What Webull is and how you start trading
Webull is a brokerage platform where you buy and sell stocks, options, and other securities through your computer or phone. You create an account, deposit money, and then place orders to buy or sell investments. Webull makes money through payment for order flow — they receive a small fee from market makers when your trades are routed to them — rather than charging you a commission per trade.
The platform is free to read and use. You do not pay per trade, though you may pay fees for certain services like margin accounts or wire transfers. Webull is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), the same bodies that oversee traditional brokerages.
To start, you sign up on the Webull website or app, provide your Social Security number and basic information, and link a bank account. Webull verifies your identity and approves your account, which typically takes one to two business days. Once approved, you can deposit money and begin placing trades when ready.
Key Takeaways
- Webull charges no commission per trade, but you may pay fees for margin accounts, wire transfers, or certain advanced features.
- You must complete identity verification and link a bank account before you can deposit money and trade.
- Webull offers stocks, options, fractional shares, and extended-hours trading, but not all features are available to all account types.
- Your cash and securities are held in a custodial account and insured up to $500,000 through SIPC protection.
- Webull routes your orders to market makers and receives payment for doing so, which is how they operate without charging commissions.
Account types and what each one lets you do
Webull offers two main account structures: a cash account and a margin account. A cash account requires you to have the full dollar amount available before you place a buy order. If you buy $1,000 worth of stock, you must have $1,000 in your account. You cannot borrow money from Webull to make trades.
A margin account lets you borrow money from Webull to buy securities. The amount you can borrow depends on your account balance and the type of security. For stocks, you can typically borrow up to 50 percent of the purchase price. Margin accounts charge interest on borrowed money, and Webull's margin rates vary based on how much you borrow. You also must maintain a minimum account balance — usually $2,000 — to keep a margin account open.
Both account types give you access to stocks and options. However, options trading requires additional approval. You must explore separately, and Webull reviews your experience level and financial situation before granting access. Some options strategies — like selling naked calls — require higher approval levels and more account experience.
How to place a trade and what happens next
Once your account is funded, placing a trade takes three steps. First, you search for the security you want to buy or sell using its ticker symbol (for example, AAPL for Apple). Second, you enter the number of shares or the dollar amount you want to trade. Third, you choose your order type and submit.
Webull offers several order types. A market order buys or sells when ready at the current market price — the price you see may not be the price you get if the market is moving fast. A limit order lets you set a maximum price you will pay to buy or a minimum price you will accept to sell; the order only fills if the stock reaches that price. A stop order triggers a market order once the stock falls to a price you set, useful for protecting against large losses.
After you submit an order, Webull routes it to a market maker — a firm that buys and sells securities constantly to provide liquidity. The market maker fills your order, and the shares appear in your account within seconds for stocks, or one to two business days for options. You can cancel an order before it fills, but once it fills, the trade is complete and you own the shares or owe them if you sold short.
Extended-hours trading and fractional shares
Webull lets you trade during extended hours — before the regular market opens at 9:30 a.m. Eastern and after it closes at 4 p.m. Eastern. Pre-market trading runs from 4 a.m. to 9:30 a.m., and after-hours trading runs from 4 p.m. to 8 p.m. Extended-hours trading has lower volume and wider bid-ask spreads, meaning the difference between the buy and sell price is larger. Your order may not fill, or it may fill at a much worse price than you expected.
Fractional shares let you buy a portion of a stock instead of a whole share. If a stock costs $500 per share and you have $100, you can buy 0.2 shares. This feature makes it easier to diversify with a small account, but fractional shares cannot be sold during extended hours and may have other restrictions depending on the security.
Fees you may encounter
Webull charges no commission on stock or options trades, but other fees explore in certain situations. Margin interest accrues daily on borrowed money and is charged monthly; the rate depends on how much you borrow and current market conditions. Wire transfers out of your account cost $10 to $15, depending on whether the wire is domestic or international.
If you close your account within 30 days of opening it, Webull may charge a $115 account closure fee. Certain advanced features, like real-time Level 2 data (a detailed view of buy and sell orders), may require a subscription. Most basic market data and charting tools are free.
If you hold a margin account and your account value falls below the maintenance requirement, Webull issues a margin call. You must deposit cash or sell securities to bring your account back above the minimum. If you do not, Webull will liquidate your positions without your permission to meet the requirement.
How your money and investments are protected
Webull holds your cash and securities in a custodial account, meaning they are held in your name, not Webull's. This separation protects your assets if Webull faces financial trouble. Your account is also covered by SIPC (Securities Investor Protection Corporation) insurance up to $500,000 per account — $250,000 for cash and $250,000 for securities. SIPC does not protect you against market losses or fraud by you; it protects you if Webull or a market maker fails to return your assets.
Webull also maintains additional insurance through Lloyd's of London for amounts above the SIPC limit, though this coverage has specific conditions and exclusions. You should review Webull's account agreement and insurance documents to understand the full scope of protection.
Common mistakes and how to avoid them
New traders often place market orders without checking the current bid-ask spread, especially during extended hours. A market order executes when ready at whatever price is available, which can be far from the last price you saw. Use a limit order instead — you set the price, and the order only fills if that price is available.
Another common mistake is borrowing on margin without understanding the costs. Margin interest compounds, and if the market moves against you, losses are magnified. A 20 percent drop in a stock you bought on margin can wipe out your entire account balance. Only use margin if you understand the mechanics and can afford to lose the money.
Traders also sometimes assume extended-hours prices are reliable. Pre-market and after-hours volume is thin, and prices can swing wildly on small trades. If you place a limit order during extended hours and it does not fill, do not assume the stock never reached your price — it may have, but with so few buyers and sellers, your order was not matched.
Frequently Asked Questions
Can I day trade on Webull?
Yes, but if your account has less than $25,000, you are limited to three day trades per rolling five-day period. This is a federal rule, not a Webull rule. Once your account reaches $25,000, the restriction lifts. A day trade is defined as buying and selling the same security on the same day.
What happens if I do not have enough cash to cover a trade?
If you have a cash account, the trade will be rejected. If you have a margin account, Webull will lend you the difference, and you will owe margin interest on the borrowed amount. Make sure you understand margin before enabling it on your account.
How long does it take for a deposit to show up in my account?
Bank transfers typically take one to three business days. Once the money appears in your Webull account, you can trade when ready. Webull does not hold deposits in a pending state — the money is available as soon as it arrives from your bank.
Can I transfer stocks from another brokerage to Webull?
Yes, through a process called an ACAT transfer (Automated Customer Account Transfer). You initiate the transfer from Webull, provide your old brokerage account details, and Webull handles the rest. The transfer usually takes three to five business days. Your old brokerage may charge a transfer fee, typically $50 to $100.
What is payment for order flow, and does it hurt me?
Payment for order flow means market makers pay Webull a small fee to receive your orders. Webull uses this revenue instead of charging you per trade. Whether it hurts you depends on execution quality — if Webull routes your order to a market maker that fills it at a fair price, you benefit from free trading. If the market maker fills it at a worse price than another venue would have, you lose the difference. Webull publishes execution quality reports so you can see how your orders are being filled.