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Webull regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses Webull and what the protections are.

Facts last checked . Read the full Webull review.

Regulation and safety

Regulated by
SEC; FINRA; CFTC/NFA for futures
Regulator tier
Tier 1
Register entry
FINRA BrokerCheck, CRD 289063
Client money segregated
Yes
Held at
Client cash/securities held under US broker-dealer custody and clearing arrangements
Negative balance protection
No
Compensation scheme
SIPC up to $500,000, including $250,000 cash sublimit; additional Excess SIPC coverage
Audited by
Independent external auditors
Not available to
Primarily jurisdiction-dependent; US brokerage accounts subject to Webull eligibility and residency requirements

Check the licence yourself: FINRA BrokerCheck, NFA BASIC.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

Webull holds a tier-one authorisation from CFTC/NFA. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

US retail forex is jointly overseen by the CFTC and NFA, with leverage capped near 1:50 and no CFD trading permitted.

Client money is held separately from the firm's own money, at Client cash/securities held under US broker-dealer custody and clearing arrangements. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

There is no negative balance protection. In a fast market a position can gap straight through your stop, and without this the resulting debt is legally yours - you can lose more than you deposited.

Covered by SIPC up to $500,000, including $250,000 cash sublimit; additional Excess SIPC coverage, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about Webull regulation

Is client money segregated at Webull?

Yes. Webull holds client money separately from its own funds, at Client cash/securities held under US broker-dealer custody and clearing arrangements.

Does Webull offer negative balance protection?

Negative balance protection at Webull is recorded as: No.

Is there a compensation scheme at Webull?

Webull's compensation scheme is recorded as: SIPC up to $500,000, including $250,000 cash sublimit; additional Excess SIPC coverage. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about Webull