Is Webull a Scam?
Have you considered opening an account with Webull? Maybe you’re wondering about Webull’s security and reliability? If so, we’ve done the research and have answers to your questions! You'll find out who owns Webull, its background, if it’s a legitimate brokerage, how your money and investments at Webull are protected, and more.
Is Webull Safe?
Webull is currently the fastest-growing discount broker, especially popular with younger and less experienced investors.
Many people see it as an alternative to Robinhood. Indeed, Webull offers useful features that Robinhood lacks, such as technical analysis and virtual trading. As a result, Webull may be better for more skilled and experienced traders.
Still, Webull has some drawbacks, mainly the inability to trade mutual funds or foreign stocks, which can be disappointing if you want a diversified portfolio at one broker.
If you’re mostly interested in stocks, options, and ETFs, Webull is a strong choice, especially if you plan to use their advanced trading and analysis tools.
You can also use Webull’s free stock promotion,
which guarantees at least one free stock valued up to $1,000. If your friends are interested in Webull, you can refer them and get free stocks as well. You might even get lucky. (But be aware, most of these stocks aren't worth very much.)
Is Webull Legitimate?
Webull Financial LLC is regulated by the U.S. Securities and Exchange Commission (SEC) and was established in Delaware in 2017. Its Reporting File Number is 008-69978.
Webull Financial LLC is also registered as a broker with FINRA, CRD# 289063.
Webull has no negative disclosures, which is always a good sign!
Overall, Webull is a legitimate brokerage firm focused on making investing easy for new investors. Webull now has over 24.9 million individual customer accounts.
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Is Webull Secure?
Webull doesn’t clearly provide details about cybersecurity on their website. Still, it would be very unusual if they did not use industry-standard encryption to secure customer data.
Is it Insured?
Regarding protection for your money, you’re in good hands with Webull. It’s a member of SIPC (Securities Investor Protection Corporation), which means your securities are protected up to $500,000, including up to $250,000 for cash. Webull’s clearing firm, Apex Clearing, also has additional insurance coverage for securities and cash up to a total of $150 million, with limits of $37.5 million for securities and $900,000 for cash per customer.
So, thanks to SIPC coverage, your investments and cash are as safe with Webull as with any major broker—maybe even safer because of the extra coverage from Apex Clearing.
Since Webull is not a bank, it isn't covered by the FDIC, which protects deposits at banks in the U.S.
Wrapping up: Is Webull a Scam?
To sum up, Webull is not a scam. Even though it's newer compared to some other brokers, your money is safe and insured through standard financial protection (SIPC).
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Webull Review 2026
Investing and Trading
Webull provides investment services in many countries around the world. It operates separate websites for customers in Indonesia, the United States, Canada, South Africa, Hong Kong, and more. The services available vary by country. This review covers Webull’s U.S. division.
Over the years, Webull USA has steadily added more types of investments to its platform. Today, the available products include:
- Event contracts
- Index and equity options
- Stocks (including OTC issues, ADRs, and REITs)
- Money market funds
- Treasury securities
- Futures
- ETFs
- Closed-end funds
Webull USA only allows trading in U.S.-listed and OTC stocks. It does not support trading on foreign exchanges, though some of Webull’s other country branches do let customers trade local stocks (such as Canadian or Australian stocks).
Besides self-managed trading, Webull also provides robo-advisory accounts that invest in ETFs. Webull Advisors partners with BlackRock to offer portfolios made of iShares ETFs. However, this service does not provide financial planning.
For both brokerage and managed accounts, Webull America offers various account types, including entity, retirement, joint, and individual accounts. To open an account at Webull USA, you need to have a residential address in the United States, but U.S. citizenship is not required. Other Webull branches have their own account rules.
To fully benefit from Webull’s services, a Premium subscription is needed, which comes with either a monthly or yearly fee.
Banking
Webull understands customers' cash needs, so it provides an FDIC-insured cash sweep for idle cash in brokerage accounts. Premium members earn 3.35% APY, while regular customers receive either 3% or 0.5%, depending on their balance.
A major limitation of Webull’s banking service is the lack of typical bank features. There is no debit card, nor does Webull offer checkwriting. However, Webull does offer three money market mutual funds, which can be a good choice for non-Premium customers who don't qualify for the 3.35% rate.
Customer Service
Customers can contact Webull support by email (support@webull.com) or by phone (888-828-0618). The mobile app (but not the other platforms) includes a virtual chatbot that can answer some basic questions. The chatbot stays accessible at the bottom of the app’s screen across all tabs (look for the floating Webull icon). You can request a human representative through the chatbot, but like phone support, human assistance is only available during standard business hours (8:30 am to 4:30 pm EST, Monday through Friday).
The mobile app includes a tool for uploading documents, which can be very useful at times. To find it, visit the Help Center (the chatbot can direct you there if you type or say 'Help Center').
Webull’s website also has its own Help Center. Simply click "Help" in the top menu. The site offers many FAQs, useful for both new and experienced customers.
Webull does not have any physical branch offices, which is its main disadvantage.
Website
Webull’s website advertises its trading services and includes a login option. After logging in, you'll see account-management tools and the web trading platform. During our test of this platform, we found several helpful features:
- Custom watchlists
- Multiple order entry tickets
- Paper trading for practice
- Charts with many useful tools
- Audio stock price quotes widget
- Morning briefing for upcoming market events
- Time & sales data
- Price ladder
- Order book
- Search tools for options, stocks, and Treasuries
Each stock profile contains detailed tabs. However, information can be limited for some Chinese stocks. U.S.-listed stocks typically include news articles, financial data and charts, analyst ratings, corporate events, press releases, and more.
Mobile App
Webull’s mobile app has similar features to the website platform, though it is not identical. The app offers many useful tools, but some features are missing. For example, the advanced OCO order ticket is no longer available.
However, the app includes a Feeds section, which the web version lacks. Feeds is a digital community board where customers can discuss individual investments and daily market news.
The app’s main menu is at the bottom of the screen. Tapping "Watchlists" displays the same lists as the web version.
Tap the Menu icon at the bottom right for additional tools. You'll find sections for OTC stocks, forex, voice quotes, screeners, alerts, Treasuries, event contracts, and more. Paper trading is also available.
Desktop Platform
Webull’s third trading platform is a desktop application. Available for Mac, Windows, and Linux, it includes a learning center with helpful articles and videos. Demo trading is also supported, along with custom layouts and hotkeys.
Charts on the desktop can be detached and viewed full-screen. Right-clicking on charts shows several options, including quick trade links, alerts, and charting tools.
Margin
Webull accounts can be set up as either cash or margin accounts. Margin accounts allow trading option spreads, buying stocks with borrowed funds, and short selling stocks. The cost of using margin is:
| Margin Loan | Premium | Non-Premium |
|---|
| Less than 25K | 5.45% | 9.74% |
| 25K to 100K | 5.25% | 9.74% |
| 100K to 500K | 4.7% | 9.74% |
| 500K to 1M | 4.65% | 9.74% |
| 1M to 10M | 4.45% | 9.74% |
| 10M to 25M | 4.4% | 9.74% |
| 25M+ | 4.15% | 9.74% |
Webull’s software clearly shows margin details for long and short positions. These details are shown on each stock’s profile. For McDonald's, we found these numbers:
| Maintenance requirement (long): | 25% |
| Overnight leverage (short): | 2 |
Day Trading
While Webull isn't usually the first choice for day traders, it does offer several helpful tools for short-term trading. Examples include:
Advanced Quotes: Premium members get free Level II quotes and real-time OPRA data.
Extended Hours: Webull lets customers trade during pre-market and after-hours sessions. It also offers overnight trading for select securities.
Shorting: Webull allows short selling. The Classic trade ticket has an orange Short button that appears only for margin accounts.
PDT Tools: Webull’s desktop and browser platforms have a widget that keeps track of day trades made.
Bracket Orders: Webull platforms let you attach stop-loss and take-profit orders to your entry order.
A drawback at Webull for margin traders is the absence of a tool for locating shortable stocks. Also, it does not offer direct market routing.
Fees and Minimums
Webull USA brokerage accounts have no minimum deposit requirement and no annual fees. Robo-advisory accounts have a $100 minimum deposit and a 0.20% yearly fee.
Webull customers pay no commissions for stocks, ETFs, closed-end funds, and equity options trades. However, large trades of stocks priced under $1 might incur an extra fee of 0.02¢ per share. Treasury securities trades cost 0.1% of the trade amount. Futures contracts cost between $0.05 and $1.00 per contract.
Premium subscribers get discounts on futures contracts and other services. Premium membership costs $3.99 monthly or $40 annually. Premium subscribers also get a 3% bonus on IRA transfers, which regular customers don’t receive.
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Extra Features
Initial Public Offerings: Webull lets customers buy shares of upcoming IPOs before they trade publicly. To access IPOs on the desktop platform, click "Markets" in the left menu and look for the IPO section.
Dividend Reinvestment Plan: Webull offers a free DRIP service for brokerage accounts.
Fractional Shares: Webull lets you trade stocks and ETFs in dollar amounts rather than whole shares.
Individual Retirement Accounts: Webull provides Roth, Traditional, and Rollover IRAs without annual or closing fees. Webull matches 1% on contributions, increasing to 3.5% for Premium members.
Fully-paid Securities Lending Program: Webull clients can earn extra money by lending their fully-paid shares.
Our Recommendations
Beginning Investors: Starting with a Webull Advisors account or practicing with paper trading in a self-managed account is a great approach.
Small Accounts: Webull is a solid choice for small self-managed accounts due to fractional-share trading and no fees. Robo investors also benefit from a low $100 minimum.
Active Stock Trading: Webull is an excellent choice for frequent stock traders.
Long-Term Investing & Retirement Planning: While Webull offers matches for IRA contributions and transfers, it lacks resources for long-term financial planning. We suggest Charles Schwab instead.
Mutual Funds: Charles Schwab is a good choice.
Webull Review Judgment
Webull has quickly grown from a simple app to a powerful investment platform offering numerous features. Both experienced traders and beginners can find excellent value here.
Updated on 6/20/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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