Why are Stock Prices Different on Robinhood and Webull?

Why are stock prices different on Robinhood and Webull? This is what we will discuss in this article. Stock prices are costs given to each share issued out by a publicly trading establishment which varies from one platform to another, such as Robinhood and Webull.

Stock Prices Different On Robinhood and Webull
Photo credit: Warrior Trading

8 Reasons why Stock Prices are Different on Different Platforms

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Stock prices usually differ when comparing one trading platform to another. Below are some of the reasons for these changes.

1. Liquidity

The level of liquidity of a specific stock on one trading platform could be far different from that of another, leading to a price change in stock. Comparing the liquidity available would show you the difference in price from diverse platforms.

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2. Amount of Trades

The changes attributed to a specific stock price on a different platform are mostly caused by the number of trades conducted. A specific platform may experience more trading activities than others, leading to this price change.

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3. Fees

Another reason why a stock price will appear different from many platforms is a result of the fees charged on these platforms. Some platforms charge more on transactions, thereby increasing fees in concluding a trade.

4. Volume

The volume of stock trades conducted on a specific platform could affect the stock price difference between this platform and others.

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5. The Previous Trading Price

Most times, the stock price differs on a different platform because of the last traded price. Normally when a trader enters a specific stock market, they will have to start from the previous traded price, which will differ depending on the transaction amount.

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6. Demand and Supply

The level of demand and supply of a specific stock would affect the stock’s price on multiple platforms. Once there is much demand for a specific stock, the price would certainly go up, and once there’s much supply, the price will decrease.

7. The Trading Time Chart

Most charts depend on timing, which further leads to changes in price on different platforms. A specific platform’s chart may be faster than others, leading to this price difference.

8. The Time Spent In Matching Buyers and Sellers

One of the reasons why stock prices differ on different platforms is the time spent matching buyers and sellers. This occurs on different platforms and significantly affects the stock price on these platforms.

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Why are Stocks Prices Different on Robinhood and Webull

The reasons why stock prices are different on Robinhood and Webull are due to liquidity and volume. The liquidity level, which involves how shares of a stock are being sold and bought, is a major reason why stock prices on different platforms such as Robinhood and Webull are not the same.

Also, the volume of stock trades conducted on these platforms is another reason their prices may differ. Once there are many trading activities on Robinhood, the price of a specific stock cannot be relatively the same in Webull if fewer trades are conducted at a specific time.

Does Webull Give More Margin than Robinhood?

Currently, Webull and Robinhood offer investors and traders access to margins trading. Webull offers access to margins trading at the interest rate of 6.99% for accounts under $25,000 and 3.99% for their accounts above $3 million.

However, Robinhood offers margin trading to those investors and traders that pay a monthly fee of $5 on Robinhood Gold and further offers its rates starting from 5%. According to reviews, Webull offers more margin with traders allowed 4X day trading buying power with a 2X overnight buying power on their margin account.

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Robinhood and Webull are two of the many platforms where stock prices are different. These changes happen due to some factors, including liquidity, demand and supply, and the volume of stock trades on either of these platforms.

After doing enough research, investors can consider using the platform best suited for their trades. We hope this article will provide you with reasons for the changes in stock prices on multiple platforms. Kindly visit our comment section for all your views and opinions.

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