moomoo stock trading review
Gain access to US, Hong Kong and Chinese stocks through moomoo.
After being granted an Australian Financial Services License by ASIC, moomoo is launching in Australia. A launch date is not known as of this writing but this review will be updated as more information becomes available
NASDAQ, NYSE, Hong Kong Stock Exchange, Singapore Exchange, China
What we think of moomoo
moomoo has a lot going for it and occupies a unique space among brokers. It’s competitively priced, offers paper trading and boasts a well-reviewed mobile app. But it also stands out for direct access to the Hong Kong Stock Exchange – something that precious few brokers offer.
What moomoo does, it does well. All of its US securities, including stocks, options and ETFs, are available commission-free. Even its regulatory fees for its Hong Kong and China A-shares accounts are more competitive than competitors Charles Schwab and Fidelity.
But here’s the thing: moomoo doesn’t have a whole lot on tap. At least not as far as its securities and account line-up are concerned. It doesn’t offer access to mutual funds, bonds, cryptocurrency or forex. And it only offers self-directed margin accounts, so if you have your heart set on a retirement account, you’re out of luck.
Pros and cons
- No commission. moomoo's US securities are all available commission-free.
- Paper trading. moomoo is among the few trading platforms to offer paper trading on its platform.
- Instant deposits. After a deposit, you'll receive up to $1,000 of that deposit in instant purchasing power.
- Access to the Hong Kong Stock Exchange. In addition to US markets, moomoo investors gain access to the fifth-largest exchange in the world.
- Limited support. moomoo support is available by email and offers a response within 2 days – potentially problematic for investors seeking assistance with time-sensitive orders.
- Limited account options. Investors can access individual margin accounts only.
- Limited securities. moomoo doesn't offer mutual funds, bonds, cryptocurrency or forex.
Pricing and fees
moomoo's trading fees are as competitive as they come. While it doesn't offer mutual funds, bonds, crypto or forex, the securities it has on deck are commission-free. Its platform and research are available without a fee, and you don't need to worry about account minimums.
It also offers access to Hong Kong and China A-shares with reasonably priced regulatory fees that shake out to about US$2 to US$3 per order.
To access these shares, you must apply for separate Hong Kong and China A-shares accounts, and there's no minimum deposit requirement for either account. If you already hold a US moomoo account, the approval process typically only takes a few minutes.
Once you hold a Hong Kong or China A-shares account, you can purchase stocks from the Hong Kong, Shanghai and Shenzhen exchanges using US dollars by converting funds directly through your moomoo account, up to a maximum of $2,500 daily.
As of October 2020, moomoo's Hong Kong and China A-shares accounts only offer access to A-shares. B-shares, ETFs, bonds and other securities aren't available through either account.
|Hong Kong stocks||0.03% of the investment amount or HKD$3 – whichever is higher – plus HKD$15 per order|
|China A-shares||0.03% of the investment amount or CNH¥3 – whichever is higher – plus CNH¥15 per order|
|Outgoing stock transfer fee||$75|
|Assisted phone trades||$10|
How do moomoo's fees compare to competitors?
moomoo's fees are some of the most competitive we've seen – especially for international stocks. When purchasing Hong Kong or China A-shares, moomoo investors pay 0.03% of the investment amount, plus about US$2 to US$3 per order.
This makes it one of the most competitive brokers going around.
Access to international stocks isn't offered by many brokers. In fact, there are only a few we've encountered that connect investors with Hong Kong or Chinese markets: Charles Schwab, Fidelity and Interactive Brokers.
Both Fidelity and Charles Schwab charge the same amount for Hong Kong stocks: HKD$250 per order. This shakes out to about US$32 – give or take a dollar depending on the exchange rate.
Interactive Brokers' fees are more competitive. It charges 0.015% to 0.08% plus HKD$4 to HKD$18 per order – or CNH¥3 to CNH¥15 if you're purchasing China A-shares. These fees ring in at about US$0.50 to US$2.30 per order, which is cheaper than moomoo.
But here's the catch: You need a net worth of at least $20,000 to be eligible for an Interactive Brokers account.
Plus, your net worth can't be less than your liquid net worth, which means that traders with student loans or other large debts, like mortgages, will have trouble qualifying for an account without hefty savings.
moomoo imposes no such net worth requirements.
Who is moomoo best for?
moomoo's fee structure and research tools may work well for 2 types of investors:
- Active traders. moomoo's charting tools and free Level 2 Nasdaq market data may pique the interest of experienced, active traders.
- Buy-and-hold investors. Commission-free stocks and ETFs give moomoo's platform plenty of potential for investors who prefer to hold stocks long term.
moomoo's targeted offerings make it a viable platform for a very specific type of investor: traders seeking stocks, ETFs or options through a self-directed margin account. It doesn't offer bonds, mutual funds, forex or cryptocurrency trading. It doesn't include cash or retirement accounts. And it doesn't offer a robo-advisor or managed portfolios.
What it does do – namely, commission-free stocks, ETFs and options trades – it does well.
Its fees are competitively priced, research tools are robust and trades are executed quickly. Investors receive free Level 2 Nasdaq market data alongside instant deposits of up to $1,000, paper trading, charting tools and more.
The platform is available as a desktop or mobile application, and investors also gain access to the Hong Kong, Shanghai and Shenzhen stock markets. But its security line-up is limited, and traders report a learning curve for first-time app users.
How easy is it to use?
You can sign up for moomoo online in about 5 minutes. Reviews of its mobile platform are favourable, but traders warn that the platform is so feature-rich, it can be overwhelming for those just starting out.
Packed interface aside, reviews suggest the app becomes easier to navigate over time and that orders are executed quickly and reliably.
What research does it provide?
moomoo is equipped to cater to a wide range of investors with comprehensive research tools and market data:
- Stock screener. Filter stocks by thousands of search criteria.
- Nasdaq Level 2 market data. Determine ideal entry and exit points with real-time bids and market data.
- Charting tools. Perform analysis with a variety of drawing tools and more than 50 technical indicators.
- Research ratings. Tap into third-party analyst ratings to help you assess and compare securities.
- Capital flows. Track company capital to identify performance trends.
- Financial reports. View graphical financial reports to assess company finances.
- Conditional alerts. Generate automated alerts that notify you about price fluctuations and indicator changes.
Is moomoo legit?
moomoo is headquartered in Palo Alto California and is backed by parent company Futu Holdings – a registered broker and wealth management platform based in Hong Kong.
moomoo doesn't have a Better Business Bureau (BBB) page or a Trustpilot page.
It also has no complaints to its name on the Consumer Financial Protection Bureau. And the same goes for its parent company, Futu Holdings.
moomoo's lack of BBB and Trustpilot feedback doesn't necessarily mean the platform isn't safe to use – only that it may be too young for an established presence on these mainstream review forums. The company doesn't mention its time in business on its website, but its mobile app reviews track back to mid-2019, suggesting the platform has been publicly available for only a year or so.
That said, investors may be reassured to learn that moomoo's parent company, Futu Holdings, is a registered broker-dealer with the US Securities and Exchange Commission. It's also a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation. In the event that moomoo goes under, funds are insured by the SIPC for up to $500,000, including up to $250,000 in cash balances.
How does moomoo make money?
moomoo profits from payment for order flow (PFOF). This is a somewhat controversial practice where brokers route investor orders to middlemen called market makers. These market makers fill the orders on behalf of the brokers and pay brokers a fee in return for the orders: payment for order flow.
What makes this practice controversial? Well, market makers may fill the order at a slightly different price than what the investor was willing to pay. The difference between the price the investor was willing to accept and the actual price the trade is executed is called the spread – and market makers are allowed to keep the spread.
moomoo reviews and complaints
moomoo feedback is scarce. Without a BBB or Trustpilot page, there's not much to draw on. Even Redditors have little to say. And the story is no different for its parent company, Futu Holdings: no BBB page, no Trustpilot presence and very little buzz on Reddit.
The only feedback we found is from investors who reviewed moomoo's mobile app through Google Play and the Apple App Store. As of August 2021, the app was given 4.4 out of 5 stars over 5,444 reviews on Google Play and 4.7 out of 5 stars across 3,439 reviews in the Apple App Store. Investors report that the app is responsive, research data is plentiful and trades are executed quickly.
|BBB customer rating||N/A|
|Google Play app||4.4/5 stars based on 5,444 reviews|
|Apple App Store||4.7/5 stars based on 3,439 reviews|
|Customer reviews verified as of||August 2021|
How do I sign up?
Sign up for an account online in about 5 minutes:
- Go to moomoo's homepage and select Log In and then Sign Up.
- Enter your email address and create a password.
- Select Open Account.
- Enter your full name and phone number, Social Security Number and residential address. Select Next.
- Answer moomoo's questions about annual income, net worth, investment goals and more. Select Next.
- Review moomoo's Risk Disclosure statement and enter your online signature. Select Submit.
How do I contact moomoo support?
The only way to contact moomoo support is by emailing its support team at firstname.lastname@example.org. Expect a response within 1-2 business days.
Compare other stock trading platforms
Before you sign up, explore your options across multiple trading platforms to find a broker or platform that best meets your investment strategy and budget.