It's a common question for many traders on Webull, especially those just starting out with cash accounts: how do you keep track of Good Faith Violations (GFVs)? It can feel a bit like walking through a minefield if you're not careful. But don't worry, by understanding what GFVs are and how Webull handles them, you can navigate your trading confidently.
Let's dive into exactly what a GFV is and, more importantly, how you can know how many you have on Webull and avoid them entirely!
Understanding the "Good Faith" in Good Faith Violation
First, before we even talk about how to check for them, it's crucial to grasp what a GFV actually is. Imagine this: you sell a stock, and the money from that sale isn't instantly "real" in your account for new purchases. It takes a couple of business days to settle. This is called the settlement period (T+1 for most stocks in the US, meaning Trade Date + 1 business day).
A Good Faith Violation (GFV) occurs when you:
Buy a security using funds that haven't yet settled from a previous sale. These are often referred to as "unsettled funds" or "instant buying power" that Webull might grant you.
Then, you sell that newly purchased security before the original funds used to buy it have fully settled.
Essentially, you're using money that technically isn't fully "yours" yet to make a new purchase and then selling that new purchase before the original transaction completes. The "good faith" comes from the broker allowing you to use those unsettled funds in good faith that you have the underlying capital. When you sell before settlement, you break that good faith.
Why does this matter? Because it's a regulatory rule (FINRA and SEC rules) designed to prevent "free-riding," where an investor uses unsettled funds to buy and sell securities without actually having the capital to cover the initial purchase.
Now that we know what it is, let's figure out how to see your GFV status on Webull.
Your Step-by-Step Guide: How to Check Your GFV Status on Webull
While Webull doesn't typically display a prominent "GFV Counter" directly on the main trading screen, they do provide you with notifications and information within your account details. Here's how to stay informed:
Step 1: Engage with Your Webull Notifications – Are You Paying Attention?
Before we even open the app, think about this: have you seen any pop-ups, emails, or in-app messages from Webull lately related to "Good Faith Violation" or "unsettled funds"? Webull is generally pretty good about notifying you if you're about to commit a GFV or if you've already incurred one. These notifications are your first and most important line of defense.
Check Your Webull App Notifications: Webull sends direct notifications within the app. Often, these will appear as alerts in your "Messages" or "Notifications" section.
Review Your Email: Make sure you check the email address associated with your Webull account regularly. They will often send emails detailing GFV occurrences and their implications.
Don't Ignore Pop-Ups! If a pop-up appears when you're about to make a trade involving unsettled funds, read it carefully. It's Webull's way of giving you a heads-up.
If you've been actively trading with a cash account, chances are you've seen one of these. Now, let's dig deeper into the app.
Step 2: Navigate to Your Account Statements and History
Webull provides comprehensive statements that detail all your transactions and can indirectly show you any GFV instances.
2.1 Accessing Statements via the Webull App
Open the Webull App: Log in to your Webull account on your mobile device.
Tap the Webull Logo (Center Bottom): This usually takes you to your main account page or a hub with various options.
Find "Statements" or "More": You might need to swipe or tap on "More" to reveal additional options. Look for a section like "Statements," "Reports," or "Account Details."
Select Your Account: If you have multiple accounts (e.g., individual, IRA), make sure you select the correct one.
Choose "Account Statements": Here, you'll find monthly or quarterly statements. While these don't explicitly tally GFVs, they show all your trades and their settlement dates. By carefully reviewing the dates of your buys and sells in relation to settlement, you can infer if a GFV occurred.
2.2 Reviewing Trade Confirmations
Within the "Statements" or "Reports" section, you can also find individual trade confirmations. Each confirmation will list the trade date and typically the settlement date. If you sold a security before its purchase settled, this is a strong indicator of a GFV.
Step 3: Understand Your "Cash Balance" and "Buying Power"
While not a direct GFV counter, understanding these two figures is key to avoiding future GFVs and can help you infer past ones.
3.1 Settled vs. Unsettled Funds
Settled Funds: This is the money that has fully cleared and is truly available for you to withdraw or use for new purchases without GFV risk.
Unsettled Funds: These are typically proceeds from recent sales that have not yet completed the settlement process. Webull often provides "instant buying power" with these funds, allowing you to re-invest quickly. However, using this instant buying power and then selling the new position before the original funds settle is the classic GFV scenario.
3.2 Checking Your Balances
Go to Your Account Page: From the Webull homepage, navigate to your main account overview.
Look for "Total Assets" or "Net Account Value": Beneath this, you'll often see a breakdown.
Identify "Cash Balance" or "Available Funds":
Some brokers, including Webull, may show your "Cash Balance" as including both settled and unsettled funds.
You might also see "Available to Withdraw," which typically represents your settled cash.
Pay close attention to "Buying Power." While it shows how much you can buy, it doesn't always distinguish between settled and unsettled funds.
The key takeaway here is to be mindful of your recent sales. If you've sold something recently, assume the funds are unsettled until at least T+1, and often T+2, depending on the asset.
Step 4: Contact Webull Support for a Direct Answer (If Needed)
If you're still unsure about your GFV history or want a definitive answer, the most direct approach is to contact Webull's customer support.
4.1 How to Reach Webull Support
Through the App: Go to your profile/account section and look for "Help Center," "Customer Service," or "Contact Us." You can usually initiate a chat or find their phone number/email.
Via Website: Visit the official Webull website and navigate to their "Help" or "Support" section.
When contacting them, be clear and concise with your question: "Could you please tell me how many Good Faith Violations I have incurred on my account in the past 12 months?"
They will be able to provide you with an exact count and explain any restrictions on your account.
Consequences of Good Faith Violations
It's important to understand why tracking GFVs matters. Accumulating them can lead to trading restrictions:
1st & 2nd GFV: Often a warning.
3rd GFV within a 12-month period: Your cash account will likely be restricted for 90 calendar days. During this period, you will only be able to purchase securities with fully settled funds that are in your account before you place the trade. This means no "instant buying power" from recent sales.
Further Violations (4th, 5th, etc.): Can lead to even stricter restrictions, including your account being limited to liquidation only (meaning you can only sell, not buy) for an extended period.
Each GFV typically remains on your account for 12 months before it expires.
How to Avoid Good Faith Violations on Webull
Now that you know how to find them, here's how to ensure you don't get any more:
Wait for Funds to Settle: This is the simplest and most effective method. If you sell a stock, wait until the funds from that sale have fully settled (usually T+1 for stocks) before using those proceeds to buy another stock and then selling that stock.
Only Trade with Settled Cash: Before making any new purchase, confirm that your "available to withdraw" or "settled cash" balance covers the full amount of your intended purchase.
Fund Your Account Adequately: Keep sufficient settled funds in your account to cover your trades, rather than relying on "instant buying power" from recent sales for new purchases that you plan to quickly sell.
Consider a Margin Account (If Eligible and Understand the Risks): Margin accounts operate differently and are not subject to GFV rules as they allow you to borrow funds. However, margin accounts come with their own set of risks, including interest on borrowed money and potential margin calls. This is generally for more experienced traders.
Use Webull's Paper Trading: If you're new to trading or experimenting with strategies, use Webull's paper trading feature to practice without real money and understand how settlement works without incurring actual GFVs.
10 Related FAQ Questions (Starting with 'How to')
Here are some quick answers to common questions related to Good Faith Violations on Webull:
How to know if my funds are settled on Webull?
You can generally assume funds from a stock sale are settled after one business day (T+1). Your "Available to Withdraw" balance in your Webull account usually reflects your settled funds.
How to avoid Good Faith Violations on Webull?
The best way is to wait for funds from a sale to fully settle before using them to buy new securities that you might then sell quickly. Only trade with your "Available to Withdraw" balance.
How to check my settlement dates on Webull?
You can check trade confirmations in your "Statements" section of the Webull app. Each confirmation will list the trade date and the expected settlement date.
How to get rid of a Good Faith Violation on Webull?
You can't "get rid" of a GFV once it's incurred. Each GFV remains on your account for 12 months. The key is to avoid accumulating more.
How to reset my GFV counter on Webull?
GFVs automatically expire after 12 months from the trade date. There isn't a manual way to reset the counter, you just have to wait for them to age off.
How to trade without incurring GFVs on Webull?
Always ensure you have enough settled cash in your account to cover your purchases. If you've just sold a stock, wait until the next business day (or two, to be safe) before using those proceeds for new trades you might liquidate quickly.
How to understand Webull's instant buying power?
Webull's instant buying power allows you to re-invest proceeds from a sale immediately before they settle. While convenient, using this for a new purchase and then selling that new purchase before the original funds settle is what causes a GFV.
How to tell the difference between a cash account and a margin account on Webull?
You can see your account type (cash or margin) within your Webull account settings or profile. Margin accounts generally have "Margin" clearly stated next to the account name.
How to handle a 90-day GFV restriction on Webull?
During a 90-day restriction, you can only buy securities with fully settled funds. This means you must have the cash in your account before placing the order. Simply adapt your trading strategy to only use settled cash.
How to learn more about good faith violations and trading rules?
Webull's help center (available in the app and on their website) has detailed FAQs on GFVs. You can also research FINRA and SEC rules regarding cash accounts and settlement periods.
