Webull is a mobile-friendly online stock broker often put in the same box as Robinhood. However, Webull recently let its users trade select OTC stocks and make short sales, which Robinhood still doesn’t allow. Even if you can’t trade sketchy OTCs that sometimes yield the best gains, Webull is still worth looking at.
Is Webull a reputable broker? What are the most popular penny stocks on Webull? Read on to find out!
Table of Contents
- 1 What Is Webull?
- 2 Who Uses Webull?
- 3 What Makes Webull Different
- 4 Benefits of Using Webull
- 5 Potential Drawbacks of the Platform
- 6 Penny Stocks on Webull Under $1
- 7 Why Buy Penny Stocks on Webull
- 8 5 Top Penny Stocks to Buy on Webull
- 8.1 1. Meta Materials Inc. (NASDAQ: MMAT) — The Pump All-Star Penny Stock
- 8.2 2. Sobr Safe Inc. (NASDAQ: SOBR) — The Exciting Tech Penny Stock Former Runner
- 8.3 3. Toughbuilt Industries Inc. (NASDAQ: TBLT) — The Recovered Reverse Split Penny Stock
- 8.4 4. Huadi International Group Co. (NASDAQ: HUDI) — The Low Float Green Energy Penny Stock
- 8.5 5. Helbiz Inc. (NASDAQ: HLBZ) — The Sub-Penny Meme Stock
- 9 Top Penny Stocks on Webull FAQs
What Is Webull?
Webull is an online broker that aims to help beginners jump right into trading or investing. Since it’s a mobile-first brokerage, Webull offers a robust mobile app that prioritizes ease of use.
Who Uses Webull?
Webull says it’s geared toward beginners, but I think it’s better for intermediate traders. While the app is very user-friendly, there aren’t a lot of educational resources, and the customer service is mediocre, which doesn’t help if new users run into trouble.
What Makes Webull Different
Webull is often compared to Robinhood because both brokerages are designed for new traders. However, Webull offers more advanced features like in-depth analysis tools, paper trading, and price alerts that also cater to intermediate or advanced traders.
I’ve written about Robinhood being too bare-bones for retail traders looking to get into penny stocks. Webull is somewhat better than Robinhood’s overly simplified platform, thanks to its more advanced features.
Benefits of Using Webull
So, what do you get when you use Webull? Here are some advantages of this platform for retail traders:
Appeals to Both Beginner and Intermediate Traders
While the learning resources might be a bit thin, I think Webull is still a good option for both beginner and intermediate traders, giving it a broader appeal than beginner-focused brokers like Robinhood.
Webull provides advanced features like technical indicators, advanced orders, and in-depth charting with a clean, intuitive, and user-friendly interface. This means intermediate traders can use them immediately, and beginner traders will have an easier time learning these tools.
Offers a Lower Barrier to Entry
Fractional shares aren’t the same thing as penny stocks. They don’t have the same risks or rewards — which is what small-account traders should be focused on.
But any time a broker has an additional offering, I consider it a plus, even if I don’t use it. The same goes for the small list of OTCs that Webull started trading in 2022.
Provides Competitive Fees and Rates
In these days of no commission trading, it’s easy to overlook the fees that brokers do charge. Webull allows traders to short, which is a minefield for these sneaky charges… But the 6.99% margin rate that most small-account traders will pay through the broker is quite reasonable.
Webull doesn’t charge commission fees on stock trades, like most brokers. One small difference between Webull and other brokers is that it doesn’t charge for options trades… Most brokers charge around $0.65.
Potential Drawbacks of the Platform
No stock broker is perfect, and Webull is no exception. Here are some drawbacks to consider before choosing the platform:
Limited Access to the Penny Stock Market
In June 2022, Webull changed its longtime policy and started to allow OTC stock trading on a very limited basis. This is a move away from similar major exchange-only brokers like Robinhood, but still only allows access to a small portion of the penny stock market.
You’re limited to just 200 of the most valuable OTC companies, all of which have a $5 billion or greater market cap. That means that most of these stocks aren’t penny stocks.
Complicated Penny Stock Trade Requirements
Since Webull’s OTC selection isn’t penny stock heavy, most penny stocks on Webull are on major exchanges. NYSE and Nasdaq both require the stocks they list to be over $1 per share — or risk being delisted — so we already know that the number of sketchy penny stocks on Webull is going to be limited.
Add in the penny stock buying requirements that we’ll cover below, and Webull complicates penny stock trading more than your average broker.
No StocksToTrade Integration
If you use StocksToTrade like me, you’ll want to integrate it with your broker and simplify your stock buying process. Unfortunately, Webull doesn’t offer StocksToTrade integration yet.
Penny Stocks on Webull Under $1
Most OTC stocks on Webull aren’t penny stocks, which cuts down on the majority of sub-$1 penny stocks. Due to the major exchanges’ listing requirements, most sub-$1 penny stocks on Webull are from companies in danger of being delisted.
Additionally, there are strict and complicated requirements for sub-$1 penny stock transactions:
- You can’t buy sub-penny stocks at all.
- You must buy at least 1,000 shares of stocks priced between $0.01 and $0.099.
- You must buy at least 100 shares of stocks priced between $0.10 and $0.99.
If you don’t want to fulfill these transaction minimums, there are no such requirements on penny stocks priced at $1 or more. And the minimums aren’t hard to hit — they start at $10 per order.
Why Buy Penny Stocks on Webull
Webull has many restrictions on penny stock trades, so why use this broker? I don’t discourage you from using Webull — it still has pretty good margin rates and the tools are powerful enough for some intermediate traders. You want the broker that works best with your trading style, whatever it is.
However, if you want to use StocksToTrade as your trading platform, you’ll need to look for another broker.
Want to try trading penny stocks with StocksToTrade? Sign up for a 14-day trial now and experience all of its features — only $7!
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5 Top Penny Stocks to Buy on Webull
My top Webull penny stock picks are:
- (NASDAQ: MMAT) — Meta Materials Inc. — The Pump All-Star Penny Stock
- (NASDAQ: SOBR) — Sobr Safe Inc. — The Exciting Tech Penny Stock Former Runner
- (NASDAQ: TBLT) — Toughbuilt Industries Inc. —The Recovered Reverse Split Penny Stock
- (NASDAQ: HUDI) — Huadi International Group Co. — The Low Float Energy Penny Stock
- (NASDAQ: HLBZ) — Helbiz Inc. — The Sub-Penny Meme Stock
Remember: This is a watchlist, not a buy list. I won’t trade these stocks unless they fit my preferred setups.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
1. Meta Materials Inc. (NASDAQ: MMAT) — The Pump All-Star Penny Stock
My first Webull penny stock pick is Meta Materials Inc. (NASDAQ: MMAT).
MMAT’s subsidiary ticker, Meta Materials Preferred Shares (OTCPK: MMTLP), was one of the biggest OTC stories of the past few months… until FINRA halted trading in this stock, as it fell to its lowest levels in 2 months.
MMTLP’s boosters are accusing FINRA of short seller collusion. But the only thing I see is these worthless shares getting saved from imploding even further.
Government regulators have been quiet on the future of MMTLP, but they recently dropped some news about MMAT’s predecessor, Torchlight Energy, which traded under TRCH. One of the stock’s promoters, who tweeted about a merger with Tesla while selling all his shares, was recently named in a $100 million lawsuit filed by the SEC.
What does this all mean? Just that MMTLP was a nest of promoters, and MMAT is never far from their stink…
And while I rip on the $COSM promoters, the $MMTLP promoters are even worse…when will people learn not to trust shady #Crypto & penny stock promoters? How many videos like https://t.co/KhqHFIwfik must I make? How many arrests like https://t.co/A3cHHNTxWJ must authorities make?
— Timothy Sykes (@timothysykes) December 9, 2022
Here’s the thing: I don’t care that MMTLP’s run was built on lies. I still made $4,144 in total earnings trading it. I actually like when a stock is being pumped as obviously as MMTLP was… I just don’t want newbie traders to buy into their lies.
MMAT gained 300% during MMTLP’s run. The pumpers didn’t ignore the parent stock… even if the short squeeze they were touting for MMTLP is far more unlikely with MMAT’s 320 million share float.
During the MMTLP promotion, several pumpers said that they were going to take their MMTLP profits and sink them all into MMAT. Could they be telling us their game plan for the next pump?
2. Sobr Safe Inc. (NASDAQ: SOBR) — The Exciting Tech Penny Stock Former Runner
My second Webull penny stock pick is Sobr Safe Inc. (NASDAQ: SOBR).
Here’s a penny stock that hasn’t been pumping, and it has the lame chart to show for it.
SOBR burst onto the scene in September, when a government report propelled it to a 300% rally. As usual, StocksToTrade’s Breaking News Chat had the scoop:
The best opportunity by far on $SOBR was yesterday's alert by @sttbreakingnews in the mid $1s before it spiked all the way to $4…now back down to the low $2s and anyone who bought too late & become #Hodlers has good reason to get drunk today to numb the pain (just don't drive!)
— Timothy Sykes (@timothysykes) September 21, 2022
Quick digression: if you want to trade hyped-up penny stocks like SOBR, you NEED a good news scanner. It’s rare to find one as discerning as Breaking News Chat, which is why I love it. When penny stock news breaks, time is of the essence — and Breaking News Chat is the way I get in early on so many good trades.
SOBR makes touch-based alcohol detection devices, and the government report hinted that these devices will one day go mainstream. Most of the other news SOBR has had since has dealt with small private contracts, checking the sobriety of employees who drive for a living or work in heavy industry.
This stock is trending below $1, and its float is less than 10 million shares. It’s shown a propensity for running, especially at this price level. Will it go on another run soon? I don’t know, but I won’t want to miss it if it does.
3. Toughbuilt Industries Inc. (NASDAQ: TBLT) — The Recovered Reverse Split Penny Stock
My third Webull penny stock pick is Toughbuilt Industries Inc. (NASDAQ: TBLT).
No, TBLT wasn’t worth $60 per share a year ago. It was just on its way to a 1-for-150 reverse stock split that happened in April… then it kept trending down, getting as low as $1.50.
Finally, in July, this stock showed some signs of life. It twice threatened to break above $10. It traded more than 60 million shares 5 times, which had a big effect on its suddenly small float.
What was the market excited about? This company started charting a course that showed real growth potential. The catalyst for its run was its impressive Amazon sales, but that’s just the tip of the iceberg. Its domestic and international e-commerce sales have put its growth rate ahead of some of its bigger competition.
Some traders also speculated about a short squeeze…
Then TBLT diluted, killing its summer momentum… But that only increased its float to 13 million shares.
It got another earnings bump in November. Now it’s trended back down. It still isn’t making money, but it looks like it’s setting up to.
The market wants to believe in this stock. Another positive move might set off a run.
4. Huadi International Group Co. (NASDAQ: HUDI) — The Low Float Green Energy Penny Stock
My fourth Webull penny stock pick is Huadi International Group Co. (NASDAQ: HUDI).
Here’s another feather in Breaking News Chat’s cap — HUDI’s 500%, two-day run in early November.
Back then, HUDI wasn’t a penny stock. It ran all the way from the mid-$20s to the low $190s on news that it was entering the clean energy sector.
The volume spike on its 3 million share float also gave it admission to a different sector — the low-float squeeze play.
— Timothy Sykes (@timothysykes) November 3, 2022
It quickly fell back to earth, helped in no small part by a $25 million new share offering. But I don’t care about its downward spiral over the past five weeks. What I care about is still there:
- Low float — even post-dilution, its has a float of 4 million shares
- Former runner
- Responds well to news
- Hot sector
Studying its chart would have given you a clue for its November run. In October, just two weeks before its big run, it spiked 125% on far less volume.
Then it gave most of its gains back the next day.
This is why you have to study charts to become a self-sufficient trader. HUDI’s news was the reason for its move, but its chart tells you how to trade it.
Putting this stock on your watchlist is what being prepared looks like.
5. Helbiz Inc. (NASDAQ: HLBZ) — The Sub-Penny Meme Stock
My fifth Webull penny stock pick is Helbiz Inc. (NASDAQ: HLBZ).
Right now, this stock is the cheapest on this watchlist…
That wasn’t so one year ago. One month after its IPO, this stock broke above $40. Now that it’s under $1, HLBZ’s September 2021 run seems like a fever dream.
That is absolutely NOT the lesson I want you to take from this watchlist pick. Don’t think of HLBZ as an “investment” that’s lost 99% of its value…
Think of it as the crappy penny stock it is — one that’s showed how much it can run.
My students know that former runners are a good thing. They want to see that a stock can capture the market’s interest…
They know to cut losses quickly, so they protect themselves from the downside of penny stock gravity. They don’t get the FOMO that penny stock newbies are affected with when they see a supernova they missed out on… They know that 99% of penny stocks will fail.
They also know that former runners can run again.
HLBZ has shown signs of life in recent months…
- In August, it ran 300% while trading 450 million shares over 3 days
- In October and November, it posted 100% gains on heavy volume
Those last two runs were in response to big capital infusions for this e-bike and food delivery company. If the market gets this excited about HLBZ raising more money — imagine when it has actual news to share.
Do you have any favorite stocks on Webull? Share with me in the comments!
Top Penny Stocks on Webull FAQs
What are the best penny stocks on Webull?
You can find my list of the best penny stocks on Webull above. Want more penny stock picks from me? Subscribe to my NO-COST weekly watchlist! You’ll receive my weekly penny stock picks so you can learn the process I follow when researching them.
As always, don’t blindly copy my list of penny stock picks — build your own. Do the research, create your own watchlists, and react to the penny stock market instead of predicting what will happen.
What are the cheapest stocks you can buy on Webull?
My list above contains some of the cheapest stocks you can buy on Webull. Since Webull doesn’t give you access to the cheapest OTC stocks, you’re left with the cheapest stocks on major exchanges — some of which are in danger of being delisted.
When a stock is delisted and Webull doesn’t add it to its OTC list, you can only sell your shares.
How do I make money on Webull?
You can make money trading penny stocks on Webull just like you can with any other broker. How you trade is the most important part — craft a good trading plan, outline your goals and risks, create a penny stock watchlist, and make sure your executions are precise.
Want to learn how to make money with penny stock trading? Apply for my Trading Challenge today!