Webull (BULL): The Active Trader's Fortress
1. Executive Summary
Webull has successfully carved out a lucrative niche between the gamified simplicity of Robinhood and the clunky complexity of legacy brokers (Schwab/Fidelity). By prioritizing data density, advanced charting, and extended trading hours, it has captured the high-value "semi-professional" retail trader cohort.
Key Thesis Points
- ARPU Superiority: Webull users trade more frequently and with larger volume than the average neo-broker user, driving higher revenue per account despite zero commissions.
- Global Expansion: Unlike US-centric competitors, Webull has aggressively expanded into Hong Kong, Singapore, Australia, and Japan, diversifying its regulatory risk.
- Product Velocity: Rapid rollout of Futures, Options, and high-yield cash management accounts has created a sticky "financial super app" ecosystem.
2. Business Overview
Webull operates a commission-free brokerage platform available on mobile, desktop, and web.
- Core Product: Commission-free trading of Stocks, ETFs, Options, and OTC securities.
- Differentiation: Institutional-grade charting (Level 2 data, indicators) provided for free/low cost on mobile.
- Revenue Model: Primarily Payment for Order Flow (PFOF), interest on cash balances (Net Interest Income), and margin lending.
3. Financial Analysis
Webull's financials reflect a company in "Scale Mode".
- Revenue Growth: Triple-digit growth in international markets offsets maturing US growth.
- : High initial CAC (Customer Acquisition Cost) due to aggressive promotions (free stock), but high LTV (Lifetime Value) due to active trader retention.