Webull Financial LLC is a stock broker from China but based in New York. This electronic trading platform is available for interest-free trading of stocks, exchange-traded funds, and cryptocurrencies. You can access this platform from a desktop computer and a mobile app.
Although it was born in 2017, it has grown rapidly within the U.S. market as a safe space to put money. More and more people are adding to the idea of exchange listings and regular investment activities with cryptocurrencies. If you are not yet inside this movement but want to know how reliable it is, we have prepared this guide to solve your main doubt: is Webull FDIC insured?
About Webull’s security and protection
With five years on the market, Webull Financial LLC is one of the fastest-growing applications in the digital investment world. Thanks to its brilliant path, other platforms have come to market recently to meet millennials’ demand. The company is part of this litter of new investors, and, commonly, you may have doubts regarding the app; at the end of the day, you deposit your money in it.
Webull’s platform has stood out for offering a free service and zero transaction fees. These mechanisms lead you to ask, is Webull a reliable platform? The good news is that to work as a financial institution within the United States, it must comply with legal and financial requirements to guarantee customer confidence and protect the investment.
To meet all operational requirements within the United States, Webull is registered with the Securities and Exchange Commission (SEC), is a member of the Financial Industry Regulatory Authority (FINRA), is part of the Securities Investor Protection Commission (SIPC), is part of the New York Stock Exchange (NYSE), NASDAQ and Cboe EDGX Exchange, Inc (CBOE EDGX).
Is my brokerage account FDIC insured?
The Federal Deposit Insurance Corporation (FDIC) is a federal agency whose purpose is to insure the deposits of bank customers within the United States. This entity provides security and protection against the loss of savings in the event of a bank’s failure.
Webull Financial LLC is not a bank; for this reason, it cannot be a member of the FDIC. The company also offers no other protection program similar to deposit insurance corporation coverage. By its very nature, Webull Financial LLC cannot be a member of the FDIC, which means it runs the risk of losing some of the cash you deposit in the account if the application goes bankrupt.
Is it safe to put money in Webull?
Although Webull is not FDIC insured, it is a safe place to put your money. The company has taken care to conform to all the parameters to gain confidence and stability in the market. Therefore, the money deposited is guaranteed thanks to the insurance of Securities Investor Protection (SIPC).
Just as the FDIC is designed for banks, the SIPC is intended to protect the shares of companies listed on the U.S. stock exchange. This organization is in charge of monitoring and covering the different types of stocks. The SIPC insures Webull Financial LLC, and from Apex Clearing House, the company is protected for a total cash amount of $900,000 in case of bankruptcy.
The answer to all your questions is yes, Webull is a safe platform to deposit your money. In case you are concerned about the possibility of bankruptcy of the company, we recommend that you keep a cash amount of under $900,000 in your account.
Is Webull insured?
Yes, Webull Financial LLC is insured with SIPC, as mentioned above. This not-for-profit corporation was created by a law passed by Congress to protect customers of brokerage firms that go bankrupt. The corporation protects all registrants of the Securities Exchange Act of 1934 and the National Association of Securities Dealers (NASD).
The SIPC oversees the liquidation of failed broker-dealers, and its primary function is to return money to customers as quickly as possible. It is worth mentioning that the organization does not investigate fraud or stock exchange-related crimes; it is not an agency or part of the government.
The nonprofit organization provides coverage of up to $500,000 in cash for businesses, with a limit of up to $250,000 in cash.
Is my info safe with Webull?
As well as money, Webull also secures its customers’ personal information. To make them 100% secure, it provides two-factor authentication, 128-bit encryption, mobile security features, and firewalls. Any stranger will not have the opportunity to access your information; only the account holder has this access data.
If you have an additional question related to the theme or your account, Webull has a customer support service available from 09:30 am to 04:00 pm local time in New York. You can reach them Monday through Friday at 1-888-828-0618. When you call, you will speak with a customer service agent who will usually answer your questions in a friendly manner.