The online stock trading platform Webull, which is gaining popularity among global individual investors based on its commission-free policy, is entering the domestic securities market in Korea. Consequently, there are concerns that individual investors who currently invest in the U.S. stock market through domestic securities firms might switch to Webull.
According to financial investment industry sources on March 19, Webull is currently coordinating licensing with the Financial Supervisory Service and domestic securities firms. Founded by Wang Anquan, a former Alibaba Group Holdings executive, in 2017, the fintech company Webull has been expanding globally since 2020, starting with Hong Kong and subsequently targeting markets in Singapore, Australia, South Africa, Japan, the U.K., Indonesia, Canada, and others.
If Webull obtains approval from the authorities, it would become the first case of a foreign securities firm obtaining a brokerage license for individual clients in Korea.
The reason Webull, along with Robinhood, has been favored by individual investors in the United States is its “commission-free policy.” Most trading fees, including those for stocks, exchange-traded funds (ETFs), and options, are free, with only a small fee charged when selling stocks. Thanks to this policy, Webull’s trading volume reached US$370 billion last year.
Domestic brokerage firms, which primarily operate in brokerage services domestically and have a significant market share in overseas stock markets, could be directly or indirectly impacted by Webull’s entry into the Korean market.
However, there is also an opinion that investors may not necessarily leave their existing brokerage firms to use Webull but rather stop at opening a new mobile trading service (MTS) account. It is evaluated that it may take a long time for Webull to firmly establish its presence in the domestic market solely with its commission-free policy.
A securities industry official stated, “While Webull’s commission-free policy could pose a threat to domestic brokerage firms, we cannot be 100 percent certain whether it will maintain the policy in the domestic market. We should wait and see over time until it officially enters the domestic market.”
Meanwhile, Webull is scheduled to be listed on the NASDAQ in the second half of this year through a SPAC listing, according to The Wall Street Journal. Webull is valued at US$7.3 billion.