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Anthony Denier is the Group President of Webull Corporation, a $7 billion global investment platform serving 20 million users in over a dozen countries. They transact $2-2.5 billion in equity daily and are one of the top retail brokerages in the US in both trading volume and options market share.
In this episode, we discuss:
What it takes to be a great trader on and off the trading floor
“On a trading floor, things happen quickly, it's fast motion, there's a lot of money involved, there's a very high stress environment. You can't take the time to describe tiny nuance in a conversation.”
To thrive on the trading floor you need two things: exceptional interpersonal skills and the ability to distill complex information into clear, concise explanations. Traders must quickly empathize with clients and understand their needs and objectives. Having the ability to connect and communicate quickly becomes crucial in high-stakes, fast-paced environments. Additionally, the ability to distill complex information into clear, concise explanations is essential. On the trading floor, where every second counts and stress levels are high, traders must be able to convey nuanced details quickly and efficiently.
How technology, client demands, and regulation transformed the trading industry in the last two decades
“We have over well over 40 million downloads, we have 15 offices with 13 operating broker dealers. We transact in any given day, north of, two to two and a half billion dollars of equity. That's probably north of 300 million shares per day, every day.”
Over the past two decades, client demands for lower costs and increased efficiency have driven significant changes in the trading world. Most clients now prefer electronic communications over phone calls or traditional methods. At the same time, regulatory changes, such as the separation of research, investment banking, and the reduction of trading fees, have pushed profit margins even lower. This bifurcation has made it challenging to maintain profitable client relationships and has led to a substantial reduction in the number of traders employed on trading floors. Additionally, the rise of technology, particularly the advent of algorithmic trading, has led to most traders having to transition from high-touch, personalized telephone interactions to electronic trading that offers near-instant execution and cost savings.
In light of a shifting trading ecosystem, Webull capitalized on a unique market position, bridging the gap between legacy platforms like E*TRADE and Thinkorswim, which catered to sophisticated traders tired of high commissions, and the newer, simpler platforms like Robinhood, which attracted users seeking zero commissions but lacked advanced tools. By offering a more sophisticated, zero-commission platform, Webull attracted both experienced traders from traditional platforms and users who had outgrown Robinhood’s simplicity.
Why Webull decided to expand beyond the US, making a big push in places like Latin America and Asia
Investors around the world are looking to invest in globally recognized US companies like Microsoft, Nvidia, and Meta. Webull aims to capitalize on this demand by providing access to US securities for international investors and is pursuing an aggressive global strategy to meet the growing desire from retail investors worldwide for cross-border investment opportunities.
Perhaps the region that has Anthony the most bullish is Latin America, particularly Brazil and Mexico, since it presents significant growth opportunities due to its expanding middle class and increasing wealth. As a major tailwind, the regulatory environment in Brazil has become increasingly favorable for foreign brokerage firms, which has allowed Webull to enter the market recently. Similarly, Mexico's phenomenon of "northbound money"—capital flowing from Latin America to the US for greater stability—creates a fertile ground for companies like Webull.
Webull’s plan to go public via a $7 Billion SPAC… and a lot more!
"Going public via SPAC gives us that control, where not only can we agree on a valuation at the beginning of the process, and then let investors decide at the end, whether that's an appropriate valuation, we can also have more control over the timeframe that we have with managing the investor expectations, road showing, etc."
While going public via a SPAC is out of favor, Webull recently decided to pursue this structure for their own public listing. Anthony explained that Webull opted for a SPAC to gain greater control over the public listing process, as opposed to the traditional IPO which places significant decision-making power in the hands of investment bankers and large institutional investors. The SPAC route has allowed Webull to set its valuation upfront and closely manage the investor engagement timeline. Additionally, in a market environment that’s less receptive to traditional IPOs, by choosing a SPAC Webull hopes to navigate their listing process more smoothly.
Anthony’s Podcast Recommendations
Fintech Leaders Podcast (thanks for the plug, Anthony!)
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Anthony Denier, President of Webull - Building a $7Bn Disruptor, Expanding US Markets Access Globally, What Makes a Great Trader