Is Webull Safe? What You Need to Know Before Using it

The number of new investors creating non-retirement accounts to trade increased by 38% in 2020. Many of these new investors were adults under 45 years looking for tech-based solutions to help them create a portfolio. That’s how more people started asking the question “Is Webull Safe?”

Webull is one of the newest players in the retail trading/investing arena. Like many of its competitors, Webull offers zero-commission online stock trading and it’s one of the safest trading platforms out there.

With Webull, you can also invest in exchange-traded funds (ETFs), options, and cryptocurrencies. This investment app may appeal to both novice and expert traders. If you’re looking for the safest and profitable trading platform to put your money, our Webull review will help you decide today. Let’s start with what the platform is all about.

What Is Webull?

Webull is a free brokerage platform that lets you invest in stocks, options, and ETFs. Webull is a commission-free trading platform, which means you may buy and sell stocks for free! Nevertheless, there are some additional fees to be aware of, which we shall discuss shortly.

Webull, founded in 2017, is a newbie to the brokerage sector, but it appears to have taken advantage of its late arrival. In other areas, the company appears to have taken lessons from recent forerunners such as Robinhood, which appeal to new and casual investors who want a terrific mobile experience and a clean, streamlined desktop interface.

Webull, on the other hand, is a solid choice for more sophisticated active traders, with in-depth charting, advanced orders, Nasdaq Level II market data, customization, dozens of technical indicators, and more.

All of this is housed in a user-friendly, elegant platform. Furthermore, the organization has made rapid progress in expanding its offerings: It launched an individual retirement account in late 2019, and in 2021, it added options trading, cryptocurrencies, and fractional share investing. Read this Webull Review for an in-depth evaluation of the Webull platform.

How Safe and Secure is Webull?

Webull is fully risk-free and provides investor protection. The FINRA and SEC regulate Webull, and they are a member of SPIC, which guarantees your money is protected from any financial problems Webull may have.

You are insured for $500,000 insecurities, with a cash maximum of $250,000 included. As a result, Webull abides by legislation and ensures that you are covered if they run into financial difficulties. Webull is also affiliated with Apex Clearing, a well-known and trustworthy clearing agency that ensures your money is routed correctly.

Furthermore, Webull employs advanced encryption to keep your account and information private and protected. That said, Webull is secure, and they use best practices to keep your money safe!

What Kind of Security Measures Does Webull Take?

Webull protects your data by connecting with your bank via Plaid to transfer funds. Webull connects to your bank account and verifies your banking information using Plaid. Plaid takes stringent security measures to safeguard the sensitive data it collects, following or exceeding industry best practices.

Plaid also employs a slew of financial safeguards to ensure that information maintained in your bank account and the Webull platform is exchanged safely and securely. Webull use Plaid to secure all data sent to their servers with AES-256 encryption, which is considered the top standard for financial institutions.

Plaid protects your account using multi-factor authentication (MFA).

Webull uses a two-step authentication approach to help its consumers feel protected by enhancing their authentication process.

Webull also delivers push notifications to users who attempt to log into their account using a different device and do not submit the right login details.

This authentication method protects your information with one-of-a-kind safeguards. Plaid also helps prevent unauthorized account access by restricting the number of times you may reset your MFA credentials. If you often change your password, multi-factor authentication may be the best option for you.

Webull employs an intrusion prevention system to monitor your account for odd activities, such as logins from unknown IP addresses. This could mean that someone else is using your login information, in which case Webull will instantly shut down your account to give you time to investigate.

Is Webull Regulated?

Webull is regarded as safe because it is regulated by top-tier financial institutions, ensuring that Webull Financial LLC is fully compliant with US, UK, and international regulations controlling investor rights.

Webull, like all legal and reputable stock trading platforms, is regulated by the Securities and Exchange Commission (SEC) in the United States and the Financial Conduct Authority in the United Kingdom (UK). They are also governed by FINRA or the Financial Industry Regulatory Authority.

This is a private corporation, as opposed to the other institutions mentioned above. The FINRA, on the other hand, is a self-regulatory organization inside the stock trading community, ensuring that member firms that function as brokerages or dabble in exchange markets operate clearly and legally.

Webull is also a member of the SIPC (Securities Investor Protection Corporation) for added security. That means it is an insured firm. It is also FDIC (Federal Deposit Insurance Corporation) insured. Since 1970, this non-profit, federally regulated, and member-funded business has protected money placed with US-registered brokerages.

Is Webull Really Free?

From Webull’s standpoint, their services are free. They will not charge you any commissions if you trade options, ETFs, or equities on US exchanges. Other financial instruments, however, are subject to additional charges and fees.

While ACH transfers are free, but the broker will levy a $30 fee if there is an insufficient amount or the account number is incorrect. Also, the charge for withdrawals and deposits via bank transfers varies depending on the institution.

There is a $12.5 deposit fee for non-US banks and an $8 deposit fee for US-based banks. When it comes to withdrawals, people from non-US countries must pay a $45 fee, while US citizens must pay a $25 cost.

There are also clearing and trading fees that go to OCC regulators, FINRA, and the SEC, which is often up to $0.045 per contract or deal. Keep in mind that there may be additional withdrawal fees levied by recipients, middlemen, or banks – these are unrelated to Webull.

Is the Webull Platform Great for Beginners?

Webull online platform is a wonderful choice for novices because it has a wide range of order types, good customizability (workspace, charts), and is ultimately user pleasant. Furthermore, with two-step authentication, the Webull mobile platform is both well-designed and secure.

Many new traders are concerned about fees, so the lack of commissions for options, ETFs, and equities is a huge benefit for them. Furthermore, there are no payout or funding costs for ACH payments, yet wire transfer fees are greater than some of their competitors, which should be addressed.

Another reason this platform is an excellent spot for new traders to start is the simple account registration process. Plus, there is no minimum deposit requirement; everything is fast and completely digital.

Webull Referral Program

Webull also has a very lucrative referral program through which you may quickly get some extra money! When you join up for a free Webull account, you will have immediate access to the referral program. To get 5 free stocks, simply share your unique referral link with friends and family.

Furthermore, Webull is regularly running promotions to earn even more free stocks from your referrals. One of their promos, for example, is to successfully refer three people to get nine free stocks! To view your referrals, launch the mobile app and navigate to the menu section, where you will find the promotion center at the top of the screen.

To examine the status of all your referrals, go to the invitation bonus area and then to my invites. You’ll find an option for My Free Stock at the main menu, which displays all of the free stocks you have won through referring others. If you want to know more about how Webull referral works, check out our Webull Referral article for the guidelines.

Conclusion

Webull may be appealing to aggressive traders looking for a simple mobile app and a desktop investing choice. There aren’t many teaching materials available here, which may be discouraging to new investors.

Lastly, Webull could be useful for people who want to invest in stocks, cryptocurrency, or options online.