Webull has grown to become a popular stock trading app among today's younger investors.
Through the app, you can trade stocks, options and even cryptocurrencies. However, you might be wondering if it is safe to invest with Webull.
In this article, we will be covering whether or not your assets are FDIC or SIPC insured with Webull.
Don't forget to grab your free stock worth up to $200 from Robinhood today!
Yes! Webull Financial is a member of SIPC.
Formed in 1970, the SIPC was created to step in and monitor the liquidation of broker-dealers in the event they:
This protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. Webull is a member in good standing.
The coverage scope of SIPC protection is $500,000, which includes $250,000 coverage for cash.
The FDIC insures depositors who have money in United States bank accounts.
Since Webull does not offer any banking products, FDIC insurance would not apply here.
In addition to the SIPC insurance, Webull investors have additional insurance through their clearing house which is Apex.
Here's what it says about this additional insurance on the Webull website:
Our clearing firm, Apex Clearing, has purchased an additional insurance policy. The coverage limits provide protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash. Similar to SIPC protection, this additional insurance does not protect against a loss in the market value of securities.
When investing with Webull, you can rest assured knowing there is SIPC insurance in place. In addition, there is an additional insurance policy offered through their clearing house.
However, it is important to keep in mind that neither of these insure against potential losses incurred from investments. This is simply insurance in the event that your financial assets themselves are lost, such as stocks, bonds and ETFs.