Is Webull Safe?

Posted by in Crypto | Updated on May 29, 2023

The market for online trading and investing is growing every day. There are a lot of platforms offering a wide range of features online to help and guide traders. Even though Webull is new and has made its appearance in 2017, it managed to earn the trust of many users in various countries. Webull is an online brokerage platform where one can set up their account instantly and get started.

What Is Webull?

If you are looking for a commission-free trading brokerage platform to invest in stocks and ETFs, then Webull is the right place for you. It emerged onto the trading market in the year 2017. It has its headquarters set up in New York. Though it is relatively new, they’ve managed to attract many registered users by providing unique features and services for little to no cost.

Traders with little to no experience are primarily drawn to this platform to use its clean interface, which helps navigate and trade efficiently. It competes and takes inspiration from other new platforms such as Robinhood.

Features Overview

Features that make Webull one of the best online trading platforms:

  • Easy to get started and provides a demo account for users to trade.
  • It has a clean interface and is easy to access on mobile as well.
  • Webull doesn’t charge the inactivity fee.
  • The minimum deposit is $0, and it doesn’t cost extra for withdrawal.
  • Comparatively low trading fee class.
  • Webull recently started to offer Options.
  • It also offers Stocks, EFT, and crypto.
  • Regulated by renowned financial institutions and prioritizes on providing high security for assets of users.
  • It offers better social community features.

What makes Webull unique is that it provides analytic tools to help traders make better decisions. Having been insured and regulated by renowned institutions, Webull makes investors trade and invest without any concerns. Even if they face any issues, Webull has an excellent support system and a team that allows customers to write complaints and resolve any issues concerning the platform.  Lack of OTC and Forex features is a drawback for Webull.

A Note on Financial Data

Since Webull is not a public company, it is not required to publish any financial data. This is why it isn’t easy to find information about Webull. As a result, the amount of financial data is quite limited compared to other online platforms.

Webull’s Safety And Security

With so many trading platforms emerging online, it is so difficult to rely on and trust them with our money. It can be risky to invest without ensuring that the platform is regulated by financial institutions and can guarantee there is no possibility of fraud or scam happening. Is Webull safe? Can I trust my money with Webull? Is Webull better than Robinhood? Asking such questions is justified. Let us find answers.

Is Webull Regulated?

The reasons why you can fully trust and rely on Webull with your money:

  • Webull is regulated by SEC and FINRA
  • It is additionally insured by Apex Clearing
  • Since Webull is a member of SIPC, your deposit funds are protected
  • Webull management has been reliable, and they take measures to prevent any security breaches
  • They take steps to make sure your personal and account details are safe

Yes, Webull takes every precaution to safeguard funds and personally identify information. This includes SIPC coverage for the value of your money if Webull goes bankrupt, as well as cybersecurity solutions to protect your data on the platform.

This does not, however, imply that your funds are protected from market swings. Using financial tools such as options to protect yourself from the downside is one way to do it.

Investment Coverage

Webull covers investment and cash losses sustained due to Webull’s or a custodian’s inability to keep your assets safe or if the company goes bankrupt or insolvent. Investment losses are not covered. You are responsible for how you invest your money. There are risks involved, and Webull doesn’t offer refunds if you’ve lost your money.

Webull and Regulators

Webull is highly reliable and secure. It is a member of many financial institutions that regulate and ensure that it is functioning according to the laws and the secured customer assets.

Webull regulations include:

  • Regulated by the Securities and Exchange Commission (SEC) in the United States.
  • The Financial Conduct Authority in the United Kingdom.
  • It is a member of The Securities Investor Protection Corporation (SIPC).
  • Webull Financial LLC is also part of NASDAQ and NYSE.

Investors Protection

As established above, Webull is regulated by renowned agencies and institutions that ensure that the assets are protected and secured. Even the personal details and account information is secured to protect investors and their assets from cyber crimes and hacking. Prioritizing investors’ security is one of the reasons why Webull is competing with other platforms even though it is new. We will discuss to get a better idea of how Webull makes it possible as we proceed.

Is Webull SIPC Insured?

The Securities Investor Protection Corporation is abbreviated as SIPC. It is a non-profit organization that focuses on protecting investors in cases such as when their brokerages go bankrupt or otherwise become insolvent.  The SIPC protection reimburses up to $500,000 in total losses to each customer. In case the brokerage goes bankrupt, it should make you feel more confident about investing with Webull.

The main objective of SIPC is to ensure customers that they will be offered compensation if their brokers fail. If a brokerage firm collapses, SIPC will help customers recover their funds. However, they are not responsible for your losses while trading or investing. If a brokerage becomes insolvent or files for bankruptcy, an account’s insurance coverage of up to $500,000 per person.

If SIPC Coverage Is Exhausted

You can transfer your brokerage account to another broker if your SIPC coverage is exhausted. For example, if your investment account has $550,000 in assets, you will need to move $50,000 to another broker to ensure that all of your assets are covered. SIPC does not safeguard all investments. SIPC protects notes, stocks, bonds, mutual funds, and registered assets. Unregistered investment contracts are not covered.

You can trust Webull with your assets because it is a member of SIPC.

Is Webull FDIC Insured?

FDIC is short for The Federal Deposit Insurance Corporation. A federal body in the United States makes sure that deposits are protected in case of a bank failure. When a bank collapses or fails, the FDIC’s main objective is to protect depositors and maintain public trust in the banking system.  Webull is not a bank. Hence, it is not insured by the Federal Deposit Insurance Corporation.

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Final Thoughts

Having said all that, Webull is excellent for beginners as this platform is a wonderful spot for traders to get started because it has a simple account registration process. The no minimum deposit and zero commission fee makes it affordable. In terms of security and protection, it competes with other platforms which are much older. It makes trading simpler by providing analytics tools. Webull is remarkably effective and simple to use, despite a few minor inconveniences such as the limited portfolio and other issues concerning the withdrawals.