How to Day Trade on Webull?

What are the main Webull day trading rules?

Webull Review

Webull offers various tools and features that cater to day traders, including leverage through margin trading. However, for you to understand the main guidelines and limitations of day trading on Webull, TU experts have highlighted an important Webull day trading rule below:

1. If you take more than 3 day trades within 5 business days on Webull, then you are classified as a pattern day trader (PDT). According to FINRA, a pattern day trader account must maintain an equity value of at least $25,000 at the end of each trading day. If the equity value falls below this amount, an equity maintenance (EM) call occurs on the next business day, and day trading is not permitted. On the other hand, if your margin account has less than $25,000 but not below $2,000, you can only execute three day trades within 5 business days.

2. When calculating the number of day trades, both pre-market and after-hours trades on the same trading day are taken into account. Selling shares that were owned from the previous day does not count as a day trade. However, if you participate in an IPO offering and sell the shares received on the day of the IPO listing, it will be counted as a day trade.

How to start day trading on Webull?

Webull is a commission-free trading platform that allows investors to actively trade stocks daily. Let us look at the steps involved in day trading on Webull as outlined by TU experts below:

• Set up your account. Begin by opening a Webull account. You can do this on either your mobile device or desktop computer. The account setup process is straightforward, and once completed, you’ll have access to the Webull trading platform.



Webull website

• Fund your account. After you have created your account, make sure to fund it. Webull provides two types of accounts. The cash accounts allow unlimited day trades with no pattern day trading restrictions, but you can only trade with the available cash in your account, whereas the margin accounts require a minimum account value of $2,000. Margin accounts offer additional leverage by allowing you to borrow funds for trading, but they have specific requirements.

• Choose a strategy. Whether you’re a scalper, swing trader, or follow other methods, there are tools like charts, news, and educational resources to help you make informed decisions.

• Use Webull day trading rules (for example Day Trading Buying Power (DTBP).

• Take your trades. Once you’ve funded your account and chosen a strategy, you can start executing trades. Webull’s interface allows you to buy and sell stocks with ease. Remember that day trading involves opening and closing positions within the same trading day to profit from intraday price movements.

What are Webull‘s day trading hours?

Webull extends its trading day from 4:00 AM to 8:00 PM EST, allowing day trading during both pre-market and after-hours sessions. Pre-market trading occurs before the regular market opens, while after-hours trading extends beyond the regular closing time. Unlike some other platforms, Webull doesn’t require a premium subscription to access pre-market and after-hours trading. It’s important to note that both pre-market and after-hours trades count toward the day trade limit on Webull.

What is a Webull Day Trading Buying Power (DTBP)?

When it comes to day trading, having sufficient buying power is crucial. Webull considers various factors to determine your day trading buying power. Let’s delve into the features of Webull’s DTBP below:

• Intraday margin account leverage: DTBP allows you to leverage your existing capital beyond your cash balance. Webull offers intraday leverage, enabling you to trade with more capital than you currently have. For instance, a 1:4 day trade with Webull is included in margin accounts. This means Webulll provides traders with up to 4x leverage for day-trade buying power. However, to qualify for intraday leverage, you must fund your margin account with at least $2,000. Always remember that margin trading carries risks, including potential margin calls, and that you must have a thorough understanding of the rules that come with it.

• Buying power adjustments: DTBP is not static, it can change throughout the trading day. Factors such as market fluctuations, executed trades, and account activity influence your DTBP. Webull dynamically adjusts your DTBP based on these variables. Each trading day, Webull sets your day trade buying power, which is then updated the following day with any additional deposits and earnings from previous trades.

• Extended trading hours: DTBP applies not only during regular market hours but also during extended trading sessions. Webull’s extended hours trading allows you to utilize your DTBP beyond standard trading times. Whether it’s pre-market or after-hours, your buying power remains accessible.

Webull website

What are the pros and cons of day trading with Webull?

We must consider the pros and cons of day trading on Webull for you to make better decisions. TU experts have highlighted some for you below:

Pros of day trading with Webull:

• Presence of level II order montage and time feature: Active day traders appreciate Webull’s Level II data, which displays real-time bid and ask prices. The time and sales feature shows individual trade transactions, making it easy for day traders.

• Offers a customizable user experience: Webull’s platform is user-friendly and allows for customization. Traders can tailor their workspace to their preferences, making it easy to navigate and analyse data.

• Access to advanced fundamental analysis tools: Webull provides robust tools for fundamental analysis. Traders can access company financials, earnings reports, and other essential data to make informed decisions.

• Provides guided investment advice: Webull offers educational resources and guidance for traders. Whether it’s understanding technical indicators or learning about market trends, beginners can benefit from these features.

• Simplified option trading: Webull simplifies options trading, allowing traders to explore strategies like covered calls, puts, and spreads. The platform provides real-time option data and analysis.

• Offers extended trading hours: Webull allows trading during extended hours (pre-market and after-hours), providing flexibility for reacting to news and events outside regular market hours.

• Multiple order types and platforms are available: Traders can place various order types, including stop, limit, market, and chart orders, tailoring their strategies to market conditions. Webull is also very accessible via web browsers, desktop applications, and mobile apps, ensuring you can trade from anywhere.

Cons of day trading with Webull:

• Charts can be difficult to customise: Some users find Webull's chart customization options less user-friendly than those on other platforms. Those who want a more user-friendly interface may find it difficult to customise charts.

• A possible failure to execute due to payment fororder flow (PFOF): Like many brokers, Webull receives payment for order flow. While this practice is common in the industry, it may impact execution quality for certain traders. PFOF involves routing orders to market makers, who pay the broker for the order flow. As a result, there’s a potential trade-off between execution quality and the revenue generated from PFOF.

• A few portfolio management tools are available: Webull primarily focuses on trading features, but lacks a comprehensive set of portfolio management tools. If you’re looking for robust tools to track your investments across multiple accounts, you might find Webull’s offerings to be limiting.

• No access to fixed income or mutual funds: Webull does not provide access to fixed income products (such as bonds) or mutual funds. For investors looking to diversify their portfolio, this restriction limits their options. If you’re interested in these asset classes, you’ll need to explore other brokerage platforms.

• Few options for customer support: Some users have reported challenges with Webull’s customer support. While the platform offers email and chat support, the response times may vary, and some traders prefer more immediate assistance via phone support. If timely customer service is crucial to you, this could be a potential drawback.

• Offers limited educational resources for beginners: While Webull provides some educational content, it falls short compared to other platforms that offer extensive resources. If you’re a beginner looking for comprehensive educational materials, you might find Webull lacking in this area.

Final thoughts

In conclusion, not everyone should day trade on Webull. Make sure you select stocks that fit your risk tolerance and have a suitable level of volatility. Investors should also be aware of the requirements, risks, rules, and other important information, such as margin calls, before implementing a strategy like day trading on Webull.