Conversion to Omnibus Clearing

What is happening with Webull’s conversion to an Omnibus clearing arrangement?

Webull Financial is an introducing broker-dealer that offers access to financial markets via the Webull mobile app, web platform, and desktop. We maintain a fully disclosed clearing arrangement with Apex Clearing, which handles all trading activities, holds customer cash, manages equities and options, and provides statements and trade confirmations, among other traditional clearing services.

As part of our ongoing commitment to enhance our services, Webull Financial will be transitioning all customers from a fully disclosed clearing arrangement to an omnibus clearing arrangement with Apex Clearing, making us a carrying firm. We are confident that this new omnibus structure will allow us to improve our service offerings and deliver an exceptional investment experience.

What is a carrying firm?

A carrying firm is a broker responsible for holding and managing customer assets, including cash and securities in your account. In the case of Webull, we will now oversee the custody of your cash, while Apex Clearing will continue to handle the custody of your equities and options.

What is Omnibus clearing?

An omnibus clearing arrangement is where an introducing broker-dealer executes and clears all trades for their end-customers through one or a few accounts at the clearing broker-dealer. This contrasts with a fully disclosed model, in which the introducing broker-dealer must provide the clearing broker with all customer-related information, including Personally Identifiable Information (PII), banking information, trade specifics, and other relevant data.

What does this mean for my account?

Ultimately, there will be minimal changes on the front-end, and we aim to make this transition as seamless as possible. You will still have access to the award-winning Webull mobile app. If your current services are limited, your account will not be converted until Webull offers the complete range of products and services.

Who should I contact with questions?

Webull Support is here to help during this transition. Please email support@webull.com or call +1 (888) 828-0618 Monday through Friday, 9AM to 4:15PM EST for any questions or inquiries that need immediate attention.

Is Apex still the clearing broker?

Yes, we continue to work with the same clearing partner, Apex Clearing. They will remain responsible for holding custody of your equities and options, as well as managing Webull omnibus accounts on their books.

Where will my cash be held?

Following the conversion, Webull will assume the role of a carrying broker. We will securely hold your cash in our own bank accounts, and your access to your funds will remain unaffected. Additionally, Webull will now be subject to higher net capital requirements under the “Customer Protection Rule” (SEC Rule 15c3-3), reflecting our commitment to enhanced financial stability and protection for your assets.

• ACH/Banking relationship: Your current ACH links will remain unchanged. We will seamlessly transfer any existing ACH and banking relationships, eliminating the need to unlink and relink your bank account.
• New wire instructions: If you wish to wire funds, our updated wire instructions are now available in the app and on our website. For more details, please refer to our Help Center article here.

Will transferring assets to Webull change?

No changes are needed—simply follow the same instructions to transfer your assets to Webull. For additional information, please visit our Help Center article here.

Will transferring assets away from Webull change?

Yes. To successfully transfer your assets through the ACATS system, your receiving broker will require your account number and DTC number. Please make sure to add the prefix "WEB" before your account number to prevent any rejections. For example:

For more information, please visit our Help Center article here.

Will margin rates change?

No. Margin rates and accessibility will remain the same. As the carrying broker, Webull will provide margin directly to clients. For up-to-date margin rates, please visit https://www.webull.com/pricing. For more information about the details, please see the Webull Financial Customer Agreement (Omnibus) here.

Who will deliver my account statements & trade confirmations?

Webull will now handle sending your monthly statements and trade confirmations. You can still access them in the same location on both mobile and web platforms. In the month immediately following your transition to the omnibus arrangement, you will receive two account statements: the first from Apex, detailing account activity and the transfer to omnibus; the second from Webull, showing account activity and the receipt of the transfer from Apex.

Who will provide tax information?

Just like with statements, you will receive tax reports from both Apex and Webull according to their respective reporting periods. Please note that if your account has transitioned to a Webull Omnibus account, you may receive an additional tax form from Webull that details transactions occurring after the conversion.

Who will send proxies and other corporate communications?

Webull will now be sending proxies, prospectuses, and voluntary corporate action details. Please look out for emails from webull@prospectusdocs.com and webull@proxydocs.com.

Is my participation in the Fully Paid for Stock Lending program impacted?

Yes, you will need to agree and acknowledge the updated Omnibus FPSL agreements. Once accepted, you will resume receiving the benefits of the Fully Paid for Stock Lending program.

Is my brokerage account still insured and protected?

Webull Financial is a member of SIPC, which protects securities customers of its members up to $500,000 ($250,000 for cash claims). For additional information regarding SIPC, including obtaining a copy of a SIPC brochure, please contact SIPC at (202) 371-8300 or visit the SIPC website at www.sipc.org. SIPC coverage does not cover fluctuations in the market value of your investments.

When will the conversion from fully disclosed to omnibus occur?

Over the next several months, selected customer accounts will be converted to Webull pursuant to our omnibus relationship with Apex Clearing. You will be notified at least 30 calendar days prior to your account conversion to Webull. Webull plans to transition all customer accounts to the omnibus clearing arrangement by the end of the year.

How do I know the Omnibus conversion status of my Webull account?

To check if your account is under Apex clearing arrangement or Omnibus arrangement, please click here or visit the in-app Help Center after logging in and tap on Menu ➝ Help Center ➝ Account Conversion Status.

Will my access to Webull services be impacted during the conversion period?

Over the weekend, you might experience a brief disruption lasting a few minutes. Please be assured that this is temporary, and your account will be fully operational soon.

Before the transition

You will receive both an email and an app push notification, giving you at least 30 days to opt out and transfer your assets if you choose to do so. If you intend to transfer your assets, please email us at support@webull.com, and we will add you to the opt-out list.

During the transition

During the conversion weekend, access to the app, ACH, news, and other essential functions will remain available. However, any open GTC orders with expiration dates beyond the conversion date will be canceled. Please adjust your risk management strategy accordingly.

After the transition

Once the migration is complete, you will receive an email and an in-app push notification confirming the completion. These messages will include links to view the updated disclosures and agreements.

What if I don’t want my account to be transferred to the new Omnibus platform?

If you do not wish to have your account transferred to Webull Omnibus, you can object to the transfer by notifying us at support@webull.com. You can transfer your cash and securities to another brokerage firm through an ACATS (Automated Customer Account Transfer Service) transfer. In order to initiate your transfer out of Webull, you’ll need to contact the receiving firm. If you have any additional questions, please contact our customer service team.

Where can I find the new account agreements and other updated disclosure documents?

You can refer to the new account agreements and disclosures page by following this link.

Who will send government-related notices? (e.g. B-notices, levies, government correspondence)

Webull will now handle sending government-related correspondence directly to you as needed. This includes documents such as account levies, child support garnishments, and IRS B-Notices.