Margin trading gives you access to additional buying power

Margin Trading

Overview

Margin trading enables you to borrow money from Webull and leverage your holdings to purchase securities. This gives you access to additional buying power based on the value of certain securities and assets in your brokerage account.

Why choose Webull for margin trading

The benefit of a margin trading account

Understand the risks of margin trading

How trading securities on margin works

Get Started

Margin trading involves unique risks, including interest charges and the potential to lose more than deposited. Before trading with margin, you should determine whether this type of trading strategy is right for your specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Webull Financial’s Margin Disclosure Statement, Margin Agreement, Day Trading Risk Disclosure Statement and FINRA Investor Information.

Additional info:

webull.com/policy.

Why choose Webull for margin trading?

Simple and straightforward pricing

A lower margin rate means a lower cost to borrow. Our interest rates are lower based on the amount of your margin balance.

14.50%~ 14.75%

13.20%~ 13.70%

12.70%

12.20%

11.70%

10.70%

TD Ameritrade

13.95%~ 14.20%

13.20%~ 13.70%

12.70%

12.20%

11.70%

10.70%

E*Trade

13.57%

12.12%~ 13.07%

12.07%

11.82%

9.50%

9.25%

Fidelity

12%

Robinhood

9.74%

9.24%

8.74%

8.24%

7.24%

6.74%

5.74%

Webull

Margin Balance

$0~25,000.00

$25,000.01~100,000.00

$100,000.01~250,000.00

$250.000.01~500,000.00

$500,000.01~1,000,000.00

$1,000,000.01~3,000,000.00

>$3,000,000

Webull margin accounts provide up to 4x leverage for day-trade buying power and 2x leverage for overnight buying power. You must have at least $2,000 in equity to qualify.

With a Webull margin account, you can trade stocks, ETFs, options and participate in IPOs across multiple devices

Our dedicated team of service representatives is available to guide you through our multiple platforms and address any inquiries you may have during standard business hours.

Increased buying power

Extensive product access

Stay connected

The benefits of a margin trading account

Leverage assets to increase your buying power

Ability to short-sell and hedge against a downturn in the market

A qualified trader with a margin account can access advanced option trading

Access capital without liquidating your current assets

Diversify your portfolio with a wider range of assets and strategies

Increased liquidity - trade freely without waiting for your trades to settle

Understand the risks of margin trading

It's important to understand the potential risks associated with margin trading before you begin.

• Potential margin calls or liquidation of securities

• Short selling loss can be infinite, and the security borrowing fee can change suddenly

• Margin trading is more complex and involves additional rules and regulations compared to cash trading. It requires a thorough understanding of the risks involved

• Trading losses may be greater than the value of the initial investment

• Leveraged investments incur greater losses and risks

• Additional costs from margin interest charges

Learn more about margin trading & short selling >

To purchase 100 shares of a $60 stock on margin

Stock price rises to

$65

per share

Stock price falls to

$55

per share

from your original investment

$3000

from your original investment

$3000

You borrow

$3000

of your funds

You invest

$3000

of your funds

of Webull funds

owed to Webull

$3000

$500

loss

Total stock purchase*

$6000

profit

$500

Your total stock value

$6500

Your total stock value

$5500

Remaining value after paying money borrowed on margin from Webull

$2500

Remaining value after paying money borrowed on margin from Webull

$3500

How trading securities on margin works

Here is an example to help you get a better understanding of how margin may amplify your profits as well as your losses based on the directional movement of a stock's price.Additional costs arise from margin interests accrued daily.

*The examples above do not include the cost to borrow. Please refer to https://www.webull.com/pricing for more info.

Get Started

Open a Webull brokerage account.

When choosing an account type, select Margin.

Fund your account with at least $2,000 in cash or transfer the equivalent value of marginable securities.

Keep a minimum of 25% of your total account value as equity at all times.

Getting started with margin trading

FAQs

A cash account is a type of brokerage account in which the investor must pay the full amount for securities purchased. A margin account is a brokerage account which allows investors to leverage the funds and securities they already own to purchase additional securities. It provides a great opportunity to leverage your investment to help increase your return. At the same time, it has the risks of magnifying your losses.

Learn More >

What’s the difference between margin and cash accounts ?

While margin trading provides more trading opportunities, understanding the rules and potential risks is essential before you start. If you like to day trade, you probably want to keep your equity value (crypto not included) above $25,000. This is because when you’re flagged as a Pattern Day Trader (PDT) and your equity value dips below $25,000, an Equity Maintenance (EM) call may occur. Another important thing to understand is buying power. This determines how much you can spend. There are two types of buying power: - Day Trade Buying Power (DTBP) refers to the funds you have available to place trades on a given trading day. It is often 4x your equity value. - Overnight Buying Power (ONBP) refers to the funds you have available to hold positions overnight. It is often 2x your equity value. This means you cannot use all of your DTBP and hold the position overnight. You may trigger margin calls related to buying power. Read the rest of our course to learn more about margin calls.

What are the rules for margin trading?

1) Go to the “Watchlist” tab on the main screen. 2) Look up a stock of your choice and tap on it. 3) Check to see if there is a dollar icon on the top right. 4) If there is, tap the icon and you will see the maximum leverage on this stock.

Learn More >

How do I know which stocks I can trade with leverage?

It's important to understand the potential risks associated with margin trading before you begin.​

Here is an example to help you get a better understanding of how margin may amplify your profits as well as your losses based on the directional movement of a stock's price.​Additional costs arise from margin interests accrued daily.

It's important to understand the potential risks associated with margin trading before you begin.

Here is an example to help you get a better understanding of how margin may amplify your profits as well as your losses based on the directional movement of a stock's price.Additional costs arise from margin interests accrued daily.