How to Day Trade on Webull

To day trade on Webull, simply open an account, deposit funds, research trends, place trades and monitor your positions closely for maximum profitability.

A day trade is simply a purchase and sale of a stock on the same day. Day trading consists of buying and selling stocks throughout the day and closing out all positions before the trading session ends. Day trading has been a viable and profitable trading strategy for many years. 

Webull is an online broker founded in 2017 that provides day traders with multi-platform accessibility, zero commissions, 24/7 online support, full extended hours trading and free real-time quotes. Keep reading to find out how to day trade on Webull.  

6 Steps to Start Day Trading on Webull

By following these 6 steps, you can begin your journey toward potentially profitable trading opportunities on Webull. 

Best For

• Active Traders

get startedsecurely through Webull's app

Step 1: Open a Webull Account

To begin day trading, you’ll need to open a Webull account. You can open an account either through your mobile device or your desktop computer. Webull does not require a minimum deposit to open an account and offers new traders a paper trading feature so you can practice trading with virtual money. 

You’ll need to enter your email address when opening an account at Webull to receive a verification code and enter a password between 8 and 20 digits. Once you’ve received and entered your verification code, you’ll be directed to a Webull page describing their additional insurance coverage for clients and the investor protection provided by the Securities Investor Protection Corp. (SIPC).   

After you have registered your account, you can download Webull’s desktop or mobile device app. Desktop computers require a minimum of 320 megabytes of storage space for the application. 

Step 2: Log in to the Webull App

You can now sign in to Webull’s trading app using your email and password combination or your phone number if you’ve signed up with your mobile device. You could also qualify to receive a free 3-month subscription to Webull’s Level 2 market data service.

Webull’s Desktop 8.0 trading platform. Source: Webull

After successfully logging into Webull’s trading platform, just press the button on the right side of the page that says “Unlock Trading.” U.S.-based traders will need to validate their identity before funding a trading account. 

You’ll be asked to upload photographs of both sides of your driver’s license. If you don’t have a driver's license, you can still open an account with a valid U.S. passport, a Social Security number (SSN) or an Individual Tax Identification Number (ITIN). If you’re a U.S. resident, you can open an account with an E1, E2  E3, F1, H1B, H3, TN1, O1 or L1 visa. 

Step 3: Define Your Day Trade Strategy

Choosing a suitable day trading strategy can depend on your temperament and trading style. Listed below are some of the more popular day trading strategies:

Scalping

If you’re inclined to pull the trigger often, you might be comfortable using a fast-paced scalping technique since it focuses on capitalizing on small price changes. Most scalpers hold positions for very little time and liquidate as soon as the position shows a profit. Losses also get taken quickly to reduce the risk of further losses.

Breakouts

This strategy may suit more patient individuals and requires a background in technical analysis. Trading breakouts generally involve taking a position as soon as a chart pattern has been breached on the price chart.  

News Trading

Market price activity often revolves around financial news. For example, a company releasing an earnings report or an oil exploration firm that announces an oil discovery creates a news event that could affect their stock’s price after the news is released and even before if rumored. Other news releases like macroeconomic reports and economic indicators can affect the market as a whole and move individual stock prices.

Step 4: Add Funds to Your Account

Webull has two funding options once you’ve opened a trading account: 

ACH Transfers 

Automatic Clearing House (ACH) transfers involve linking a bank checking or savings account to your Webull account. To fund an account with this option, you provide Webull with a bank account and routing numbers. Upon receiving your information, Webull then makes 2 micro-deposits of under $1 to your bank account to verify that you are in fact on the bank account and can access activity on it. 

After you’ve been verified, you can make an ACH deposit, which can typically take up to 5 business days. Once you’ve initiated the deposit, Webull allows you to immediately use a portion of your deposit for trading. Webull has a daily deposit limit of $50,000 per day per account using the ACH transfer method. 

Wire Transfers 

Webull accepts domestic and international wire transfers to fund an account. The deposit charge is $8 per transaction for domestic wires, while for international deposits, the charge is $12.5 per transaction.

Make sure you check with your bank, since most banks also charge a fee for outgoing wires. Also keep in mind that no third party wires are accepted. Domestic wire transfers take up to 2 business days to complete, while international wires take up to 5 business days to complete.    

Step 5: Consider Virtual Trading (Optional)

If you are new to day trading, then a great hands-on way to get the trading experience you need is to use Webull’s paper trading feature. You can buy and sell stocks with no monetary risk by using virtual money in Webull’s free paper trading account. This lets you practice your day trading strategies, hone your money management process and test your trading plan.

Step 6: Start Live Trading

Once you decide to start live trading in a funded account, the stocks you decide to day trade depends entirely on your own research. If you intend to use fundamental analysis, then you might begin by selecting the stocks of companies you are already familiar with. For example, if you’ve had professional experience in the semiconductor business, you might want to trade the stock of companies involved in semiconductor production. 

If you have absolutely no experience trading stocks, then you’ll need to get some education on how the stock market works. You might also want to learn how to use technical analysis methods to provide objective trading signals you can incorporate into a trading plan. 

Fortunately, Webull provides extensive educational resources and a learning center you can access on its trading platform via a book icon on the left side of the trading platform app’s page. 

How to Use Charts on Webull

Webull’s trading platform includes a charting function that lets you view charts along with the standard indicators technical analysts might want to use. If you’re unfamiliar with how to use charts when day trading, Webull’s educational resources include helpful material on using charts and technical analysis. You can also find many free articles, videos and tutorials on how to use charts and technical analysis on the Internet. 

Webull Commissions and Fees

Webull charges no commission on stock trades, but you’ll still need to pay some minimal fees such as Securities and Exchange Commission (SEC) transaction fees and fees from the FINRA that apply to stock, exchange-traded funds (ETF) and options trades.

When it comes to shorting stock, you’ll need to pay for the stock loan charges on the stock you’ll need to borrow to make the short sale. This amount depends on the availability of the shorted stock, the prevailing broker loan rate and the margin account interest rate.  

Benefits of Day Trading on Webull

For day trading, Financial Industry Regulatory Authority (FINRA) rules regarding pattern day traders state that you must maintain a net value of $25,000 in a margin account at all times. In addition to commission-free trading, a Webull margin account lets you make unlimited day trades and leverage your day trading positions using up to a 4:1 leverage ratio. You can also make cross-platform trades by using your mobile device to enter an order and then checking the execution results and managing the position on your desktop. 

Webull Promotions 

Free Stock #1: Earn 20 free fractional shares when you open an account with at least $500

How to Qualify: To qualify for 20 free fractional shares of stock with Webull, open a new individual brokerage account and deposit between $500-$24,999.99 during the promotional period. Maintain this balance for at least 30 days. This offer is exclusive to first-time Webull clients. Claim your rewards from the "My Rewards" page on the Webull site within 30 days after completing the new account period.

Free Stock #2: Earn 75 free fractional shares when you open an account with at least $25,000

How to Qualify: To earn 75 free fractional shares of stock with Webull, open a new individual brokerage account and deposit at least $25,000 during the promotional period. Maintain this funded amount in your account for at least 30 days to qualify. This offer is valid for first-time Webull clients only, and the deposited funds must remain in the account for the specified duration to receive the free shares.

Can You be Profitable as a Day Trader?

Success when day trading generally requires developing key skills like market analysis.  It also helps to have beneficial personality traits like the discipline needed to stick to your trading plan and the ability to quickly pull the trigger when establishing and liquidating positions. Since day trading involves strategic risk-taking and generally has more in common with gambling than investing, you will also need to have a decent appetite for risk. 

Frequently Asked Questions