Account Types

What account types does Webull offer?

Webull provides a variety of account types to support different investing needs:

• Individual (Cash or Margin; you may open one of each)
• IRA (Traditional, Roth, or Rollover; managed options are also available)
• Futures
• Advisor
• Entity
• Joint
• Event
• Custodial (UTMA/UGMA)
• Crypto

What is a Cash account?

A Cash Account is a type of brokerage account where you are required to pay the full purchase price for any securities you buy.

• Trading is limited to the available cash balance in the account.
• Margin trading is not permitted.
• Options trading is allowed up to Level 2.

What is a Margin account?

A margin account allows investors to borrow funds from their brokerage by using existing cash and securities as collateral to purchase additional securities. This type of account can enhance buying power and potentially amplify investment returns; however, it also increases the risk of greater losses. Key features of a margin account include:

• Leverage: Borrow funds to increase your purchasing power—up to 4X leverage for day trades and 2X for overnight positions (once the $2,000 minimum margin equity requirement is met).
• Immediate Access to proceeds: Funds from securities sales are available for reinvestment immediately, helping to avoid good faith violations (GFVs) commonly seen in cash accounts.
• Flexible Withdrawals: Withdraw both cash balances and borrowed amounts backed by securities held on margin.
• Options Trading: Gain access to up to Level 4 options trading, including all available options strategies.
• Regulatory Rules: Must comply with FINRA’s Pattern Day Trading (PDT) rules.

Before opening a margin account, it is essential to read and understand the margin disclosure agreement to fully grasp the benefits and risks of leveraged trading.

What is a Traditional IRA?

A Traditional IRA is a type of Individual Retirement Account (IRA) that allows individuals to contribute pre-tax income toward retirement savings, with the potential for tax-deductible contributions and tax-deferred growth.

• Contributions may be tax deductible, depending on income and participation in an employer-sponsored retirement plan.
• Investment earnings grow tax deferred until funds are withdrawn.
• Distributions after age 59½ are taxed as ordinary income.
• Early withdrawals may incur a 10% penalty, unless an exception applies (e.g., first-time home purchase (up to $10,000), qualified education expenses, disability, certain medical costs, unemployment-related insurance premiums, or substantially equal annuity payments).
• Required minimum distributions (RMDs) begin at age 73.

A Traditional IRA offers a flexible and tax-efficient way to build retirement savings while potentially reducing taxable income during working years.

What is a Rollover IRA?

A Rollover IRA is a type of Individual Retirement Account (IRA) used to transfer funds from a qualified retirement plan—such as a 401(k) from a previous employer—into an IRA without triggering taxes or penalties.

• Functions the same as a Traditional IRA, with identical contribution limits and distribution rules
• Offers tax-deferred growth potential on investments
• Provides flexibility in investment choices, allowing individuals to consolidate and manage their retirement savings in one place
• Helps maintain control over retirement assets following a job change or retirement

This type of IRA is specifically designated to receive rollover contributions and is an effective way to continue growing retirement savings while preserving their tax-advantaged status.

What is a Roth IRA?

A Roth IRA is an individual retirement account that allows you to save for retirement using after-tax dollars. Unlike Traditional IRAs, contributions to a Roth IRA are not tax-deductible. However, it offers several long-term advantages, particularly in retirement.

• Contributions are made with after-tax dollars and do not reduce your taxable income for the year.
• You must meet certain income requirements to be eligible to contribute directly to a Roth IRA.
• The main benefit of a Roth IRA is that qualified withdrawals, including investment earnings, are entirely tax-free.
• To make a qualified withdrawal, the account must have been open for at least 5 years and you must be age 59½ or older.
• The 5-year period begins on the first day of the tax year in which your first Roth IRA contribution was made.
• Contributions can be withdrawn at any time without taxes or penalties, but early withdrawal of earnings may be subject to taxes and penalties.
• Roth IRAs do not have required minimum distributions (RMDs) during the account holder’s lifetime.

What is a Futures account?

A Futures account is a specialized brokerage account used exclusively for trading futures contracts. These contracts represent agreements to buy or sell an underlying asset—such as commodities, financial instruments, or digital assets—at a predetermined price on a specified future date.

Key features of a Futures account include:

• Enables trading across various asset classes, including indices, interest rates, currencies, agricultural products, metals, energies, and cryptocurrencies.
• Operates separately from a standard brokerage account, with distinct funding and margin requirements.
• Follows trading rules and mechanics specific to the futures exchanges where contracts are listed.

Futures accounts are structured to support the unique characteristics of the futures markets, including leveraged exposure and standardized contract terms.

What is an Advisor account?

A Webull Smart Advisor account is a type of investment account that offers automated and personalized portfolio management services. Operated through Webull Advisors, a robo-advisory platform, this account is designed to align your investments with your individual risk tolerance and financial goals.

• Webull Advisors uses the information gathered from your risk assessment to recommend a portfolio tailored to your preferences.
• Portfolios are composed primarily of exchange-traded funds (ETFs) and are diversified across asset classes to help manage risk.
• The platform offers up to 30 different portfolio options, with six core strategies ranging from conservative to aggressive allocations.
• Once your portfolio is selected, Webull Advisors handles investment decisions and trade execution on your behalf.
• Accounts are actively monitored and rebalanced to maintain alignment with your selected risk profile.
• Clear information is provided regarding applicable fees and investment risks, ensuring you have a transparent view of your account activity.

Webull Smart Advisor accounts are designed to provide a simplified, automated investing experience for individuals seeking a hands-off approach to portfolio management.

What is a Joint account?

A Joint account allows two individuals to share ownership of a single trading account, providing access to a broad range of investment features and account types. Joint accounts can be opened as either Joint Tenants with Rights of Survivorship (JTWROS) or Joint Tenants in Common (JTIC), each offering distinct ownership structures. Clients may choose to open a Cash or Margin account, and Options trading is also available for joint accounts.

Key Features of Joint Accounts

• Stock trading
• ETF trading
• Options trading
• Margin trading
• Cash Management (if Cash account)
• Fixed Income trading
• Money Market trading
• Stock Lending (FPSL)
• Dividend Reinvestment Program (DRIP)
• Recurring deposits
• Recurring investments

Ownership and Account Structure

• Joint Tenants with Rights of Survivorship (JTWROS): Ownership passes to the surviving account holder in the event of the other’s death.
• Joint Tenants in Common (JTIC): Allows owners to designate unequal ownership percentages.
• Default JTIC ownership is 50/50, adjustable during or after account setup.
• Ownership changes must be signed and agreed upon by both parties.
• Ownership percentage can only be changed once per week.
• JTIC and JTWROS accounts are limited to only two account holders.
• JTWROS accounts are not available for residents of Louisiana or Puerto Rico.

Banking and Transfers

• Joint accounts may only link one bank account at a time. Acceptable bank accounts include those in either User A or User B’s name, or a joint bank account in both names. Bank accounts in third-party, trust, or business names are not permitted.
• External transfers are supported for joint accounts, but transfers must originate from another joint account with the same account holders or from an individual account held by one of the account holders.
• Internal transfers are supported between individual and joint brokerage accounts only; transfers to or from IRAs, Advisors, or Futures accounts are not allowed.
• Internal cash transfers between Joint and Individual accounts do not require approval from the other account holder.
• Internal asset transfers between Joint and Individual accounts require approval from the other account holder.

Tax Reporting

• Tax documents (Form 1099) for joint accounts are reported under the SSN/ITIN of the primary account holder—the first user who applies.
• This individual is responsible for tax reporting to the IRS. However, both users will have access to download the 1099 from the app.

Important Notes

• Joint accounts cannot have named beneficiaries.
• Each user may open only one Joint account.
• A user may be the Primary account holder for only one Margin account (Joint or Individual); this does not apply to Cash accounts.
• Either account holder may submit an account closure request, but both must agree to the closure.
• To enable options trading on a joint account, both users must apply. The primary applicant (User A) submits their options application first, which triggers an automatic invitation to the co-applicant (User B). User B must log in and complete their application. Once both applications are submitted, they are reviewed for approval. If users are approved for different levels, the account will default to the lower approved level.
• Both users have full access to joint account activity. However, individual account details for either user cannot be disclosed to the other.

What is an Event account?

An Event account allows investors to trade Event Contracts—a type of financial instrument based on the outcome of a specific "Yes" or "No" question.

• Event Contracts are classified as a type of swap under the Commodity Futures Trading Commission (CFTC) regulations. They represent an agreement between two parties to exchange value depending on the outcome of a future event.
• Each Event Contract settles at $1 if the specified event occurs as predicted, or $0 if it does not.
• These contracts are designed to be straightforward, offering a clear and limited-risk method to express a view on real-world events.

An Event account is used exclusively for trading these types of contracts. While you will receive a unique Event account number for recordkeeping and statements, your buying power will remain shared with your main Webull brokerage account and automatically adjusted as needed for trading. To learn more, visit All About Event Contracts.

What is a Custodial account?

A Custodial Account (UTMA or UGMA) is an investment account established for a minor, where an adult—typically a parent or guardian—acts as the custodian. The custodian manages assets such as cash, stocks, bonds, or mutual funds until the minor reaches the legal age of majority, generally 18 or 21 depending on state law. To learn more, visit Custodial Accounts.

What is a Crypto account?

U.S. customers can buy, sell, and hold a wide range of digital assets including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and more directly through the Webull app. Crypto trading is available 24/7 and is seamlessly integrated alongside your traditional brokerage account experience. To learn more, visit Getting Started with Crypto Trading.

How do I open an account at Webull?

To open an account, please follow the instructions listed here.