Is Webull Free Stocks a Scam?

2024: Is the promotional offer to get free stocks for opening a brokerage account on Webull legitimate or a scam?

Is Webull's 75 Free Stocks a Scam?

Webull is advertising 75 free stocks for opening (and funding) a new investment account with the broker. Is this legitimate? Is it a scam? We’ve done the research, and here’s the answer:

Webull Promotion

Webull is promising new customers (emphasis on new) 75 free stocks for opening and funding a new brokerage account. The two stocks combined could be worth as much as $30,600. Here is the promo link:

Open Webull Account

The first stocks are awarded for opening an account. Those will be valued between $2.50 and $250 each. The second batch of stocks is awarded for funding the new account with $100 or more. These stocks will be valued between $8 and $1,600.

Besides the free stocks, Webull will also reimburse an ACAT transfer fee if the incoming account is valued above $2,000.

Fine Print

Webull’s promotion is only valid for taxable accounts. IRAs don’t qualify. Webull frequently runs promos, so this one could be followed by another one with similar conditions.

The promotion is only valid for new customers who have never opened an account with Webull. The broker only awards one bonus per Social Security Number.

The $100 deposit must be made in a single transaction and must be received by Webull within 30 days of account opening.

After the required deposit has been made, the new customer must tap on a claim button on the Webull mobile app to obtain the free stock. This button will appear in the app after the deposit has settled, which may take up to five business days. To find the relevant button, go to Menu -> My Free Stock -> Get. It could take up to two weeks for the free stocks to show up in your account. Be patient.

By the time you receive the free stocks, the market prices could potentially be far below or far above the values that Webull advertises. Webull has no control over market prices.

The ACAT rebate special has a maximum value of $100. Like the free stocks, Webull will only honor it once per Social Security Number. Webull does require proof from an account statement to verify the ACAT fee amount. A pdf file can be uploaded to Webull through its mobile app. Just tap on the menu icon and then look for the deposit bonus icon under the Promotion Center section. You will see a link for Submit My Rollover Documents.

WeBull

Available Stocks

For a stock to be eligible for Webull’s promotion, it must have a market capitalization of at least $2.5 billion. It also must be listed on the Nasdaq or NYSE. Customers cannot choose stocks.

Currently, Webull is advertising the following stocks for opening an account:

Facebook
Starbucks
Snap

For the $100 deposit, Webull is advertising these stocks:

Google
Procter & Gamble
Kraft Heinz

Open Webull Account

Other Specials

Webull has other ongoing specials. Once your account is open, you can refer new customers and qualify for yet another special. For every person you refer who does the same thing (open an account and fund with $100), you get another two free stocks.

So Is Webull Free Stocks a Scam?

Now we come to the $64 million question: is all of this legitimate?

Webull has been in business just a short time. It opened its doors in 2018. It is registered with the Securities and Exchange Commission and multiple self-regulatory bodies, including FINRA.

So far, Webull has zero disclosures on its BrokerCheck profile. It has a pretty clean record in its short history.

During our testing of Webull’s promotions, we were able to secure bonuses whenever we qualified for them. Webull delivered stocks into our account within the timeframe it promised at values it promised. We have no reason to believe any of the broker-dealer’s promotions are fraudulent, and we recommend traders take advantage of them.