Webull for Options: Account Setup, Approval Levels, and Your First Trade

Opening an account

Opening a Webull account is fully digital and takes most people about ten minutes, plus the wait for approval. Start on webull.com or in the Webull app and choose to sign up. You'll decide between a cash account and a margin account (plus IRA options — Traditional, Roth, and Rollover). If you plan to trade spreads or anything advanced later, a margin account keeps those doors open, though you can switch account types after opening too.

Webull's published requirements are straightforward: you must be at least 18, have a Social Security number or Individual Taxpayer Identification Number (ITIN), and be a permanent U.S. resident (or hold one of the accepted visa types, such as E1, E2, E3, F1, H1B, TN1, O1, or L1). You'll provide your full name, date of birth, phone number, email, U.S. residential address, and citizenship status.

Then you'll upload identification. Webull accepts a U.S. driver's license, passport, passport card, permanent resident card, or official state ID — it must be valid, unexpired, and the photo must clearly match you (no screenshots, scans, or edited images). For tax documents, a Social Security card, ITIN letter/card, IRS taxpayer ID card, or a recent W-2 works. You'll also answer standard questions about your employment, finances, and investing experience.

There is no minimum deposit to open an account, and no fee to open one. Approval is typically fast — many applications clear within one business day, though some need extra document checks. Webull runs a soft credit inquiry during the process, which does not affect your credit score.

Getting approved for options

Like every U.S. broker, Webull approves options trading separately, in tiers. There are four levels, and each unlocks more strategies. Cash accounts (including IRAs) can be approved up to Level 2; margin accounts can go up to Level 4.

Level 1 — Income on what you own (or cash you hold)

Covered calls, buy-writes, and cash-secured puts. This is where most beginners start — and note that selling cash-secured puts needs only Level 1 at Webull.

Level 2 — Buying options and hedges

Everything in Level 1, plus long calls, long puts, collars, and protective puts. In a margin account, Level 2 also unlocks protective calls, covered puts, long straddles, and long strangles.

Level 3 — Spreads

Everything in Levels 1–2, plus credit spreads, debit spreads, long and short butterflies, long and short iron butterflies, long and short condors, long and short iron condors, and back ratio spreads. Level 3 requires a margin account, and Webull requires at least $2,000 of start-of-day margin equity before you can place spread trades.

Level 4 — Naked options

Everything in Levels 1–3, plus naked equity calls, naked equity puts, and front ratio spreads. Level 4 requires a margin account and is not guaranteed — Webull reviews these applications carefully. Writing naked calls requires a minimum net account value of $10,000. Naked strategies are currently limited to S&P 500 stocks (short straddles and strangles are not yet available).

Applying is done inside the app or on the site. On mobile: tap Account, then Account Management, choose your account, tap Option Trading Level, and then Apply for Options Trading. On the desktop app: go to Account, click Options Trading in the Account Details widget, and select Apply for Options Trading. On the website: My Account → Manage My Account → Trading Privileges → View Details next to Options Trading, then apply. Applications are typically decided within 1–2 business days, sometimes immediately, and you'll get an email plus an in-app message with the decision.

Webull may ask for supporting documents — for example, a 1099-B or brokerage statements showing prior trading activity to verify your experience, or bank or brokerage statements to verify liquid net worth. If you're denied a level, you can re-apply later. Two honest tips: answer the experience and objectives questions accurately but completely (leaving experience questions blank or selecting "none" can land you at a lower level than your background warrants), and open a margin account from the start if you know you'll want spreads or higher tiers eventually.

Funding your account

Webull supports several ways to move money in, and the method you pick affects how soon you can trade options — options require settled funds, unlike stocks, which may let you trade on instant buying power.

• ACH transfer (linked bank). Free, with a daily limit of $200,000. Link one bank account per Webull account (it must be verified first), then initiate the deposit from Account → Transfers → Transfer Money. ACH deposits typically take 3–4 business days to fully settle. You can track the status and estimated settlement date under Transfers → Recent Activity.
• Wire transfer. The fastest option: domestic wires typically settle the next business day (1–2 business days), international wires can take up to 5. Incoming domestic wires cost $8 and international wires $12.50 per Webull's fee schedule.
• Debit card. Available for deposits, with a two-business-day hold before deposited funds become available.
• ACATS transfer. Moving an existing brokerage account to Webull is free on Webull's side.

Deposits must be in U.S. dollars, and the name on the bank account must match your Webull account. A practical heads-up from Webull's own FAQs: options can only be traded with fully settled funds — instant or provisional buying power doesn't apply to them. So if your first goal is selling cash-secured puts, fund by wire or start your ACH a few days before you plan to trade.

Placing your first options trade

Webull offers three platforms that stay in sync: the mobile app (iOS and Android), the desktop app, and the web platform. All three include a full options chain and multi-leg order tools.

On mobile, the flow for your first trade goes like this. Search for a ticker or open it from your watchlist, then tap the Options tab. You'll see the option chain: contracts grouped by expiration date, calls on one side and puts on the other, with bid and ask prices, open interest, and Greeks like delta and implied volatility. Pick your expiration first, then your strike. Tapping a contract opens the order ticket, where you choose the action — Buy to Open or Sell to Open — set the number of contracts, pick a limit or market order, and set the time in force (Day or GTC, good-til-canceled). Review everything on the Preview Order screen, then confirm.

A few fundamentals for that first ticket. One contract controls 100 shares, and premiums are quoted per share: a $1.50 ask costs $150 per contract plus any fees. For beginners, limit orders are strongly recommended — the bid/ask spread on options can be wide, and a market order can fill at a worse price than you expect. Webull also gives you research tools in the same screen: an options screener, a probability calculator, and profit/loss diagrams that show your breakeven and max gain/loss before you send the order. If you want to practice first, Webull's paper trading mode lets you run the exact same flow with no real money. Note that real-time OPRA options quotes are free for one month after your options approval, and stay free as long as you place at least one options trade per calendar month.

What it costs

This is Webull's headline feature: stock and ETF options are commission-free with $0 per-contract fees. Here is the full picture, from Webull's official pricing page:

• Stock and ETF options: $0 commission and $0 per-contract fee.
• Index options: $0.50 per contract on certain index options.
• Oversized orders: $0.10 per contract for option orders above 500 contracts.

On top of that, small regulatory pass-through fees apply — the FINRA trading activity fee, the SEC fee, and the consolidated audit trail fee — charged mostly on sells and measured in fractions of a cent per contract. Webull does not profit from these. There is no account minimum, no inactivity fee, and no fee to open the account.

The honest fine print

Zero commissions don't make options safe — they make them cheap to lose money in. Bought options can expire worthless and lose their entire premium. Sold puts obligate you to buy the stock at the strike if assigned, and sold options on margin can lose more than you put in. Naked options at Level 4 carry the largest risk of all. Start small, use limit orders, and understand assignment and expiration before sizing up.

This article is educational, not financial advice. Webull's fees, approval rules, and promotions change over time — the figures above reflect Webull's official pricing and help pages as of September 2026, so check webull.com/pricing and the options help center for the current numbers before you open an account or place a trade.