Is Webull a Scam?
Have you ever thought about opening a brokerage account with Webull? Maybe you’re curious about Webull’s
security and credibility? If so, we have done all the research and have the answers to your questions! You’ll learn about who owns Webull, its background as a company, whether it’s a legitimate brokerage firm, how your money and investments with Webull are insured, and more.
Is Webull Safe?
Webull is the fastest growing discount broker that have appealed particularly to younger and less experienced investors.
As such, many people consider it an alternative to Robinhood. Indeed,
Webull offers some compelling features that Robinhood does not, such as technical analysis and virtual
trading. Webull is thus better suited in many ways for more experienced and savvy traders.
That said, Webull has certain downsides, primarily the inability to trade mutual funds or foreign stocks, which may deter many investors who want to have a more diversified portfolio with just one broker.
If you’re primarily interested in trading stocks, options, and ETFs, Webull is a very good choice for you, particularly if you want to take advantage of their more robust trading and analysis tools.
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 happen to have a lot of friends interested in joining Webull, you can refer them and get free stocks too. And hey, you might just get lucky. (But you should know that most of the shares are not worth much.)
Is Webull Legitimate?
Webull Financial LLC is regulated by the U.S. Security and Exchange Commission (SEC) and incorporated in the state of Delaware since 2017. Their Reporting File Number is 008-69978.
Webull Financial LLC is also registered as a brokerage company with FINRA and its CRD# is 289063.
Webull does not have any disclosures there, which is always a good sign!
In short, Webull is a legitimate brokerage firm, with a focus on making investing accessible for new investors in particular. Webull had grown to over 24.1 million individual customer accounts.
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Is Webull Secure?
In terms of cybersecurity, Webull unfortunately does not have this information on their website. Nonetheless, it would be extremely surprising if they don’t use industry-standard encryption to protect customer data.
Is it Insured?
As for protecting your money, you are in good hands with Webull as it’s a member of SIPC (Securities Investor Protection Corporation). This means that your securities are covered up to $500,000, including up to $250,000 for cash claims. The broker's clearing firm, Apex Clearing, also maintains an additional insurance policy for securities and cash up to $150 million in total, with maximum limits of $37.5 million for any one client’s securities and $900,000 for cash.
So, thanks to SIPC coverage, your cash and securities are as protected with Webull as with any other
major broker. In fact, possibly even more so because to their additional insurance through Apex Clearing.
Also, as Webull is not a bank, it is not a member of the FDIC, which insures client deposits in American banks.
Wrapping up: Is Webull a Scam?
All in all, Webull is not a scam. Although relatively new as a broker compared to many more established players, your money is protected and insured through standard financial insurance (SIPC).
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Webull Review 2025
Investing and Trading
Webull offers investing services in many countries around the world. It has discrete websites for customers in Indonesia, the United States, Canada, South Africa, Hong Kong, and more. The range of available services varies by jurisdiction. This article will focus on the U.S. branch of Webull.
Over time, Webull USA has added more and more asset classes to its list of tradable products. Today, the cornucopia looks like this:
- Event contracts
- Index and equity options
- Stocks (including OTC issues, ADRs, and REITs)
- Money market funds
- Treasury securities
- Futures
- ETFs
- Closed-end funds
The American division of Webull only offers trading in U.S.-listed and over-the-counter stocks. There are no foreign exchanges, although some of the other national departments of Webull do offer trading in their respective countries' stocks (e.g., Canadian and Australian stocks).
Besides all the self-directed trading, Webull offers robo accounts that invest in exchange-traded funds. Webull Advisors is provided through a partnership with BlackRock, which results in portfolios of iShares funds. There is no financial planning through this advisory program.
Through both brokerage and managed programs, Webull America has several account registrations, including entity, retirement, joint, and individual. The U.S. branch of Webull does require a residential address in the United States to open an account, although U.S. citizenship is not required. The other branches have their own policies for account opening.
To get the most out of Webull, a Premium subscription is required, and this comes with a monthly or yearly fee.
Banking
Webull understands the cash needs of its customers, which is why it has rolled out an FDIC sweep on
uninvested cash in its brokerage accounts. Premium customers earn 4.1% APY,
while non-Premium customers get either 3.75% or 0.5%, depending on the balance.
The downside of Webull's cash-management service is the lack of banking features. There is no debit card,
and just forget about checkwriting. Webull does offer three money market mutual funds, which are a decent
alternative for non-Premium customers who can't get the 4.1% yield.
Customer Service
Webull customers can reach an associate through email (support@webull.com) or over the phone (888-828-0618). The mobile app, but not the other platforms, has a virtual chat bot that can answer some, but not all, questions. This widget stays at the bottom of the app across all tabs (look for the floating Webull icon). It is possible to bring a human rep on the line, although like the phone service, this option is only available during normal business hours (8:30 am, EST, to 4:30 pm, Monday through Friday).
Webull's mobile app has a document upload tool, which can be super helpful in some situations. To find it, go to the Help Center (the chat bot will take you there, just ask for it by typing or speaking 'Help Center').
Webull's website has its own Help Center. Simply click on the Help link in the top menu. There are many Frequently Asked Questions here, which are beneficial for both newcomers and veteran clients.
Webull does not have any branch locations, which is the primary downside here.
Website
Webull's website is used for advertising the company's trading service; there is also a login feature. Once inside, you'll find account-management tools and a web-browser platform. This last feature is very useful. During our test drive of the software, we found the following highlights:
- Custom watchlists
- Multiple order tickets
- Paper trading for extra practice
- Charts with all sorts of bells and whistles
- Widget for an audio stock price quote
- Morning brief for the day's upcoming market events
- Time & sales data
- Price ladder
- Order book
- Search engines for options, stocks, and Treasuries
Every stock has a profile with tabs with potential details. We say "potential" because some Chinese-listed stocks don't have a great deal of information. U.S.-listed equities will have news articles, numbers and graphs for financial statements, analysts' ratings, corporate actions, press releases, and much more.
Mobile App
Moving onto the mobile app, we find a similar, albeit not exact, situation. The app has a lot of great tools, although some features are missing. For example, an advanced order ticket with OCO orders has been removed.
But the app throws in a Feeds section, which is not available on the browser-based platform. The Feeds section is a digital community bulletin board that lets Webull customers chat about individual assets and the day's market news.
The bottom of the app contains the platform's main menu. The Watchlists icon will bring up the same lists that the web-browser platform has.
Tap on the Menu icon in the bottom-right corner and you'll get a page with all sorts of widgets. There are sections on OTC stocks, forex, voice quotes, screeners, alerts, Treasuries, event contracts, and more. Simulated trading is also a possibility.
Desktop Platform
Webull's third and final trading platform is a desktop program. Compatible with Mac, Windows, and Linux, the software includes a learning center with some helpful articles and videos. Demo trading makes another appearance, and this time custom layouts and hot keys can be used.
A chart on the desktop environment can be detached and displayed the full width of the computer screen. A right-click menu contains many choices, including trade links, alerts, and graphing tools.
Margin
A brokerage account at Webull can be established on a cash or margin basis. The latter setup can
trade option spreads, buy stocks with loans, and short stocks, too. The cost of using margin is:
| Margin Loan | Premium | Non-Premium |
|---|
| Less than 25K | 5.95% | 8.74% |
| 25K to 100K | 5.75% | 8.74% |
| 100K to 500K | 5.2% | 8.74% |
| 500K to 1M | 5.15% | 8.74% |
| 1M to 10M | 4.95% | 8.74% |
| 10M to 25M | 4.9% | 8.74% |
| 25M+ | 4.65% | 8.74% |
Webull's software displays margin details for both long and short positions. These data points are
displayed on a stock's profile. For McDonald's, we found the following numbers:
| Maintenance requirement (long): | 25% |
| Overnight leverage (short): | 2 |
Day Trading
Although Webull isn't always the first pick of day traders, it does offer some useful features for short-term trading. Examples include:
Advanced Quotes: Premium customers get Level II quotes and OPRA real-time data at no additional cost.
Extended Hours: Webull customers can trade in both pre-market and after-hours sessions. The brokerage firm also offers overnight trading in select securities.
Shorting: Webull permits short positions; its Classic trade ticket uses an orange Short button, which shows up only for margin accounts.
PDT Tools: Webull's desktop program and browser platform have a widget that tracks the number of day trades an account has placed.
Bracket Orders: On any Webull platform, stop-loss and take-profit orders can be attached to an entry order.
The one downside at Webull for margin traders is the lack of a short-locate tool. There is also no direct-access routing.
Fees and Minimums
A brokerage account at Webull USA comes with no account minimum and no annual fee. An automated account has a $100 minimum and costs 0.20% annually.
Webull customers pay no commissions on trades of stocks, ETFs, closed-end funds, and equity options. High-volume trades of equities priced below $1 can be subject to a surcharge of 0.02¢ per share. Treasury securities cost 0.1% of trade value. Futures contracts are anywhere from $0.05 to $1.00 per contract.
Premium customers can get discounts on futures contracts and all sorts of other services. A Premium membership costs $3.99 per month or $40 per year. A Premium subscription comes with a 3% bonus on all IRA transfers; this special is not available to regular customers.
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Extra Features
Initial Public Offerings: Webull traders can purchase shares of upcoming IPOs before they hit the secondary market. To find them on the desktop platform, click on the Markets tab in the left-hand menu and find the IPO window.
Dividend Reinvestment Plan: Webull has a free DRIP for brokerage accounts.
Fractional Shares: Stocks and ETFs can be traded in whole dollars at Webull.
Individual Retirement Accounts: Webull offers Roth, Traditional, and Rollover accounts with no annual or termination fee. Webull offers a 1% match on contributions, which increases to 3.5% for Premium customers.
Fully-paid Securities Lending Program: Webull customers can earn extra cash by loaning out their stock shares.
Our Recommendations
Beginning Investors: A Webull Advisors account is an excellent way to begin. Simulated trading in a self-directed account is a good idea, too.
Small Accounts: With fractional-share trading and no account fees, Webull is a good option for self-directed traders. With only a $100 minimum on the advisory side, robo investors have a good option, too.
Active Stock Trading: Webull is a very good pick for the frequent trading of equities.
Long-Term Investing & Retirement Planning: Although Webull does offer a match on IRA contributions
and transfers, it does not have great resources for long-term planning. We suggest
Charles Schwab instead.
Mutual Funds: Firstrade is a good choice.
Webull Review Judgment
Webull has grown from a small mobile app into a large investment powerhouse with a long list of features. Advanced traders and beginners alike can find a great value here.
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Updated on 5/20/2025.
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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