There are many brokers and platforms today to start trading stocks, and choosing the right one for yourself can be a daunting task. This is because there is much information out there, making it difficult to distinguish the real or fake. So, is Webull a Chinese company?
No, Webull is not a Chinese company, although its holding company is Chinese. Webull is registered in New York; as a result, it operates under US law.
In this article, I’ll talk about the following:
- What is Webull, and how was it created.
- Is Webull safe, and what are the risks?
- Who should and shouldn’t use Webull?
What is Webull, and how was it created?
Webull is an online brokerage platform created in 2017 that allows you to trade stocks, ETFs, and options with no hidden charges involved if you are new to online stock trading. The company is also a commission-free company, which means you can trade stocks for free. Consequently, the platform also offers powerful tools to get vital information about future investments, watchlists, comprehensive stock charts, and many others.
Webull is a subsidiary of the multinational Chinese company Fumi Technology. The platform is owned by Webull Financial LLC, which is headquartered in New York. The other stakeholders in Funmi Technology include Gopher Asset Management, Xiaomi, Hongdao Capital, Bojiang Capital, and Shunwei Capital.
Today, this company has more than 9 million users worldwide and an estimated asset worth more than $4 billion across its customer accounts.
Webull was created by Wang Anquan, a former employee of the Alibaba Group and smartphone manufacturer Xiaomi. Its current Chief Executive Officer is Anthony Denier, while its Chief Operating Officer is Shen Lu.
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Is Webull regulated?
Webull is registered with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC). Furthermore, the company is also a member of NASDAQ, the NYSE, and the Cboe EDGX Exchange (CBOE EDGX).
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How does Webull earn money?
As we briefly stated earlier, Webull charges no fees for trading U.S stocks or ETFs. However, there are some fees that you need to know about so that you won’t be blindsided. The sale of stocks and ETFs on Webull have regulatory fees from SEC and FINRA. SEC transaction fee is a minimum of $0.01; FINRA fee is also a minimum of $0.01 and a maximum fee of $5.95. And these are margin fees the platform uses to make money.
Webull charges for its research with a subscription fee that ranges from $2.99 to $60 monthly – this is another way the platform makes money on its own.
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Is Webull safe? What Are The Risks?
Now that you know what Webull is let’s answer whether it is legit or not.
I know you don’t want to put your hard-earned funds into an online brokerage that is just a few years old. You want to know if there are any risks involved.
Hence, Webull is entirely safe, and it also offers optimum protection for investors. The platform is regulated by the Security Exchange Commission and the Financial Industry Regulatory Authority, which means your funds are safe from any issue that Webull.
It is also essential to know that Webull is also in partnership with Apex Clearing, a famous and trusted clearing firm that makes sure your money is in the proper place.
Also, every investor is protected for $500,000 in securities, including a $250,000 cash limit. This means that Webull follows the rules and regulations.
In addition to that, Webull also uses a high level of encryption to ensure your account and vital data are safe.
As you can see, Webull is safe, and there are no risks involved because they implement the best practices to make sure you are safe.
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Who is Webull for?
Webull is ideally suited for new, young, and active traders. The platform is perfectly suitable for millennials with small amounts of funds to invest.
Thanks to its lack of commissions, new and intermediate traders can use the platform to test strategies while also learning how to trade actively.
The platform has an exemplary user interface that makes it an excellent tool for millennials who want to learn and invest little funds.
Not only that, Webull is also suited for swing traders due to the plethora of tools that it has. An impeccable execution is not that important for these types of traders, as they plan to take advantage of big market movements rather than small intraday fluctuations.
In addition, swing traders do not bother themselves too much with the analysis aspect of the market. Most times, they are contented with a good charting platform to take profits.
Who shouldn’t use Webull?
Webull isn’t ideally suited for institutional investors. As a self-directed company, Webull is focused on those who can readily take a hands-on approach to build and manage their portfolios.
Furthermore, the platform is also not a good option if you are an investor with a traditional investing approach, such as employing brokers who want to invest in stocks outside the United States.
Webull is not a suitable platform for full-time traders because of the difficulty in transferring to Webull from a broker. Full-time traders need direct access to the market to have a better advantage, which Webull doesn’t provide.
And lastly, Webull is not suitable for you if you are an investor that lives outside the countries that Webull supports.
You need to be aware that Webull is only available for users 18 years and above who have a valid SSN and a legal residential address in the United States. Hence, if your legal residential address is not in the United States or you don’t have a valid U.S. visa, you aren’t eligible to open an account on Webull.
There is no doubt that Webull is a trusted firm because it is incorporated and regulated in the United States. It is also not a Chinese company, but its holding company is Chinese. Webull is worth considering if you wish to purchase stocks or ETFs.
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To see all of my most up-to-date recommendations, check out the Recommended Tools section.