Moomoo is an online stock broker that allows customers to trade stocks, ETFs, and options with no additional trading fees. Moomoo has both a mobile and desktop trading platform that is sophisticated and offers trading capabilities that are comparable to those offered by other leading stock brokers. In this review of Moomoo, we will discuss the benefits and drawbacks of using the trading platform, as well as what investors can anticipate.
Full Moomoo review
This stock broker is an excellent option for both experienced and active traders who are looking for a diverse selection of trading tools as well as novice traders who are interested in expanding their knowledge of trading. Traders who desire an IRA will have to work with a different broker.
Pros
• Stocks, ETFs, and options trading with no commissions
• Trading platform that is both advanced and configurable
• Innovative instruments for study
• Free real-time Level 2 market data (NYSE)
• Unrestricted trading of paper
Cons
• Only a limited number of product and account types are available
• Fewer available options for providing service to customers
• Increased profit margins
• The variety of tools and platforms available for trading might be overwhelming
How Moomoo works
Moomoo is a trading platform that can be accessed both online and through a mobile app. It provides users with free transactions, sophisticated tools, and a platform that can be customised. Traders can use the desktop version of the platform on a Mac or a PC, in addition to downloading the mobile app for use on their iOS or Android smartphones. Traders are able to synchronise their unique configurations, alerts, and notification settings across all of their devices.
Futu Holding Ltd. is the only owner of Moomoo, which makes it a totally owned subsidiary. The company known as Futu Inc. is a broker-dealer that is registered with the U.S. members of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), an organisation that shields clients from financial loss in the event that their brokerage company goes bankrupt.
Top rewards
free of charge trade commissions
When it comes to trading stocks, options, ETFs (exchange-traded funds), and ADRs (American Depository Receipts), Moomoo does not charge any commissions to U.S. traders who are active in U.S. markets. Investors in the United States are able to invest in companies based in other countries through the use of American depositary receipts (ADRs). stocks without having to deal directly with the stock markets of other countries.
Trading platform that is sophisticated and modifiable
Moomoo is a mobile trading programme that is simple and easy to use. It is simple to conduct a search for available stocks and to place a variety of orders. Alerts and push notifications can be set up quickly and easily by investors. The trading platform that can be used on a PC is likewise very user-friendly and extremely customisable.
Innovative methods of conducting research
Moomoo stands out among trading applications due to the extensive research capabilities it provides, despite the fact that many other trading apps provide free trading. The charting and technical research tools that it offers are light years ahead of those offered by some of its rivals.
Free market data in real time up to Level 2.
Moomoo is one of the few trading platforms that gives users free access to real-time Level 2 market data provided by the New York Stock Exchange (Level 2 shows the real-time bids and asks from the NYSE). Traders are able to get significant insights by utilising this instrument, which is often reserved for use by expert traders.
Trading of papers without charge
Paper trading is an option available on the Moomoo platform for traders who do not feel confident trading with real money. Traders do not need to be concerned about the possibility of losing money when using any of Moomoo’s cutting-edge tools to test their trading strategies.
What aspects could use some work?
There is a restricted selection of items and account types available.
Moomoo does not provide services in the areas of foreign currency exchange, bonds, mutual funds, or cryptocurrencies. Although it does provide access to Hong Kong and Chinese stocks, it does so at an additional cost for each trade. In addition, Moomoo only provides users with the option to open taxable accounts. It is not possible for traders to open individual retirement accounts (IRAs).
Limited ability to service customers
Traders are only able to get in touch with Moomoo through the website or the mobile app. There is no phone assistance available, but there is support available via the app around the clock on weekdays. In addition, Moomoo has a frequently asked questions page and video lessons.
High profit margins and rates
When a trader engages in trading on margin, they are borrowing funds from their broker in order to trade more shares than they currently have available in their account. Traders are required to pay interest on this money, and the high margin rates offered by Moomoo might add to the overall costs of trading.
It’s possible that the tools and platforms will feel overwhelming.
It’s possible that first-time investors would feel overwhelmed by the complex tools and customisable features available on Moomoo’s trading platforms. Even seasoned traders will need some time to become familiar with all of the features. Moomoo does provide instructional courses to assist traders in comprehending the platforms and navigating them effectively.
Fees
Moomoo does not impose commission fees on stock, ETF, and options trades that are executed using its mobile app or online trading platforms. There are no costs for using the platform, fees for inactivity, or restrictions for a minimum deposit. Traders, on the other hand, need to be conscious of the following fees:
• The cost for a returned check or ACH transaction is $5 for the first deposit and $10 for any additional deposits.
• Incoming domestic wire, ten dollars.
• Outgoing domestic wire charges totaling $20
• Wire transfer, international, incoming: ten dollars
• Wire transfer for international payments, outgoing: $25
• Stock transfer, outgoing: $75
• Paper statements: $3
• $10 charge for assisted phone trades
The platform for trading
Both Windows and Mac operating systems are supported by the Moomoo desktop trading platform. Both Android and iOS versions of the trading platform are offered for mobile devices. Traders are able to synchronise the settings of their accounts and create individualised notifications across all platforms. Moomoo does not provide users with a web-based interface.
The trading interface is intuitive for newcomers and offers a wide range of personalization options. Traders have the ability to set up individualised notifications for several functions, including stock movement and major market occurrences. Technical considerations, fundamental research, and market variables are the three categories that traders might use to categorise equities.
Traders can acquire real-time trading suggestions based on the market by using the “strategy selection” feature offered by Moomoo, which also provides thorough fundamental data and excellent charting tools. Over 60 different technical indicators, 22 different drawing tools, and options profit-and-loss calculations are all available to assist traders of any type.
Rates at the margins
The commission rate for trading U.S. and Hong Kong equities on Moomoo is 6.8%, while the commission rate for trading Chinese stocks is 8.8%. Moomoo has far higher margin rates than many of the other brokerage businesses that we have looked into. To use margin, traders need to have a minimum of $2,000 in their trading accounts. This is a necessity imposed by the regulators, and it is not unique to Moomoo; it applies to all brokerages.
Research services available
The research and investment tools provided by Moomoo are of the highest quality. Traders have access to Moomoo’s several built-in screeners, which allow them to locate real-time investing opportunities. In addition to this, it provides financial news around the clock along with an in-depth study of the movement of stock prices. There is a global investment community with 15 million members where traders can talk about their trading experiences and share trading tips with one another. The following is a list of some of the additional tools that Moomoo provides:
• Free real-time Level 2 market data
• Stock screeners that are both customizable and built-in
• An AI monitor that assists in the discovery of additional chances for investment
• Visual graphs for fundamental analysis
• Individually crafted charts and specialised technical indicators
• Ratings from analysts provided by independent researchers
• Information regarding the movement of capital
• More sophisticated alerts and notifications for monitoring individual securities
Alternatives to consider
TD Ameritrade provides one of the most comprehensive investing and banking experiences among big brokers. This experience includes a high-quality trading platform, $0 commissions for stocks and ETFs, as well as access to mutual funds and forex. If you are looking for a full-service broker, you should consider TD Ameritrade.
Robinhood is an easy-to-use mobile trading platform that provides much lower margin rates. If you are looking for a mobile investment software that provides access to cryptocurrency and cheaper margin rates, you might consider using Robinhood. In addition, Robinhood does not charge any commissions for trading stocks, ETFs, or options. Robinhood, in contrast to Moomoo, provides users with access to cryptocurrency markets and higher yields on cash that is not invested.
If any of the following describe your financial situation:
Moomoo might be an ideal choice for you in the following circumstances:
• You wish to engage in active trading, and you are interested in trading stocks, ETFs, and options. Because there are no commissions charged by Moomoo, traders are able to keep more of their money in their own pockets.
• You are a sophisticated trader who places a high emphasis on using complex trading tools. Both the mobile and desktop trading platforms offered by Moomoo provide access to a comprehensive assortment of resources and trading tools, allowing users to track and analyse market movements.
• You recognise the significance of utilising a powerful trading platform; both Moomoo’s mobile and desktop trading platforms are intuitive to operate and provide high-level market intelligence to assist users in locating possibilities for investment.
You do not have a large sum of money available to invest. Moomoo does not require users to make a minimum deposit and provides free data up to Level 2.
