Is Webull a Scam?

If you’re thinking of using Webull, you need to know whether it’s safe. Is Webull a scam? 

Below, we explain whether Webull is a scam and discuss some steps you can take to improve your safety before using this trading platform. 

What Is Webull?

Webull is a mobile‑first brokerage platform that offers commission‑free trading of U.S. stocks, ETFs, options, and cryptocurrency.  

It targets self‑directed traders who want low‑cost trades, real‑time market data, and community features without an account minimum.

Webull launched its app in 2018 and added paper trading, advanced charting, and futures trading in 2024.  

It went public in April 2025 after a SPAC merger, listing Class A shares on Nasdaq under the ticker BULL.

Is Webull a Scam?

No, Webull is not a scam. It’s a regulated broker‑dealer.  

It holds customer funds in insured accounts and has settled regulatory cases for reporting failures rather than fraud.  

Customers receive SIPC coverage up to $500,000 (with $250,000 for cash) and additional insurance through Apex Clearing. SIPC coverage protects your assets if the brokerage fails (it does not cover losses resulting from a decline in the market value of your investments).

That said, there are complaints about frozen accounts, unresponsive support, and withdrawal delays. 

Third-party publications and review sites generally review WeBull favorably. 

For example, a NerdWallet review gives Webull a rating of 5.0 out of 5.0 stars. The platform’s pros include low costs, a user-friendly experience, advanced tools, and a high interest rate on uninvested cash. The cons include no mutual funds option and limited OTC stock offering. 

A StockBrokers review rates Webull 4.0 out of 5.0 stars overall and notes that it is ideal for beginners and intermediate traders.  Pros include commission‑free options trading, paper trading, and a strong social community. Cons include weak research tools, disorganized educational content, and the inability to designate beneficiaries except for IRA accounts.  

Business Insider gives Webull a score of 4.32 out of 5.0, The Motley Fool rates Webull as 4.5 out of 5.0 stars, and Forbes Advisor includes Webull in its list of “10 Best Online Brokers and Trading Platforms of 2026,” scoring it as 4.9 out of 5.0 stars and noting that it’s “Best for Day Traders.”

User reviews of Webull are mixed as of this writing: 

• 1.4 out of 5.0 stars (from over 300 reviews) on Trustpilot. 
• 4.6 out of 5.0 stars (from over 200,000 reviews) on Google Play. 
• 4.7 out of 5.0 stars (from over 300,000 reviews) on the App Store. 
• 1.8 out of 5.0 stars (from over 5 reviews) on ConsumerAffairs.
• 1.21 out of 5.0 stars (from over 30 reviews) on Better Business Bureau. 

People complain about blocked withdrawals, account restrictions, platform and trading issues, and slow and hard-to-reach customer service. 

On online forums like Reddit, people likewise report mixed experiences with Webull. Some people really like the platform and say the customer service is very responsive, whereas others claim the opposite. 

For example, one person writes:

“Webull is generally simple to use and they prioritize the mobile experience. Customer service can be responsive though the app, but often isn’t great. If you ever have an any interest in options, you’ll find they handle single options well, spreads are okay, and working with 3+ leg positions is limited at best. That said, you’ll find the fees are only the regulatory ones for most trading.”

Webull has its own subreddit where you can read more about users’ experiences with the platform. 

Webull is not Better Business Bureau accredited and holds a “B-” rating. BBB ratings reflect how the BBB believes a business interacts with its customers. 

At the time of writing, Webull has received 127 complaints on the BBB site over the last three years, 46 of which were closed in the past 12 months. 

Complaints center on account access issues, billing problems, outages, missing funds or shares, and poor customer support. 

Webull impersonation scams 

Scammers have been known to impersonate Webull.

In fact, Financial regulators in Europe have issued warnings about clone websites impersonating Webull.  

For example, in an official warning, the financial supervisory authority in Belgium, Financial Services and Markets Authority (FSMA), said “Webull Investing” was flagged as a clone firm alongside other fraudulent trading platforms.

These warnings apply to impostors, not to Webull itself.

Webull regulatory actions & lawsuits

In 2025, Webull Financial paid a $1.6 million FINRA fine for failing to supervise social media influencer promotions from 2019-2022, which included exaggerated claims without risk disclosures, and for not delivering Form CRS to millions of customers. 

Earlier, in 2023, FINRA fined the firm $3 million for inadequate supervision of its automated system approving unsuitable customers for options trading.

Webull security

Webull customer accounts are protected by the SIPC up to $500,000 per customer (including a $250,000 limit for cash). In addition, clearing firm Apex provides extra insurance of $37.5 million for investments and $900,000 for cash.

In its privacy policy, Webull says it uses “reasonable, industry standard security measures” to protect user information and maintain “appropriate physical, electronic and procedural safeguards.” These include restricting access to data on a need-to-know basis and security audits. 

It also says it has a data breach management plan. 

Webull uses 128‑bit AES encryption to secure data transfers, offers two‑factor authentication, and partners with Plaid for bank integrations. 

In late 2025, Webull faced investigations over an alleged breach where unauthorized parties accessed customer accounts, liquidated holdings, and bought shares in penny stock Ten-League International Holdings (TLIH) in a suspected pump-and-dump scheme, causing investor losses and potential tax issues. Webull attributed it to phishing, but faced lawsuits and scrutiny for security lapses.

Webull privacy

This section looks at Webull’s privacy, including its privacy policy and privacy incidents. 

WeBull privacy policy 

Webull explains in its privacy policy the kind of data it collects, why, and with whom it shares it.

It may collect the following personal information:

• Contact information: Email and phone number. 
• Account information from Google/Facebook: If you sign up that way.
• Usage data: How you use the app, interactions, and the content you post.
• Device permissions: Camera, photos, microphone, and calendar (only with your consent). 
• Identity verification information for trading accounts: Name, ID, address, DOB, etc. (for legal/AML compliance). 

The company may use this data to provide and improve services, send notifications and promotions, conduct surveys and evaluate marketing, and assess risks and comply with regulations. 

Webull says that it uses cookies and similar technologies to personalize your experience, remember login sessions, analyze usage and improve services, and optimize advertising. You can turn off cookies, but if you do, some features may not work properly.

It may share your data with service providers, legal authorities (if required by law), affiliates (including financial services partners), and during business transfers (mergers, acquisitions, or bankruptcies). Plus, publicly, if you post public content. 

Webull states that it does not sell your personal data. 

The company retains your data for as long as needed. 

You can access, update, or delete your account information, download some account data (like your portfolio), and permanently delete your account (with a 30-day recovery window). 

Webull warns that public posts may still exist on search engines after deletion.

The company may store and process your data in other countries.

There are special safeguards applied for users in the EU/UK.

Third-party evaluation of Webull’s privacy policy 

The Common Sense Privacy Program, which rates internet services’ policies, gives Webull’s policy a “Warning” rating. This means the policy “Does not meet our recommendations for privacy and security practices.”

The Common Sense Privacy Program notes as a positive that the service does not sell or rent personal information to third parties. 

However, it says that it is unclear whether personal information is shared for third-party marketing and whether it creates and uses data profiles for personalized ads. 

It also says that the service displays personalized ads and uses users’ information to track and target ads on other third-party websites or services. Additionally, it notes that third parties can collect data for their own purposes. 

Concerns about Webull’s data privacy practices 

A coalition of U.S. state attorneys general opened an investigation in 2024 into whether Webull misled users about how it collects, stores, and protects U.S. customers’ personal and financial data. 

So, Should You Use Webull?

Depends.

Webull is best suited for self‑directed investors and day traders who want low costs, high APY on cash, and advanced tools.  Those who are comfortable managing their portfolios and who prioritize mobile access may find it attractive.

It may not be the best fit for investors seeking mutual funds, extensive research, 24/7 customer support, or a more traditional brokerage with in‑house advisors.  People who value strong customer service and uncomplicated withdrawals may prefer established full‑service brokers. 

How to Use Webull Safely and Privately 

• Use email login instead of social login. If you sign up with Google or Facebook, Webull pulls profile data (name, photo, and username) from those platforms. Using email or phone limits third-party data sharing.
• Keep your account secure. Webull recommends using a strong password and contacting them immediately if your account is compromised.
• Only allow the device permissions needed. Webull says that it only accesses device features, like microphone and camera, with your permission, so be selective. 
• Limit cookies and tracking. Webull uses cookies and tracking to track usage, personalize your experience, and measure advertising effectiveness. Use your browser/app privacy settings to limit cookies and clear cookies periodically. However, note that blocking cookies may reduce app functionality.
• Be mindful about what you share publicly. Anything you post in Webull Community is considered public information. Even if you delete your Webull account, search engines may still retain copies, so avoid posting anything personal or financial.
• Be careful when sharing identifying information. If you open a trading account, Webull must collect personal information like your legal name, address, ID documents, date of birth, and nationality. This is for anti-money-laundering compliance and is required by law. Only submit documents through the official app or website on a secure connection.
• Delete your Webull account. You can permanently delete your Webull account. There’s a 30-day recovery window, then deletion begins (can take up to a week. Download your portfolio and records before deleting.
• Unsubscribe from marketing. Webull may send you push notifications, marketing emails, and promotions. Unsubscribe via email links or app settings to reduce tracking and profiling.