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What Happens If Webull Goes Bankrupt? (2025)
What happens to client stocks, money, portfolio, and account investments if Webull goes
out of business (bankrupt)? Is Webull in financial trouble and could it fail?
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Could Webull Go Out of Business?
Webull is a very popular online broker known for low-cost trading, easy-to-use trading platforms, and big bonus offers. It has a lot of customers and seems financially strong.
Webull is doing well right now, but it’s smart to know what would happen if the company ever went bankrupt.
What Happens If Webull Goes Out Of Business?
• Webull has several protections in place to keep customer assets safe if the company goes bankrupt.
• Investments and cash in Webull accounts are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 for investments and $250,000 for cash per customer. There is also Extra SIPC insurance, which gives even more protection if needed.
• Uninvested cash that is moved into partner banks is insured by the Federal Deposit Insurance Corporation (FDIC), with each bank covering up to $250,000.
Webull Overview
Webull started in 2017 as an online broker, offering commission-free trading mainly through its mobile app for both new and experienced investors.
With its advanced technology, Webull quickly gained over eleven million users in just three years. Since then, Webull has become one of the top online trading apps around.
Today, the company gives traders powerful but simple charting tools and other features like Level 2 data and advanced options trading.
Insurance at Webull
Webull provides three types of insurance: SIPC, Extra SIPC, and FDIC.
SIPC protects investments in a brokerage account. If Webull goes bankrupt, SIPC steps in and protects the investments and cash in customer accounts. Extra SIPC adds another layer, offering more coverage on top of SIPC’s limits.
Sometimes, Webull customers are also protected by FDIC. Like SIPC, FDIC helps protect customers if there are problems with the broker. If anything happens to Webull, FDIC protects eligible cash balances.
SIPC
Some Webull accounts use Apex Clearing as the custodian (these are being phased out), and others now use new Webull omnibus accounts. Apex accounts have SIPC and Extra SIPC, and the omnibus accounts have SIPC coverage.
SIPC covers up to $500,000 in investments, but up to half of that can be used to protect cash that isn’t invested in your brokerage account. Extra SIPC adds more protection, covering up to $150 million for investments. Each person gets up to $37.5 million in investments and $900,000 for cash.
FDIC
Webull’s cash management works through a cash sweep program. Webull partners with several banks, and each of these banks is protected by FDIC. When your uninvested cash is moved to these banks, FDIC insurance is activated.
Each bank insures up to $250,000, and when that limit is reached at one bank, Webull will start moving your cash to the next bank on its list.
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Updated on 4/17/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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