Webull Financial LLC Options Trading Fees and Fines

Webull Financial LLC's options trading fees and fines are relatively straightforward.

The firm charges a base commission of $0.02 per contract, which is quite competitive in the industry.

For options trading, Webull Financial LLC also charges a $0.01 per contract fee for options exercised or assigned.

This fee is in addition to the base commission, making the total fee $0.03 per contract.

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Webull Financial LLC has faced regulatory actions for supervisory issues regarding options trading. The firm was fined $3,000,000 for allegedly failing to exercise reasonable due diligence before approving customers to trade options.

FINRA found that Webull Financial's automated system and supervision of the system resulted in customers being approved for options trading authority who did not satisfy the firm's eligibility criteria. This included accounts with red flags indicating that options trading was potentially inappropriate for them.

The firm reportedly violated FINRA Rules 3110, 2360, and 2010 as a result of these supervisory issues.

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FINRA has taken action against Webull Financial, fining them $3,000,000 for supervisory issues regarding options trading.

Webull Financial began offering options trading to customers in May 2018, but allegedly failed to exercise reasonable due diligence before approving customers to trade options from December 2019 through July 2021.

Options trading is complex and risky, typically only suitable for seasoned professionals or very sophisticated investors, according to FINRA.

FINRA Rule 2360(b)(16) requires firms to exercise due diligence when approving accounts for options trading, including assessing the customer's age, income, net worth, investment objectives, and investment experience and knowledge.

A principal at the firm must specifically approve or disapprove a customer's account for options trading in writing, and consider the information provided by the customer along with other available information.

Webull Financial's supervisory system was allegedly not reasonably designed to identify and respond to customer complaints from May 2018 through December 2021.

The firm failed to report certain written customer complaints to FINRA as required, and did not maintain and keep current an options complaint log from December 2019 through March 2021.

Webull Financial will be required to remediate the issues described above as part of their sanctions.

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The Southern District of New York (S.D.N.Y.) is a federal court that plays a significant role in regulatory actions. It's located in New York City.

The S.D.N.Y. court is responsible for handling cases filed in the southern part of New York State. A notable case, Williams v. Webull Financial LLC, was filed in this court on January 28, 2021, and was terminated on April 2, 2021.

The court's docket report provides valuable information about the case, including the date of filing, termination, and the last known filing. In the case of Williams v. Webull Financial LLC, the docket report shows that the case was filed on January 28, 2021, and terminated on April 2, 2021.

Here's a list of some of the reports and information available on the S.D.N.Y. court's docket:

Trading fees on Webull are relatively straightforward. There's no fee for transferring stocks to Webull, but you'll need to contact the contra broker for details.

If you're transferring stocks out of Webull, however, you'll face a $75 fee per outgoing stock transfer. This fee is charged by Apex (Clearing Firm) and the contra broker.

Here's a summary of the transfer fees:

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Webull, a zero-commission broker-dealer, was recognized at the annual awards ceremony honoring the most innovative companies in the fintech space.

The Benzinga Global Fintech Awards, which took place in NYC, selected Webull as a winner of the 5th annual event.

The awards ceremony was held virtually, marking a significant shift in the way these events are conducted.

Webull was shortlisted for the prestigious award, a testament to its innovative approach to the fintech industry.

This achievement highlights the growing importance of fintech companies in the financial landscape.

Stock Transfer Fees are a crucial aspect of trading, and it's essential to understand what you're paying for.

If you're transferring stocks to Webull, you'll be happy to know that the fee is $0.00, but you should contact the contra Broker for details on who charges it.

Transferring stocks out of Webull, on the other hand, comes with a fee of $75 per Outgoing Stock Transfer, again, contact the contra Broker for details on who charges it.

Here's a summary of the stock transfer fees:

Options trading is complex and risky, typically only suitable for seasoned professionals or very sophisticated investors.

According to FINRA, firms must exercise due diligence to approve customer accounts for options trading, considering factors like age, income, net worth, investment objectives, and investment experience and knowledge.

FINRA Rule 2360(b)(16) requires firms to specifically approve or disapprove customer accounts for options trading in writing, and to consider the information provided by the customer and other available information.

From May 2018 through December 2021, Webull Financial's supervisory system allegedly failed to reasonably identify and respond to customer complaints, violating FINRA Rules 3110(a).

The firm also allegedly failed to report certain written customer complaints to FINRA, as required, in violation of FINRA Rules 4530 and 2010.

Webull Financial was required to maintain and keep current an options complaint log from December 2019 through March 2021, but allegedly did not, violating FINRA Rules 2360(b)(17) and 2010.

A firm's failure to properly supervise options trading can lead to serious consequences, including fines and remediation requirements.

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