Moomoo Review

Moomoo can help you invest your money in U.S. and international markets. But will it suit the way you like to trade?

	Deposit and Get 15 Free Stocks plus 8.1% APY on uninvested cash Get Deal
	Overall Score	4.4
	Stock Trading	5.0
	Options Trading	5.0
	Minimum Deposit	5.0
	Mobile App	4.5
	Commissions and Fees	5.0
	Customer Service	3.0
	Ease of Use	4.0
	Research	4.0

5-point scale (the higher, the better)

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Pros and Cons

• Commission-free trading
• Free paper trading
• Access to Hong Kong and Chinese investments

• May be overwhelming for beginners
• No forex, bonds, mutual funds, or crypto

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Bottom Line

Low-cost way to trade US, HK, and Chinese assets with advanced research tools

Investment apps like Moomoo can help you potentially grow your money with all the features and options available. For many, it's a one-stop shop for all their trading needs.

However, whether or not Moomoo is a good fit for you will depend on how and what you like to trade. Read on to find out more about what Moomoo is and what you can do with it.

What is Moomoo?

Moomoo is an award-winning investment app that lets you invest in stocks, options, ETFs, and American Depository Receipts (ADRs). It also offers IPO subscriptions and global stocks from the China A-Shares and Hong Kong markets.^[1]

The platform offers commission-free trading on Apple, Android, and Windows devices. It has a market cap of over $8 billion and over 22 million users.^[2]

For those just starting out, Moomoo is one of the few platforms that offers a free paper trading account. With it, you can study the stock market without risking your hard-earned money.

For the more experienced traders, Moomoo provides advanced research tools. With these, you can analyze each stock thoroughly and make better investment calls.

Deposit and Get 15 Free Stocks plus 8.1% APY on uninvested cash

Enroll Cash sweep to enjoy 4.6% APY base rate plus 3.5% APY booster for the first 3 months after opening your account

Make a net deposit of $1,000 or more to receive 15 draws, each for a free stock worth $2 - $2,000 each. Maintain average assets totaling $1,000 or more for 60 days to unlock the free stocks.

This offer is available to new and existing customers who have not made a deposit nor an ACAT Transfer before May 29, 2024 04:00 ET and who will or are planning to make an ACAT Transfer during the duration of the offer. Terms and conditions apply.

Click Here to Get Deal

Expires in 6 days

Who is Moomoo Best For?

Moomoo is best for:

• Active traders who like trading stocks, ETFs, and options.
  
• Experienced traders who prefer advanced analytical tools.
  
• Traders looking for access to Hong Kong and Chinese assets.
  
• New investors with low capital.

Who Should Skip Moomoo?

Moomoo's services may not suit all investors. Here's who should consider looking at alternatives:

• People investing for their retirement (no IRAs offered)
  
• Investors who trade forex, bonds, mutual funds, or cryptocurrency (not supported)
  
• Complete beginners who haven't executed a trade yet (interface may be overwhelming)

Pros & Cons

Here's a quick overview of Moomoo's pros and cons before you try trading with them:

Pros:

• Commission-free trading
  
• Low margin rates
  
• Free real-time Level 2 market data
  
• Access to Hong Kong and Chinese investments
  
• Free paper trading
  
• In-depth research tools
  
• Customizable and advanced trading platform

Cons:

• Tools may be overwhelming for beginners
  
• No forex, bonds, mutual funds, or cryptocurrency assets

Pricing & Fees

Moomoo offers commission-free trading on US-listed stocks, ETFs, and options. Although it charges $0.50 per contract on index options, that's cheaper compared to others in the industry.^[3]

There are no platform fees, inactivity fees, or minimum investment requirements. However, there are a few fees to take note of if you're planning to dip your feet into the global markets:

On top of that, there are also a few miscellaneous service fees to take note of:

• ACH Transfer: $0
  
• ACH Return (Deposit): $5 for first deposit; $10 for following deposits
  
• ACH Return (Withdraw): $10 per order
  
• Domestic Wire (Incoming): $0
  
• Domestic Wire (Outgoing): $20
  
• International Wire (Incoming): $0
  
• International Wire (Outgoing): $25
  
• Stock Transfer (Incoming): $0
  
• Stock Transfer (Outgoing): $75 per transfer

Key Features

Here are some of the biggest features Moomoo offers:

• Free Level 2 quotes
  Moomoo offers free Level 2 quotes with up to 60 levels of bids and asks if you have over $100 in your account.^[4] Day traders who need in-depth data about stock price changes would find this useful.
  What are Level 2 quotes?
  Level 2 quotes show you order books, which have information like best bid and ask prices from various market makers and other market participants. Additionally, they show you who the market participant is, the action of their trade (buying or selling), the size of the order, and the price offered.
  

• Access to international markets
  As mentioned earlier, Moomoo lets you access international markets like Hong Kong and China A-Shares. This is a great feature if you're looking to diversify your portfolio by buying international stocks directly.

• Cash Sweep Program
  Moomoo's Cash Sweep Program lets you automatically transfer your uninvested cash into an interest-bearing account. This lets you earn on your idle funds. It requires no minimum deposits, has no user fees, lets you withdraw or invest any time, and has no cap on interest earnings.

• Paper trading account
  Moomoo's paper trading is free to use and lets you simulate trades without using real money. It uses real-world market data and outcomes, so it gives you an opportunity to test your investment strategies and see how they pan out.

• Multi-market quotes
  Moomoo offers market information for the US, Hong Kong (both stocks and futures), and China markets. This data is refreshed every 0.03 seconds, which is about as fast as you can get with a good monitor. You can even view multiple markets on a single screen.^[5]

• Advanced charting tools
  At Moomoo, you can set up 6 multi-monitors to analyze several stocks at the same time. Its 63+ technical indicators and 38 drawing tools can also help you spot trade signals.^[6]

• Low margin rates
  Moomoo offers one of the lowest margin rates in the industry. Other brokerages have rates as high as 14%, while Moomoo's is well below 6.8%. This provides a cost-effective, competitive, and accessible way to engage in margin trading.

• Extended trading hours
  Moomoo offers extended trading. The pre-market hours are 4:00 AM to 9:30 AM (EST) and their after-market hours are from 4:00 PM to 8:00 PM (EST).

Educational And Research Tools

For general investing tips and tricks, Moomoo has a College section that provides articles on funds, stocks, options, perspectives, and Moomoo tutorials.

In terms of their research tools, Moomoo has many useful features for stock analysis:

• Short sale volume
  Identify the market sentiment with daily short sale rankings, short interests, and daily short volume. You may opt to use these indicators as a guide before you go long or short.

• Institutional holdings
  Know where institutions are putting their money. Which stock are they buying or selling? With this feature, you can monitor institutional ownership in detail.
  What is institutional ownership?
  Institutional ownership refers to the amount of stock held by larger financial entities, such as BlackRock. It is said that following the money flow of institutions provides valuable insights into market trends.
  

• Company valuation
  Valuate stocks on your own with P/B (price-to-book), P/E (price-to-earnings), and P/S (price-to-sales) ratios. With visualized charts, you can check the historical trend or compare it with the industry average.
  P/B vs. P/E vs. P/S
  P/E compares the price of a stock with its earnings in the last 12 months and is a well-known fundamental ratio. P/B compares the price of the stock with its book value (mostly used by banks). P/S compares the price of the stock with its sales/revenue from the last 12 months (mostly used for companies that have losses).
  

• Financial report
  Compare multiple key indicators like revenue, ROE, and past business growth rate. You also have the option to put these data points against insights from analysts' estimates. These reports and visualizations allow you to find an edge.

How Moomoo Works

Moomoo works like most of the investment apps out there, an example being Robinhood. As soon as you create an account, you'll have to fund it. This can be done via ACH transfer and has no minimum investment.

From there, you'll see a watchlist of all the hot stocks on the market. You can pick out a few or tap on the magnifying glass on the top right to search for specific stocks.

When you click on a stock, you'll be able to see information like price charts and fundamental data.

When you're ready to purchase the stock, you can set the order type, select which account you're purchasing from (cash or margin), and then execute the trade.

Once you've purchased it, it'll be in your portfolio.

How To Open An Account

Here's how you can open an account on Moomoo:

1. Download the Moomoo app and click on Get Started
   
2. Enter the information required (tax, address, date of birth, ID number, etc.)
   
3. Confirm your Financial Information and acknowledge the Risk Disclosure

If you're opening a new account, it'll usually be approved within the same day. However, in some cases, it could take 1-3 business days. As soon as your account is approved, you'll be notified by Moomoo.

Deposits and Withdrawals

You can deposit money into your Moomoo account via bank transfer, credit/debit card, and e-wallets. There's also no minimum deposit requirement. Here's a quick guide on how to deposit money:

1. Log into your account and look for the "Deposit" or "Funding" menu
   
2. Choose your funding method and enter the amount to be deposited
   
3. Review all the details
   
4. Submit your deposit request

To withdraw funds from Moomoo, you'll first need to link a bank account. As soon as it's linked, you can use this quick guide to withdraw your funds:

1. Go to your account page and look for Transfers
   
2. Click on Withdraw and select the account you'd like to withdraw from
   
3. Select your bank account and enter how much you want to withdraw
   
4. Submit your withdrawal request

Is Moomoo Safe/Legit?

Moomoo is a legit trading platform and a subsidiary of Futu Holdings Ltd., a company backed by Tencent.

It's also a member of the Securities Investor Protection Corporation (SIPC). This means that your funds are protected up to $500,000 (including $250,000 for cash claims).^[7]

Additionally, Moomoo also has features like 2FA to help you further secure your account. You can even enable a feature called Moomoo Token that lets you set up 2 passwords: a dynamic and transaction password.^[8]

You can even turn on portfolio privacy which stops other people from viewing your assets. Only your biometrics login or password can allow visibility.

Customer Feedback

Here are some of the positive comments Moomoo has received on the app stores:

It's also worth noting that the app has received a few negative comments as well:

Customer Service

You can reach out to Moomoo's customer service through the following channels:

• Live chat: Click here to contact Moomoo online (available 24/7)
  
• Customer service hotline: +1-888-721-0610 (8:30 AM-4:30 PM EST)
  
• Email: cs@us.moomoo.com

For common FAQs or concerns, Moomoo also has a Help Center full of articles and tutorials.

How Moomoo Compares

If you still aren't completely sold on Moomoo, here are a few alternatives you could check out and how they compare with Moomoo:

Moomoo vs. Robinhood
Robinhood is more beginner-friendly than Moomoo. However, Moomoo's stock evaluation tools are on a different level. Robinhood holds your hand a little bit more but with Moomoo, you'll have more resources at your disposal to make your own investment decision.

Robinhood is also a lot better if you're looking to invest for retirement. They have IRA options with a great match on your contributions.

Robinhood supports cryptocurrency trading, unlike Moomoo. However, Moomoo can give you access to Hong Kong and China A-Shares markets.

Luckily, both are free to use, have fractional shares, and have no minimum deposits. You can try small amounts with both and see which one suits you more.

Get a Free Stock (worth between $5 and $200)

Click Here to Get a Free Stock

Moomoo vs. Webull
Moomoo and Webull are very similar. They're great for experienced traders and both offer commission-free trades on US-listed stocks, ETFs, and ADR investments. They're also free to use and require no minimum investment.

They also both offer advanced stock analysis tools that help you dive into the data and make your own investment decisions. They both even have free paper trading accounts, one of the more unique account types.

Both platforms also give you access to margin trading. Moomoo charges a flat margin rate on long trades, but Webull has variable rates depending on the amount of leverage you use. The higher the amount, the lower the margin rate.

Where they differ are in their account types and ease of use. Moomoo only offers an individual taxable account and a margin account. Webull, on the other hand, has many more options like IRAs.

20 Free Fractional Shares

Click Here to Get Free Fractional Shares

Expires 12/2/2024

Open a new Webull individual brokerage account. Make a single initial deposit of $500 - $1,999.99 during the promotional period to get 20 fractional shares, each valued between $3 - $3,000. Maintain a balance of $500 - $1,999.99 in the account for 30 days or more. Terms and conditions apply.

Bottom Line

Moomoo is a great option if you're looking to trade stocks, ETFs, options, and ADRs. It could even help you get your foot into IPO subscriptions and international stocks.

However, its interface is catered to more experienced investors. If you're just starting out, you could try to lessen the learning curve with their educational resources and paper trading account. Otherwise, alternatives like Robinhood or Webull may suit you better.

References