Is Webull a scam or is it truly safe to use? The answer is that it is a safe platform. With over 20 million users globally, Webull has become a popular trading app for commission-free stocks, ETFs, options, and crypto. But questions about security, reliability, and hidden risks are always on investors’ minds. In our blogpost, we’ll show you what real users and trusted sources say about Webull’s safety.
Key Takeaways
| – Webull is a legit online brokerage regulated by the SEC and FINRA. – Despite concerns about Webull scams and why the platform asks for your SSN, it’s standard practice for regulatory compliance and security. – Real users find Webull’s features reliable, though some note occasional customer service delays. – Webull isn’t FDIC-insured but SIPC insurance protects up to $500,000, covering you against broker failures, not market losses. – For extra safety when trading, especially on public Wi-Fi, use TurisVPN to secure your Webull sessions and avoid geo-restriction issues. |
What Is Webull?
Webull is an online trading platform available on mobile and desktop. The main targets of this app are beginner and intermediate traders. The platform offers commission-free trades on stocks, ETFs, and options trading.
Founded in 2017, Webull helps users track the markets and execute trades quickly. While Webull has a relatively short history compared to legacy brokers like E*TRADE or Fidelity, it’s quickly grown in popularity. In fact, as of early 2025, Webull has more than 20 million registered users globally – a testament to how many people trust and actively use this platform.
Beyond stocks, Webull accounts also support cryptocurrency trading. So, users can buy and sell popular digital assets like Bitcoin and Ethereum 24/7. Whether you’re interested in margin trading, investing in fractional shares, or setting up a retirement account, Webull has you covered. This platform is designed to offer powerful trading tools and real-time data, making it a go-to option for mobile-centric investors looking to trade on the go.
Is Webull A Scam?
No, Webull is not a scam. It’s a legitimate, regulated brokerage platform that offers a suite of trading tools and features for investors. In recent years, user concern about online fraud, market volatility, and personal data leaks, many first-time investors have grown wary of new trading platforms. It’s no surprise that questions like “Is Webull a scam?” or “How safe is Webull when linking bank accounts or sharing personal information?” have become common among cautious users.
Webull is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), ensuring compliance with strict financial regulations. Additionally, accounts are protected by the Securities Investor Protection Corporation (SIPC), providing up to $500,000 in protection, including $250,000 for cash claims, a level of insurance consistent with other reputable brokerages.
Webull also partners with Apex Clearing Corporation, a respected clearing firm, adding an extra layer of safety. This setup means that Webull accounts aren’t just reliant on one entity for security. Understanding this structure can help you trade with more confidence. If you ignore it, you are vulnerable to panic, poor decisions, or falling for misinformation and scams.
Why does Webull need your personal info?
You might be wondering why Webull needs your personal information, such as your Social Security Number (SSN). Webull must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. These regulations are designed to protect users and the financial system by verifying your identity and ensuring no fraudulent activity.
While it might feel intrusive, this requirement is standard for any legitimate trading platform. Webull uses your information solely for verification and account security – not for selling your data.
Providing accurate information also ensures smoother withdrawals, faster deposits, and better customer support when issues arise.
So, while the question “is Webull trustworthy?” pops up frequently, the answer is yes, especially when you consider its regulatory oversight and transparent use of customer data.
Can You Safely Trust Webull With Your Money?
Webull is often considered safe and trustworthy by many investors, especially given its robust regulatory backing and insurance coverage.
First and foremost, Webull is not a bank but it operates as a licensed brokerage under the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). This coverage doesn’t protect against market losses but does cover cases of broker failure.
For those wondering “is Webull FDIC insured?”, the short answer is no. Since Webull is a brokerage and not a traditional bank, it doesn’t offer FDIC insurance on brokerage accounts. However, Webull cash management including uninvested cash swept to partner banks—may be eligible for FDIC insurance through those banks, depending on how your funds are handled.
Webull needs your SSN because of the federal regulations. As a brokerage, Webull is required to verify your identity and comply with Know Your Customer (KYC) and anti-money laundering (AML) laws. Providing your Social Security Number (SSN) ensures that your trading activities are reported correctly for tax purposes and that your account remains secure and legally compliant.
For international users, including in Malaysia, while there’s no direct Webull Malaysia platform, users can still access Webull by using VPNs or other workarounds. However, this may introduce additional risks or violate local laws, so it’s crucial to check local regulations before trading.
Does Webull Have Any Hidden Fees or Charges?
Webull has gained popularity thanks to its commission-free trading model. So, users can trade stocks, ETFs, and options without paying a commission fee. However, Webull is not completely free, and some users may encounter unexpected charges.
Like most brokerages, this platform applies regulatory fees (set by the SEC and FINRA) on stock sales, and margin interest fees for leveraged trading—often overlooked as hidden fees by beginners. However, Webull is transparent about these charges. Users can easily access a detailed, up-to-date fee schedule directly from the app or on the official website. They can avoid unexpected charges and make better-informed trading decisions.
For example, while stock and ETF trades don’t have a direct fee, if you’re trading options or using margin, you’ll pay small fees or interest rates that vary based on your balance. Some users have noted in Webull reviews and complaints that these charges can add up, particularly for those who frequently use margin or options contracts.
There’s also a misleading promotion video circulating online claiming you only need $500 to trade in legit ways on Webull. Webull doesn’t require a minimum deposit to open an account, but some strategies like margin trading or large-scale investing might recommend a starting point around $500. Always read the fine print and avoid falling for marketing oversimplifications.
What Do Real Users Say About Webull’s Safety?
User reviews on Reddit, Trustpilot, and app stores like Google Play reveal a mixed but generally positive picture.
On Trustpilot, Webull averages a solid rating, with users praising its low fees, ease of use, and advanced charting tools. Many agree it’s a great app for active traders and beginners alike. Some complaints highlight occasional glitches or delayed customer service responses.
You can actually make money on Webull. Webull is a legitimate brokerage offering real investing opportunities in stocks, ETFs, options, and crypto. Whether you’re a day trader or a long-term investor, you can use the platform to trade profitably though success depends more on your trading skills and market conditions than on the platform itself.
The app is best suited for tech-savvy beginners and active traders who value low-cost trades and advanced data tools. For those needing comprehensive financial advice or mutual funds, larger full-service brokers might be a better fit.
How To Trade Securely On Webull With TurisVPN?
To secure your Webull trading, follow these 3 simple steps using TurisVPN. Webull offers strong security measures, and you can use TurisVPN to add an extra layer of protection. Here’s how to get started with TurisVPN for secure Webull trading:
- Step 1: Visit TurisVPN’s free crypto VPN page and download the app for your device.
- Step 2: Choose a secure server location (like a U.S. server for American Webull access).
- Step 3: Connect to the server, then open Webull to safely trade stocks, ETFs, and crypto—knowing your data is encrypted and your identity is protected.
TurisVPN helps protect your sensitive financial data. This VPN also ensures your connection stays stable and private, especially useful when trading from shared or public networks.
If you’re accessing Webull from overseas, TurisVPN can also help you bypass geo-restrictions smoothly.
Bottom Line
To sum up, Webull is a safe, legit brokerage platform regulated by top U.S. financial authorities like the SEC and FINRA. With SIPC insurance, strong encryption, and a user-friendly interface, Webull is a solid choice for most investors.
However, always stay alert: understand that no platform is risk-free, and use smart practices like VPN protection from TurisVPN to keep your assets secure. Whether you’re a beginner or an active trader, Webull can be a valuable tool.
FAQs
Q1. Is Webull safe and legit?
Yes! Webull is regulated by the SEC and FINRA, protected by SIPC insurance up to $500,000, and uses strong data encryption.
Q2. Is Webull Pay legit?
Yes, Webull Pay (their payment feature for crypto transactions) is legitimate, offering a safe way to transfer funds within the platform.
Q3. Can I use Webull without linking a bank account?
Yes, you can open an account and explore features like paper trading without linking a bank. However, to fund real trades or withdraw money, linking a bank account is required.
