At a time when the ETF market in Australia is undergoing rapid expansion, surpassing $200 billion in assets under management, growing by $20 billion year to date in 2024, Webull Australia has decided to put an end to commissions on ASX and US ETFs.
The removal of all brokerage fees on ASX and US ETF trades for Australian investors has no conditions and will be built into its local offering alongside Australian, US, and Hong Kong single stocks, which are free to trade for the first 30 days and can then be traded at the greater of A$4.90 or 0.03%.
This is not an introductory offer. Webull decided to waive fees for ongoing ETF transactions altogether, thus becoming the latest CHESS-sponsored broker to offer zero commission on ASX and US ETF trades.
Approximately half of the 2024 inflows to date have been directed to ASX-listed international equity ETFs. Many younger investors see ETFs as a way to more easily express and manage their thematic views, without having to stay on top of a large portfolio of individual companies.
“ETF holdings as collateral to trade local and international individual stocks”
Rob Talevski, CEO of Webull Securities Australia, said: “The rapid expansion of the ASX-listed ETF market is encouraging; furthermore, the diversity of US-listed ETFs has local investors equally excited. Beyond US index ETFs, traders can now access long and short US sector ETFs as well as long and short single-stock ETFs, offering the ability to leverage their exposure to stocks like Tesla, Nike, and Pfizer, using both long/bullish trades, or short/bearish trades.
“Not every trader or investor is built the same. Webull not only offers the best experience for those who want to learn, research and manage their global market exposure, but we also want traders to be able to mix their exposure to global themes-like ESG, AI, technology and precious metals-using ETFs, while using that base of ETF holdings as collateral to trade local and international individual stocks. Emerging investors, seeking the best neo-broking experience, love this concept, and we can offer them the best technology with no platform fees.”
Webull Australia went live with 24-hour trading
Webull has recently gone live with 24-hour trading, allowing Australian traders to access 197 of the most popular US stocks and ETFs between 10am and 5:58pm, which is set to be expanded to 900 US securities later this year.
US ETF trades completed during Australia’s daytime trading hours will also be fee-free, which breaks down the barriers that previously made trading US stocks and ETFs accessible only to those who were willing to watch US markets between 11:30pm and 6am, AEST.
Webull Securities (Australia) Pty. Ltd. holds an Australian Financial Services Licence (AFSL 536980) and is regulated by the Australian Securities and Investments Commission (ASIC).
The brokerage firm is a trading participant of both the Australian Securities Exchange (ASX) and Cboe Australia, and a principal member of the Stockbrokers and Investment Advisers Association. All client funds are held in client money trust accounts at an approved Authorized Deposit-taking Institution (ADI), and all Australian shares are CHESS-sponsored.
Webull launched its retail brokerage operation in Australia in late 2022.
Webull launched Moneybull for cash management
In late 2023, Webull Australia launched Moneybull, a cash management tool that offers Australian users a 5.4% yield on uninvested cash. Moneybull requires no sign-up costs, no management fees, and accepts a minimum deposit of just US$1.00.
Moneybull is designed to provide competitive returns on US dollar deposits through a USD money market trust fund. This offering is set to match or surpass the returns of many existing cash products from traditional brokers and banks. The returns from Moneybull are accrued daily and paid out monthly.
A unique feature of Moneybull is its auto-sweep function. This feature maintains the users’ purchasing power on the Webull platform. It allows for seamless settlement of trades using funds from the money market, eliminating the need for manual transfers. Additionally, this auto-sweep function can automatically invest idle cash into the money market fund, enhancing overall returns and asset growth.
