Reasons Why Webull Asks for SSN When Opening an Account?

When you open an account at Webull (hopefully you are using their promo link: Grab your last chance to get 6 free stocks valued up to $12,600. ), you will be asked to provide your Social Security Number (SSN) as part of the application process. Many newer investors wonder why they must give their personal information to a stockbroker. While it may not feel safe at first, brokers take such information from new applicants as part of their regulatory commitments. Keep reading to learn more.

Why Webull Asks for an SSN When Opening an Account

Webull will always ask new account holders for a social Security Number, or an alternative number that can positively ID said applicant. Webull is obliged to follow guidance from self-regulatory bodies like the Financial Industry Regulatory Authority (FINRA) and government agencies like the U.S. Securities and Exchange Commission (SEC).


Why Does WeBull Need SSN


SRO and U.S. Government Regulations

Self-Regulating Organizations and U.S. Government oversight agencies have the combined goal of keeping trade and investment opportunities fair and honest. To reach that goal, these types of organizations oblige brokers to adhere to some best practices.

The primary reasons for collecting a Social Security Number are to report the sale of securities to the IRS, to fight money laundering, to thwart terrorist funding activities, and to keep records of investment accounts.

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Tax Requirements

One of the most obvious reasons for collecting your Social Security Number is to report your investment activities to the IRS. Unless you are trading in a tax-deferred IRA without making any early withdrawals, your earnings are subject to capital gains taxes.

Webull is required by law to report the year’s transactions for every registered investor. This includes losses, capital gains, and even cryptocurrency sales. Without your SSN, Webull would not be able to fulfill this part of its legal responsibility.

On a side note, although Webull does report your trading activity to the IRS, it is also your responsibility to do so. Thanks to Webull having your SSN (or alternative tax number), you can easily download your tax documents from the Webull website. Most tax preparation services make it very easy to upload these documents, making tax reporting a simple task in many cases.


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Crime Prevention

Apart from the IRS, Webull is also obligated to adhere to U.S. laws that pertain to crime prevention. In 2001, Congress passed the USA Patriot Act (Insert Link). Due to the Patriot Act, financial institutions now follow a customer identification system similar to the Know Your Customer (KYC) rule common with European brokerages and crypto exchanges that are based outside of the U.S.

In the U.S., the customer identification rule (insert link) created by the USA Patriot Act is functionally the same. Every broker in the USA must verify the identity of its customers. They are also required to check databases of known and suspected terrorists to ensure there are none in their house.

The same information is used to monitor accounts and investors for suspected money laundering activities.

Bookkeeping and Customer Records

Another reason that Webull must collect your Social Security Number comes from the Securities and Exchange Commission (SEC). As part of the SEC requirements for operation in the U.S., brokers must collect several pieces of personal information from each customer.

Information about net worth, annual earnings, occupation, name, and address is required. Investors must also give their Social Security Number to satisfy this requirement.

The reason for this requirement is for awareness on the part of the broker. By collecting personal information from customers, Webull is better suited to provide quality service to its investors.

Is Giving SSN to Webull Safe?

The short answer is yes. It is safe to share your Social Security Number with Webull.

Webull is a member of numerous oversight organizations including FINRA and SIPC, as well as being registered with SEC.

To maintain good standing with each of the oversight bodies that Webull works with, the broker must adhere to strict policies regarding IT security, customer information, and account management procedures.

In addition, the protections that the organizations offer provide Webull with many tools to help its customers should the need arise.


Is it safe to give Webull SSN


Can I Give Webull ITIN Instead of SSN?

Yes. If you do not have a Social Security Number, Webull also accepts Individual Taxpayer Identification Numbers (ITINs). Providing either an SSN or an ITIN proves to Webull that you are of legal (and taxable) status.

Using an Employer Identification Number at Webull

It is also possible to use an Employer Identification Number to sign up with Webull. However, entity accounts are not offered by default. If you have a ‘legally established LLC’ and would like to open an account under the business name, Webull will do it for you. To open a business account at Webull using an Employer Identification Number (EIN), you must contact them directly (cs@webull.com).

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Updated on 4/26/2022.


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