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Fintech / BrokerageDigital Trading & Advanced Retail Finance•33 min

Webull Business Model: How an AI-Driven Zero-Fee Platform Captured the Advanced Retail Trader

How Webull challenged Robinhood by offering institutional-grade technical tools and 24/7 accessibility, building a high-margin data and credit engine.

Updated: 2026-06-21•Data as of 2026-06-21•By Litmus Research
Webull

Webull

Enjoy tech. Enjoy investing.

https://webull.com

Founded by

Wang Anquan (Fmr Alibaba Executive)

Public (Nasdaq: BULL) since April 2025

Founded

2017

HQ

St. Petersburg, FL / New York, NY

Team

1,000+

Revenue

$571M (FY2025, +46% YoY)

The Webull Story: The Graduate’s Choice

The Alibaba Foundation (2017)

Wang Anquan didn't start in finance; he started in technology at Alibaba and Xiaomi. He realized that while US retail brokers were becoming cheaper, they weren't becoming *smarter*. He founded Webull to build a "Smart" trading platform that felt like a professional Bloomberg terminal for everyone.

The Robinhood Counter-Strike (2018-2020)

When Robinhood was getting criticized for its "Confetti" and simplicity, Webull went the other direction. They launched with a 4 AM pre-market start and 50+ indicators. They targeted the user who felt "Insulted" by the simplicity of other apps.

The Level 2 Breakthrough (2021)

By offering free Level 2 data (the literal order book of the market) for 3 months to all new users, Webull triggered a mass migration of serious retail traders. They became the #1 alternative for anyone who wanted to "Actually trade" rather than just "Invest."

The Public Global Engine (2025-2026)

In April 2025 Webull went public on the Nasdaq (ticker BULL) by combining with the SK Growth Opportunities SPAC, capping its first full year as a listed company with $571M in revenue (up 46%). It now spans 26.8M registered users, 5.03M funded accounts, and $24.6B in customer assets across the US, Asia, Europe and beyond. By focusing on intelligence rather than simplicity, Webull built one of the stickiest user bases in the neo-brokerage world—though as a public company it now faces the same scrutiny over PFOF dependence and post-SPAC share-price swings that come with the territory.

How Webull Actually Makes Money

The Webull business model runs on the behavior of its chosen user. Because it targets the advanced, active trader rather than the buy-and-hold saver, it monetizes activity in three ways. First, payment for order flow (~45% of revenue): every commission-free trade is routed to a market maker that pays Webull a rebate, and active option-traders generate far more flow than casual investors. Second, margin interest (~30%): roughly 40% of Webull's users trade on borrowed money, and the firm charges 9-12% on those loans while funding them far cheaper — a classic spread business. Third, the growing asset-based lines (~25%): net interest on idle cash, the Webull Money card, and Level 2 data subscriptions. The first two lines explain both the 46% growth and the central risk — they are pro-cyclical and PFOF is squarely in the SEC's sights, which is exactly why the 2025 deposit push ($8.6B net) to build a durable asset base is strategically existential, not cosmetic.

Latest Updates (2026-06-21)

2025Reports FY2025 revenue of $571M, up 46% YoY (first full year as a public company)— Finviz / Webull IR
2025Funded accounts reach 5.03M; customer assets up 81% to $24.6B on $8.6B net deposits— CoinLaw / Webull IR
2026Q1 2026 revenue of $159.9M— Webull IR
2026Market cap ranges ~$2.5B-$3.7B amid post-SPAC volatility— CompaniesMarketCap / StockAnalysis

The Problem: Free Apps Were Too Dumb, Pro Tools Were Too Expensive

The Robinhood Ceiling

The zero-commission revolution made trading free, but it also made it shallow. Apps like Robinhood optimized for a beginner placing a single tap-to-buy order—no real charts, no order-book depth, no pre-market access. Serious retail traders quickly outgrew them and hit a wall.

The Terminal Tax

The professional alternative was a desktop platform like thinkorswim or a $24,000 Bloomberg seat—powerful, but built for institutions and priced accordingly. The ambitious retail trader who wanted Level 2 data and 50 indicators was stuck between a toy and a tank, with nothing in between.

The Global Access Gap

And outside the US, hundreds of millions of would-be investors had almost no low-cost route to trade US equities at all. A trader in Singapore or Tokyo who wanted Nasdaq exposure faced high fees, clunky local brokers, and limited hours. Webull's bet was that one platform could serve the advanced trader, at retail prices, anywhere in the world.

Key Metrics (FY24)

$571M (FY2025, +46% YoY)

Revenue

Profitable

Profit

26.8M registered; 5.03M funded accounts

Users

$24.6B customer assets (+81% YoY)

Daily Trades

Leader in advanced retail neo-brokerage

Market Share

The Solution: A Pro Terminal in Your Pocket

1. Institutional Tools, Retail Price

Webull gave away what used to cost money: 50+ technical indicators, free or cheap Level 2 (Nasdaq TotalView) depth-of-book, a paper-trading simulator, and extended hours from 4 AM to 8 PM ET. The pitch to the "graduate" of simpler apps was simple—trade like a pro without paying like one.

2. The PFOF + Margin Engine

Trades stay commission-free because Webull routes orders to market makers for payment-for-order-flow rebates. Because its users trade actively and trade options, revenue per user runs higher than a buy-and-hold app. The bigger profit center is margin: advanced traders borrow to trade, and Webull charges interest well above its cost of funds.

3. Software as the Lock-In

Once a trader spends hours configuring custom indicators, trend lines, and watchlists, the switching cost is enormous. The charting suite is the retention mechanism—far stickier than a price war.

4. Global Scale Over Fixed Tech

Unlike US-bound rivals, Webull spreads its fixed engineering cost across a global user base. One core team can support brokerage licenses across many countries, turning international expansion into a volatility hedge: when one market is quiet, another is trading.

Timeline

2017

The Founding

Wang Anquan, a veteran of Alibaba and Fumi Tech, launches Webull

2018

US Launch

Officially enters the US market as a zero-commission broker

2020

The Technical Pivot

Becomes famous for offering free Level 2 data, drawing users from Robinhood

2021

Funding Milestone

Raises ~$250M, expanding global presence at a multi-billion valuation

2022

Global Expansion

Launches across Japan, South Africa, and Southeast Asia

2024

Webull Money

Launches a high-yield cash management account and credit card

2025

Goes Public via SPAC

Combines with SK Growth Opportunities Corp to list on Nasdaq as BULL; posts $571M FY2025 revenue

How Webull Makes Money in 2026

Webull is a "free" brokerage that earns $571M of revenue (FY2025, +46% YoY) by monetizing the behavior of the active, advanced trader it deliberately targets. Because that user trades often, trades options, and trades on margin, Webull earns far more per account than a buy-and-hold app would.

Payment for order flow (~45%, est. ~$257M).

Every commission-free trade is routed to a market maker that pays Webull a rebate. Option order flow is especially lucrative, and Webull's power-user base generates disproportionate volume. This is the largest line — and the one most exposed to any SEC crackdown on PFOF.

Margin interest (~30%, est. ~$171M).

Roughly 40% of Webull users trade on borrowed money. Webull charges around 9-12% on those margin loans while funding them far more cheaply — a high-margin spread business that is the real profit engine.

Interchange and cash management (~15%, est. ~$86M).

Net interest on uninvested cash plus Webull Money card fees. This is the strategically important, fast-growing asset-based line.

Premium market-data subscriptions (~10%, est. ~$57M).

Monthly fees for Level 2 (Nasdaq TotalView), OPRA options data, and international feeds.

The PFOF and margin lines explain both the 46% growth and the central fragility: both are pro-cyclical. That is why the 2025 deposit drive — $8.6B net, lifting customer assets 81% to $24.6B — matters so much. Holding more of each user's balance builds durable, asset-based income to offset trading-dependent revenue.

Business Model Canvas

The Advanced Retail Trader

65%

Users who find Robinhood too simple and require technical indicators and Level 2 data

The Global Investor

25%

Users in Asia and Europe looking for low-cost access to US markets

Small-scale Arbitrageurs

10%

Traders using Webull’s extended hours (4 AM - 8 PM) to play market news

Full Technical Suite

One of the best mobile charting experiences with 50+ technical indicators and 12+ drawing tools

Extended Hours Trading

Trade from 4 AM to 8 PM EST, capturing global news cycles before the bell

Free Level 2 Data

Institutional-grade depth of book (Nasdaq TotalView) often offered for free or low cost

Zero Commission & No Minimums

Removing the entry barrier for high-frequency retail trading

Payment for Order Flow (PFOF)
45%(~$257M est.)

Rebates from market makers for routing equity and options order flow — the largest and most SEC-exposed line (split estimated against $571M FY2025 revenue)

Interest on Margin Loans
30%(~$171M est.)

Interest (~9-12%) charged on borrowed trading capital — the high-margin engine of the advanced-trader base

Interchange & Cash Management
15%(~$86M est.)

Net interest on uninvested cash plus Webull Money card fees — the growing asset-based line

Premium Market Data Subs
10%(~$57M est.)

Monthly fees for Level 2 (Nasdaq TotalView), OPRA, and international data feeds

Customer Acquisition45%

Highest spend on free stock incentives and influencer payouts

Platform Engineering25%

Developing heavy technical charting and low-latency infrastructure

Operations & Compliance20%

Managing global licenses in 5+ countries

Customer Support10%

Support for high-frequency, complex trading inquiries

Growth Strategy: Deposits, Wealth, and New Markets

1. Capturing Assets, Not Just Trades

The most important 2025 number wasn't revenue—it was the $8.6B in net deposits that pushed customer assets up 81% to $24.6B. Webull's growth thesis is shifting from pure trading volume to holding more of each user's balance, which makes revenue less hostage to market sentiment.

2. Moving Up the Wealth Stack

Webull is layering managed and cash-management products (Webull Money, advisory tools) on top of self-directed trading to capture the "lazy money" its active traders leave idle. Recurring, asset-based revenue is more durable than transactional PFOF.

3. Going Wider Geographically

With its global infrastructure, Webull keeps extending into new markets, offering hundreds of millions of international retail traders a low-cost bridge to US equities. Each new jurisdiction reuses the same tech stack, so incremental margins are high.

Competitors

WebullMarket Leader
Users: 26.8M registered; 5.03M funded accounts
Fee: ₹0 / ₹20
Robinhood
Users: 24M+
Fee:
Strength: Mass-market UI, first mover in zero-fee; ~5x Webull's funded base
Weakness: Deliberately simple — lacks the Level 2 data, 50+ indicators and 4 AM hours that win Webull's power users
TD Ameritrade (thinkorswim)
Users: Legacy millions
Fee:
Strength: The benchmark for pro-retail desktop software
Weakness: Now folded into Schwab; desktop-first and not the global, mobile-native, free-data experience Webull offers
ETrade (Morgan Stanley)
Users: Millions
Fee:
Strength: Legacy trust and deep banking integration
Weakness: Older platform and audience; weak with the young, active, technical trader Webull targets
Interactive Brokers
Users: 2.5M+
Fee:
Strength: Lowest margin rates in the world and pro-grade global access
Weakness: Steep learning curve; loses the retail "graduate of Robinhood" Webull captures with friendlier UX

The Competitive Moat: Software Stickiness

1. The Charting "Investment"

Once a trader has spent 100 hours setting up their custom indicators, trend-lines, and watchlists on Webull, they are almost impossible to churn. The software is the retention mechanism.

2. Regulatory Versatility

Webull has mastered the "Global Launch" playbook. They can enter a new country and be fully licensed and integrated into local banking rails within 6 months—a speed that traditional banks find impossible.

3. Community Sentiment

The Webull social board is one of the densest sources of retail crowd sentiment anywhere, letting Webull read trends before they hit the headlines and keeping users in-app between trades.

4. The PFOF Dependency Risk

The flip side of Webull's model is its biggest vulnerability: a large share of revenue still comes from payment-for-order-flow and margin interest. Both are sensitive—PFOF to any SEC crackdown, margin to the rate cycle and to bear-market risk appetite. That is why the 2025 push to capture deposits ($8.6B net, lifting customer assets 81% to $24.6B) matters so much: holding more of each user's balance is how Webull diversifies away from pure trading revenue and earns a more durable, asset-based income.

Webull vs Competitors

Webull vs Robinhood

Webull wins for the advanced active trader; Robinhood wins for beginners and brand reach.

DimensionWebullRobinhood
Target userAdvanced / active tradersMass-market beginners
Tooling50+ indicators, free Level 2, 4 AM pre-marketSimple tap-to-trade UI
Top revenue linePFOF (~45%) + margin (~30%)PFOF + Robinhood Gold + net interest
FY2025 revenue$571M (+46%)Higher absolute revenue, broader product set
GeographyUS + Asia + EuropeUS-centric (UK entry)

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Litmus Score Comparison

Overall 89 vs 82
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75
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84
Full Webull vs Robinhood comparison

Webull vs eToro

Webull is the charting-first power-trader platform; eToro is the social/copy-trading leader.

DimensionWebulleToro
Core hookPro charting + Level 2 dataCopyTrader social investing
Main revenuePFOF + margin interestBid-ask spread (~70%) + crypto fees
Funded accounts5.03M4.02M funded (38M registered)
StatusPublic (Nasdaq: BULL)Public (Nasdaq: ETOR)

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Litmus Score Comparison

Overall 89 vs 89
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84
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87
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Full Webull vs eToro comparison

Webull vs Interactive Brokers

IBKR is the global pro/institutional standard; Webull is the mobile-first power-retail challenger.

DimensionWebullInteractive Brokers
AudienceAdvanced retail, mobile-firstProfessional & institutional traders
Market accessUS equities focus, growing global150+ markets worldwide
Revenue modelPFOF + margin + data subsCommissions + heavy net interest income
PFOFYes (~45% of revenue)IBKR Pro avoids PFOF

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Litmus Score Comparison

Overall 89 vs 91
95
90
93
95
91
80
96
91
84
98
90
93
87
91
82
81
85
96
Full Webull vs Interactive Brokers comparison

SWOT Analysis

Strengths

  • FY2025 revenue $571M (+46%) and profitable, with 26.8M registered / 5.03M funded accounts
  • Pro-grade charting (50+ indicators, free Level 2) makes the "graduate of Robinhood" base sticky — config is the switching cost
  • Global multi-market footprint (US, Asia, Europe) spreads fixed tech cost and hedges single-market volatility
  • High-margin margin-loan book (~9-12% interest) earns far more per active trader than a buy-and-hold app
  • Net deposits of $8.6B in 2025 lifted customer assets 81% to $24.6B, building an asset base beyond pure trading

Weaknesses

  • •~45% of revenue is PFOF — a single SEC ban (as floated for the industry) would gut the largest line
  • •Revenue is pro-cyclical: margin interest and trading volume both fall in a bear market
  • •"Trader" brand limits inflow of passive savings the way a neobank or robo captures it
  • •Post-SPAC (Nasdaq: BULL) share price has swung hard (~$2.5B-$3.7B market cap), raising the cost of equity

Opportunities

  • Convert the $24.6B asset base into recurring advisory and cash-management revenue, away from PFOF
  • Expand Webull Money (cash + card) to capture the idle balances active traders leave behind
  • Extend into new jurisdictions (India, Middle East) reusing the same global tech stack at high incremental margin
  • License the charting UI as a B2B product to legacy banks and brokers

Threats

  • !An SEC ban or cap on PFOF would directly hit the ~45% revenue line
  • !A rate-cut cycle compresses both margin-loan spread and cash net interest
  • !A retail-volume downturn shrinks the trading activity the model depends on
  • !US-Asia geopolitical friction could disrupt Webull's cross-border operations and data ties

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Litmus Framework Analysis

customer Segment95%

The "Semi-Pro" Retailer.

value Proposition93%

The Desktop in a Pocket.

marketing Channel91%

Educated Influencer Engine.

engagement96%

Habitual Utility.

income Source84%

Volume and Leverage Driver.

asset Validation90%

Proprietary Software Moat.

core Operations87%

Lean Global Machine.

strategic Alliance82%

Data and Clearing Synergies.

expense Validation85%

Managed Aggression.

product90%
market92%
team88%
financials85%
competition84%

Lessons for Founders

1. Target the "Power User"

In a crowded market, don't build for the average. Build for the expert. If you win the power users, the average users will follow because they want to use what the "Pros" use.

2. Feature Parity is a Loss, Feature UX is a Win

Robinhood and Webull both have stock quotes. But Webull’s *presentation* of the quote (charts, Level 2, depth) makes it a different product entirely.

3. Extended Availability is a Moat

If you allow your users to act first (Extended hours), they will stay with you. Speed and accessibility are the primary currencies of finance.

4. Build Globally from Day One

Webull didn't wait to dominate the US before looking at Asia. By building a global infrastructure, they built a "Volatility Hedge"—if the US market is down, the Asian markets are still generating fees. Critically, each new jurisdiction reuses the same core tech stack, so the incremental margin on a new market is high — geographic expansion is a margin lever, not just a growth one.

5. Know When Your Best Revenue Is Also Your Biggest Risk

PFOF and margin interest made Webull's ~46% growth possible — and they are exactly what could break it. Both are pro-cyclical and PFOF sits in the SEC's crosshairs. Webull's response is the lesson: it is using the strength (a large, active, depositing user base) to fund the fix (an $8.6B deposit drive building $24.6B of asset-based balances). Founders riding a lucrative but fragile revenue line should harvest it deliberately to bankroll a more durable one before regulators or the cycle force the issue.

6. A Niche Wedge Can Be a Mass-Market Door

"The graduate of Robinhood" sounds like a small target. But by owning the power user, Webull earned the credibility that pulls in the next tier of trader, then used the trust and the asset base to move up the wealth stack with Webull Money. Start narrow enough to be clearly the best at something, then widen from a position of authority rather than trying to be everything at launch.

Key Takeaways

1

Webull is the platform of choice for advanced retail traders who need pro-grade charting, Level 2 data, and extended hours.

2

Revenue ($571M FY2025, +46%) is driven by PFOF, options routing, and a high-leverage margin book.

3

Its "graduate strategy"-capturing users who outgrow simpler apps-built a high-retention, high-LTV base; software config is the moat.

4

Going public via SPAC (Nasdaq: BULL) in 2025 exposed Webull to scrutiny over PFOF dependence and share-price volatility.

Frequently Asked Questions

How does Webull make money?
Webull earns $571M (FY2025, +46% YoY) from three main engines: payment for order flow (~45% of revenue), margin interest of roughly 9-12% on the ~40% of users who trade on borrowed money (~30%), and a growing asset-based block of net interest on cash, Webull Money card interchange and Level 2 data subscriptions (~25% combined). Trading itself is commission-free.
Does Webull use payment for order flow?
Yes. PFOF is Webull's single largest revenue line, estimated at ~45% of FY2025 revenue. Every commission-free trade is routed to a market maker that pays Webull a rebate, with options flow being especially lucrative. This dependence is also Webull's biggest regulatory risk if the SEC restricts PFOF.
Is Webull owned by a Chinese company?
Webull was founded in 2017 by Wang Anquan, a former Alibaba and Xiaomi executive, and its parent (Fumi Technology) has Chinese roots, which has drawn geopolitical and data-privacy scrutiny. Since April 2025 Webull Corporation trades publicly on the Nasdaq (ticker BULL) after combining with the SK Growth Opportunities SPAC.
Is Webull profitable?
Webull is a public company (Nasdaq: BULL) reporting $571M in FY2025 revenue, up 46% YoY, on a base of 5.03M funded accounts and $24.6B in customer assets. Its high-margin margin-lending book supports profitability, though results are pro-cyclical because both PFOF and margin interest rise and fall with trading activity.
Webull vs Robinhood: which is better?
Webull targets the advanced, active trader with pro-grade charting, 50+ indicators, free Level 2 (Nasdaq TotalView) depth and 4 AM pre-market access, while Robinhood optimizes for beginner simplicity. Both rely heavily on PFOF and margin, but Webull positions itself as "the graduate's choice" for traders who outgrow simpler apps.
How many users does Webull have?
Webull has 26.8M registered users and 5.03M funded accounts, holding $24.6B in customer assets after an 81% jump driven by $8.6B of net deposits in 2025. Capturing those deposits is central to its strategy of shifting from trading-dependent revenue toward durable asset-based income.
Why does Webull push so hard for deposits?
Because PFOF and margin interest — its two biggest lines — are pro-cyclical and PFOF is in the SEC's sights. By attracting $8.6B in net deposits and lifting customer assets 81% to $24.6B in 2025, Webull builds net-interest and cash-management income that does not depend on how much users trade, making revenue more durable.

Explore the Framework

Dive deeper into the Litmus modules most relevant to Webull business model:

Engagement

Build onboarding, retention, and habit systems that keep users active and loyal.

Customer Segment

Define who your startup serves and how to validate the right early audience.

Value Proposition

Craft an offer that creates clear, defensible value for the market you want to win.

Marketing Channel

Choose and scale the acquisition channels that match your market, margin, and stage.

External Resources

Webull Official Website

https://webull.com

Webull on Wikipedia

Background, history, and key facts

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