You’ve probably heard of Webull. It’s a popular digital trading platform and online brokerage where you can invest in stocks, ETFs, and options, among other assets.
Webull is one of many potential platforms you could use. In our digital age, we’ve all got tons of choices when picking investment tools, and that’s a good thing!
Webull got its start in 2017, when it was registered as a Delaware Limited Liability Company, or LLC. Its parent company is a Chinese holding company called Hunan Fumi Information Technology, which is incorporated in the Cayman Islands and headquartered in St. Petersburg, FL.
The company’s CEO has referred to it as both a Chinese and an American company. That’s something that has raised some scrutiny from US lawmakers.
We always recommend that investors at any level scrutinize the security features of whatever investment platform they use to make sure their money and personal information is protected.
So is Webull safe?
Whether you’re new to trading or a seasoned investor, understanding the security of the platforms you use is essential. In this guide, we’ll break down the security features of Webull and answer the burning question: Is Webull a safe trading app in 2025?
What Makes Webull Safe?
We’ll start with a high-level overview of what Webull is and which features are in place to ensure the safety and security of investors and their money. We’ll include technical features, regulation, and insurance to give a complete picture of user protections and why Webull is safe.
What is Webull?
Webull is a digital trading platform. Since 2017, it’s been offering investors a way to invest in stocks, ETFs, options, index options, futures, OTC, and more.
As of February of 2025, there’s no crypto trading on Webull. However, it is available via Webull Pay, which Webull created in collaboration with Bakkt Crypto Solutions, LLC.
In addition to trading stocks, options, and other assets, Webull users can also access real-time market data and a ton of research and education. There’s also a mobile app, which makes it super convenient to access your portfolio wherever you are.
You should know that Webull is a registered broker, which means they’re regulated by the SEC and a member of FINRA. These are good things when it comes to security and we’ll go into a lot more detail later in this Webull review.
Key Webull Features that Ensure Safety
Webull makes user safety a priority. Here are the key Webull features that are in place to protect you and your money.
- State-of-the-art encryption to protect your data both in transit and at rest, including SSL protocols and data encryption
- Two-factor authentication (2FA) to make it difficult for anyone unauthorized to access your account
- Biometric login options on mobile devices
- Secure physical and cloud data storage for users’ personal information
Users always have the ability to manage or change their privacy settings.
User Protections in Place
In addition to the features we’ve already mentioned, there are some other things that explain why Webull is safe.
- Device and behavioral monitoring to spot suspicious activity
- Protection against unauthorized access to user accounts
- Fraud prevention systems
One of the most promising things we’ve seen from Webull is their agreeing to an A SOC 2 Type 2 audit and their achievement, in late 2024, of SOC 2 Type II compliance. This is an independent auditing process, and receiving this designation is confirmation that Webull Corporation provides enterprise-level security for customer data secured in the Webull Corporation System.
Webull’s Regulatory Compliance and Oversight
Financial regulations are a key protection for investors. They’re what prevents brokerages, including digital platforms like Webull, from putting investors’ information or money at risk.
Key Regulatory Bodies Overseeing Webull
There are several regulatory bodies responsible for Webull trading app regulation.
- The Securities and Exchange Commission, or SEC, is responsible for enforcing transparency from brokers and ensuring that investors are protected.
- The Financial Industry Regulatory Authority, or FINRA, is a self-regulatory organization. Its members are broker-dealers, and FINRA makes information about them and their compliance with regulations public. It is under the oversight of the SEC.
- The Securities Investor Protection Corporation, or SIPC, provides insurance to protect investor funds in the event of Webull’s failure.
- FinCEN is a regulatory agency tasked with protecting the United States financial system from illicit activity.
- The Commodity Futures Trading Commission, or CFTC, is the regulatory body that enforces rules around trading commodity futures.
These bodies are all there to protect investors and their money. Most online trading platforms have been fined at some point, and we’ll get into more detail about that later in this Webull review.
How Regulations Ensure Safety for Webull Traders
The regulatory agencies we listed in the previous section all play important roles in ensuring safety for Webull traders.
The SEC oversees all registered broker-dealers in the US, making sure that they are in compliance with securities rules and regulations. They may fine brokers for a variety of infractions. We would be remiss if we didn’t mention that Webull was fined in November of 2024 for “filing insufficient Suspicious Activity Reports” or SARs.
FINRA membership is voluntary and it’s not a government agency. Still, members must comply with regulations and FINRA provides a search function where investors can look up broker-dealers and learn about any regulatory infractions.
FinCEN’s regulatory responsibility is protecting the US financial system, but it may examine broker-dealer transactions where they involve illicit activity such as money laundering.
In total, these agencies protect Webull users from fraud and keep Webull and other broker-dealers on the right path.
Legal Compliance Requirements
Webull is responsible for adhering to regulatory rules, as well as other legal compliance requirements. Here’s a quick rundown.
- The Investment Advisers Act was originally designed to protect investors from bad advice from investment advisers. Since 2022, there have been several updates designed to protect investors who get investment advice from automated robo-advisers. We expect these rules to continue evolving as robo-advisers become more complex.
- The Dodd-Frank Act was passed in 2010 and signed into law by then-President Barack Obama. It overhauled financial regulation, putting new consumer protections into place, including the Consumer Financial Protection Bureau.
- The SEC’s “Regulation Best Interest” provision provides a standard of conduct for broker-dealers.
These are just a few of the compliance requirements for Webull and other broker-dealers.
Pro Tip:
Get 20 free fractional shares on Webull when you deposit $500 or more today!
Investor Protections Under SIPC
The SIPC isn’t a regulatory body, but it does serve an extremely important role in protecting investors.
Simply stated, Webull users are protected by SIPC insurance up to $500,000, including $250,000 for cash claims.
You should know that SIPC insurance won’t protect you from market volatility or bad investment decisions. Its purpose is to protect you and your money if Webull fails.
Webull’s Reputation and Track Record: A History of Safety and Reliability
Here’s some information about Webull’s history and reputation, as well as how it has evolved over the years.
Webull’s Industry History and Growth
We’ve already told you that Webull got its start in 2017, which means that 2025 marks its 8th anniversary. It’s incorporated in Delaware and in the Cayman Islands.
Yahoo Finance has reported that the Webull app has been downloaded 40 million times, and that the brokerage has approximately 20 million active users. That makes it one of the more popular trading apps in the world.
Webull announced in November of 2024 that their global assets under management (AUM) now exceed $100 billion.
The company has evolved in a variety of ways, including the creation of Webull Pay to allow users to invest in cryptocurrency.
Webull’s Transparency in Operations
Like all brokers regulated by the SEC and registered with FINRA, Webull is required to be transparent and share information about its operations, fees, and compliance practices with the public.
Let’s start with FINRA. Any member of the public may search for Webull on FINRA’s website and view the report about its operations. You can see on this report:
- When Webull was started
- Where it is incorporated
- Where it’s licensed to do business
- Who regulates the company
- How many disclosures there are about regulatory infractions and what fines or penalties have been imposed
Most online-broker dealers have more than one disclosure. Webull has four. We already mentioned the one about filing insufficient SARs. The others include disclosures about due diligence for options trading and the company’s handling of customer complaints.
We should note that some of these disclosures involve Webull agreeing to a penalty without admitting culpability.
Webull’s Commitment to User Security
Since the company’s inception, Webull has been committed to user security.
According to Security.org, Webull is a safe company that prioritizes the security of users’ personal data.
While several US state attorneys general have expressed concern about Webull’s Chinese ownership, there is no direct evidence that users’ personal data has been compromised.
Pro Tip:
Get 20 free fractional shares on Webull when you deposit $500 or more today!
How Webull Protects Your Data and Funds
Webull does a lot to protect your data and funds. We’ve already mentioned some of these things, but here’s a deeper look to help you understand.
Encryption and Data Protection
Webull’s website and app are protected by SSL certificates and end-to-end encryption of all transactions. Their encryption protocols ensure that your data’s not accessible when it’s at rest in your account or being used to complete a transaction.
Likewise, data privacy is a priority for Webull. The company follows GDPR, which is the EU’s sweeping data privacy law.
The United States doesn’t have, at this time, a comprehensive national data privacy law. Instead, there’s an aggregation of national, state, and local privacy laws. Some of the things that protect Webull users are:
- The US Privacy Act of 1974
- The Gramm-Leach-Bliley Act
We’d be remiss if we didn’t note here that the CFPB is in danger of being eliminated by the Trump administration and that has the potential to impact consumer safety at every level.
Two-Factor Authentication (2FA) Setup
We’ve mentioned 2FA, and it’s something we recommend every Webull user enable. Once it’s enabled, you’ll be required to enter a verification code that Webull sends to your email or phone. Here are the steps to set it up.
On the app:
- Tap Menu
- Tap Settings
- Select Account & Security
- Turn on Two Factor Authentication.
On the web or desktop:
- Go to Settings
- Choose Account & Security
- Select Security Settings
- Turn on Two-Factor Authentication
This takes just a minute or so to do, and it can provide peace of mind that nobody unauthorized can access your Webull account.
Fraud Prevention Mechanisms
One of the most important elements of Webull account security is the fraud prevention mechanisms they’ve put in place, including:
- Real-time alerts of suspicious account activity
- The ability to lock and unlock your account if you suspect fraud
- Scams and phishing prevention training for users
We particularly appreciate these features because they keep users informed when there’s a chance their account may have been compromised. If you decide to use Webull, we strongly recommend taking advantage of the scam and phishing training to educate yourself.
Pro Tip:
Get 20 free fractional shares on Webull when you deposit $500 or more today!
Best Practices for Staying Safe on Webull
Here are some extra steps you can take to protect yourself and stay safe on Webull.
- Create strong passwords and account recovery methods. This means creating a strong password, which should be at least 8 characters and include a combination of upper and lowercase letters, numbers, and special characters.
- Enable email and mobile verification, so you can recover your account.
- Enable two-factor authentication. Simply follow the step-by-step instructions as we explained above.
- If you wish, create a Passkey to log in.
- Monitor your account regularly, This means reviewing your transaction history and account activity and flagging anything suspicious.
- Review your bank information. Anytime you withdraw money from Webull, make sure to double check that your bank account information is correct. There are protections in place to prevent someone from changing bank accounts (a 60-day waiting period) unless a bank has actually closed, but you should still review.
- Educate yourself about scams and phishing. As we’ve already mentioned, Webull provides plenty of education to help users recognize common scams and phishing schemes. Reviewing them will minimize the chance that you’ll fall victim to a scammer.
Following these tips will ensure that your Webull account, deposits, and investments stay safe.
Is Webull the Right Choice for You? Final Thoughts
Can you trust Webull with your investments? Here’s a quick recap.
- Webull has state-of-the-art security measures in place, including end-to-end encryption, 2FA, the ability to create a Passkey, and regulatory compliance.
- The pros of using Webull include comprehensive security, regulatory compliance, and zero commission trading.
- The potential cons of using Webull include limited customer service options and high-risk margin trading.
Our final recommendation is that Webull is safe and you can trust Webull with your investments, provided you create a strong password, enable 2FA, and follow the best practices we outlined in this review. You can even get free stock when you sign up!
FAQs
You can protect your Webull account from hacks by creating a strong password that you don’t share with anyone else, enabling 2FA, creating a Passkey, educating yourself about scams, and monitoring your account regularly for suspicious activity.
You can protect your Webull account from hacks by creating a strong password that you don’t share with anyone else, enabling 2FA, creating a Passkey, educating yourself about scams, and monitoring your account regularly for suspicious activity.
Yes, we believe you can trust Webull with your personal data. As long as you follow the best practices we included in our review, including setting a strong password and enabling 2FA, you should be safe.
Yes, Webull uses state-of-the-art SSL encryption that protects your data while it’s at rest and when it’s being used to carry out a transaction.
Yes, Webull’s app is safe to use. Make sure to enable device protection and 2FA, and never share your mobile device with anybody else.
Webull ensures the security of its trading platform by using SSL encryption, providing 2FA to users, as well as education about frauds and scams and compliance with regulatory requirements.
No, Webull has not enabled the user of third-party authentication apps as of February of 2025. We hope that they will soon and we will keep you apprised of changes.
