You've landed on this page because you're looking to understand and potentially disable "FPSL" on your Webull account. Many Webull users come across this term and wonder exactly what it means and how it impacts their trading. Well, you're in the right place! We're going to break down everything you need to know about FPSL on Webull, and more importantly, give you a clear, step-by-step guide on how to manage it.
Before we dive in, let me ask you: Are you curious about how your idle shares might be earning you passive income, or are you more concerned about potential implications like losing voting rights or SIPC insurance temporarily? Understanding your priorities will help you decide if turning off FPSL is the right move for you.
Let's get started!
Understanding Fully Paid Securities Lending (FPSL) on Webull
First things first, what exactly is FPSL?
FPSL stands for Fully Paid Securities Lending. It's a program offered by many brokerages, including Webull, where you, the investor, can opt-in to allow your broker to lend out shares that you fully own (meaning, they are not held on margin). In return, you can earn a small amount of passive income from the lending fees.
Think of it like this: You own a house. You can live in it, or you can rent it out to someone else to earn extra income. With FPSL, your fully owned shares are like that house. When you opt into FPSL, you're essentially "renting out" your shares to other market participants, often to facilitate short-selling, cover failed trades, or for other sophisticated trading strategies. The borrower pays a fee for using your shares, and your broker then shares a portion of that fee with you.
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| How To Turn Off Fpsl On Webull |
Why does Webull offer FPSL?
Webull, like other brokers, offers FPSL as a way to:
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Generate additional revenue: Brokers earn a portion of the lending fees.
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Increase market liquidity: By making shares available for borrowing, it facilitates smoother market operations.
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Offer a benefit to clients: You, the investor, get a chance to earn passive income on your holdings.
What are the implications of participating in FPSL?
Tip: Reading on mobile? Zoom in for better comfort.
While earning passive income sounds great, it's important to be aware of the potential implications:
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Loss of Shareholder Voting Rights: When your shares are out on loan, ownership is temporarily transferred to the borrower. This means you might lose the right to vote on company matters during the loan period. However, you retain economic control, meaning you can still sell your shares at any time.
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Tax Implications for Dividends: If a dividend is paid while your shares are on loan, it might be paid to you as a "payment in lieu" of a dividend. This can have different tax implications, potentially being taxed as ordinary income rather than qualified dividends.
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SIPC Insurance: Shares that are out on loan are generally not covered by SIPC (Securities Investor Protection Corporation) insurance. To mitigate this, brokers typically hold collateral (often cash) at least equal to the value of the loaned securities in a separate account to protect you in case the borrower defaults or the broker goes out of business.
Now that you understand what FPSL is, let's get to the main event!
Step-by-Step Guide: How to Turn Off FPSL on Webull
Engaging with Webull's platform can sometimes feel like navigating a maze, but don't worry, we're here to shine a light on the path!
While Webull's public documentation specifically about opting out of FPSL can be a bit less straightforward than other features, the process typically involves managing your account settings or contacting customer support. Based on common brokerage practices and user experiences, here's the most likely approach:
Step 1: Access Your Webull Account Settings
This is where your journey begins! Make sure you have your Webull login credentials handy.
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Open the Webull App or Desktop Platform: Launch the Webull mobile application on your smartphone or tablet, or log in to the Webull desktop platform on your computer. The mobile app is generally more user-friendly for this kind of setting change.
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Navigate to Your Account Section:
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On the Mobile App: Look for the Webull logo (usually located at the bottom center of the screen, a circular icon). Tap on it to go to your main account page.
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On the Desktop Platform: You'll typically find an "Account" or "Profile" section in the navigation menu, often on the left-hand side or top right. Click on it.
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Find "More Services" or "Account Management": Once you're in your account section, you'll need to locate options related to account services or management. This might be labeled:
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"More Services"
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"Settings"
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"Account Management"
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"Brokerage Account"
Look for an icon that resembles a gear/cog or simply text that says "Settings" or "More Services."
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Step 2: Locate Securities Lending or Related Programs
This is the crucial step where you'll find the option to manage your FPSL participation.
QuickTip: Skip distractions — focus on the words.
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Scan for "Securities Lending," "Stock Lending," or "Fully Paid Securities Lending": Within the "Settings" or "Account Management" section, carefully browse through the options. You are looking for a section specifically related to lending your shares.
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It might be explicitly called "Fully Paid Securities Lending."
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It could be under a broader category like "Income Programs" or "Account Features."
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Sometimes, it's nestled within "Agreements" or "Disclosures," as these programs require your consent.
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If you can't find it immediately, don't despair! Some brokerages make this a bit less prominent.
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Review Program Details: Once you find the "Fully Paid Securities Lending" or similar option, tap or click on it. You'll likely see a description of the program, your current enrollment status, and possibly your historical earnings (if any).
Step 3: Opt-Out or Disable FPSL
This is the final action to turn off the program.
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Find the "Opt-Out" or "Disable" Button: Within the FPSL program details, there should be a clear option to "Opt-Out," "Disable," "Unenroll," or a similar button/toggle.
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Click or Toggle: Tap on the "Opt-Out" button or switch the toggle to the "Off" position.
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Confirm Your Decision: Webull will likely present you with a confirmation prompt. This prompt will explain the implications of opting out (e.g., you will no longer earn income from lending, shares will no longer be available for loan).
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Read Carefully: It's critical to read this confirmation message thoroughly to ensure you understand what you're doing.
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Confirm: If you are certain about disabling FPSL, confirm your decision. You might need to enter your trading password or a verification code.
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Step 4: Verification and Confirmation
Patience is a virtue, especially when dealing with financial account changes.
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Look for On-Screen Confirmation: After confirming, you should receive an immediate on-screen message indicating that your request to opt-out has been submitted.
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Check for Email Confirmation: Many brokers will send you an email confirmation of your request. Keep an eye on your inbox (and spam folder!) for this.
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Understand Processing Time: It's important to note that disabling FPSL might not be instantaneous. Brokerages often state that it can take 1-5 business days for the opt-out to be fully processed and for your shares to be recalled from any outstanding loans. During this period, your shares might still be eligible for lending until the process is complete.
What if You Can't Find the Option to Turn Off FPSL?
If you've followed the steps above and are still unable to locate the option to turn off FPSL within the Webull app or desktop platform, it's time to reach out to their customer support.
Contacting Webull Customer Support:
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Via the Webull App:
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Go to your "Account" section (Webull logo at the bottom).
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Look for "Help Center" or "Customer Service."
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You might find options for "Online Chat," "Submit Ticket," or a "Phone Number." Online chat is often the quickest way to get a direct answer.
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Via Webull Website:
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Go to the official Webull website.
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Look for "Support," "Help," or "Contact Us" usually in the footer or header of the page.
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They will typically provide an FAQ section, a customer service number, and/or an email address.
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When contacting support, be clear and concise. State that you wish to opt-out of the Fully Paid Securities Lending (FPSL) program on your account. They will guide you through the process, or disable it for you if it's an internal setting.
QuickTip: Focus on what feels most relevant.
FAQs: How to Manage FPSL on Webull
Here are 10 related FAQ questions, all starting with "How to," along with quick answers to help you navigate FPSL on Webull:
1. How to know if I'm enrolled in Webull's FPSL program?
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Quick Answer: Log into your Webull account (app or desktop), navigate to your "Account" or "Profile" settings, and look for a section related to "Securities Lending" or "Fully Paid Securities Lending." Your enrollment status should be clearly displayed there.
2. How to check how much I've earned from FPSL on Webull?
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Quick Answer: In your Webull account, go to your "Account" or "Profile" section. Look for a "Statements" or "History" area, or specifically within the "Securities Lending" section, for details on any income generated from FPSL.
3. How to understand the risks of participating in FPSL?
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Quick Answer: The primary risks are temporarily losing shareholder voting rights, potential changes in dividend taxation (payment in lieu), and the temporary loss of SIPC insurance coverage for loaned shares (though brokers generally hold collateral to mitigate this).
4. How to ensure my shares are not lent out by Webull?
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Quick Answer: The only way to ensure your fully paid shares are not lent out through Webull's program is to opt out of the Fully Paid Securities Lending (FPSL) program by following the steps outlined in this guide.
QuickTip: Repetition reinforces learning.
5. How to re-enroll in Webull's FPSL program after opting out?
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Quick Answer: If you decide to re-enroll, you would typically follow the same steps to navigate to the "Securities Lending" section within your account settings and look for an "Opt-In" or "Enable" option. Note that there might be a waiting period before you can re-enroll after opting out.
6. How to tell which of my shares are being lent out?
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Quick Answer: Webull's platform may show you which specific shares are currently out on loan within the FPSL section, or it might be reflected in your monthly statements. If not explicitly shown, you can contact Webull customer support for this information.
7. How to manage tax implications from FPSL income?
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Quick Answer: Income from FPSL is generally considered ordinary income. Webull will provide you with the necessary tax documents (e.g., 1099-MISC) at the end of the tax year. It's best to consult with a tax professional for personalized advice.
8. How to know if a specific stock is eligible for FPSL?
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Quick Answer: Typically, all fully paid shares in your account are eligible for FPSL. The demand for specific stocks to be lent out varies. You usually don't choose which shares are lent; the broker determines this based on market demand.
9. How to confirm the FPSL opt-out request was successful?
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Quick Answer: After submitting your opt-out request, look for an on-screen confirmation message and an email confirmation from Webull. You can also re-check your "Securities Lending" settings in a few business days to see if your status has changed to "unenrolled."
10. How to understand if FPSL is right for my investment strategy?
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Quick Answer: FPSL is generally suited for long-term investors who hold fully paid shares and are comfortable with the minor risks (like temporary loss of voting rights and potential dividend tax changes) in exchange for passive income. If you actively participate in proxy voting or prefer full control over your shares at all times, it might not be for you.
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