preferable to being a trader. And it may require less time and effort as well.
Warren Buffett, the legendary investor, advises that investors routinely invest in index funds. Like an S&P 500 fund, and then hang on to those investments for decades.
This strategy embodies the essence of being an investor. Which is to adopt a long-term perspective while allowing the companies to create profits for you.
Comparative Table
Although we have discussed everything above about the trading vs investing in 2021. However, to summarize all that discussion, here is a table based on capital gains, risks, investment period, and much more:
Criteria
Trading
Investing
Introduction
Refers to buy and sell as per the price movements
Refers to buying and holding the securities for a certain period of time
Investment Period
Generally, in this type of activity, the investment is short-term, and there are quick entries and exits.
While here, investment is for a long term and exit if far off from the entry point
Capital Gains
There are short-term capital gains and only associated with the upside in the security price.
Long-term capital gains can be earned not only with the upside but also in the form of dividends and bonuses periodically.
Risk and methodology
The risk is very high since it is a short-term investment.
Risk is lower comparatively as the investment duration is long.
Types of securities
Only securities or stocks can be traded since there is quick entry and exit.
Different types of assets can be invested in a portfolio like stocks, bonds, notes.
The intention of the investment
The motive is to earn profits and exit the position.
Value investment is made on the company’s functionality, banking on the company’s fundamentals.
Comparative Criteria of Investing vs. Trading
CONCLUSION
Trading may be a lucrative method to earn money on the stock market provided you have the necessary starting cash. As well as the time each day to execute the trades you want.
There are certain prerequisites, though, including a strong desire to earn money on trades and an effective risk management plan.
Investing, like trading, has varying degrees of risk, although, for retail and novice investors. It is often less risky than day trading in general.
If you have limited starting money and do not want to trade on a daily basis. Investing may be a better option for you than trading.
In this modern age, trading stocks is much easier than ever because of many different trading apps. To help you find the best one, we are going to review the top 7 best apps to trade stocks.
Go through all of the features including the fee and commission to select the best one according to your needs.
WeBull
Webull Mobile Application
Webull provides a one-of-a-kind community experience and simple-to-use trading tools that will appeal to the majority of youthful investors. It, however, lacks the trading instruments and functionality to compete with leaders of the market, which also provide $0 in stocks and ETF trades.
Who’s Webull for?
Webull is a self-directed investment and trading platform that appeals to intermediate and expert investors and traders.
Short-term and active traders who want to save money on fees may take advantage of its commission-free structure, which is much less expensive than charges charged by other online brokers.
Despite the fact that the Webull platform’s intuitive features and style may look sophisticated for beginner traders, the platform is nevertheless easily understood. It also provides fractional shares to its clients, allowing even the smallest accounts to participate in the most expensive equities.
Features
Desktop Platform Overview
The desktop platform Webull is the same as the online version. The flexible layout is easy to use due to its widget boxes drag and drop. You can modify it easily.
It contains preset lists like Hot ETFs and important screener and screener capabilities. The fact that novice traders looking to get into the market could simulate a trading strategy using Webull’s online, desktop, and mobile applications.
Web platform charting
Webull provides a standard line of charts comprising many different kinds of graphs, suitable drawing instruments, 50 technical indicators, capacity to add hotkeys, and grid designs, for comparing numerous charts.
On the online platform, we found the charting to be clear and simple to use, and the desktop version was virtually similar.
Market replay
Users may watch time-lapse video replays of stock charts, which is a feature that is exclusive to Webull.
A replay of the previous day’s price movement, although more instructive, provides traders with a unique viewpoint that cannot be obtained from any other broker.
Webull’s Commissions and Fees
Webull, like its major rivals, does not charge a commission on stock transactions in the United States, nor does it charge a fee to establish or maintain an account.
Nonetheless, fees levied by the SEC and the FINRA are applicable.
SEC fees.
There is a $13 fee for a net of $1,000,000 in principal on stock transactions alone, with the $0.01 minimum charge per share.
FINRA fees
On only stock sales, the trading activity fee (TAF) of $0.000119 for each share will be chargable, with a minimum charge of $0.01 and a maximum charge of $5.95.
E*trade
E*Trade Mobile App
E*TRADE was founded in 1982 and was one of the earliest online brokerages in the United States. Some of the company’s features include $0 transactions, two outstanding mobile applications, and the Power E*TRADE platform, which is ideal for newbies, active traders, along options trading.
Who E*TRADE Is For?
For more than a decade, E*TRADE has focused on engaged, active investors as well as high-net-worth individuals with a minimum investment of $100,000. Despite being a top 5 broker in several areas last year, especially in options and trading, E*TRADE’s standing among more active investors has been strengthened as a result of the fee reduction.
The Power E*TRADE platforms are available on both desktop and mobile devices, providing the customers with powerful options analysis as well as strategy-building capabilities.
E*TRADE has maintained a high ranking among the top online brokerages for beginners, owing to its extensive resources and user-friendly interface. E*TRADE, like other major online brokerage firms, offers plenty to offer investors of all experience levels.
Features
Options trading
Power E*TRADE is a great choice for casual and active options traders since it provides the ideal combination of convenience, superior tools (screening through StrategySEEK, scanning through LiveAction), and smooth position management.
E*TRADE has done a great job of bringing new investors into the game by designing Power E*TRADE, which allows you to master options trading without breaking the bank.
Charting
Power E*TRADE’s charting engine is provided by Chart IQ, a third-party supplier of HTML 5 charts highly rated by users.
Panning and zooming are very fluid, and there include an inbuilt Trading Central (Recognia) technical analysis tool as well as 114 extra technical indicators and 32 sketching tools to choose from.
Futures Trading
As with options trading, Power E*TRADE offers a fantastic experience when it comes to trading futures contracts.
Multiple futures ladders may be run at the same time, orders can be sent out quickly and easily due to the Quick Trade widget, and maintaining positions is as simple as it is with options.
E*TRADE Fees
In order to participate in the $0-commission revolution, E*TRADE now charges no commission to trade stocks, ETFs, and the majority of mutual funds.
Options contracts are priced at $0.65 per contract, which is the industry norm, but the price lowers to $0.50 per contract if you make more than 30 transactions each quarter.
Futures contracts are priced at $1.50 per side, which is less expensive than TD Ameritrade, E*TRADE’s largest rival. Although E*TRADE offers lower margin rates than TD Ameritrade, they are still quite costly compared to Vanguard’s rates.
EOption
eOption Mobile App
eOption is quite clear about who it wants as a client and how it plans to fulfill their needs: options traders who know what they’re doing want to switch to their platform and save money on options transactions.
Long-term investors and novices will be turned off by this deep discount strategy, while active options traders will benefit from cheap fees and quick executions.
Who eOption Is For?
eOption is aimed at options and stock traders that participate in the markets on a regular basis and who are confident in implementing their options strategies, according to the company.
The firm’s options costs are competitively priced, which appeals to traders who trade in large volumes. Just to put it another way, eOption doesn’t have many bells and whistles, although it will let you trade a large number of options for a cheap cost.
Features
Paper trading
For investors who are new to trading (and particularly options trading), eOption offers an appealing feature: a free paper trading tool that is accessible to everyone, including those who are not customers of the company.
This provides investors with $100,000 in virtual cash to utilize while they study and assess trading ideas, test methods, actively monitor the performance of a simulated portfolio, and establish a watch list – all without putting any real money at risk.
Low options contract fee
Many brokers no longer charge a basic commission on options transactions, requiring traders to pay just a per-contract fee, which is typically about $0.65 per contract on most exchanges.
When you trade options with eOption, the cost is $1.99 plus a 10 cent per-contract charge. In other words, investors who regularly trade four or more contracts in a single transaction will come out on top when they do business with eOption.
Margin rates
Take notice, margin traders: eOption offers some of the most competitive margin rates accessible. At the end of 2020, account balances were based at 7.75% at a base of less than $25,000. If you have a balance of $250,000 or more, you may get as little as 4.75 percent interest.
eOption Commission Fees
Prices for options are $3.00 plus $0.10 per option.
Listed stocks: $3.00 per share for market.
Stocks (foreign): $39 per share
Extended-hours stocks: $25.00 (plus $0.003 per share for each additional 5,000 shares).
Mutual funds are priced at $14.95 per share.
Bonds: $5.00 each bond for the first 25 bonds, $3.00 per bond for each subsequent bond
Orders placed with the assistance of a broker will be charged an extra $6.00.
Robinhood
Robinhood Mobile App
Despite the fact that all online brokers now provide $0 stock and ETF transactions, Robinhood’s lack of trading tools as well as research puts it at a disadvantage in comparison to the rest of the market.
Who Robinhood Is For?
Robinhood is best suited for first-time investors who want to trade in tiny amounts, such as fractional shares and cryptocurrencies, and who don’t want to spend much time doing research beyond looking at what other people are doing with their money.
The general simplicity of Robinhood’s app and the website makes it incredibly simple to use, and the fact that it charges zero fees appeals to investors who are very cost-conscious and trade in tiny amounts.
Having said that, the offers are very rare in terms of research and analysis, and there are significant concerns regarding the quality of the trade executions themselves.
Features
Trading tools
Trading tools and features are limited compared to category leaders on Robinhood’s website. For instance, charts are essential, with just four accessible technical indications.
In the meanwhile, TD Ameritrade provides more than 400, and TradeStation offers over 300. TD Ameritrade and Charles Schwab provide their own live broadcast with in-house specialists throughout the day.
Fractional shares
The greatest power of Robinhood found in its simplicity. For instance, its recurring investing feature allows you to invest a set dollar amount on a regular basis, such as once a week.
Similarly, Robinhood will automatically reinvest any earned dividends on stocks or ETFs when you activate Dividend Reinvestment (DRIP) in your account, provided that its associated symbols promote a fractional share trade.
Commissions and Fees
How Robinhood makes money
It’s a free service for Facebook (FB). In order to avoid charging a membership charge, money is generated through gathering your user information and selling advertisements. In the case of Robinhood, it is also a free service.
However, Robinhood will sell your order flow (the right to complete your transaction) to wholesale market makers instead of selling advertising. Robinhood is thus not really free. In the world of $0 trading today, almost all brokers except Fidelity have the same practice of taking money for order flows (PFOF).
Robinhood Gold
Robinhood Gold was a bad bargain in our tests. It costs $5 per month to receive Morningstar reports, streaming quotations for Level II, and margin trading (which charges 5 percent annual interest).
Competent TD Ameritrade, E*TRADE, and Charles Schwab charge greater margin rates but provide much superior inventory research, commercial tools, client support, etc., for the same $0 per inventory market pricing.
Futu Moomoo
Futu Moomoo Mobile App
Moomoo is another excellent Robinhood option. This is an excellent trading platform if you’re looking for clever trading in depth. It provides both novice and experienced traders outstanding trade tools and possibilities, including sophisticated charting, pre-and post-market trading, worldwide business, research and analysis tools, and most popular free Level 2 quotations.
Who is MooMoo for?
Moomoo has been developed as a smart trading platform, and investors may also benefit from cheap costs.
This mobile trading platform has effectively structured its sophisticated features in 1 app. For novices and seasoned traders, it is free and simple to use. A range of research tools may help you make intelligent investments.
When it’s convenient for you, Moomoo enables you to invest. You can start trading whether you travel or go home by synchronizing personalized settings on various devices. Moreover, no minimum deposit is available to establish an account.
Features
Advanced charting
Moomoo offers personalized amazing graphical capabilities, including basic graphics like bars, hollow candles, full candles, lines, mountains, and sophisticated multigraphs with more than 50 technical indicators, including the VWAP that can even please day traders. All-time periods are available from 1 min, 5 min, to 1 year.
Smart orders
It offers access to advanced stock orders for pre and post-market trade, including stop-limit orderings and trailing stop-loss orders and up to 40 transactions simultaneously.
Longer trading hours
Moomoo does have the longest time to trade with rivals. You may hop back and forth once the news releases from 4 AM until 8 PM EST.
Commission Fees
Moomoo commission rates for your US, Singapore, and Hong Kong businesses are among the most competitive prices available. Moomoo charges, for example, just 0.03 percent of the transaction value for SGX equities and US$0.0049 for US stocks.
At a minimal commission charge of €0.99 for US inventory, HK$3 for HK inventory, and €0.99 for SG inventory, even lower than those of Tiger Brokers and Interactive Brokers (IBKR).
A minimum price of US$1.99 for US stocks is charged for Tiger Brokers, whereas the IBKR charges at least US$1 for U.S. stocks and US$2.50 for Singapore stocks.
SoFi Automated Investing
SoFi Mobile App
In terms of stock market brokerages, SoFi Invest is one of the top options for first-time investors.
Even though SoFi’s app is less feature-rich than some of its larger competitors, this also makes it easier to browse and comprehend if you don’t have a lot of prior expertise in the financial markets.
Who is SoFi Automated Investing for?
SoFi Invest is the ideal option for first-time investors. Who are seeking a straightforward method to get start in the world of investing.
SoFi does not need a minimum deposit to establish an account. So, even if you don’t have a lot of money to invest, you may get start with SoFi.
If you already have other SoFi accounts, SoFi Invest is a fantastic alternative to consider. This is due to the fact that SoFi makes it quite simple to transfer money between SoFi Money and SoFi Invest accounts.
Features
Broad range of low-cost investments
SoFi clients can choose from ten different portfolios based on their risk tolerance and investment objectives.
Each portfolio comes with a diversified selection of low-cost exchange-traded funds (ETFs). That provide exposure to U.S. stocks, developed international stocks, emerging markets, high-yield bonds, and Treasury bonds.
Budgeting and financial planning
SoFi is a standout in this category. All clients get unrestricted access to the financial advisors employed by the firm at no additional cost.
A fiduciary standard, which requires them to act in their best interests, applies to these advisers. Who are Certified Financial Planners (CFPs) with the Series 65 certification (or comparable qualification).
They are also noncommissioned advisers, which means that they do not get any compensation for recommending certain trades or activities.
Savings with a high rate of return
SoFi provides a high-interest savings account, similar to those offered by competitors Wealthfront and Betterment.
SoFi Money is a checking and savings account that pays 0.25 percent interest yearly and is insured up to $1.5 million by the Federal Deposit Insurance Corporation (FDIC), which is six times more insurance than the average bank account.
It also has no account fees and provides an unlimited refund for ATM costs each month, which is a rare find these days.
Fee and Commission
SoFi Invest makes much of the fact that it charges no yearly management fee. On the surface, this appears to be a highly attractive alternative to its competitors.
In comparison, Vanguard Digital Advisor, a fully automated Robo, charges about 0.15 percent of assets under management. While the cheapest level of service on Ellevest is $12 per year, according to their website.
In addition, those rivals either do not provide access to financial advisors or charge a premium for that service if they do.
Fidelity
Fidelity Mobile App
Fidelity Investments continues to grow and develop as a key player in the online brokerage industry.
For the second year in a row, Fidelity’s brokerage service earned the top overall ranking in Best Online Brokers Awards. As the company has continued to improve important components of its platform. While simultaneously committed to decreasing the total cost of investing for clients.
Who is Fidelity for?
Fidelity, being one of the largest brokerage firms in the United States, geared to cater to the needs of the great majority of individual investors.
When it comes to the ordinary buy-and-hold investor, Fidelity’s fully-rounded platform provides a large variety of tools. Moreover, research resources, and other resources, as well as a simple order entry process.
Fidelity provides Active Trader Pro, a downloadable application that includes streaming real-time data. Moreover, a customized trading interface for more active investors and full-time traders.
Despite the fact that Fidelity has comprehensively covered these two main areas. It is crucial to highlight that the company does not presently provide commodities or futures options.
Features
Mutual Fund Evaluator
The Mutual Fund Evaluator investigates each fund’s features in great detail. Although it has a tendency to direct users to Fidelity funds, this is not surprising given the platform’s design.
Options Screeners
The scanners powered by LiveVol include some built-in scans. As well as the possibility to make a custom scan if that is what you like.
If you use Active Trader Pro, you’ll have 26 predefined filters to discover options trading opportunities based on volume. Moreover, open interest, option contract volume (including volatility differentials), earnings (including dividends), and other factors.
A total of about 200 different criteria used to construct bespoke displays for you.
Fixed Income Screeners
Using the bond screener, fixed-income investors may weed out the approximately 120,000 secondary market securities. Those are now accessible based on a number of criteria, and they can then construct a bond ladder.
The yield table updates every 15 minutes and is based on real-time information. Although this scanner is versatile, the interface is not at all user-friendly.
Tools and Calculators
Fidelity provides a variety of tools and calculators to help you with anything from budgeting to evaluating your investing plan.
The Tools and Calculators page displays them all at once. They allow you to choose from a lengthy list of around 40 options.
One of the most important tools is a hypothetical trade tool. It illustrates the impact on your portfolio of a hypothetical buy or sells in the future.
Fee and Commission
In addition to zero trading charges and a variety of more than 3,400 no-transaction-fee mutual funds.
Fidelity also provides superior research tools and a cutting-edge trading platform. The fact that it offers zero-fee index funds and has a stellar reputation for customer service is just frosting on the cake.
Top 7 Best Apps To Trade Stocks – Quick Summary
Knowing the best apps for trading stocks is not enough. We have reviewed each and every best trading app in detail above. However, to quickly summarize the main points of every trading app we have devised a table.
Please keep in mind that it is possible not every app allows you to trade in crypto. Moreover, the same goes for the stocks and options. So, here is a quick summary of our review and you can easily make your decision based on it.
Name
Can Tade stocks
Can Trade Options
Can Trade Crypto
Cost per OptionContract
WeBull
Yes
Yes
Yes
$0
E*Trade
Yes
Yes
No
$0.65
eOption
Yes
Yes
No
$1.99 + $0.10 per contract
Robinhood
Yes
Yes
Yes
$0.002
Futu Moomoo
Yes
Yes
No
$0.65
SoFi Invest
Yes
No
Yes
No Options Traded
Fidelity
Yes
Yes
Only Bitcoin
$0.65
Summary of Best Trading Apps in 2021
The Bottom Line
Beginner investors should seek online trading Apps that are simple to use, have extensive instructional resources, and have top-notch customer service. Moreover, charge minimal fees, and require small minimum account balances, among other characteristics.
In our Best Trading Apps for stocks review, we select E*Trade as the winner because of its user-friendly interface. Moreover, emphasis on online education, and comprehensive trading simulation capabilities.
