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Is Webull FDIC Insured?
Is Webull SIPC and FDIC insured in 2024? For how much brokerage and IRA accounts' cash and funds
have SIPC insurance coverage at Webull?
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Is Webull Insured?
Since coming onto the scene in 2017, Webull has quickly established itself as a major player in the consumer investment space. Its mobile-friendly platform and intuitive dashboard configuration quickly grabbed the attention of tech-savvy investors everywhere.
For some investors, this may raise some concerns. How do I know my money is safe?
Is Webull FDIC insured? What happens if the company folds? Thankfully, to operate as a financial institution in the United States, they are required to adhere to financial standards and safeguards like everybody else.
In this article, we will detail the types of insurance that are offered by financial institutions and how Webull utilizes them to protect their users’ capital.
Is Webull FDIC Insured?
The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States
government. Their purpose is to protect depositors against the loss of their deposits due to an
FDIC-insured bank or savings association’s failure.
Account holders at FDIC-insured institutions are covered up to
at least $250,000 per depositor.
If your losses are more than $250,000, the FDIC has protocols in place to help you recoup a
portion of those funds as well. No need to apply for coverage, it’s automatically applied when
you open an account at a participating bank.
While other insurers can take months to pay out claims, the FDIC has historically issued payments
to depositors within a few days after a bank’s closing.
Open Webull Account
Open Webull Account
Is Webull SIPC Insured?
Just like the aforementioned, the SIPC is an independent, member-run, non-profit organization overseen
by the Securities and Exchange Commission (SEC).
SIPC insurance protects against the loss or tampering of cash and securities such as stocks and bonds
held at a brokerage firm. If a SIPC-member brokerage firm goes under, the cash and securities held in
your account are covered up to $500,000.
There are some important stipulations. The coverage only extends to $250,000 in cash. If your cash holdings exceed that amount, coverage would only extend to that $250,000 cap.
Keep in mind, this coverage does not guarantee the value of your assets due to things such as market volatility or bad investment advice. In the event of liquidation, the SIPC will only replace the missing stocks and securities with the same.
Think of it like renter’s insurance that restores to you the same exact items that were lost if your apartment burned down. Specifics can be found on their website.
Is Webull Covered by FDIC & SIPC Insurance?
As a brokerage firm, Webull is a member of the SIPC. The cash and securities held in your account
are covered by them for up to $500,000. In the event of liquidation, the SIPC would take action.
Unlike other financial services platforms, Webull is purely a brokerage firm. It does not offer banking products. Thus, FDIC insurance would not apply.
Does Webull Offer Additional Insurance?
Webull’s clearing house, Apex Clearing has made the move to purchase an additional insurance policy. Since Webull’s transactions are managed by Apex, the coverage extends to all Webull users.
The policy offers up to $37.5 million for any one customer’s securities and $900,00 for any one customer’s cash. It’s important to note that this does not cover losses incurred due to investment decisions you have made.
Webull and its partners have taken responsible steps in ensuring that users’ assets are protected should their firm enter into distress or liquidation. Hopefully, this provides clarity and aids in your decision-making should you choose to utilize Webull for your investments.
Open Webull Account
Open Webull Account
Updated on 7/4/2024.
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