Buying Power Is Insufficient On Webull — Crypto + Options

Webull is a popular stock trading app that allows everyday people to invest their personal money to purchase stocks and ETFs (commodities). However, since Webull isn’t as heavily regulated as corporate structured hedge funds, they have certain regulations in place to protect the safety and security of both their users and the stock market.

One of the most common questions that new users have is about their “Insufficient Buying Power” on Webull. 

The error “Insufficient Crypto Buying Power” on WeBull means that your crypto buying power may not be the same as the amount of cash available in your account. There’s either no cash available for use or not enough money in your account. 

The notice: “Buying Power is insufficient for this order” on Webull means that you cannot buy a certain stock or ETF until you increase your buying power. Buying power is the money an investor has available to buy securities and equals the total cash held in the brokerage account plus all available margin.

Buying Power Is Insufficient For This Order

In today’s article, I’m going to explain how buying power works, what the point of it is, and also how to increase your buying power so that you can buy all of the stocks you want.

If you want to be a successful stock trader (even if it’s just part-time), then it’s important to understand buying power and how to manipulate it to your advantage. 

Get your notebook out, and let’s dive in! 

Insufficient Crypto Buying Power On WeBull

Nowadays, many of us are going into the world of Stocks or Crypto Trading, and the easiest ways to get into it is a couple of clicks on your smartphone, an app download, you’ll set up an account, and then you’re good to trade to your heart’s content. 

There are plenty of apps out that folks use, like Robinhood, Acorn, and WeBull, to name a few. Needless to say, where technology is involved, troubles and errors that can hinder how on top of things we are, are sure to follow. 

Why does this process take so long?

Think of the money as being in transit to your WeBull account from your linked bank account. This process takes 3-5 business days to be completed. In short, you need to ensure that there is enough cash present in your account to place any trade orders.

This process is a way for WeBull to ensure that you have the allocated amount available in your bank account. Since Crypto trading is still a relatively new process to many investment apps and in general, there are still a relative amount of kinks to work out, so companies do approach this new market with caution. 

Have sufficient Crypto Buying Power but still unable to buy anything?

Other reasons why you could be encountering this error might be but are not limited to:

  • A pending open trade order is tying up your buying power. To resolve this issue, it is as simple as canceling your opened order. 
  • Once you’ve canceled that order, WeBull will remove the hold on your buying power, and your crypto buying power will be returned to you by WeBull.
  • WeBull does not support crypto transfers. This situation is a little different and perhaps a less common issue that arises. 
  • However, if you formerly used another trading app, decided to join WeBull, and the money you took with you settled into your WeBull account, this does not include Crypto buying power. 
  • What may have happened is that once you switched from your previous trading app, your crypto buying power may have been liquidated and added back into your cash buying power. So you’ll have to transfer funds from your available cash in your bank account into WeBull to buy cryptocurrency.

You may be trying to use provisional credit to purchase Cryptocurrency.

Once you set up a deposit from your bank account to your WeBull account, you are given something called ‘Provisional Credit.’

  • This is WeBull granting a partial amount of the pending deposit as buying power so that you can start trading fast. Unfortunately, you cannot use this credit for crypto trading because any funds used for crypto trading MUST be settled before buying any cryptocurrencies.
  • Think of it as ‘Good Faith’ money. It is given to you in good faith that your bank account is legitimate, contains the funds you are trying to transfer, and will be approved. Just like you, WeBull is hoping this part of the process goes smoothly.

The funds are available, but the deposit hasn’t been settled.

You just waited 3-5 or even seven days for the fund transfer from your bank to WeBull to clear. However, you’re still receiving the above error.

  • It’s frustrating and upsetting, but another reason this happens is that while the deposit to your WeBull account is completed, the funds are not settled. You may be thinking that your 3-5 days of waiting and processing include settling, but unfortunately, this couldn’t be any less true. 
  • It takes another 1 to 2 business days for your deposit to be settled. For example, if you deposited on May 1st, then anytime between May 4th and May 6th, your deposit should be completed.
  • However, add one more day, and you’ll be looking at May 5th to May 7th for the deposit to be settled and converted over into buying power.
  • Ideally, and on average, since all bank transfers are being done via ACH transfers, your deposit must be present in your account for seven trading days before it is fully available to you for use. 

Prices Changed.

If you find yourself trying to purchase cryptocurrency and you had enough buying power, but now you don’t, then you might be asking, “What changed?” Simple. The prices do. Perhaps while you were in the process of initiating a trade, the prices changed before you could confirm your trade. 

This happens and will result in the “Insufficient Crypto Buying Power” error as well. If you have any existing orders that can be canceled, you can opt to cancel those order(s). 

Otherwise, you’ll have to add more cash to your WeBull account before you can continue to trade. 

Make Sure You Have ‘Crypto Trading’ activated on your WeBull App.

Because we have access to trading cryptocurrency, you might think that the list would populate all options available to buy and trade. However, within WeBull, this is not the case. 

You may not see the option to trade any cryptocurrency if you have not applied for crypto trading privilege in the WeBull app, regardless of sufficient funds. You’ll need to request the ability to trade crypto for it to populate its’ list under your buyable stocks.

How To Apply To Have Crypto Trading activated in your WeBull App

  • Ensure your WeBull app is updated to the latest version.
  • Open up your app and click on the WeBull icon.
  • Select the More button and then click on ‘Crypto Trading’ to sign up. 

You should receive a prompt from within the WeBull app that lets you know you’ve been accepted for crypto trading. If you already have money transferred successfully into your WeBull Buying Power, you’ll be able to purchase cryptocurrencies right away.

What To Do When You Get: Insufficient Options Buying Power on Webull

We’ve all been there before (even myself)… You decide that you want to start investing in stocks a bit, open up your Webull app, and start searching around for some good investment options. You purchase a few small stocks here and there, which all go through smoothly. 

Then, you decide that you want to purchase a partial stock from a large “Blue Chip” company like Facebook or Amazon. Your excitement builds, you click ‘Place Order,’ and then-

Sorry, but your buying power is insufficient for this order! 

The order doesn’t go through, and you’re left wondering what the heck buying power is, how you’re supposed to change your situation, and more importantly- how to buy that stock that you want so badly. After all, if your next-door neighbor Jim was able to buy Amazon last week, why can’t you? 

Admittedly, Webull (and even Robinhood and Stash for that matter) aren’t always the best at explaining things. They kind of expect you to understand terms like “buying power” before you start investing. For those of you like me who like to skip the long, boring, educational bits, these random messages and pop-ups can be quite disappointing. 

Take it from me because I had to learn the hard way– educating yourself on the market and common market terminology is essential if you want to be a successful investor. So, that being said, let’s discuss what buying power is and what you need to do to increase your buying power on Webull. 

What Is Buying Power? 

In Webull, your Buying Power is basically a calculation that is used to determine whether or not you’re capable of purchasing and managing a certain stock. The Webull user guide states

Buying power is the money an investor has available to buy securities and equals the total cash held in the brokerage account plus all available margin.

In layman’s terms, this means that your buying power is based on two things:

  • How much money is in your Webull account. 
  • How much margin you have available (if you’re using Webull’s margin account service).

If you just have a standard account (not a leveraged margin account), then the money in your account is all that matters. For example, if you have $500 in your account, then your buying power is $500. 

Webull Margin Accounts

If you have at least $2,000 to invest, you can sign-up for Webull’s margin services. Essentially, this allows you to invest $2,000 of your own money, and then Webull will “front” you up to 3x the amount you invest. It’s kind of like a short-term loan that you’re expected to pay back with your profits. 

So, if you have a margin account with $2,000 of your personal money invested, then your standard day trading buying power would be $8,000. This means that you could purchase up to $8,000 worth of stocks, securities, and ETFs at a time. 

What Is The Point Of Buying Power? 

Although it may be a bit of a hassle to deal with, buying power is actually very important to keep traders and banks safe. Buying power is actually regulated and mandated by the Federal Reserve Board, and differs whether you have a personal account or a margin account. It’s their way of preventing new investors from over-buying and taking uncalculated risks that could result in huge losses to them. 

Without this rule, then Webull could “lend” an investor $20,000 on their $2,000 investment. Then, let’s say that this investor loses all of their money with a couple of bad trades. Now, they owe Webull (or whatever bank/fund they invested through) a huge sum of money that they can’t ever hope to repay. The rule ensures that investors are only loaned what they can reasonably repay should things go wrong. 

How To Increase Your Buying Power

Want to increase your buying power? The answer is simple– just add more money to your Webull account. First, you’ll need to link your personal bank account (routing and account number) or debit card to your Webull account. Then, transfer the amount that you need to buy the stock that you want. 

Also, keep in mind that some securities have minimum purchase requirements. Even though Webull allows you to buy partial stocks (for instance, buying $500 worth of a stock valued at $800/share) the securities themselves might have a minimal investment limit. That $800/share stock may require that you invest at least $100 to purchase partial shares. 

Always Invest Wisely

A lot of first-time investors are hopping onto Webull and other trading applications due to the recent Gamestop/AMC news footage, hoping to strike it rich. While there is certainly a lot of money to be made in these “short-stop” investments, there’s also a lot of money to be lost if you’re not careful with your investments! 

Always do your research, start small, and don’t invest more than you can afford to lose. Until next time, happy investing and good luck!