Webull AUM

Webull Assets Under Management (AUM) in 2024

Webull total assets under management (custody). Webull AUM and number of customers (user accounts).

Webull Assets Under Management (AUM)

Webull Financial is a fast-growing company in the world of online trading. The ultra-low-cost broker offers $0 commission on all products. So how many customers and how much in total assets under management does Webull have?

While the company released very few specifics about its operations, we can confidently assume that Webull has over 19 million users globally.

Webull's assets under management are around $57 billion.

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How Many Users Does Webull Have?

The total number of users Webull has is 19 million.

Webull Average Account Size

The average account size at Webull is calculated by taking total AUM ($57 billion) and dividing it by the number of customers (19 million) which equals $3,000.

How Does Webull Make Money?

You would certainly not be alone if you have ever wondered how zero-commission brokers make their money. At first glance, the 'free trading' on offer makes it seem like the broker doesn't make any money from trading activity. However, looking a bit deeper shows that brokers like Webull have many other opportunities for making money.

Trade commissions aside, Webull makes money from virtually every other aspect of the trading process. Selling order flow and subscriptions help Webull bring in considerable revenue. Charging customers for margin use, account transfers, and money transfer fees is another way Webull and its clearing firm, Apex, make money.

Here are some details about Webull's business model.

Webull AUM

Webull Sells Order Flow

For many zero-commission brokers, selling order flow data to market makers is a primary method of making money. Webull falls into this category and brings in a significant profit selling order-flow data.

Many high-frequency trading strategies attempt to make money on the spread between the bid and ask prices of the securities investors buy and sell.

High-frequency trading strategies are driven by machines and seek to turn small profits on each trade. For that reason, market makers pay Webull to send them order flow data every time an investor makes a transaction.

Webull Makes Money With Margin Rates

As banks and other financial institutions do, brokers charge customers interest for money they lend.

While it doesn't cost Webull's clients anything to have a margin account, there are some fees for various margin-related services that Webull offers.

Whether you borrow money to increase your buying power for a position, sell shares short, or place an advanced options strategy, Webull charges interest for the 'loan'. The annual rates range from 9.74% for accounts under $25,000 to 5.74% for account balances over $3 million.

In addition to the APR for margin interest, there are also fees associated with trading margin. For example, rates for selling shares short are calculated daily and are variable across securities.

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Fees for Deposits and Withdrawals

Many brokers make money on fees for deposits and withdrawals. Still, Webull doesn't charge its customers directly for moving money in and out of an investment account. Instead, the broker's clearing firm, Apex, charges fees for deposits and withdrawals.

Apex charges $8 for domestic wires into a trading account and $25 for domestic wires out of the account. For international bank deposits and withdrawals, Apex charges $12.5 and $45, respectively.

Webull Makes Money With Account Transfer Fees

When it comes to outgoing account transfer fees (ACATs), Webull follows an approach as it does for the deposit and withdrawal fees. Webull does not charge for account transfers, but Apex does.

Webull customers pay Apex Clearing a $75 fee for all outgoing ACAT transfers. The fee (if any) originates with the 'other' broker for incoming ACAT transfers.

Webull Makes Money With Subscriptions

Another way that Webull makes money is by charging users for subscription-based information. The most common of these is the optional monthly payment of $1.99 for Level II data from Nasdaq. This service is known as Nasdaq TotalView.

With a Nasdaq TotalView Level-2 subscription, investors have access to 50 additional levels of order flow information, increased market depth, and Auction Crossing NOII.

As Nasdaq TotalView is quite popular among serious investors, the subscriptions add to Webull's profit potential.

Webull Assets Under Management

Webull Makes Money With Cash Balances

Webull makes money on cash balances in user accounts. No matter how much money an investor has in their investment account, the interest payments from that cash will never go to the investor. Webull may hold client money in designated accounts that generate interest or use uninvested cash in 'safe' investment vehicles (like buying Treasury debt). That interest goes to Webull.

If earning interest on your uninvested cash is something you are interested in, other brokers offer this. Brokers that provide access to mutual funds and other money market products often allow investors to earn interest on uninvested cash balances.

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Not Paying Exchange Fees

Another way that Webull makes money is by not spending it. Many trade fees are charged by exchanges like the Options Clearing Corp and regulatory bodies like SEC and FINRA.

In the past, brokers paid these fees using a portion of their earned commissions. Since brokers like Webull no longer bring in money from trade commissions, they now pass along those fees to their clients.

Exchange fees are quite low. However, when we consider the amount of trade volume Webull facilitates, it is easy to see that Webull saves itself a lot of money by not paying them.

Here are some of the fees that traders are responsible for.

Exchange Propriety Index Option Fees

Webull does not charge commission on options trades. They do pass along fees for exchange propriety index options, however. Options on products like SPX, VIX, and XSP fall into this category.

Options related to these types of securities have fees ranging from $0.10 to $0.66 per contract per side. Prices vary across propriety index options and trade sizes.

Clearing and Regulatory Fees

There is always an exchange fee no matter which exchanges orders route through. As mentioned, Webull used to pay these, but that is no longer the case. Clearing fees for stocks, ETFs, and options range from $0.0000051 (for stocks and ETFs) to $0.02915 (for options).

Regulatory fees that Webull passes along are as follows: Stocks and ETFs have a fee of $0.000145, and options have a fee of $0.00244 for options. Instead of being calculated on a per-share/contract basis, regulatory fees are multiplied by the transaction cost.

Fortunately, there is an upside cap on these fees. The regulatory fee will never exceed $6.49 per transaction for stocks and ETFs. The regulatory fee limit will not exceed $55 per transaction for options.

Is Webull Actually Low-Cost?

One may wonder if Webull is actually a low-cost broker with all these pass-through fees. The answer is yes.

The fees passed along from the regulatory bodies and exchanges are relatively small compared to the commissions that brokers used to charge. Now that investors can transact without paying those commissions, the savings more than pay for any exchange- or regulatory-side fees.

Webull Incentive to Open Account

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Updated on 1/23/2024.

About the Author
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.