Is Webull a Scam?
Have you considered opening a brokerage account with Webull? Maybe you’re curious about its security and credibility? We’ve done the research, and we have all the answers! Keep reading to learn about Webull’s ownership, its background, whether it’s a legitimate brokerage, how your money and investments are protected, and more.
Is Webull Safe?
Webull is the fastest-growing discount broker, particularly popular with younger and less experienced investors.
Many view it as an alternative to Robinhood. Webull offers features that Robinhood doesn’t, such as technical analysis and virtual trading. This makes Webull more suitable for experienced and savvy traders.
However, Webull has some limitations, such as the inability to trade mutual funds or foreign stocks, which may be a downside for investors looking for a broader range of investment options with one broker.
If your main interest is trading stocks, options, and ETFs, Webull is a solid choice, especially if you want access to more advanced trading tools and analysis.
You can also take advantage of Webull’s free stock promotion, which guarantees you at least one stock worth up to $1,000. If you have friends interested in Webull, referring them can also earn you free stocks. But keep in mind, most of the stocks you get are not very valuable.
Is Webull Legitimate?
Webull Financial LLC is regulated by the U.S. Securities and Exchange Commission (SEC) and has been incorporated in Delaware since 2017. Its SEC Reporting File Number is 008-69978.
Webull is also registered as a brokerage with FINRA, with the CRD# 289063.
Webull has no disclosures in its FINRA profile, which is a positive sign!
In short, Webull is a legitimate brokerage, focused on making investing more accessible, especially to new investors. Webull now has over 26 million individual customer accounts.
Is Webull Secure?
Unfortunately, Webull does not provide detailed information about its cybersecurity practices on its website. However, it’s safe to assume they use industry-standard encryption to safeguard customer data.
Is it Insured?
When it comes to protecting your money, Webull does a great job. It’s a member of the SIPC (Securities Investor Protection Corporation), meaning your securities are protected up to $500,000, including up to $250,000 for cash claims. Webull’s clearing firm, Apex Clearing, also provides additional insurance for securities and cash, covering up to $150 million, with maximum limits of $37.5 million for securities and $900,000 for cash per client.
Thanks to SIPC coverage and Apex Clearing’s additional insurance, your cash and securities are well-protected with Webull, possibly more so than with some other major brokers.
However, since Webull is not a bank, it is not a member of the FDIC, which insures deposits in American banks.
Wrapping up: Is Webull a Scam?
All in all, Webull is not a scam. Although it is a newer broker compared to many established firms, your money is protected by standard financial insurance (SIPC).
Webull Review
Investing and Trading
Webull operates in many countries, including Indonesia, the U.S., Canada, South Africa, Hong Kong, and others. The available services differ by region. This review focuses on Webull’s U.S. operations.
Over time, Webull USA has expanded the range of tradable products. Here’s what you can trade today:
- Event contracts
- Index and equity options
- Stocks (including OTC issues, ADRs, and REITs)
- Money market funds
- Treasury securities
- Futures
- ETFs
- Closed-end funds
The U.S. version of Webull only offers trading in U.S.-listed and over-the-counter stocks. There are no foreign exchanges available, although Webull in other countries offers local stocks (e.g., Canadian and Australian).
Webull also offers robo-advisory accounts that invest in ETFs. These accounts are powered by a partnership with BlackRock, using iShares funds. However, no financial planning is available through this service.
Webull provides a variety of account types, including individual, joint, retirement, and entity accounts. U.S. residents must provide a U.S. address to open an account, though U.S. citizenship is not required. Each branch of Webull may have its own account-opening rules.
To unlock the full Webull experience, a Premium subscription is required, which comes with a monthly or yearly fee.
Banking
Webull addresses customers’ cash needs by offering an FDIC sweep on uninvested cash in brokerage accounts. Premium members earn 3.35% APY, while non-Premium users earn either 3% or 0.5%, depending on the balance.
However, Webull’s cash-management service lacks features like a debit card and checkwriting. It does offer three money market mutual funds as alternatives for non-Premium customers who don’t get the highest interest rate.
Customer Service
Webull can be contacted by email (support@webull.com) or phone (888-828-0618). The mobile app has a chat bot for some inquiries, and you can also speak to a human representative during normal business hours (8:30 am - 4:30 pm EST, Monday through Friday).
The mobile app also features a document upload tool, which can be accessed through the Help Center. Similarly, the website has a comprehensive Help Center with FAQs, which are helpful for both new and experienced users.
Webull lacks physical branches, which is one limitation of its service.
Website
Webull’s website serves as the platform for trading services and managing accounts. The web browser platform is highly useful and includes tools such as:
- Custom watchlists
- Multiple order tickets
- Paper trading
- Charts with advanced features
- Audio stock price quotes
- Morning market briefings
- Time & sales data
- Price ladder
- Order book
- Search for options, stocks, and Treasuries
Each stock has its profile page, with available details like news, financial data, analysts' ratings, and more. Chinese-listed stocks may not have as much data available.
Mobile App
The mobile app mirrors the website but with some differences. Some features, such as advanced order tickets, are missing, but it includes a new "Feeds" section for community discussions about assets and market news.
The app’s main menu offers access to watchlists, widgets for options, forex, screeners, alerts, and simulated trading.
Desktop Platform
Webull’s desktop platform is compatible with Mac, Windows, and Linux, and includes a learning center with articles and videos. It supports custom layouts, hotkeys, and demo trading.
Charts on the desktop platform can be detached to display full-screen. The right-click menu offers various options, including trade links, alerts, and charting tools.
Margin
You can open a cash or margin account with Webull, and margin accounts allow you to trade with leverage. For example, you can short stocks or use margin to buy stocks. The cost of margin trading is shown in the following chart for McDonald’s:
| Margin Loan | Premium | Non-Premium |
|---|
| Less than 25K | 5.2% | 8.74% |
| 25K to 100K | 5% | 8.74% |
| 100K to 500K | 4.45% | 8.74% |
| 500K to 1M | 4.4% | 8.74% |
| 1M to 10M | 4.2% | 8.74% |
| 10M to 25M | 4.15% | 8.74% |
| 25M+ | 3.9% | 8.74% |
Webull displays margin details for both long and short positions on stock profiles.
Day Trading
Webull offers several features for day traders, including Level II quotes and extended trading hours.
However, Webull lacks a short-locate tool and direct-access routing, which could be limiting for some margin traders.
Fees and Minimums
Webull accounts have no minimum balance requirements and no annual fees. Robo accounts require a $100 minimum and cost 0.20% per year.
There are no commissions for trades of stocks, ETFs, closed-end funds, and equity options. Small trades of equities priced under $1 may incur additional charges.
Extra Features
Initial Public Offerings: Webull offers access to IPOs before they reach the secondary market.
Dividend Reinvestment Plan: Available for brokerage accounts.
Fractional Shares: Available for stocks and ETFs in brokerage accounts.
Individual Retirement Accounts: Webull offers Roth, Traditional, and Rollover IRAs.
Fully-paid Securities Lending Program: Available for Webull customers who want to lend out shares.
Our Recommendations
Beginning Investors: A Webull Advisors account is a great option to start investing.
Small Accounts: Webull’s fractional shares and low fees make it ideal for small investors.
Active Stock Trading: Webull is a great choice for frequent traders of equities.
Long-Term Investing & Retirement Planning: Webull offers IRA matches, but Charles Schwab is a better choice for retirement planning.
Mutual Funds: For mutual funds, consider Charles Schwab.
Webull Review Judgment
Webull has grown from a simple mobile app to a feature-rich platform suitable for both new and advanced traders.
Updated on 1/20/2026.
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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