A Simple Guide for Complete Beginners

Webull day trading is something you may be interested in whether you’ve never tried day trading before or you’re already experienced. There are lots of trading platforms to choose from, and there are several that allow for day trading. But how do you know if Webull is the right day trading platform for you?

Like every online brokerage, Webull has its unique features. All platforms hold day traders to rules that were created by FINRA. Since Webull is a member, they adhere to FINRA regulations around day trading –with a few differences that are unique to Webull – and if you decide to day trade on Webull, you’ll have to stick to them, too.

Our goal in this Webull day trading review is to provide you with a comprehensive guide to day trading on Webull, including details about its features and rules, plus some strategies to help you day trade successfully. Whether you’re just starting with day trading or you’re a seasoned pro wanting to refine your approach, this guide will help you master Webull day trading in 2025.

Pro Tip:

Get 20 free fractional shares on Webull when you deposit $500 or more today!

What is Webull and Can You Day Trade On It?

Webull is an electronic trading platform that was founded in 2017. Its parent company is Hunan Fumi Information Technology, which is a Chinese holding company. Its US headquarters are in St. Petersburg, FL, and it was incorporated in Delaware. The company planned to go public in 2024, but that hasn’t happened.

Webull’s main features include advanced charts and analysis, paper trading, real-time trading, customizable alerts, screeners, watchlists, price updates, and more. They even offer an IRA. You can access your Webull account on their web platform, via their desktop app, or their free mobile app. 

You may be wondering: Can you day trade on Webull?

Unlike some electronic trading platforms, Webull does allow for day trading. Day trading is a complete trade (buying and selling) that all takes place within the same trading day. If you know what you’re doing, you can take advantage of short-term volatility to earn money with same-day trading.

You can day trade on Webull with a cash account or with a margin account. There are more limits if you decide to trade with a margin account than there are with a cash account. We’ll review those later, but for now, you should know that trading with cash opens up possibilities that won’t be available to you if you decide to day trade with a margin account.

Webull Day Trading Rules and Requirements

There are some day trading restrictions on Webull. Here’s how they break down.

Day trades are trades where you buy and sell the same security within one trading day, including pre-market and after-hours trades.

If you use a cash account for day trading, you may execute an unlimited number of day trades if you use settled funds. (Unsettled funds are from a trade that hasn’t yet been settled. Using them may result in a Good Faith Violation, and if you do it too much, Webull may temporarily suspend or permanently close your account.)

Margin funds with a net value of less than $25,000 are limited to a maximum of three day trades every five rolling trading days. 

There are no day trading limits if your net margin account value is over $25,000.

If you make more than three day trades every five rolling business days and your margin account’s net value is less than $25,000, it will trigger an Equity Maintenance Call. 

Per Webull’s rules, receiving an EMC will suspend you from day trading. You won’t receive intra-day replenishment on closing transactions. If you do attempt to day trade during an EM call, then your account will receive a Day Trade call for the full notional amount of the trade. Your account will be restricted until the EM and DT calls are satisfied or 90 days, whichever is shorter.

Part of the rule here involves Pattern Day Trading, or PTD. A Pattern Day Trading flag is a regulatory designation that applies to any investor who executes four or more day trades within a five-business-day rolling period with a margin account. If you get flagged as a PDT, you won’t be able to day trade at all unless you maintain a minimum of $25,000 of equity in your account.

Webull provides tools to help day traders track their trades to make sure they’re not on the receiving end of an Equity Maintenance Call or PDT violation. If you’re using a margin account worth less than $25,000, we highly recommend that you check your day trading numbers to avoid suspensions and penalties.

Pro Tip:

Get 20 free fractional shares on Webull when you deposit $500 or more today!

How to Day Trade on Webull: Step-by-Step Guide

Now, let’s walk through how to day trade on Webull.

#1: Set up your Webull account

The first step is to set up your Webull account. To qualify, you must be at least 18 years of age and a resident of the United States or one of its territories. You must also provide:

Your full name

Your date of birth

Your phone number

Your email address

Your US residential address

Proof of identification: Social Security Number or Individual Taxpayer Identification Number

Proof of citizenship

Proof of citizenship is usually a driver’s license or US passport, but depending on your individual circumstances, you may need to provide additional documentation. Providing proof of identification is part of the SEC’s Customer Identification Program and is required by law.

#2: Choose between a cash account and a margin account

The next step is to choose a cash or margin account for day trading. As we noted earlier, trading on a margin account with less than a $25,000 net value incurs limitations for day trading, so choose wisely.

#3: Fund your Webull account for day trading

The best way to fund your Webull account is by linking it to your bank. You’ll have two options to verify your bank account.

Receive and confirm two microdeposits.

Real-time verification via ACH. For this option, you’ll choose Link a bank account > ACH  > Real-time verification. Then you’ll search for your bank and choose the account you want to link.

Real-time verification takes only a few minutes. If you choose to verify with microdeposits, the whole approval process will take between two and three business days.

Once your bank is linked, you may transfer funds into your Webull account and begin making day trades.

#4: Place a day trade on Webull

The process of executing a day trade isn’t complex. It’s just like executing any other trade, except you’ll need to complete the full trade (buying and selling) within the same trading day. Here are the steps to follow.

Do your research to determine which asset you want to trade.

Initiate and complete the purchase.

Set up alerts to take advantage of market volatility.

Sell the asset when the time is right.

#5: Use Webull’s charting tools and market data

Webull users get access to a host of charting tools plus real-time market data to help them execute day trades. Here are some of the things we most appreciate:

Trading time frames as small as one minute

Charting options including bars, lines, candlesticks, and much more

Macroeconomic charts to help you spot trends and opportunities

Capital flow analytics

Price alerts

We strongly recommend taking some time to review and familiarize yourself with Webull’s tools to make sure you’re taking full advantage of them for day trading.

Pro Tip:

Get 20 free fractional shares on Webull when you deposit $500 or more today!

Webull Day Trading Limits: Cash Account vs Margin Account

There are some things you should know about margin training with a cash vs margin account. Let’s start with definitions to help you understand the Webull day trade limit.

A cash account is exactly what it sounds like: an account funded with cash. The cash in your account may come directly from your bank, but if you’re trading regularly, it’ll also include proceeds from completed trades.

The most important thing to know about day trading with a cash account is the difference between settled and unsettled cash. Settled cash is money you transfer directly from your bank, or money from trades that have been (you guessed it) settled through the SEC. It’s important to stick to using settled cash, since not doing so can result in a Good Faith Violation and an account suspension.

Day trading with a margin account involves borrowing money to make trades. Using Webull, you’d be borrowing money from your broker (Webull) to make trades. As we noted above, a margin account with less than $25,000 in it is only eligible for three day trades in five rolling business days. If you do more than that, you may be flagged as a Pattern Day Trader and could be suspended or even lose your trading privileges.

If you have more than $25K in your margin account, you can make as many day trades as you want. Trading with less than $25,000 necessitates using Webull’s tools to track your day trades and make sure you don’t violate the rules.

How Many Day Trades Can You Make on Webull?

By now, you’re probably wondering how many day trades on Webull are allowed. 

According to the PDT rule, you can make up to three day trades in any rolling five day period with a margin account. This rule applies to margin accounts with less than $25,000 in them. There’s no limit on how many day trades you can make with a margin account that has more than $25,000 in it.

The PDT rule doesn’t apply at all if you have a cash account. In other words, if you stick to cash, you can make as many day trades as you want. In fact, you can day trade all day, every day! You will need to be careful about unsettled cash, as we’ve already noted.

So, to put it plainly, there is no limit on the number or amount of day trades you can make with a cash account or with a margin account with more than $25,000 in it. You’re limited to three trades in a rolling five day period if you have a margin account with less than $25,000.

If you’re engaged in a lot of day trading, you’ll need to be very careful to use only settled cash in your trades. So, if you have a cash account with $20,000, all settled, you’ll want to keep track of what’s settled and what isn’t moving forward to make sure you don’t end up with multiple Good Faith Violations that could lead to an account suspension.

Webull Day Trading Strategies and Tips for Success

Before you start day trading, we suggest coming up with a strategy and sticking to it for the best results. Here are some strategies popular for day trading on Webull.

Scalping: Capturing small, short-term price fluctuations for a few minutes or seconds.

Breakouts: Identifying stocks that are on track to break through a significant level of resistance or support.

News trading: Keeping an eye on earnings releases, economic data, and other factors to capture price movements related to market reactions.

Pullbacks: Taking advantage of price retracements within a trending market.

Mean reversion: Using algorithms to bet on stocks reverting to their average (mean) price over time.

Rejections: Identifying levels of support or resistance, usually looking for long wicks or candlestick patterns to signal reversals.

If you’re new to day trading, we’d suggest using Webull’s paper trading feature to get a feeling for how it works. You can combine paper trading with some charting experimentation to educate yourself about how day trading works and what to look for.

A few other things to keep in mind with Webull day trading.

Choose a day trading strategy and stick to it.

Stay disciplined.

Familiarize yourself with stop-loss orders to prevent major losses.

Take advantage of Webull’s advanced technical analysis and charting options to maximize your returns.

For people who are new to day trading, we suggest starting with a few rounds of paper trading to familiarize yourself with how it works.

If you want a full breakdown of Webull Options check out our original article: WEBULL OPTIONS REVIEW

Pro Tip:

Get 20 free fractional shares on Webull when you deposit $500 or more today!

Can You Day Trade Options on Webull?

You may be wondering if you can day trade options on Webull. The short answer is yes, and here’s what you need to know.

Options are financial derivatives. When you buy an option, you’re buying the right (but – and this is important – not the obligation) to buy or sell an asset at a predetermined time and price. Day trading options involves opening and closing options positions on the same trading day. If you time it right, you can profit from price movements of the underlying asset.

Day trading options is a risky endeavor, as is options trading in general. It can be profitable if you know how to do it. Research is essential, as is understanding the types of orders that can help you avoid major losses.

Here’s a quick breakdown of the steps to day trade options. Keep in mind that these are complex and risky trades. It’s easy to make mistakes, so take advantage of Webull’s paper trading and make a few options day trades before putting real money on the line.

Open an options trading account.

Choose an options contract to buy. For example, if you think the price will move up, you would either buy a call option, or sell a put option. 

Choose the time-frame. As a rule, the shorter the time-frame, the higher the risk.

Set up alerts to make sure you don’t miss your opportunity.

We should note here that this is a very basic overview of options day trading. We could easily write thousands of words on this topic. Be very careful if you decide to day trade options, and only spend what you can afford to lose.

For more information, read our WEBULL OPTIONS REVIEW.

Conclusion: Is Webull the Right Platform for Day Trading?

Should you use Webull for day trading? We can’t answer that question for you, but we can tell you that if you want to try day trading, Webull has some useful features to help you. We particularly like that they offer paper trading, which offers a risk-free way for you to earn about day trading before you make real trades.

The pros of day trading on Webull include low costs compared to other trading platforms, paper trading, and access to a variety of advanced charting options to help you choose your investments. The biggest disadvantage is the same as the cons of day trading in general: it’s a risky form of investing and you need to be careful. If you are concerned about the safety and security of Webull check out our new article: IS WEBULL SAFE?

If you want to learn more about Webull as a whole, read our WEBULL REVIEW. If you like Webull so far and want to know more about the platform’s fees, check out our new article: WEBULL FEES; and if you want to see how Webull compares to another investing platform, read WEBULL VS ROBINHOOD!

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