Webull Day Trading 101: Guide to Successful Webull Trading

Learn how the Webull day trading platform allows commission-free stock trading with this step-by-step guide. We often get asked by our subscribers, can you day trade on Webull? Through this guide, we’re going to show you how day trading on Webull works, Webull day trading hours, and much more.

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Day trading with a stockbroker that charges a commission anywhere between $3 and $7 is just way too expensive and it’s not sustainable in the long run. If you have a small trading account, those commission fees will eat from your profits. Luckily, Webull and other day trading platforms make it possible to execute multiple trades within a 24 hour period for free.

Thankfully, Webull mobile App, a competitor to the Robinhood App, which is more popular amongst Millennials, offers commission-free trading. In terms of functionalities and the tools it gives you, Webull is more geared towards day trading.

Learn more about this free stock trading mobile App with our step-by-step guide: Webull Trading Tutorial.

Moving forward, we’re going to first start by answering:

Does Webull have day trading?

Let’s start learning all about Webull Day Trading.

Can you Day Trade on Webull?

Yes, day trading on Webull is allowed.

However, day trading stocks on Webull comes with some restrictions.

But, the day trading rules are not imposed by Webull. All stock brokerage firms in the USA need to follow the rules imposed by the U.S. Securities and Exchange Commission (SEC).

In essence, the US government has ruled that you can only day trade stocks if you have a minimum of $25,000 in your stock trading account. This is also known as the pattern day trader rule (PDT).

If you have less than $25,000 in your brokerage account, you will be flagged as a pattern day trader (PDT).

To learn more about the PDT rule, please check our guide here: How to Day Trade with Less Than $25,000.

Now, we know that it must be frustrating if you don’t have that kind of money to fund your account.

But, the FINRA rules allow a way to day trade stock with less than $25,000.

The pattern day trader rule allows you to only trade a maximum of 3-day trades within 5 business days. So, if you have less than $25,000 in your stock brokerage trading account, you can still day trade, but only 3 times every 5 business day cycle.

Let’s learn more about Webull day trading limits.

See below:

Webull Day Trading Limit

To summarize, here are the Webull day trading rules:

• Maintain at all times a minimum account balance of $25,000.
• Day trading with less than $25,000 will only allow you to day trade 3 times every 5 business day cycle.
• Webull margin account minimum deposit is $2,000.

Important Note* Please be aware that the PDT rule is NOT applicable to cash accounts, but only to margin accounts.

This basically answers the question of how many times can you day trade on Webull?

The Webull margin account with more than $25,000 gives you unlimited access to buy and sell stocks within a single trading day. That’s the bracket where you want to be in if you want to successfully day trade the stock market.

If you have less than $25,000 in your margin account, Webull will update under the “Day-Trades Left” item, how many day trades you’re allowed to take. Webull will update this in real-time, so you won’t receive an EM call.

An Equity Maintenance (EM) margin call occurs when an account is flagged as a pattern day trader account. The EM margin call will be triggered in two instances:

• If you try to day trade with an account of less than $25,000
• Or, if you open four or more day trades within 5 business days

If your Webull margin account falls below the maintenance margin of $25,000 the broker will also issue a margin call.

Webull can have your first equity maintenance (EM) margin call lifted if you unintentionally execute more than the 3-day trade limit.

If you can’t bring your account value above $25,000, you can ask Webull to lift the PDT flag once every 90 days. If you have more than 1 EM margin calls within 90 days, you’ll not be able to lift your PDT flag until 90 days after your last reset.

However, to continue day trading without waiting 90 days for the PDT restriction to be lifted, you can deposit more funds into your account and bring the value of your funds to a minimum $25,000.

We hope we covered the most asked questions: Can you day trade on Webull?

Basically, these are the rules to follow if you want to day trade on Webull.

Moving on…

Let’s see an example, how day trading commission-free on Webull works.

See below:

Webull Day Trading Example

For example, let’s assume we open a Webull margin trading account with a minimum of $2,000.

This means that we fall under the pattern day trader rule.

We’re only allowed to day trade 3 times within a 5 business day cycle.

On the first trading day of the week, we buy 100 shares of ABC stock at the open for $10 per share. The stock rallies $2 during the same day and you cash out your position by the end of the day. By selling your shares before the close you will reach your first-day trade.

On the second day of the week, you decide to buy a bull call spread on ABC for $1.00. The ABC stock price gaps up and your bull call spread is in profit. You then decide to cash out your position.

By closing your second trade before the close under the “Day-Trades Left” item you’re left with 1-day trade bullet.

Now, let’s move on with our example…

We assume the day is not over yet and the market presents another opportunity that you decide to take advantage of. You decide to sell a put on XYZ for $2.5. The price of the stock continues to move higher through the day and your put position is now worth $1.5.

Again, you decide to cover your position and cash out a nice profit before the market close.

Now…

Within 2 trading days, you have used all your Webull day trading limit of 3-day trades.

Under the “Day-Trades Left” item you’ll be able to see that you can’t day trade anymore.

Your day trading journey must get to an end; at least until the 5 business day cycle since you open your first-day trade passes.

Because of the Webull day trading limit of 3-day trades, if you try to buy and sell stocks you’ll get an EM call.

Let’s continue with our example and see what would happen if on the third day of the week we bought 100 shares of ABC at $20 per share.

One hour later the stock price rallies $5 and you sell your stock position for a profit.

Since you have already reached your Webull day trading limit of 3-day trades in a rolling 5 business day cycle, your account will be flagged as a pattern day trader.

More, since your Webull margin account is less than $25,000, you’ll receive a PDT equity maintenance margin call.

In this scenario to continue to day trade you need to bring your account to at least $25,000 or wait 90 days until the restrictions are lifted.

If you want to become an active trader, it’s important to solidify the Webull pattern day trader rules.

Moving on…

Let’s see what are Webull day trading hours?

See below:

Webull Day Trading Hours

First, let’s talk about after-hours trading.

After-market hours trading allows traders to buy and sell stocks before the stock market opens or after the stock market closes. The normal stock market trading hours for the NYSE are from 9:30 AM to 4:00 PM EST.

This is the time window where most of the buying and selling activity takes place.

However, after the stock exchanges close, the trading activity doesn’t cease. More trading activity takes place by the electronic exchanges in the after-hours trading. At the same time, depending on the stockbroker you use, you can also have access to pre-market hours trading.

You can buy and sell stocks during the pre-market hours and after-market hours.

The good news is that the Webull trading App allows investors to gain access to full extended-hours trading.

You can trade pre and post-market on Webull during the following time windows:

• Pre-market trading hours from 4:00 AM to 9:30 AM ET (that’s a window of 5.5 hours before the market opens)
• After-market trading hours from 4:00 PM to 8:00 PM ET (that’s a window of 4 hours after the market closes)

Now, you might ask yourself:

“Do, you need extended-hours to day trade the stock market?”

The answer is NO.

But, it can give you an additional time window of new opportunities to make money in the stock market.

Note* after-hours trading carries more risks and dangers due to the less liquidity available and higher volatility. It’s only recommended to day trade during the regular hours.

Moving on…

Let’s see how much buying power you can access with the Webull account.

See below:

Webull Day Trading Buying Power (DTBP)

The margin accounts come with a 1:4 day trade BP Webull. In other words, you can leverage your day trades up to four times. But, again, you need to deposit at least $2,000 in your margin account.

So, if you have $2,000 in your margin account, you can buy and sell stocks with a buying power of up to $8,000.

Keep in mind that leverage is a double edge sword.

While your profits can grow 4 times larger, you can also lose money four times faster.

Webull calculates your day trade buying power (DTBP) at the start of each trading day and remains unchanged throughout the day. Any subsequent deposits and profits will be reflected in your buying power the following day.

Final Words – Webull Day Trading

In summary, Webull day trading works the same way as with any other stock trading broker. The Webull day trading hours will also give you an extra window to find new trading opportunities. If you want to avoid the pattern day trader rule here are a few options to get around it:

• Open a cash account
• Open multiple margin accounts (Webull, Robinhood, TD Ameritrade etc.)
• Use an offshore stock broker to suppress the PDT rule
• Try to swing trading

Keep in mind that each of the above-mentioned solutions to the PDT rule has its own pros and cons.

Now, if your friends ask you:

“Can you day trade on Webull?”

You can direct them to this article as it will give them a more in-depth overview of everything you need to know to safely day trade stocks.

If you would like to learn more about using Robinhood, the leading alternative to Webull day trading, click here.

Thank you for reading!

Feel free to leave any comments below, we do read them all and will respond.

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