⚠ Key Concerns

Webull's parent company Fumi Technology is headquartered in Changsha, China. Under Chinese law, companies must cooperate with government data requests. This raises significant concerns about your personal and financial data, trading patterns, and account information potentially being accessible to foreign authorities.

Score Breakdown by Category

How Webull's terms rate across my evaluation categories.

💰 Order Execution & Transparency (30%) 30/100

Why this score: Webull engages in aggressive payment for order flow practices similar to Robinhood. Orders are routed to market makers for execution, potentially resulting in inferior prices. Disclosure is less transparent than established brokers.

Industry comparison: Fidelity: 55/100 (no equity PFOF) | E*Trade: 48/100 (standard PFOF) | Robinhood: 28/100 (aggressive PFOF) | Category avg: 40/100

⚖ Trading Freedom & Restrictions (25%) 40/100

Why this score: Webull restricted trading during the 2021 GameStop volatility similar to Robinhood. Broad discretionary authority exists to halt trading. Pattern day trading restrictions are strictly enforced with limited flexibility.

Industry comparison: Fidelity: 62/100 (no GameStop restrictions) | E*Trade: 55/100 (moderate restrictions) | Robinhood: 22/100 (severe restrictions) | Category avg: 45/100

🔒 Margin & Liquidation Rights (20%) 38/100

Why this score: Webull can liquidate positions without notice during margin calls. Documentation around margin requirements is less clear than traditional brokers. The instant deposit feature extends effective margin to all users.

Industry comparison: Fidelity: 58/100 (clearer margin terms) | E*Trade: 52/100 (standard margin) | Robinhood: 35/100 (aggressive liquidation) | Category avg: 46/100

👁 Account Security & Data (15%) 32/100

Why this score: Chinese parent company ownership is the critical concern. Under Chinese law, companies must cooperate with government data requests. Your personal data, trading patterns, and financial information may be accessible to foreign authorities. Account closure processes lack transparency.

Industry comparison: Fidelity: 65/100 (best privacy) | E*Trade: 55/100 (US-based) | Robinhood: 45/100 (US-based, extensive collection) | Category avg: 49/100

👥 Dispute Resolution (10%) 42/100

Why this score: Mandatory FINRA arbitration applies, which is standard. However, customer support is limited with primarily email and chat options. Phone support is difficult to access. The foreign ownership structure complicates regulatory recourse.

Industry comparison: Fidelity: 52/100 (excellent support) | E*Trade: 50/100 (phone access) | Robinhood: 48/100 (poor support) | Category avg: 48/100

Compare With Other Platforms

⚠ Key Clauses to Watch

These provisions in Webull's terms create the most risk for investors.

Chinese Parent Company Ownership

High Risk

Webull's parent company Fumi Technology is headquartered in China. Under Chinese national security law, companies must cooperate with government data requests. Your personal and financial data could be accessible to foreign authorities.

"Webull Financial LLC is a subsidiary of Fumi Technology, a company with operations in China." Webull Disclosure

Extensive Data Sharing

High Risk

Webull's privacy policy allows broad data sharing with affiliates and third parties. Given the Chinese ownership structure, this data could potentially flow to entities subject to foreign data access laws.

"We may share your information with our affiliates, service providers, and other third parties." Webull Privacy Policy

Payment for Order Flow

High Risk

Webull sells order flow to market makers, similar to Robinhood. This may result in execution prices that are not optimal for investors, with the platform profiting from your trades.

"Webull receives compensation from market makers for directing orders to them." Webull Order Routing Disclosure

Trading Halts During Volatility

High Risk

Webull restricted trading during the 2021 volatility events. The platform maintains broad authority to halt trading at their discretion, similar to Robinhood's controversial actions.

"We may restrict trading in certain securities at any time in our sole discretion." Webull Customer Agreement

Margin Call Liquidation Rights

High Risk

Webull can liquidate positions without notice during margin calls. The instant deposit feature effectively extends margin to all users, creating risks many don't understand.

"We may sell securities in your account without prior notice to satisfy margin requirements." Webull Margin Agreement

Securities Lending Without Consent

Medium Risk

Securities in margin accounts may be lent to short sellers. Webull's lending practices are similar to other brokers, but disclosure is less transparent.

"Securities held in margin accounts may be loaned to Webull or third parties." Webull Margin Agreement

Analysis

"The Chinese ownership of Webull is not a theoretical concern - it's a fundamental structural issue. Under China's National Intelligence Law, companies must 'support, assist and cooperate with the state intelligence work.' This means your trading data, personal information, and financial records could potentially be accessed by foreign authorities.

Beyond the data privacy concerns, Webull shares Robinhood's problematic business model: commission-free trading subsidized by selling your orders to market makers. You're not the customer - you're the product.

My recommendation: if you're concerned about data privacy or want reliable access during volatile markets, use a US-based broker like Fidelity. The charting tools Webull offers aren't worth the trade-offs. If you must use Webull, don't keep significant assets there and be aware of what you're trading away for 'free' trades."

Webull Terms of Service Review

⚠ Key Concerns

Score Breakdown by Category

Compare With Other Platforms

⚠ Webull Account Issues?

⚠ Key Clauses to Watch

Chinese Parent Company Ownership

Extensive Data Sharing

Payment for Order Flow

Trading Halts During Volatility

Margin Call Liquidation Rights

Securities Lending Without Consent

Analysis

Need Help With Webull?

Schedule a Consultation

Webull Terms of Service Review

⚠ Key Concerns

Score Breakdown by Category

Compare With Other Platforms

⚠ Webull Account Issues?

Related Resources

⚠ Key Clauses to Watch

Chinese Parent Company Ownership

Extensive Data Sharing

Payment for Order Flow

Trading Halts During Volatility

Margin Call Liquidation Rights

Securities Lending Without Consent

Analysis

Need Help With Webull?

Schedule a Consultation