Are you looking to take more control of your investments and ensure your shares aren't being lent out by Webull? Perhaps you've heard about stock lending programs and their implications, and you've decided it's not for you. Whatever your reasons, turning off share lending on Webull is a straightforward process, and I'm here to guide you through it, step-by-step!
Let's dive in and make sure your investment preferences are perfectly aligned with your financial goals.
Understanding Share Lending on Webull (and Why You Might Want to Turn It Off)
Before we get to the "how-to," let's briefly touch upon what share lending actually is. Webull, like many brokerage firms, has a "Fully Paid Securities Lending Program" (sometimes referred to as "Stock Lending" or "Share Lending"). When you opt into this program, you allow Webull to loan out shares of stocks you own (that are fully paid for, not on margin) to other investors.
Why do they do this? Borrowers typically use these shares for short selling or to cover failed deliveries. In return, Webull earns a fee, and often shares a portion of that fee with you as passive income.
While the idea of earning passive income sounds appealing, there are a few important considerations and potential downsides that lead many investors to opt out:
-
Loss of Shareholder Voting Rights: When your shares are loaned out, the voting rights associated with those shares are transferred to the borrower. This means you cannot vote on company matters during the loan period.
-
Dividend Treatment: If a dividend is paid while your shares are on loan, you might receive a "payment in lieu of dividends" instead of a qualified dividend. This payment is typically taxed as ordinary income, which could be at a higher tax rate than qualified dividends.
-
SIPC Insurance: While your broker generally holds collateral (usually cash) for loaned securities, your shares on loan are not covered by SIPC insurance. This is a crucial point for risk-averse investors, as SIPC protects your securities up to $500,000 in the event of a brokerage firm's failure.
-
Philosophical Objections to Short Selling: Some investors simply don't want their shares used to facilitate short selling, especially if they are long-term holders who believe in the company's growth.
If any of these points resonate with you, then turning off share lending is the right move.
 |
| How To Turn Off Share Lending Webull |
Step 1: Engage and Log In to Your Webull Account
Ready to take control? The first step, as always, is to access your Webull account. You can do this through the Webull mobile app on your smartphone or tablet, or via the Webull desktop application or their website.
-
For Mobile App Users: Open the Webull app on your device. You'll likely be prompted for your passcode, fingerprint, or facial recognition.
-
For Desktop/Web Users: Navigate to the Webull website (webull.com) or open the desktop application. Enter your login credentials (username and password).
**Remember to use a secure internet connection and be cautious of phishing attempts. Always double-check that you are on the official Webull platform.
QuickTip: Read again with fresh eyes.
Step 2: Navigate to Your Profile/Account Settings
Once you're successfully logged in, you need to find your way to the account settings section. This is typically where all the personalized controls and preferences are located.
-
On the Webull Mobile App:
-
Look for the "Menu" icon (often represented by three horizontal lines or a "burger" icon) or your "Profile" icon (usually a silhouette of a person or your avatar) in the bottom right corner of the screen.
-
Tap on this icon. This will open a sidebar or a new screen with various options.
-
-
On the Webull Desktop Application/Website:
-
Locate your "Profile" or "Account" settings. This is often found in the top right corner or sometimes within a dropdown menu.
-
Click on it to reveal your account-related options.
-
Step 3: Locate "Account Settings" or "Investing"
Within the profile or menu section, you'll need to find the specific category that houses your investment preferences and account-wide settings.
-
For Mobile App & Desktop/Web:
-
Scan the options for something along the lines of "Account Settings," "Settings," or "Investing." The exact wording can vary slightly with app updates, but these are common terms.
-
Click or tap on the relevant option.
-
Step 4: Find "Stock Lending" or "Fully Paid Securities Lending"
You're getting closer! Inside "Account Settings" or "Investing," there will be a list of different programs and features.
-
Look for a clear heading or option labeled "Stock Lending," "Fully Paid Securities Lending," or sometimes just "Share Lending Program."
-
This is the setting you need to adjust.
Step 5: Disable or Opt-Out of the Program
Once you've found the "Stock Lending" option, you'll see its current status. If you are enrolled, it will likely indicate "Enabled" or "On."
-
Click or tap on "Stock Lending."
-
You will usually be presented with a toggle switch, a button, or a confirmation screen to disable or opt-out of the program.
-
Confirm your decision when prompted. Webull may ask you to acknowledge the implications of opting out (e.g., loss of potential income, regaining voting rights). Read these carefully before proceeding.
Congratulations! You have successfully initiated the process to turn off share lending on your Webull account. It's important to note that it might take a short period (a business day or two) for the changes to fully reflect and for any currently loaned shares to be recalled.
Tip: Revisit challenging parts.
What to Expect After Disabling Share Lending
After you've opted out, here's what you can generally expect:
-
No More Lending Income: You will cease to earn any further income from your shares being lent out.
-
Regained Voting Rights: For shares that were previously on loan, you will regain your shareholder voting rights once they are recalled by Webull.
-
SIPC Protection: Your fully paid securities will once again be covered by SIPC insurance.
-
No Immediate Impact on Trading: You can still buy and sell your shares as usual. Disabling share lending does not affect your ability to trade your investments.
Related FAQ Questions
Here are 10 frequently asked questions about Webull's share lending program and how to manage it:
How to check if share lending is enabled on Webull?
You can check if share lending is enabled by navigating to "Profile" -> "Account Settings" -> "Investing" -> "Stock Lending" within the Webull app or desktop platform. The status will be clearly indicated there.
How to re-enroll in the Webull share lending program?
If you change your mind, you can typically re-enroll in the program by following the same steps: "Profile" -> "Account Settings" -> "Investing" -> "Stock Lending," and then enabling the option. There might be a waiting period or specific terms for rejoining.
QuickTip: Slow scrolling helps comprehension.
How to contact Webull customer service about share lending?
You can contact Webull customer service directly through their app or website. Look for "Help Center," "Contact Us," or a chat icon. They can provide specific details about your account's share lending status and address any concerns.
How to understand the risks of Webull share lending?
The main risks include losing shareholder voting rights, potential unfavorable tax treatment of "payments in lieu of dividends," and the temporary loss of SIPC insurance coverage for loaned shares.
How to see the income earned from Webull share lending?
Any income earned from the share lending program would typically be reflected in your account statements or in the "My Account" or "Reports" section of the Webull platform, often categorized as "interest" or "lending income."
How to know which of my shares are being lent out?
Webull generally doesn't provide a real-time list of which specific shares are currently on loan. The program operates on eligible fully paid shares in your account. If you've opted in, any eligible shares can be lent out.
Tip: Don’t skim past key examples.
How to distinguish between margin lending and share lending on Webull?
Margin lending involves borrowing money from Webull to increase your buying power, using your existing assets as collateral. Share lending (or fully paid securities lending) involves Webull lending out your fully paid shares to other parties for a fee. They are distinct programs.
How to understand the tax implications of share lending income?
Income from share lending (payments in lieu of dividends) is generally taxed as ordinary income, which can be at a higher rate than qualified dividends. It's always best to consult with a tax professional for personalized advice.
How to ensure my shares are never lent out by Webull?
The most direct way is to explicitly opt out of the "Fully Paid Securities Lending Program" in your account settings. This ensures that Webull does not have your permission to lend out your fully paid shares.
How to find the official Webull disclosures on share lending?
You can usually find the official disclosures on share lending by visiting the Webull website and looking for sections like "Legal," "Disclosures," "Risk Disclosures," or "Master Securities Lending Agreement." These documents provide the full terms and conditions of the program.
 |
