(Bloomberg) — Webull Financial now offers futures and commodities trading as investors look for more ways to hedge against price swings without owning the underlying assets.
The online brokerage app is preparing to go public, initially offering its services only to U.S. investors, with plans to expand globally in the future, the online brokerage app said in a statement on Monday.
“Understanding the importance of using futures is beneficial to all investors seeking to diversify their portfolios,” Arianne Adams, chief strategist and head of derivatives at Webull, said in prepared remarks.
Futures contracts allow investors to bet on the value of an upcoming commodity. They trade on exchanges such as CME Group, the largest futures exchange in the United States, and require a brokerage account approved for futures trading. They can also be used as a hedging tool to protect against volatility or unexpected events.
Webull was established in 2018 as a stock trading platform offering commission-free trading. Later, it expanded into the options field and became one of the top ten retail brokerage platforms in the United States. Retail brokerage apps like Webull gained traction during the pandemic, when day trading became popular with investors stuck at home. Rival brokerage apps such as Charles Schwab, E*Trade and TastyTrade also already offer futures trading.
After a period of setbacks, Webull is now preparing to go public through a merger with a blank-check company, or SPAC. The online brokerage last month announced a deal with SK Growth Opportunities Corp. that would give the combined company an estimated enterprise value of about $7.3 billion. They plan to list on Nasdaq upon receiving certain approvals.
read more: Online brokerage Webull drops crypto exposure ahead of SPAC deal
Webull said it has 20 million registered users and operates in 15 regions around the world. The company signed an agreement in 2021 to become the official basketball jersey patch partner of the NBA’s Brooklyn Nets and appear on the jerseys of the WNBA’s New York Liberty.
