Webull is a newcomer on the block when it comes to brokerage platforms available today.
While the company has only been around for a few years, it has grown to a user base in the millions.
A lot of people wonder whether or not their money is safe with Webull, since it hasn't been around for long.
Rest assured, your assets actually have two layers of coverage (excluding crypto, more on that below):
If you are still curious to lean more, here's what would happen in the unlikely event that Webull goes out of business.
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First of all, if you invest in stocks or ETFs with Webull, your securities have SIPC insurance.
You can read more about this in our full article on Webull SIPC/FDIC insurance here.
In a nutshell, this covers you in the event that your broker loses your financial assets or cash.
Since Webull Financial is a member of SIPC, you are covered for up to $500,000 worth of securities, including $250,000 which can cover cash.
So, if Webull somehow went out of business and lost customer assets, the SIPC would step in. It is highly unlikely that this would happen.
In addition, Apex Clearing, the clearing house Webull uses to fill orders, has an additional policy in place.
In the rare event that Webull goes out of business and SIPC is fully exhausted, this supplemental policy would kick in.
This is an aggregate policy that covers financial assets and cash up to a combined $150m. There are limits per customer for securities and cash, however both are quite high.
First of all, it is very unlikely that Webull will go out of business.
What would most likely happen if Webull ran out of money is that a larger brokerage platform would purchase or acquire them.
If you own stocks/ETFs with Webull or have idle cash in your brokerage account, these are covered by SIPC insurance.
In the very unlikely event that SIPC is exhausted, the separate insurance policy through Apex Clearing would kick in.
Crypto, on the other hand, is not covered by any insurance program. If you own crypto within Webull, you should keep this in mind.