Webull Debuts Cryptocurrency Service in Australia to Compete with Established Players

On Wednesday, U.S. trading application Webull began offering crypto services to Australian users, presenting hundreds of digital assets in a move that experts believe will compel local exchanges to lower fees or face customer losses.

Through Coinbase Prime, Webull now adds Australia to its list of crypto markets, which already includes the U.S. and Brazil, promising a competitive 30-basis-point spread, as noted in a release.

Experts in the industry believe this new entry will create competitive pressures within Australia’s cryptocurrency exchange landscape, where fees have largely remained high in contrast to international markets.

Pratik Kala, the head of research and portfolio manager at Apollo Crypto, told Decrypt that “Australian exchanges have significantly higher fees and spreads compared to their international counterparts; in some instances, the spread is more than double even for popular pairs like Bitcoin and Ethereum.”

“Local exchanges typically list a limited selection of coins—Webull aims to enhance options for Australians with 240 coins,” he stated, anticipating that this competition will “broaden choices for Australians.”

Webull announced on Monday that it has resumed crypto trading in the U.S. following a pause in 2023 during its public offering, which CEO Anthony Denier described as a commitment to a “full-throttle” global expansion in digital assets.

James Volpe, founding director of uCubed, informed Decrypt that Webull will contend with “established competitors in Australia who are likely to strive vigorously to maintain their market presence.”

“Competition in such a nascent market typically fosters competitive fee structures and additional features for users,” he added.

He noted that new players “elevate the standards for incumbents,” leading to reduced fees and improved user experiences, while emphasising that “the critical focus” for investors should be understanding the risks associated with custody and centralized platforms.

“The significant obstacle,” he continued, “is the ongoing shift towards non-custodial and decentralized solutions, which empowers users to control their identity, manage their assets, and minimize trading costs.”

Despite these challenges, he acknowledged, “while institutional backing and infrastructure from Coinbase may offer an advantage, success hinges on establishing trust and showcasing value in an increasingly sophisticated market.”

Webull facilitates trading through personal accounts, SMSFs, trusts, and corporate structures, integrating crypto into traditional investment frameworks with round-the-clock customer support.

Volpe stated that this could enhance the role of crypto in wealth management; however, “true inclusion” relies on factors like “education, regulation, and investor faith.”