So, you've snagged a free stock on Webull! That's an awesome perk for joining a brokerage. Now, the big question on your mind is likely, how do I turn this into cold, hard cash? You're in the right place! This guide will walk you through every step of selling your Webull free stock, from understanding the initial requirements to cashing out.
Let's dive in, shall we?
Understanding Your Free Stock and Webull's Policies
Before you hit that "sell" button, it's crucial to understand a few things about how free stocks work on Webull.
Step 1: Confirm Eligibility and Vesting Period
Hey there, aspiring investor! Did you know that your free stock isn't always immediately available for sale? Webull, like many brokerages offering promotional stocks, often has specific terms and conditions.
Sub-heading: The Waiting Game (Vesting Period)
Many free stock promotions on Webull require you to keep the stock for a certain period, often 30 days or more, before you can sell it and withdraw the proceeds. This is called a "vesting period." Attempting to sell before this period is up might result in the forfeiture of the free stock or other penalties, so always check the specific terms of the promotion you participated in.
Why the wait? This is to prevent people from simply signing up, getting the free stock, and immediately cashing out, which wouldn't be beneficial for Webull's marketing efforts.
Sub-heading: Account Funding Requirements
Sometimes, receiving and even being able to sell your free stock might be contingent on you making an initial deposit into your Webull account. Ensure you've met any minimum deposit requirements tied to the free stock offer.
Actionable Tip: To check the specific terms for your free stock, log into your Webull app or desktop platform and navigate to the "Promotions" or "Rewards" section. You should find details there regarding any holding periods or other conditions.
The Selling Process: A Step-by-Step Guide
Once you're sure your free stock is eligible for sale, the actual process on Webull is quite straightforward.
Step 2: Accessing Your Positions on Webull
This is where you'll find all the investments you own, including your shiny new free stock.
Sub-heading: Mobile App Navigation
Open your Webull mobile app.
Look for the Webull logo (typically at the bottom center) of the screen. Tap on it to access your "Account" or "Home" section.
Within this section, you'll see various tabs. Find and tap on the "Positions" tab. This will display a list of all the securities you currently hold.
Sub-heading: Desktop Platform Navigation
If you're using the Webull desktop application, hover over the icons on the left-hand side of the screen.
Click on "Account" (you might need to click "More" if it's hidden).
Similar to the app, you'll find a "Positions" section that lists your holdings.
Remember: Your free stock will appear just like any other stock you might have purchased. It won't have a special "free" label once it's in your portfolio.
Step 3: Initiating the Sell Order
Now for the exciting part – placing your sell order!
Sub-heading: Selecting Your Free Stock
From your "Positions" list, carefully select the free stock you wish to sell. Tap or click on its name/ticker symbol. This will take you to the stock's detailed quote page.
Sub-heading: The "Sell to Close" Option
On the stock's quote page, you'll see a "Trade" or "Sell" button. Click or tap on it.
You'll then be presented with options like "Buy" or "Sell." Choose "Sell" (or sometimes specifically "Sell to Close" for existing positions).
Sub-heading: Entering Order Details
Quantity: This is crucial. Enter the number of shares you want to sell. If you're selling your entire free stock, enter the full amount.
Order Type: This determines how your sell order will be executed.
Market Order: This is the simplest. Your order will be executed immediately at the best available market price. While quick, you don't have control over the exact price you'll get, which can fluctuate rapidly. For a quick sale of a free stock, a market order is often sufficient.
Limit Order: This gives you more control. You set a specific price at which you're willing to sell. Your order will only execute if the stock's price reaches or exceeds your specified limit. If the stock is volatile or you want to maximize your profit, a limit order can be a good choice, but it might not execute immediately if your price isn't met.
Other order types (like Stop Loss, Stop Limit) are more advanced and generally not necessary for simply selling a free stock.
Time in Force (TIF): This dictates how long your order remains active.
Day: Your order is active only for the current trading day. If it doesn't execute by market close, it's canceled.
Good-Til-Cancelled (GTC): Your order remains active until it's executed or you manually cancel it (typically up to 60 days on Webull).
Step 4: Reviewing and Confirming Your Order
Before submitting, always double-check your order details.
Sub-heading: Verification is Key
Webull will provide a summary of your sell order: the stock, quantity, order type, and estimated proceeds.
Take a moment to ensure everything is accurate. A misplaced digit in the quantity or an incorrect order type can lead to unintended consequences.
Sub-heading: Submitting the Order
Once you're satisfied, click or tap "Confirm" or "Place Order" to submit your sell request.
Step 5: Understanding Order Execution and Settlement
Congratulations, you've placed your sell order! Now, what happens next?
Sub-heading: Order Status
You can typically monitor the status of your order in the "Orders" section of your Webull account. It will show as "Pending," "Filled" (if executed), or "Canceled."
Sub-heading: The T+1 Settlement Cycle
For U.S. stocks, Webull (and the broader U.S. market) operates on a T+1 settlement cycle. This means that after your sell order is successfully executed, the funds from the sale will typically settle and become available for withdrawal on the next business day (T+1, where T is the trade date).
For example, if you sell a stock on a Monday, the funds should be settled and available for withdrawal by Tuesday. Holidays can extend this period.
Withdrawing Your Funds from Webull
Once your sale has settled, you can finally move that money to your bank account!
Step 6: Initiating an ACH Withdrawal
The most common and usually free method for withdrawing funds is an ACH (Automated Clearing House) transfer.
Sub-heading: Accessing Transfers
From your Webull app's "Account" or "Home" section (or "Account" on desktop), look for a "Transfers" or "Deposit/Withdraw" option. Tap or click on it.
Sub-heading: Selecting "Withdraw Money"
You'll likely see options for "Deposit" and "Withdraw." Choose "Withdraw Money."
Sub-heading: Choosing Your Bank Account
Ensure your linked bank account is verified and selected as the destination for the withdrawal. If you haven't linked a bank account yet, you'll need to do so first. Webull only supports withdrawals to a bank account in your name.
Sub-heading: Entering the Withdrawal Amount
Enter the amount you wish to withdraw. Make sure you only withdraw funds that have settled. You'll see your "Available to Withdraw" balance.
Sub-heading: Review and Submit
Review the withdrawal details carefully, then submit your request.
Step 7: Waiting for Funds to Arrive
Sub-heading: Processing Time
ACH withdrawals typically take 2-3 business days to process and appear in your linked bank account.
You can usually track the status of your withdrawal within the "Transfers" or "Recent Activity" section of your Webull account.
Important Note: Webull may have daily withdrawal limits (e.g., $50,000 for ACH). If you're trying to withdraw a very large sum, you might need to do it in multiple transactions or consider a wire transfer (which usually incurs fees).
Understanding Tax Implications
Even though it was a "free" stock, selling it can have tax consequences.
Step 8: Keep an Eye on Your Tax Documents
Sub-heading: Capital Gains and Losses
When you sell a stock, the difference between its cost basis (the price you "bought" it for) and the selling price is considered a capital gain or loss. For free stocks, Webull generally assigns a cost basis of $0 or the fair market value at the time it was awarded. This means the entire selling price could be considered a capital gain.
Short-term capital gains (for assets held for one year or less) are typically taxed at your ordinary income tax rate.
Long-term capital gains (for assets held for more than one year) usually have preferential tax rates, which are often lower.
Sub-heading: Webull's 1099 Forms
Webull will provide you with tax forms, such as a Form 1099-B, which reports your proceeds from stock sales. You'll need this form to file your taxes.
These forms are usually made available in your Webull account documents section early in the new year for the previous tax year.
Sub-heading: Consult a Tax Professional
This is not tax advice. The best course of action is always to consult with a qualified tax professional. They can help you understand your specific tax obligations and ensure you report your gains correctly.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to selling Webull free stock, with quick answers:
How to check if my Webull free stock is eligible to sell?
Log into your Webull app, go to "Promotions" or "Rewards" to review the specific terms and conditions for your free stock, looking for any vesting periods (often 30 days) or deposit requirements.
How to find my free stock on the Webull app?
Tap the Webull logo (bottom center), then go to the "Positions" tab. Your free stock will be listed there among your other holdings.
How to place a sell order for my Webull free stock?
From your "Positions," tap on the stock, then select "Sell." Enter the quantity and choose your order type (Market for immediate sale, Limit for a specific price), then confirm.
How to use a limit order to sell my free stock on Webull?
When placing your sell order, select "Limit" as the order type. Then, enter the specific price per share you want to sell the stock for. The order will only execute if the stock reaches that price.
How to know when my Webull stock sale has settled?
Webull operates on a T+1 settlement cycle for US stocks. This means the funds from your sale will typically be settled and available for withdrawal on the next business day after the trade executes. You can check your "Available to Withdraw" balance.
How to withdraw funds from Webull to my bank account?
In the Webull app, go to "Account" -> "Transfers" -> "Withdraw Money." Select your verified bank account, enter the amount, and confirm.
How long does it take for Webull withdrawal to reach my bank?
ACH withdrawals from Webull typically take 2-3 business days to process and appear in your linked bank account.
How to link a bank account to Webull for withdrawals?
Within the "Transfers" or "Deposit/Withdraw" section, you'll find an option to "Add Bank Account" or "Manage Bank Accounts." Follow the prompts to link your account using your bank's routing and account numbers.
How to find my Webull tax documents for free stock sales?
Webull provides tax documents (like Form 1099-B) in your account's "Documents" or "Tax Documents" section, usually accessible early in the new year.
How to avoid taxes on my Webull free stock sale?
It's generally not possible to entirely avoid taxes on capital gains from selling stock, even free stock. The sale will likely be considered a taxable event. Consult a qualified tax professional for personalized advice on your tax obligations.