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Webull regulation and how it scores

Regulation carries the heaviest weight in the score, which is why it is scored first. Here is Webull's licensing and the protections behind it.

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

Regulation carries the heaviest weight in the score, which is why it is scored first.

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 Webull tier-one regulated?

Webull's strongest licence is recorded as Tier 1.

Who regulates Webull?

Webull is regulated by SEC; FINRA; CFTC/NFA for futures.

Does Webull offer negative balance protection?

Negative balance protection at Webull is recorded as: No.

Regulation at brokers under the same regulator

More about Webull