If you are looking for a trading platform that is free of commission and where you can trade at a low cost, Webull is probably the one you’ll be looking into. But you might be wondering – is Webull a Chinese company?
Is Webull a Chinese company? Its parent holding company is from China, but Webull is a company from the US, registered in New York, and operating under the terms of the United States of America laws. The current CEO is Anthony Denier, while the chief operating officer currently is Shen Lu.
This electronic trading platform is a home for investors that like to trade in a simple environment, which allows quick transactions devoid of any complex steps. But let us take a look at the company behind it first.
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Is Webull a Chinese Company?
If you are new in the stock trading world, you may be overwhelmed by the variety of trading platforms and brokers to decide between. But to pick the right one, you should look not only at what they offer, the straightforwardness of use, and how many fees you are expected to pay. It’s also beneficial to learn a thing or two about their background in order to know how trustworthy they are.
Webull Financial is a Chinese company providing zero-commission stock brokerage services through its mobile app and website and provides a great way for traders to make money. The company was founded in 2016 by Anthony Zhang and Eric Cheng, who were both former employees of Tiger Brokers, another Chinese online brokerage firm. The current head of the company, as the CEO, is Anthony Denier, and the chief operating officer is Shen Lu.
While Webull may be a Chinese company, it is registered with the US Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). This means that it is subject to the same regulations as any other US broker-dealer.
Who Owns It Now?
The owner of the Webull platform is Webull Financial LLC, with headquarters in New York, with Fumi Technology as a parent company. Fumi Technology is a Chinese holding business, and Anquan is the owner of 35%. Other stakeholders include Shunwei Capital, Xiaomi, Bojiang Capital, Hongdao Capital, and Gopher Asset Management.
How Is the Platform Regulated?
Although the parent company of this platform is Chinese, its headquarters are located in the US, in New York. Webull is a trustworthy platform regulated by all the governing laws and regulations of the United States. This is where it’s registered:
- The Securities and Exchange Commission (SEC),
- The Financial Industry Regulatory Authority (FINRA),
- The Securities Investor Protection Corporation (SIPC),
- The Cboe EDGX Exchange (CBOE EDGX),
- The New York Stock Exchange (NYSE).
A Word About the Company Itself
Webull has been growing rapidly since its launch and is now the second most popular trading app, with nearly 3 million registered users. The company is headquartered in Beijing but also has offices in Shanghai, Shenzhen, Hong Kong, and the United States. It is a private company and is backed by major Chinese tech investors.
Webull offers users real-time market data, news, analysis, and research, as well as a variety of trading tools and features. The company also provides margin trading, meaning that users can borrow money from Webull to trade with.
Which Fees Am I Expected to Pay?
One of the best things about Webull is that it doesn’t charge its users any commissions for stock tradings, options tradings, and ETFs, which are listed on US exchanges. However, since some fees do apply, the table below lists some of them. These are fees imposed by regulatory agencies and passed down from the broker-dealer to the users with each transaction.
|Privileges in trading||Type||Fees||Rules||Charged by|
|Stock/ETF||Regulatory fee||0.00013 total trade volume minimum $0.01 per trade – maximum $6.49 per trade||Only sells||Financial Industry Regulatory Authority (FINRA)|
|Stock/ETF||Regulatory fee for transactions||$0.0000229 total dollar trade amount, with a minimum of $0.01||Only sells||Securities and Exchange Commission (SEC)|
|Options||Regulatory fee for transactions||$0.0000229 total dollars trade amount, with a minimum of $0.01||Only sells||Securities and Exchange Commission (SEC)|
|Options||Clearing fee||$0.02 number of contracts, with a maximum of $55 per trade||Sells and buys||Options Clearing Corp (OCC)|
|Options||Trading activity fee||$0.00218 number of contracts, with a minimum of $0.01||Only sells||Financial Industry Regulatory Authority (FINRA)|
|Options||Options regulatory fee||$0.02915 number of contracts||Sells and buys||Options exchange|
Are My Transactions Through Webull Secure?
Since the platform is under the regulations of the SEC and is a member of SIPC, it is definitely trustworthy. All of the users on this platform are protected up to $500,000 for securities and $250,000 for cash claims. While it is not FDIC-insured, the platform protects its traders in other ways.
The clearing company that belongs to Webull – Apex Clearing Corp has bought additional insurance in order to protect the traders. The insurance offers protection for cash and securities up to $150 million. However, it is subjected to maximum limits of $37.5 million for securities of a single user and up to $900,000 for a single user’s cash.
Webull Is Regulated by the US Laws, and It’s Trustworthy
It’s not that simple to pick one broker-dealer or a single platform for trading among so many on the stock exchange market. However, there is a reason why Webull is among the top five most popular trading platforms – it’s easy to use, free of commissions, and backed up and regulated by US laws and regulations.
Additionally, they have also insured their traders with additional insurance and done what’s in their power to bring forth all the necessary safeguards to protect the funds of their clients. You can also use this platform to deposit cash into your account and increase your crypto buying power.