Is Webull Safe? What You Need to Know

Investing these days is not only about picking the right stocks or investments, it's about making sure the platforms in which those stocks and assets are traded and held are 100% secure. If the Sam Bankman-Fried and FTX fiasco taught us anything, it's that the safety of a trading platform is the most paramount facet of all! When it comes to Webull, a popular trading app, investor safety and security are just as important. So, is Webull safe? Below, we'll break down how Webull works and why this platform, in all reality, is about as safe as they come.

Is Webull safe?

Yes, Webull is safe. Webull is a secure platform that combines regulatory oversight from the SEC and FINRA, SIPC protection up to $500,000, and third-party asset custody via Apex Clearing. It also adds cybersecurity features like 2FA and biometric login to help prevent unauthorized access. While trading always carries risk, Webull’s structural safeguards are strong and align with industry standards for investor protection.

How does Webull work?

Webull is a mobile-first, commission-free trading platform launched in 2017, often compared to Robinhood. Although often likened to Robinhood, Webull’s offering leans more sophisticated, targeting active investors and traders with tools like Level 2 quotes, customizable charts, and options trading. Webull is owned by Fumi Technology, a Chinese company with U.S. regulatory approval through Webull Financial LLC, a U.S.-based subsidiary headquartered in New York.
The platform has grown quickly, now serving millions of users globally, many of whom are young, tech-savvy, and eager to take control of their financial future. Webull is growing exponentially as well. Below is a snapshot of estimated user growth compared to other retail investing platforms:

What does “safe” mean in investing?

What does safe mean in investing? It can mean differnet things to different people. 'Safe' in the investing world doesn’t mean “guaranteed returns' or 'no losses.” It means that the platform you use has the right protections, the right oversight, and the right guardrails in place, so that you can focus on building a smarter strategy without worrying that the foundation will fall out from under you.

Safety isn’t one-dimensional; it’s layered. Here are the four types of risk you need to consider when trading stocks via electronic brokerages :

Is Webull regulated and insured?

Yes, Webull is both regulated and insured. When you hand a brokerage the keys to your hard-earned cash, you want to know three things: Who’s watching them, who’s holding the money, and what happens if something goes wrong?

Webull checks those trust boxes with a layered safety net that combines federal oversight, third-party custody, and industry-standard insurance. Below, we break down how Webull satisfies each one.

How Webull is insured with SIPC protection

SIPC protection covers up to $500,000 (including $250,000 for cash) if a brokerage firm fails, but it doesn’t protect against investment losses. If you have a bank account located in the US, which many readers will, you are probably familiar with the Federal Deposit Insurance Corporation or FDIC. The FDIC and SIPC are analogous but differ slightly in what's protected and what's not protected.

Who is the third-party custodian for Webull? Apex Clearing

Apex Clearing is a U.S. clearing firm that handles trade settlement, asset custody, and back-end support for brokerage platforms. It's registered with the SEC, is a member of FINRA and SIPC, and works with companies like SoFi, Stash, and Webull.

Webull uses Apex Clearing as its back-office custodian. That matters because:

• Apex is one of the largest clearing firms in fintech, trusted by dozens of brokerages.
• Your shares are recorded in your name on Apex’s books, not floating on Webull’s balance sheet.
• Apex itself carries extra “excess-SIPC” insurance that sits on top of the standard limits—an added buffer most retail investors never need but everyone appreciates.

SEC + FINRA: Webull's regulatory overlords

Webull Financial LLC is regulated by both the SEC and FINRA, which means it has to follow strict rules that protect everyday investors. These are American agencies, not Chinese ones, so regulation isn't decided on via the whims of the CCP. These agencies set capital requirements to prevent brokers from taking risks with customer funds. They also conduct regular audits, including unannounced inspections, to keep firms in check.

Let's take trade execution for example. If a brokerage fails to give you the best available price on a stock order, FINRA can step in and issue fines or other penalties. The oversight isn't just for show; it helps ensure brokers like Webull treat customers fairly, advertise honestly, and follow industry standards every step of the way.

Webull’s safety stack is on par with its fintech peers, stronger than many newcomers, shy of the centuries-old giants in sheer dollar coverage, but definitely strong enough for most retail portfolios.

Webull’s cybersecurity and platform safety

Regulation, insurance, and 3rd party custodial accounts create a legal framework for safety, but safety in the 21st century doesn’t end with audits and licenses. With electronic and online brokerages, cybersecurity is also incredibly important to make sure that your assets are protected and not susceptible to hacking.

Webull account protection measures

Even the most regulated platform can become vulnerable if your personal login isn’t secure. That’s why Webull layers in multiple user-level protections designed to keep your account and your data safe from unauthorized access. From biometric login to industry-standard encryption, here’s what’s working behind the scenes to guard your portfolio:

How Webull compares to competitors on security

Can you lose money using Webull?

Let’s be clear: Yes, but not because the platform is unsafe, but because investment comes with inherent risks. Like any brokerage, Webull gives users access to markets where losses are part of the game. The real risk comes from decisions, not the tool itself. A safe brokerage can still be risky when it comes to trading, particularly for traders who are interested in trading more exotic financial products, some of which use leverage. Webull gives traders access to the following:

Each of these tools is a leverage multiplier, but without education and a plan, they can multiply mistakes just as easily as returns.

How does Webull make money?

Understanding how a platform earns helps you understand how aligned it is with your goals. Webull isn’t charging you per trade, so how are they staying profitable?

Understanding PFOF (payment for order flow)

Webull routes your trades to third-party market makers (like Citadel Securities), who pay Webull for that order volume. This is called Payment for Order Flow (PFOF), and yes, it’s controversial.

Webull’s defense?

It’s the cost of offering zero-commission trading to retail investors. And so far, regulatory bodies have allowed it, though under scrutiny.

Other revenue streams

Like most brokerages, Webull also earns from:

• Interest on uninvested cash
• Margin loan interest
• Lending your securities to short sellers
• Premium tools or advanced data packages

What seasoned investors say about Webull

Let’s get real, Webull is not a one-size-fits-all platform. Depending on your strategy, it might be a dream tool or a missing puzzle piece. Here’s a strategic breakdown of how Webull stacks up for different investing styles, based on platform features, not hype or headlines. From tactical strengths to functional gaps, this snapshot helps clarify where Webull fits in a smart, diversified investing toolkit:

FAQ

Can I use Webull if I live outside the U.S.?

Webull is primarily available to U.S. residents, but it has expanded access to a few international markets including Hong Kong and Singapore. However, account features and available securities may differ depending on your region. Always check Webull’s regional site or support for the latest eligibility and compliance information.

Does Webull support tax-loss harvesting?

Webull does not offer automated tax-loss harvesting like some robo-advisors do. You can manually sell losing positions to offset gains, but it’s up to you to track wash-sale rules and coordinate with a tax professional. For investors focused on tax efficiency, platforms with built-in optimization may be a better fit.

Can I transfer my assets from another broker to Webull?

Yes, Webull supports ACATS (Automated Customer Account Transfer Service) transfers from most U.S. brokerages. The process typically takes 5–7 business days, and Webull may reimburse transfer fees depending on the amount moved. Make sure your asset types (e.g., options or mutual funds) are eligible for transfer before starting.