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How Many Day Trades Can You Make On Webull?

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With many day trading brokers, it isn’t easy to settle on the one most suitable for you. Like many online brokers, Webull is also a mobile-based commission-free option, enabling you to trade on the go. It offers stocks, opportunities, and ETFs. Webull also provides a short-selling option depending on your account balance.  

Day Trading

Day trading is identified as buying and selling equities on the same day without overnight holding. It is also known as intraday trading, where the traders book a profit or loss on the same trading session. Yes, Webull allows clients to day trade. However, one must know about the PDT Rule before starting the intraday trading journey.

What is PDT Rule?

The PDT or Pattern Day Trader rule requires you to maintain a minimum balance of $25,000 in your trading account to trade more than thrice a week. One must also know the order types when venturing into day trading. The most common order types are market buy, market sell, limit buy, limit sell, stop loss, sell stop limit, buy stop, buy stop limit, trailing stop loss, and trading stop limit order.

Webull Account Options for Day Trading

Webull provides two account options that are cash and margin.

Cash accounts have no provision that enables you to borrow money, which means you can only risk the amount in your trading account.

On the other hand, margin accounts enable you to borrow money, allowing you more room for a higher return. However, there is also a high possibility of huge loss.

Cash and Margin accounts both come with their own unique set of pros and cons. It is best to choose depending on how often you plan on making day trades and what works best for you. Nonetheless, the equity in your account has zero effect on what you choose to do in your account. Here’s providing a breakdown of cash and margin account day trading:

1. Cash 

  • Unlimited day trades
  • No short selling or margin trades

2. Margin Account: $0-$2,000

  • No short selling or margin trades permitted

3. Margin Account: $2,000-$25,000

  • Short selling permitted
  • Margin trading allowed

4. Margin Account for over $25,000

  • Unlimited day trades
  • Margin trading allowed
  • Short selling allowed 

How to Day Trade on Webull?

Once you take a call on which type of account is ideal for you, sign up, and add funds to your day trading account, and voila, you can begin trading on Webull as per your trading strategy. However, here are a couple of things one must bear in mind when day trading on Webull:

  • If you don’t have $25,000 in your trading account for unlimited day trades and have more than $2,000, you can short sell equity or use margin. 
  • Margin trading on Webull requires a certain fee like $0-$25,000 has a 6.99% rate, $25,000-$1, 00,000 at 6.49%, $100,000.01-$250,000 at 5.99%, and so on.
  • Webull enables pre-market and post-market hours trading, and one can trade anytime between 4 a.m. to 8 p.m. EST on a trading day. The best part is that you don’t need to subscribe to a higher tier to be able to trade in pre-market and post-market hours, like in Robinhood.
  • Webull also offers paper trading for beginners looking forward to a couple of practice trades before investing money.

Financial Thoughts!

Yes, intraday trading or day trading is possible on Webull, and it is an excellent option if you are looking for on-the-go trading options since it is a mobile-based app!

“Happy Profit-Booking!”

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