Is Webull Securities reliable? How can I confirm whether a brokerage is a legitimate US brokerage?

  Global asset allocation is becoming the trend of the times. As one of the standardized overseas investment methods, US stock investment is being accepted by more and more investors. Capgemini's 2017 Global Wealth Report shows that more than 90% of high net worth investors believe that stocks are "an important or most important contributor to investment performance".

  However, how to ensure the safety of funds has always been one of the most concerned issues for US stock investors. Therefore, it is particularly important to choose a regular U.S. stock-licensed brokerage.

  At the business level, licensed securities firms (such as Webull Securities ) are strictly regulated by the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority), and the compliance of licensed securities firms is more trustworthy.

  The US government stipulates that all brokerages must be SIPC members, and this is also the advantage of licensed brokerages represented by Webull Securities .

  How to confirm whether a brokerage is a legitimate US brokerage?

  Take WEBULL FINANCIAL as an example, you can check the "BrokerCheck" section of FINRA's official website, select the "FIRM" column, and enter WEBULL to check the detailed member information of Webull Securities in FINRA. The CRD number is 289063, SEC The number is 69978.






  The membership information of brokers in SIPC can also be inquired by logging in to the official website. In the "List of Member" column of the SIPC official website, enter "WEBULL" to retrieve the member information matched by Webull Securities.






  Another significance of choosing a formal U.S. stock-licensed securities company such as Webull Securities is that the protection of licensed securities companies is more comprehensive at the level of capital security and investor protection .

  For the protection of securities investors, the United States has formed an investor protection system with SIPC (US Securities Investor Protection Corporation) as the main body, commercial insurance and legal protection as supplements.

  According to the requirements, SIPC operates under the supervision of the SEC. One is to establish an investor protection fund to provide prepaid compensation to customers who have legitimate claims against bankrupt securities companies in liquidation proceedings, up to $500,000 per customer (of which $250,000 in cash limit). As a SIPC member, every investor's Webull Securities account is entitled to this protection.

  In addition, the SIPC can guarantee that its members' cash shortfalls can be replenished; or buy securities to satisfy the indemnity claims of clients of bankrupt securities firms. Second, as a party in the liquidation procedure of a bankrupt securities company, exercise relevant rights in the bankruptcy procedure, including appointing a custodian, etc.

  In addition to the SIPC's securities investor protection system, the U.S. securities market also has a commercial insurance mechanism, which provides protection for the loss of customer accounts exceeding the SIPC limit. And insurance companies such as XL Capital Ltd provide related services.

  In the United States, in order to make up for the losses suffered by securities investors to the greatest extent, in addition to the above two methods, there is also a class action system, which is a relatively successful compensation mechanism for resolving mass securities civil lawsuits. This system usually imposes huge fines on violators, so that investors can get relatively adequate compensation, and it also has a huge deterrent effect on illegal acts.

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