Just received an email from Webull
From Monday 15 July 2024 the following changes to our fee schedule will take place:
U.S. ETFs:
Current: 0.025% per trade value
New: Waived
Australian ETFs:
Current: 0.03% per trade value (Min. $4.9)
New: Waived
Referee: Sign-up, transfer-in A$500 worth of ETFs & get 12-month commission free trading of AU/US stock markets.
Referrer: Limit of 10 referrals. Get 12-month commission free trading of AU/US stock markets.
*Each buy and sell order incurs a separate FX fee ranging from 0.5% to 0.8%.
that's for other platforms
Maybe they want to get market share for now. They have been giving out promotions, trading vouchers and now waived etf trade fees
We’ll see how long it will last
I just traded a couple etfs last week and paid the $4.90 fees… should have waited for this sweeten deal.
Your order is internalised by the market maker, your buy action isn't bidding in the live market and adds no pressure. The market maker front runs your order and buys your share cheaper than your price and then delivers your share at a later date (for instance when they see a profitable spread)
So whilst you think you've saved on commissions they've literally robbed you in broad daylight.
Now with that understood ask yourself why only ETFs are part of this promotion. 2 things:
ETFs trap your capital in a sludge of unrealised assets. You've bought nothing. I think one day many are going to learn the hard way about their wealth.
Buying the ETFs allows them to use your money to buy underlying assets but they win voting rights for free. They control the court so they control the game.
Behind Webull is Apex Clearing House. People should understand what is happening…..good luck
I think front running is legal in the US market and some platforms, like thinkorswim or robinhood would do that with Citadel behind them. But it is illegal for the Australian market under certain section in the Corporations Act.
Whats your solution? The alternative is buying many many shares for diversification
You set the price on Limit order and valid for a day, dont do market price order.
Absolutely. Never buy anything at market price order
This guy knows.
Did “Big ETF” steal your money when you sold during a downturn?
So what happens if the market maker cannot get shares at a cheaper price and instead the share price rises by the minute?
Probably doesnt matter unless everyone sells at once…
They rehypothecate. i.e create naked shares out of thin air. This is regular practice. Price is fake.
Are you talking about ETFs in general or ETFs from Webull specifically?
Which platform is best to invest in ETFs ?
Betashare Direct
Why? Its not CHESS sponsored
CHESS is a luxury and really only essential if it’s a “dodgy” custodian broker.
If you are trading (not buy and hold) CHESS is annoying as you are receiving paper statements for each order.
@abc: It's not a luxury, it's a very common part of a reliable broker. Who's to say which brokers are dodgy? Nobody can predict a broker going under. It's quite literally what allows you to ACTUALLY own your shares. CHESS is super important if you want total security, and you can still get CHESS sponsored brokers that provide $0 brokerage, such as CMC Markets. Sure, only for $1000 per day, but if you're regularly making trades that high brokerage isn't going to be a big deal now is it?
@dongltron: Do you think you get CHESS sponsorship with non ASX shares?
Of course you don't. It's all under a Custodian model, hence my "luxury" comment.
If ASIC was as powerful as the SEC we probably wouldn't need CHESS. That's how good the corporate regulation is in Aus.
@abc: I work in the industry and I would never hold my wealth in a share broker that did not have CHESS sponsorship
@garygaz: "hold your wealth"? Are you really "holding" it?
If you own shares in a PLC they could go to zero.
If you hold cash in a bank account the bank has "custody" in your name.
If you own funds the assets are held in a trust account.
The only "wealth" you actually hold is physical and even that can be disputed as you as an individual can't control what that wealth is priced at.
At the end of the day it all comes down to trust.
I would go to CMC or Stake for Aus, IBKR for US
Agreed
Matching Betashares Direct I presume.
I believe they have more ETFs than Betashares Direct.
I know no one has the crystal ball but just want to get people's opinion if market is ok to buy Australian ETFs and which one would you prefer?
I find prices too high currently. Are we up for correction?
If you're buying ETFs it should be long term and small corrections won't really matter. If you care about short term you should pick stocks over ETFs
Someone said "time in the market beats timing the market'.
Aus ETF is no where near high compared to US ones. Go to yahoo finance and compare the chart for ioz vs ivv or ndq. Keep diversifying and dca
VGS , SCHG sprinkle in some VAS
Is SCHG CHESS sponsored with Webull?
Not sure about that
CHESS is only for ASX.
A200 has the lowest MER. Just
Yes it is. The only issue is high share price so if you want to DCA at smaller positions lesser than one A200 share price then should also look at IOZ
Depends on goal and situation. Some want tax minimisation so they go lics like AFI.
It’s not chess sponsored should this be a concern? Plan to hold long term.
Its chess sponsored
Awesome, thanks for clarifying
No surprise, all ETFs have management fee, probably they did a deal with ETF providers.
The ETF providers do the management and work behind the ETF. Thats why they charge the fee. Its their product.
Did I ask why?
This does not remove the ETF management fee by the way. ETF management fee is built into price of each ETF.
Whats free is brokerage fee.
I didn't say they removed management fee.
For ASX ETFs, this is an attractive deal. You get a CHESS-sponsored broker, a pretty good app interface, and $0 brokerage on buy and sell.
For US ETFs, Interactive Brokers is still going to work out cheaper for most investors, due to the relatively high forex fee charged by Webull. Unless you are a super micro investor ("beer money") or an active trader. You'll have to do the math on that.
Webull also offer daily interest on uninvested cash in your AUD and USD trading accounts - which is a nice bonus.
Good point: with Webull, you lose about 2% on currency exchange compared to Revolut. One solution could be to deposit USD via Revolut.
Swift code , should use share fee or pay all fee? Never use this.
i have always found webull AUD to USD balance higher than Revolute and wise .
Webull is great. Chess sponsored, instant deposits using Pay To.
TSLA is up, brokerage is down - time to cash out previous referral bonuses.
TSLA isn't an ETF.
He's refferring to the signup bonuses that gave us TSLA shares.
Yes. And I am referring to the "brokerage is down".
@Rochie: Not mind reader. It is pretty clear what Hendot was saying and they even left a comment hours ago confirming their mistake.
Ah, right you are. I didn’t read the heading properly.
This is going to put lots of pressure on other brokers, especially etoro who after many years, is going to charge US$2 for opening & closing a position for US stocks…
Any users of Webull - is their trading platform only for android/iOS or do they support desktop login for this as well?
Just opened account but cannot see anything when I login via desktop. Thanks in advance for clarification.
There is a desktop platform. It's not browser-based though. Go to the Downloads section of the website.
I much prefer their app interface. I didn't like their desktop program much, but it's been several months so they might've done some enhancements.
Cheers for this - will check out.
Ugh Windows & iOS only, murphy's law - I'm Linux.
You're not missing out on too much. App seems to be where they are putting most of their R&D. Looks good on a tablet and you can customise a little bit. I've always been a desktop person for trading, but I've learnt to live with the Webull app UI.
Can I buy fractional ETF on it?
Australia - no.
United States - yes.
I'm about to dip my toes in ETFs. Last time I did my own research I was drawn to STAKE brokerage platform, I can't remember the specific reasons tbh. What's the concensus on the best micro investing app for ETFs? Probably going to be a mix of regular style indexes and dividend paying ETFs.
Hard to beat this one for ASX ETFs after the announcement.
Define micro-investing in $ terms? For the US market, there's IBKR, Webull again, and even Trading 212 if your amounts are especially small but regular.
I would likely be investing $50-$100 per month. What is the announcement you're referring to? This post? Or something else?
This announcement. For that size of investment instalment, I think you really need to be looking to minimise brokerage. Webull for ASX (CHESS sponsored), and Trading212 for international probably the lowest cost you'll find.
Hi,need help please. i bought some vas and vgs etf. How do i set up devident reinvestment plan?
Thank you in advance
You can do it easily via the share registry website (Computershare/Link Market Service).
How are they making money with free brokerage