AUD Settlement Mode

What is AUD settlement mode?

AUD settlement mode is a feature that lets you trade international markets using your Australian dollars. Normally with Webull, you would need to have the right foreign currency in your account before you can trade in overseas markets.

With AUD settlement mode, you can keep your money in Australian dollars and start trading straight away. Webull will automatically convert your AUD to the relevant currency you need for settlement. The exchange rate we use is based on the rate at the time of settlement, and foreign exchange fees will apply to each trade.

Can I trade in US markets with Australian dollars?

Yes, you can trade US markets using AUD.

Overseas securities such as US stocks must be settled in their domestic currencies. If you are using AUD settlement mode, your AUD will be automatically converted to the required currency (such as USD for US stocks) when you place trades. This means you do not need to manually convert currencies before trading.

How do I enable AUD settlement mode?

New Clients: During account setup, you can choose AUD settlement as your settlement mode.

Existing Clients: If you already have an account and wish to switch to AUD settlement mode:

1. Website Portal: Log in to your Webull website portal. Navigate to "Settlement Mode" through the My Account section. Select AUD settlement mode.
2. Mobile App: Open the Webull app and go to Settings. Select "Manage Brokerage Account. Select AUD settlement mode.

Important considerations when switching from Multi-currency Mode to AUD settlement mode:

• Any non-AUD currencies in your account will be automatically converted to AUD when you switch.
• You cannot change your settlement mode if you have open multi-leg option positions.
• Your position in USD cash management will be automatically terminated. All cash will be converted to AUD. As we have stopped onboarding new clients for Cash Management, you will not be able to reactivate this feature again.

Important consideration when switching from AUD settlement mode to Mult-currency mode:

• You cannot change your settlement mode if you have any unsettled orders that involve currency conversion.

What products and services are not supported under AUD settlement mode?

• Options Trading: Only long call and long put options are supported. Covered strategy and complex options strategies are not available.
• AUD Cash Management: You can maintain your AUD cash management services, however you will not be able to utilise any buying power within the cash management service.
• USD Cash Management: All positions in your USD cash management will be liquidated and you will not be able to opt into this service again while in AUD settlement mode.
• Short Selling; If you have access to margin trading, you will not be able to short-sell while using Australian dollar settlement mode. Margin lending remains available.

How does the settlement process work?

When you activate AUD settlement mode:

• Your account will not hold USD, HKD, or CNH currencies.
• Each time a buy trade is executed(T+0), Webull automatically converts funds from your base currency (AUD) to the required market currency to settle the transaction.
• Each time a sell trade is fully settled(T+1 or T+2), Webull automatically converts sales proceed from the market currency to AUD.
• At the end of each trading day, any remaining cash in non-AUD is automatically converted back to AUD.
• Refer to the Standard Client Agreement for the relevant settlement time for the respective market.

What fees apply to AUD settlement mode?

FX transfer fees apply to each buy and sell transaction under AUD settlement mode. These conversion fees are included in the FX spread and occur automatically as part of the settlement process.

In AUD settlement mode, you will pay commission, exchange fees, regulatory fees, other levies and FX transfer fees. Please refer to our current pricing schedule for detailed FX fee information.

Example:

For buy orders:

• You place a buy order for TSLA shares worth USD $10,000 (including commission and regulatory fees).
• At order placement, the app shows an indicative AUD/USD rate of 0.5000, with an estimated amount of AUD $20,000.
• When your order is filled, the actual rate is 1.0000, so the system debits AUD $10,000 from your account.
• Based on your settled AUD amount, the foreign exchange spread of 50 pips (0.005) results in a foreign exchange fee of USD $50, which is included. No separate foreign exchange fee is charged.

For sell orders:

• You place a sell order for TSLA shares worth USD $10,000 (including commission and regulatory fees).
• At order placement, the app shows an indicative USD/AUD rate of 1.5000, with an estimated credit of AUD $15,000.
• When your order is settled, the actual rate is 1.3000, so the system credits AUD $13,000 to your account.
• Based on your settled USD amount, the foreign exchange spread of 50 pips (0.005) results in a foreign exchange fee of AUD $50, which is included. No separate foreign exchange fee is charged.