Webull, the US-based trading platform known for its low-cost model, has launched a range of mutual funds for UK investors using Individual Savings Accounts (ISAs) and Self-Invested Personal Pensions (SIPPs). The expansion marks a significant step for the fintech firm as it seeks to challenge established players in the UK's increasingly competitive retail investment market.
The new offering includes a selection of actively managed and passive index-tracking mutual funds, covering UK equities, global markets, and fixed income. Webull says the funds are designed to help investors diversify beyond individual stocks and exchange-traded funds (ETFs), which have been the mainstay of its platform since its UK launch in 2022. Users can hold these funds within tax-efficient wrappers, potentially reducing capital gains and income tax liabilities.
Industry analysts note that the move reflects a broader trend among digital brokers to cater to long-term savers, particularly those approaching retirement. “Webull’s entry into mutual funds for pensions and ISAs is a logical step as it tries to capture a slice of the UK’s £6 trillion savings market,” said one analyst. “It also puts pressure on incumbents like Hargreaves Lansdown and AJ Bell to justify their higher fees.”
For UK investors, the development means more choice and potentially lower costs. Webull already offers commission-free trading on UK and US stocks, and the addition of mutual funds could appeal to those who prefer a hands-off approach to building a retirement portfolio. However, investors should be aware that some mutual funds carry annual management charges and may have minimum investment thresholds.
The launch comes amid a wider regulatory push for better value in the UK investment industry. The Financial Conduct Authority has been scrutinising platform fees and fund charges, prompting many firms to simplify their pricing. Webull’s move could accelerate this trend, particularly for self-directed investors who manage their own pensions.
While Webull has not disclosed specific fund partners or fee structures, it has indicated that the mutual funds will be available without platform fees for existing users. The company is expected to release full details in the coming weeks. Source: Webull press release.