Robinhood vs WeBull: Which IRA is Best?

Both Webull and Robinhood offer a huge bonus for using their IRA's but which is best? And most importantly, which gives us the biggest bonus? It SEEMS like Webull giving us either 3.5% or 4.5% would be a bigger bonus than Robinhood giving us "just" 3%....but it's not that simple. Robinhood gives us all of the bonus up front within days of completing the transfer or contribution into the IRA. Webull on the other hand takes 5 YEARS to send the money over. So we had to do some spreadsheet math to verify which is best over the long haul!

2 Services I mention in today's video:

⏱Handy Timeline:
0:00 Robinhood vs Webull
0:18 Robinhood IRA details
3:12 RH early withdrawal penalty?!
4:53 RH IRA taxes
5:21 Webull IRA details!
9:40 Vanguard vs Webull vs M1 Finance vs Sofi vs Robinhood
11:11 Webull WORST feature of the IRA transfer bonus
11:35 Who ACTUALLY gives the biggest bonus??
15:35 Which would you choose?
15:43 You can have more than 1 IRA
16:26 Why I hold an axe at the beginning
18:06 Next videos

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#BrendanEvan
Disclaimer: Any financial or investing-related topics discussed on this channel are not from a professional investment advisor and are not financial advice for you. This is for entertainment and inspirational purposes only. My opinions are not reflective of the companies mentioned in the video. Also please know that many of the links I have in video descriptions like this one are affiliate links which means I may be compensated by the company whom you do business with at no extra expense to you. Thank you for your support!

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[christurner]

I started using Robinhood this year, it definitely has been working well for me. Webull just has too many hoops to jump through and seems just unnecessarily complicated. Love this video and your calculator explanations, I geek out over that stuff too

[natehighlander]

Webull sucks and isn't an American company. Obviously their 4.5 is very misleading when you read the fine print. Thanks for pointing this out to investors. Very valuable content here

[robyaggie]

I'm going with Robinhood because of the match going in right away, with me investing it asap. In the event that Robinhood and WeBull go belly up sometime during the next 5 years then I suspect my chance of keeping the match is better by having it upfront rather than as a promise from a defunct company.

[Cdix]

Quality content and commentary, subbed

[pm]

Webull is taxable. Webull can also claw back if you withdraw early, which means they charge you AFTER tax money, but your match was taxed. Therefore you could end up underwater w webull

For example say Webull gives you 1k, you pay taxes so only net, say, 600.
Later you withdraw early, triggering clawback, then they'll deduct 1k from your taxable acct. You're now 400 underwater

[doright]

Getting an upfront 6k bonus IRA match which I can earn an average of 1.5% per month compounding for 5 years, would be $8, 659 ROI + 6k RH match = $14, 659.
And that $60 annual membership fee for 5 years comes out to be $300. RH is a choice I would take. Of course for someone with 200k to transfer, that 6k is just a loose change.

[michaelyoung]

My biggest problem with Webull is that they are owned by the Chinese Communist Party. The bonus is great, but you might never see the money.

[garrettjensen]

Why is 5 years such a big deal? Do you plan on pulling out your money in your Ira before you retire? I don’t

[fuz]

I thought you were answering my question regarding the ax, but this happened 3 months ago! 😂😂

[johnsperry]

2 things for me -

1. I would have liked to see a comparison with continuous contributions to the accounts and also what if we can get the 4.5% bonus from referring somebody? Does it trump the RH offer or is still something to consider?

2. IMO, the RH promotion pairs well with their credit card since you can earn 3% on all your purchases with no cap limit and have it deposited directly to your IRA.

[wessywes]

Wouldn't the WeBull first bonus be paid out at the end of year one? Your calculator at 14:23 and the chart at 14:38 show it being paid out immediately. And the Robinhood one is the opposite, too.

[lisak]

Thank you for this breakdown. I was wondering, which one was better and now I know. Thank you!

[simplemathdude]

does robinhood offer cash sweeps within the IRA? or is that only for their taxable brokerage?

[pshilpareddy]

I just thought the axe is like, “listen to me or else”.. haha but that axe is really weird.

[Jukuuuuu]

i know everyone in different situations but i don’t mind holding for five years

[Aren-Tibbs]

I've had my Roth IRA and Vanguard for a couple of decades or so. I won't be moving. It is out of sight and out of mind. Every payday, a prorated amount is pulled from checking to get me to the legal limit every year. My problem with putting it in an investing app is that it would be tempted to look at it often and fiddle with it. Vanguard has an antiquated UX so it discourages fiddling.

[trev]

Why were you holding an Axe at the start? lol 😅😅😅

[printedmarble]

To be fair with that spreadsheet comparison, we’re ignoring inflation, over those 5 years the true value of that match is lessened which is something the calculation wasn’t taking into account.

[warsurplus]

Your M1 bonus analysis is way wrong. $250 is only one tenth of one percent of $250k, not one percent.. You're off by an order of magnitude.

[jeffanderson]

Please forgive my stupidity on this, but my brain just doesn't get it. If we have a lump sum Roth 401k for example, and we can get access to it due to the "Rule of 55" (no IRS penalty), why would we put on 5 year "handcuffs" from either of these? Why not do lump sum into 6 month CDs paying 5% +, then just roll them over every 6 months? This would provide MUCH better access with less time locked up. Seems like the compound effect would be better, but again, I feel stupid on this. Please tell me what I am missing.