Is Webull Safe or Scam? A Comprehensive Review for Investors

Webull is a popular online brokerage platform offering commission-free stock, ETF, and options trading. This review dives into Webull’s features, fees, account types and security measures to help you decide if it’s the right fit for your investment needs.

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Is Webull safe?

Yes, Webull is a safe and legitimate brokerage firm. It is registered with the Securities and Exchange Commission SEC and regulated by the Financial Industry Regulatory Authority FINRA. These regulatory bodies ensure investor protection and fair market practices.

Webull is also a member of the Securities Investor Protection Corporation SIPC, which provides account protection for up to $500,000 including $250,000 for cash claims.  

Webull’s clearing firm, Apex Clearing Corp., offers additional insurance for securities and cash up to $150 million.

Webull is regulated under multiple international authorities, adding a layer of security for global users:

• ASIC: Webull Securities (Australia) Pty Ltd is licensed under ASIC (AFSL No. 536980).
• MAS: Webull Securities (Singapore) Pte Ltd is regulated by the Monetary Authority of Singapore.
• FCA: Webull is authorized by the UK’s Financial Conduct Authority.
• FSA (Japan): Webull Securities Co., Ltd. is registered with Japan’s Financial Services Agency.

These international regulations bolster Webull’s credibility, making it a trusted choice for investors worldwide

Webull’s regulatory information, here is how safe is Webull,

Regulatory aspect	Details
Regulated by	Securities and Exchange Commission SEC
Regulated by	Financial Industry Regulatory Authority FINRA
Membership	Securities Investor Protection Corporation SIPC
Account protection SIPC	Protection up to $500,000 per account, including $250,000 for cash claims
Clearing firm	Apex Clearing Corporation
Additional insurance	Apex provides additional insurance for securities and cash up to $150 million.
Investor protection	SEC and FINRA ensure investor protection and fair market practices
Compliance audits	Regular audits are conducted to comply with SEC and FINRA regulations.

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Regulatory Actions and Concerns

In 2023, Webull faced scrutiny when the Financial Industry Regulatory Authority (FINRA) fined the company $3 million for shortcomings in its options trading approval process and failure to report certain customer complaints.

Additionally, in 2024, a coalition of U.S. state attorneys general launched a probe into Webull due to data privacy concerns and its ties to Chinese entities. Webull has addressed these concerns, but it’s important to consider both sides of the story to understand the platform’s regulatory landscape.

Webull security measures

Webull employs various security measures to protect user data and financial assets, including:

• Two-factor authentication (2FA):Adds an extra layer of login security.
• Secure Socket Layer (SSL) encryption: Safeguards data transmissions.
• Regular security audits: Identifies and addresses potential vulnerabilities.

Stay safe

• Be cautious of unsolicited contacts claiming to be from Webull.
• Never share personal information or login credentials with anyone.
• Use strong passwords, avoid sharing sensitive information online, and keep your software and devices updated.
• Always double-check information received through emails or phone calls, especially when asked for personal or financial details.

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What can you trade on Webull?

While Webull does not currently offer forex trading, it provides access to a wide range of investment options, including,

• Trade Stocks US and international.
• Exchange-Traded Funds ETFs.
• Options contracts.
• Fractional shares.
• Futures contracts limited selection.
• Margin trading with interest fees.

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Webull brokerage account types

Webull offers various account types to cater to different investor needs:

• Individual accounts: Choose between cash or margin accounts.
• IRA accounts Open Roth, Traditional, and Rollover IRAs for tax-advantaged investing.
• Futures accounts: For trading futures contracts exclusively.
• Advisor accounts: You can access robo-advisor portfolios or thematic investment strategies.
• Entity accounts: Available for businesses like LLCs and corporations with higher minimum deposits.

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How can I deposit into my account?

You can deposit monies into your Webull account via:

1. electronic Direct Debit Authorization (eDDA)

2. Fast and Secure Transfers (FAST)

3. Telegraphic Transfer (TT)

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Webull fees

Webull stands out for its commission-free trading for stocks, ETFs, and most listed options. However, some fees apply, including.

• Options contract fees: $0.55 per contract index options.
• Regulatory fees: Charged by SEC, FINRA, and options exchanges for each trade.
• Margin interest: Rates vary based on your debit balance.
• Inactivity fees: No.
• Account minimums: None except for entity accounts.

Learn more: How to invest in Webull

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Webull customer service

• Webull offers customer support through various channels.
• Assist via the In-app Help Center with FAQs.
• Email support for detailed inquiries customerservices@webull.us
• Phone support during US and AU market hours.
• Call 1-888-828-0618.

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International Presence and User Base

Webull has expanded its services to multiple countries, including Hong Kong, Singapore, Australia, South Africa, Japan, the United Kingdom, Indonesia, Canada, Brazil, Thailand, Malaysia, and Mexico. As of February 2024, the platform boasts approximately 20 million users worldwide. This broad global reach and substantial user base highlight Webull’s appeal to an international audience.

Educational Resources

Webull offers a range of educational materials, including articles, videos, and webinars. However, some users find that the content is more suitable for those with prior investing experience. Beginners might need to seek additional resources to fully grasp complex trading concepts.

Advanced Trading Tools and Features

Webull provides a suite of advanced trading tools, including:

• Advanced Charting: Multiple chart types with technical indicators.
• Paper Trading: A simulated trading environment for practice.
• Smart Advisor: Automated trading strategies.

These features make Webull a powerful platform for active traders seeking robust analytical tools.

Conclusion

What makes Webull a top-tier choice for active investors? Its commission-free stock, ETF, and options trading, combined with robust regulation, diverse investment options, low margin rates and paper-trading accounts, cater to both beginners and experienced traders. This review demonstrates why Webull is a safe and reliable platform.