WeBull Broker Discount Trading Review

by OTC Financial | Last Updated: 4 months ago
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Finding the right brokerage to use in the stock market is one of the most challenging things for a trader.

The right broker should support multiple deposits, a wide range of assets, investment options, and minimal or zero fees.

One such brokerage firm that offers these features is Webull.

This article will discuss everything you need to know about this brokerage, including its features and benefits.

Here are some of the things you’ll find in this article:

What Is Webull?

Webull is a commission-free online brokerage that offers users the ability to trade stocks, options, ETFs, and crypto-assets.

The company is headquartered in New York City and was founded in 2017.

Webull’s mission is to “level the playing field for all investors” by providing commission-free trading and access to sophisticated financial data.

It has a sleek interface in its desktop and mobile apps, which appeals to the mobile-first generation of traders.

Can Webull Be Used Internationally?

Webull only supports users from the USA because it doesn’t support stocks from exchanges outside the USA.

However, those who want to trade in crypto can do so through a VPN.

By installing a VPN, you can connect to one of the USA servers and start trading.

Is Webull Safe

Webull is registered with the Securities and Exchange Commission, which means it’s regulated and safe.

Also, it’s a member o the New York Stock Exchange, Financial Industry Regulatory Authority, and Securities Investor Protection Corporation meaning it meets high-security standards.

They also have an inbuilt 2FA protocol that helps to secure accounts.

However, when investing in crypto, it’s recommended to use a VPN to add an extra layer of security.

What Is Good Faith Violation In Webull

A GFV occurs when a trader decides to liquidate stocks bought on unsettled proceeds before settling.  

This is considered a violation because the trader is using money that doesn’t belong to them yet and could result in a loss.

Traders can buy open positions with unsettled funds in good faith, hoping they’ll wait until they settle before closing the position.

Therefore, they are not allowed to liquidate them.

How Many Good Faith Violations Can You Have On Webull?

You are allowed three good faith violations in a rolling five-day period.

If you exceed this, your account will be restricted for 90 days.

During this time, you won’t be able to open new positions or place trades.

If you exceed the fourth GFV, your account will be closed for 90 days.

Each GFV stays in the account for 12 months before it’s removed on the 13tit’snth.

Stock liquidation and cash deposits do not alleviate any violation

How To Avoid Good Faith Violation Webull?

To avoid a GFV, ensure you have enough funds to cover any losses from buying unsettled funds.

It’s also important to note that stockIt’suidation and cash deposits do not alleviate any violation.

Alternatively, you can avoid good faith violations by waiting until your funds have settled before closing a position.

How Do I Deposit Money On Webull Instantly?

Webull doesn’t offer instant deposits on all doesn’t deposit methods.

Instead, it offers instant buying power to all its registered users once a deposit has been initiated.

An instant buying power is equivalent to having your deposit instantly available in your account.

But the money is like a loan, where Webull allows you to trade ETFs and stocks as you wait for your deposit to settle.

This is beneficial because you don’t have to wait days or weeks to start trading. However, the amount in your account will read as negative until the deposit is settled; then, the account will move to positive again.

How Long Does Webull Deposit Take?

It usually takes five business days for Webull deposits to settle.

When depositing funds via ACH, they must stay there for seven days.

You can see you deposited funds on the incoming funds found on the payable and receivables part of your account.

However, Webull will give you up to $1,000 in instant buying power to trade immediately.

Can You Paper Trade With Webull

Paper trading is a function that allows you to test out strategies without using real money.

It’s a helpful tool for beginners and experts alike as it allows you to try new things without the risk of losing any money.

Webull offers paper trading on their platform, so you can test out different strategies before committing any capital.

With Webull paper trading, you get access to all Webull instruments, and you can try all trading strategies.

How Long Does It Take To Withdraw From Webull?

Funds in Webull will have different hiding periods before they’re withdrawn, depending on the deposit method and the settlement period method.

If the deposit were made through ACH, it would be held for a minimum of seven trading days.

However, if the deposit was made through wire transfer, it will be subject to a zero holding period.

Also, you can’t withdraw funds until they are fully settled. Stock trades settle on a T+2 basis, which means that you can’t withdraw money from your account until two days after the stock trade has been made.

The same goes for options trades, where the trade takes one day for the trade to settle.

Crypto trades made before 8:15 p.m. ET will settle the next business day, while transactions made after will take two business days to settle.

How Do I Withdraw Money From Webull?

To withdraw money from Webull, you first need to navigate to the account page and select the “Withdraw” option.

You’ll need to enter the amount of money you’ll withdraw and your bank’s routing number.

It usually takes one to two business days for the withdrawal to hit your account.

When withdrawing, you need to withdraw an amount less or equal to the amount in your account balance, and you should also factor in the fees charged.

Webull Withdrawal Fees

Withdrawing money from your account is free if you’re using a bank account in the United States.

If you’re using wire transfers, you’ll be charged a fee of $25 even if you’re in the USA.

If you’re using a foreign bank, there will be a $45 fee charged by Webull to withdraw your money.

What Is Day Trade Bp On Webull?

Day trade buying power (DTBP) is the amount of money you have available to day trade.

It’s calculated by taking your equity, adding margin borrowings, and subtracting any intraday losses.

Your DTBP will fluctuate throughout the day as your positions move into profit or loss.

Webull will offer you four times the margin on most stocks, which means that your DTBP will be four times the amount of money in your account.

For example, if you have $2000 in your account, your DTBP will be $8000.

This allows you to make bigger trades and potentially increase your profits.

However, it also means that your losses will be magnified, so you need to be careful when using leverage.

You are also required to make a minimum deposit of $2000 on your margin account.

Can I Use Day Trade Bp On Webull?

You can use day trade buying power (DTBP) on Webull.

This function allows you to make bigger trades and potentially increase your profits.

However, it also means that your losses will be magnified, so you need to be careful when using leverage.

You’ll have to make a minimum deposit of $2000 on your margin account to use Webull’s Day Trade BP.

How Does Day Trading Buy Power Work In Webull?

When you deposit to your Webull’s account, you’re given an instant buying power that is available to use for buying securities.

Your day trading buying power (DTBP) is the amount of money you have available to buy securities on a given day.

It’s calculated by taking your equity, adding margin borrowings, and subtracting any intraday trading losses.

Your DTBP will fluctuate throughout the day as your positions move into profit or loss.

Webull will offer you four times the margin on most stocks, which means that your DTBP will be four times the amount of money in your account.

Is Webull Good For Day Trading?

Webull is a good platform for day trading if you’re comfortable using leverage.

Webull offers four times the margin on most stocks, which means your day trading buying power (DTBP) will be four times the amount of money in your account.

It also has a paper trading simulator that allows you to try different strategies without risking any money.

It also charges zero commission for trading U.S.-listed stocks, options, and ETFs, allowing new traders to learn to trade without paying any fees.

How Long Does Buying Power Take On Webull?

Webull generally updates buying power depending on when the deposit has been made.

If you deposit at 4:00 p.m. ET, the instant buying power will be credited to your account the same day as it takes between 20 minutes and 1 hour for processing.

If you deposit at 4:00 p.m. ET, it will be credited to your account at 7:00 a.m. the next business day.

How Do I Change From Robinhood To Webull?

The most important information you will need is your Robinhood account number.

If you do not know your account number, you can find it by logging in and going to the Accounts tab under the investing option.

Resolve any account restrictions and ensure your Robin hood account is in good standing before initiating a transfer.

Once you have your account number, open a Webull brokerage account.

Use the Webull app to initiate either a full or partial transfer.

You’ll be required to provide all the necessary information provided by Robinhood before initiating the transfer.

A transfer is expected to take between 5 to 7 business days before it completes.

Webull does not charge any fee for transfers into the account, but Robinhood charges $75 that will be deducted from your account balance.

The minimum transfer into Webull is $500.

How Long Does It Take To Switch From Robinhood To Webull?

It generally takes between five to seven business days to complete a transfer from Robinhood to Webull.

However, if you have any activity on your Robinhood accounts, such as unsettled accounts and ACH transactions, then there will be delays.

It’s therefore advisable to first settle your account and close every other open position before initiating a transfer from Robinhood to Webull.

Is Webull Better Than Robinhood?

Webull is a better platform than Robinhood for active traders looking to save on costs.

First, Webull offers a unique community experience and easy-to-use trading platforms that appeal to young and mobile-savvy users.

Webull also offers more research and educational materials to its investors than Robinhood.

There is also a better offering on investments in Webull compared to Robin hood, such as free stocks and four times day trading buying power (DTBP).

However, the resources such as trading tools on Webull are limited compared to Robinhood, so beginners may still be limited when using the platform.

Does It Cost Money To Transfer From Robinhood To Webull?

The minimum transfer into Webull from Robinhood is $500.

However, Webull does not charge any fee for transfers into the account, but Robinhood charges $75 that will be deducted from your account balance.

If your Robinhood cash balance is insufficient to cover this fee, Webull will have to cover the transfer fees.

Is Apex Clearing Webull?

Apex Clearing is the clearing firm for Webull.

Apex Clearing Corporation (“Apex Clearing”) is a member of the Securities Investor Protection Corporation (SIPC).

You can connect your Webull account using Apex Clearing in the following ways:

  1. Create an account with Apex Clearing, using your Webull credentials such as account number.
  2. Link account with Plaid in your portfolio tab, then click on ‘Other brokers.’
  3. Search for Apex clearing and login into your account via Plaid.
  4. Continue to synch your account.

What Is Apex Clearing On My Bank Statement?

If you see ‘Apex Clearing’ on your bank statement, it means that you have used the services of this financial institution in some way.

Apex Clearing is a member of the Securities Investor Protection Corporation (SIPC) and provides clearing and custody services to broker-dealers and their clients.

You may have used their services if you have traded stocks or other securities or an account with a broker-dealer that uses Apex Clearing’s services.

If you are unsure of what the charge is for, we recommend contacting your broker-dealer or the customer service team at Apex Clearing.

Who Does Apex Clearing Clear For

Apex Clearing Corporation is a member of the Securities Investor Protection Corporation (SIPC) and provides clearing and custody services to broker-dealers and their clients.

Some of the broker-dealers that Apex Clearing provides services for include Robinhood, Webull, SoFi, E*TRADE, Charles Schwab, and TD Ameritrade.

If you have an account with these broker-dealers, your transactions may be cleared through Apex Clearing.

You can also use the services of Apex Clearing if you are a hedge fund or other institutional investor.

Apex Clearing also provides technology solutions for the financial services industry.

Is Apex Clearing A Custodian?

Apex Clearing Corporation provides clearing and custody services to broker-dealers and their clients.

Apex Clearing can act as a custodian for your brokerage account.

If you have an account with a broker-dealer who uses Apex Clearing’s services, your account may be under the custody of Apex Clearing.

Apex Clearing is a registered broker-dealer with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).

Can I Open A Webull Account Without SSN?

No, you cannot open a Webull account without an SSN.

Webull is required by law to verify the identity of its customers.

The best way to do this is by using your Social Security Number (SSN).

If you do not have an SSN, you can still open an account with Webull by providing other forms of identification such as an Individual Taxpayer Identification Number (ITIN) or a Passport.

Can I Open A Webull Account With An ITIN Number?

Yes, you can open a Webull account with an ITIN number.

If you do not have a Social Security Number (SSN), you can use your Taxpayer Identification Number (ITIN) to open an account with Webull.

To open an account with an ITIN, you will need to provide some additional information, such as your country of citizenship and your date of birth.

Only after a successful verification will you be able to start trading on the platform.

How Old Do You Have To Be For Webull?

You must be 18 years or older to open a Webull account.

Webull is available to investors in the United States and its territories.

If you are not a resident of the United States, you will not be able to open an account with Webull.

What Is The Minimum Deposit For Webull?

The minimum deposit for Webull is $0.

This means that you can open an account and start trading without depositing any money.

However, if you want to trade on margin or short sell, you must deposit at least $2000.

How To Open Webull Margin Account?

If you want to trade on margin or short sell, you must deposit at least $2000 into your Webull account.

You can then go to the settings page and click on “Margin” to enable margin trading.

Once you have enabled margin trading, you will be able to trade on margins up to four times your account value.

What Is The Webull Pattern Day Trader Rule?

The Webull pattern day trader rule is that you can only make four or more day trades in a five business day period if you have less than $25,000 in your account.

This rule is from the FINRA and applies to all broker-dealers in the United States.

If you make more than four-day trades in a five-business-day period, your account will be marked as a pattern day trader, and you will be subject to the restrictions that come with that designation.

If a margin account gets this designation while the net account value is below $25,000, you will receive an Equity Maintenance which will restrict you from day trading.

What Is The Webull Cash Account?

The Webull cash account is a brokerage account that does not allow margin trading or short selling.

The account only allows you to trade with settled funds; therefore, you don’t get leverage when trading.

Moreover, there are no day trading rules attached to this account, but traders need to follow the cash settlement rules.

Does Webull Allow Under 18?

No, Webull does not allow under 18.

You don’t be 18 years or older to open a Webull account.

You also need an SSN or an ITIN to open an account, which means only people over 18 can open an account.

Can I Have Two Webull Accounts?

You can open two individual accounts on Webull.

However, the two accounts should be of different types.

When the first account is a margin, the second account should be a cash account.

How Long Does It Take For Webull To Verify Your Account?

The account application In Webull has usually approved automatically.

However, there are cases where some additional verification may be required.

This may extend the application approval process, but Webull will still take less than 24 hours to verify your account.

Once your account is verified, you will be able to start trading on the platform.

Webull Account Types

Webull offers two account types: the Cash Account and the Margin Account.

The Cash Account is a regular brokerage account that does not allow margin trading or short selling.

The Margin Account is a brokerage account that allows margin trading and short selling.

Webull also offers an IRA account for retirement savings.

The Webull IRA account offers the same features as the Margin Account but tax advantages.

Can You Buy Stocks With Webull?

Yes, you can buy stocks with Webull.

Webull is a brokerage that allows you to buy and sell stocks.

You can also trade on margin and short sell with a Webull account.

Buying and selling stock in Webull is commission-free and supports the pre-market and post-market trading sessions.

Can I Buy OTC Stocks On Webull?

Webull does not offer trading of over-the-counter stocks at the moment.

Therefore, if the stock you purchased is delisted from the major exchanges, you should close the position on the app.

However, Webull does offer penny stocks, defined as securities with a share price under $5.00.

The penny stocks should be listed on either NYSE or NASDAQ.

How Long Does It Take To Transfer Stocks Into Webull?

It usually takes five to seven days to transfer the stocks into Webull.

The transfer process will start as soon as Webull receives the request from the other broker.

However, there can be delays if the incoming account type is different from the Webull account.

Moreover, if there are unsettled activities in the outgoing accounts, there can also be delays.

Can You Transfer Stocks From Etrade To Webull?

Yes, you can transfer stocks from Etrade to Webull.

The process is called ACAT transfer, and it usually takes five to seven days for the stocks to be transferred into Webull.

First, you need to prepare for the transfer by closing any open orders and allowing the trades to settle.

You can then initiate an ACAT transfer inside your Webull account.

Is It Free To Transfer To Webull?

Yes, it is free to transfer to Webull.

Webull does not charge any fees for account transfers.

However, the other broker may charge a fee for outgoing account transfers.

You should check with the other broker before initiating the transfer.

For example, Robinhood will charge you a $75 fee for doing an ACAT transfer from the platform.

How Do You Get Approved For Options On Webull?

Options are contracts that give traders the right to trade an underlying asset like a stock or bond at a specific price.

These contracts have an expiration date, after which they’re considered “out of the money” and expire worthless. 

To get approved for options trading on Webull, you need to have a margin account with the broker.

Then, you can apply for options approval by going to the Account tab and selecting “apply for options.”

Webull will then review your application and decide if you are eligible for options trading.

The application gauges your product’s knowledge, financial resources, and risk tolerance.

The approval to trade options in eligible accounts can take a couple of business days if you qualify.

Is Webull Good For Options Trading

Webull is a good choice for options trading if you are looking for a commission-free broker.

Webull also has options tools that help traders to customize trading strategies using different order types.

The tools also spread between strike prices in multi-leg strategies.

Does Webull Have Fees For Options?

No, Webull does not charge any fees for options trading.

Unlike other brokers who charge a per contract fee of $0.65, Webull does not charge a per-contract fee.

Both the base fee and the per-contract fee is $0.

Does Webull Have Hidden Fees?

No, Webull does not have any hidden fees.

The broker is transparent about the fees that they charge for different services.

The deposit and withdrawal fees, such as through wire transfers, are clearly outlined.

They are also transparent on their margin interest rates, knowing how much you’ll have to pay before taking any loan.

The interest rates are charged for leveraged positions held overnight or long positions.

Can You Short Stocks On Webull?

Yes, you can short stocks on Webull.

You need to have a margin account with the broker and be approved.

However, your margin equity must be greater than or equal to $2,000. 

Once approved, you can go to the “trade” tab and select the “short” option.

Webull will then provide you with a list of stocks that you can short.

You can also use the search bar to find the stock you want to short.

How Early Can I Buy Stocks On Webull?

Using Webull, you can place orders from 4:00 a.m. to 8:00 p.m. EST on business days.

The platform also offers trading during extended hours (4:00 a.m. to 9:30 a.m., 4:00 p.m. to 8:00 p.m.).

But during the extended hours, only limited orders are available.

Can I Trade After Hours On Webull?

Webull after-hours trading hours are between 4:00 p.m. and 8:00 p.m. EST.

Traders can experience more volatile prices than during regular trading hours.

This can be good or bad as you can get massive profits or incur huge losses.

Therefore, it’s advisable to use risk mitigation tools such as stop-loss when placing an order.

However, Webull holds the right to temporarily or permanently suspend securities traded during the extended hours without prior notice.

Can You Buy Stock In Pre-Market?

Yes, you can buy stocks pre-market on Webull.

Pre-market trading hours are from 04:00 a.m. to 09:30 a.m. EST on business days.

Like in the after-hours, stocks’ prices are more volatile than during regular trading hours.

Webull also holds the right to temporarily or permanently suspend securities traded during the pre-market hours without prior notice.

What Is Webull Tiered Margin Interest Rates

Webull offers different margin interest rates depending on the amount of money in your account.

The first is for accounts with less than $25,000, which charges a rate of 6.99%

The rates drop as the amount you have at the least rate is 3.99% for over $3,000,000.

The interest charged on margin trading is calculated daily and paid every month.

Overall, Webull is a good choice for options trading if you are looking for a commission-free broker with good options tools.

The broker is also transparent about their fees for different services.

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