Trading App Webull Fined for Letting Amateurs Trade Options (1)

Webull Financial, a low-cost retail brokerage, will pay a $3 million fine to settle allegations that it didn’t perform enough due diligence when approving customers to trade options, among other lapses.

The New York-based retail trading firm was accused by the Financial Industry Regulatory Authority, or Finra, of using an automated system that led to customers being approved to trade options who didn’t meet the firm’s eligibility rules, or had red flags.

Webull didn’t admit or deny the regulator’s findings. A representative for Webull declined to comment.

“Before they approve customers for options trading, firms must establish systems ...