Moomoo Review: Commission-Free Trading App

Vital Dollar may receive compensation from companies, products, and services covered on our site. For more details, please read about how we make money.

Moomoo Review

Today’s investors have many choices when it comes to trading apps and online brokerages. But since each platform has its own unique features and functionality, none is right for everyone.

Finding the right platform for yourself can be challenging since there are so many to research, but we’d like to help by providing a detailed Moomoo review that will help you to learn all about this popular mobile trading app.

Join Moomoo and get up to 15 free stocks worth up to $3,500.

Moomoo Review: Summary

Moomoo

We’ll dig into the details below, but if you’re in a hurry, here are the most important things to know about Moomoo and what it offers.

  • Commission-free trades of stocks, ETFs, options, and ADRs.
  • Support for short selling and trading on margin.
  • No minimum deposit to open an account.
  • Powerful, advanced tools for research and analysis that are not offered by other mobile trading apps.
  • Smart analysis tools that incorporate artificial intelligence (AI).
  • Extended trading hours (4:00 AM to 8:00 PM eastern).
  • Access to a community with millions of users.

Moomoo is best for:

  • Active traders who buy and sell frequently.
  • Technical traders who need access to news and tools not provided by most mobile trading platforms.
  • Cost-conscious investors who appreciate commission-free trades and powerful free tools.
  • New investors.

Company Details

Moomoo Financial Inc. is based in Palo Alto, California and is a wholly-owned subsidiary of Futu Holdings Ltd (FUTU on Nasdaq). The company’s mission is “to transform the personal investing experience with an intuitive user interface and fully digitized brokerage and wealth management platform.”

Moomoo Financial Inc. is the broker dealer for trades made on Moomoo’s platform. It is a registered broker-dealer with the United States Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).

Moomoo Financial is also a member of the Securities Investor Protection Corporation (SIPC), which protects customers up to $500,000, including up to $250,000 of cash.

Moomoo was founded in 2018 and has quickly become recognized as one of the leading mobile stock trading platforms and one of the best investment apps.

Moomoo’s Features

Now, let’s look at the specific features that make Moomoo unique.

Commission-Free Trades

Moomoo offers commission-free trades on stocks, exchange-traded funds (ETFs), options, and American Depositary Receipts (ADRs). Competitors like Webull and Robinhood also offer commission-free trades of stocks, ETFs, and options, but Moomoo is one of the few mobile trading platforms to provide access to ADRs. Through ADRs, Americans can invest in foreign companies.

Aside from U.S. stocks and ETFs, Moomoo also provides access to Hong Kong and China’s stock markets.

One area where Moomoo currently lags behind the competition is related to fractional shares. At this time, Moomoo does not allow users to buy or sell fractional shares. This can impact new investors who may not have enough money to buy the stock or ETF that they want.

Moomoo also does not offer mutual funds, bonds, Forex, or cryptocurrency.

Trading on Margin

Moomoo offers the ability to trade on margin. Margin is a loan that investors can use to purchase more shares than they could otherwise afford. For example, if an investor has $1,000 and wants to buy $2,000 worth of stock on margin, they would only need to come up with 50% of the total purchase price. The other 50% would be borrowed from the broker.

While margin can help investors to make bigger profits, it also comes with the risk of bigger losses since losses are magnified when stocks are bought on margin. As a result, margin trading is only appropriate for experienced traders who understand and are comfortable with the risks.

Short Selling

Moomoo also supports short selling, which is a way to profit from falling stock prices. With short selling, investors borrow shares of stock from a broker and sell the shares immediately. The hope is that the price of the stock will fall before it needs to be bought back and returned to the broker.

If the price does fall, the investor can buy the shares back at the lower price and return them to the broker. The difference between the price at which the shares were sold and the price at which they were bought is the investor’s profit.

Short selling is a risky strategy since there is theoretically no limit to how high a stock’s price can go, but experienced traders can use it to generate profits in both rising and falling markets.

Due to the risk involved, short selling should only be done by experienced traders.

Extended Trading Hours

Moomoo also offers extended trading hours for U.S. stocks. While most brokerages only allow investors to trade during regular market hours, Moomoo’s extended hours trading feature lets investors trade from 4:00 a.m. to 8:00 p.m. EST.

This can be useful for traders who want to take advantage of early morning news or late-breaking events that might move the markets after regular trading hours. It’s also useful for traders who have day jobs that prevent them from being available during normal trading hours.

Access to Global Markets

Moomoo provides access to Hong Kong and China’s stock markets, which most other brokerages do not offer. This can be useful for investors who want to diversify their portfolios or who have an interest in investing in foreign companies.

However, investing in foreign markets can increase risk due to a lack of familiarity. Be sure that you only invest in foreign markets if you’re experienced enough to understand the risks.

Free Data and Charting Tools

Moomoo offers free data and charting tools that can be useful for both new and experienced investors. This is where Moomoo really shines and stands out from the competition.

All users get free access to real-time level 2 data, advanced charting tools and customizable stock screeners that can be used for research.

The platform also offers a wide variety of indicators and drawing tools that can be used to analyze price action. These features can be helpful for making informed investment decisions.

While many mobile-first trading platforms favor simplicity and ease of use, Moomoo has chosen to take a different approach. The streamlined apps lack powerful tools in order to make the apps simple for new traders. However, that means traders have limited access to data within the app, and they may need to use a third-party service to do any type of analysis.

Multi-Screen Desktop Trading

Moomoo’s desktop trading platform is much more robust and feature-rich than many competitors. The platform has a multi-screen interface that allows traders to view multiple charts on up to 10 HD screens at the same time.

While this feature may not be of interest to every user, the most active technical traders are likely to appreciate it.

24/7 Financial News

Moomoo offers 24/7 streaming financial news from CNBC, Bloomberg, Dow Jones, Reuters, and others. This can be useful for keeping up with the latest market news and events.

The news streams can be customized to display only the topics that are of most interest to the user.

Education and Tutorials

Moomoo offers a variety of educational resources that can be useful for both new and experienced investors.

The platform’s blog covers a wide range of topics, including market news, technical analysis, and investing strategies. Moomoo also offers a variety of video tutorials on everything from how to place trades to more advanced topics like options trading.

Active Community

Like some other social investing platforms, Moomoo has an active community of users who share ideas and discuss current market conditions. There are millions of users on the platform, so this can be the perfect way to learn and share ideas.

The social features of Moomoo are not quite as advanced as what you’ll find at Public.com, but access to the community is still a valuable feature for Moomoo users.

Use of AI Technology

Moomoo uses AI technology to monitor the markets and provide price quotes. This can be useful for investors who want an AI-powered assistant to help with making investment decisions.

The AI monitor is useful for notifications of changes in volatile stocks, making it easier to find valuable opportunities.

The AI price forecasts are based on the price charts of other similar stocks and the related trends.

Paper Trading

Moomoo offers paper trading, which is a great way for new investors to learn how to trade without putting any real money at risk. It’s basically a demo account that uses pretend money.

Paper trading can also be useful for more experienced investors who want to test out new strategies before implementing them with real money.

Instant Deposit

When you make a deposit to Moomoo, you’ll get instant access to up to $1,000 of your deposit. That means you can buy securities right away rather than waiting a few days for the transfer to complete.

Account Types

Like some competitors, Moomoo offers very limited account types. Currently, the only option is an individual taxable brokerage account. At this time, Moomoo does not offer joint accounts, custodial accounts, or retirement accounts (IRAs).

Usability

The Moomoo platform is available in both desktop and mobile versions. The desktop platform is available for Windows and Mac, while the mobile app is available for Android and iOS. Both the desktop app and mobile app are feature-rich and well-designed.

Moomoo’s platform is easy to use and navigate, even for new investors. Placing trades is straightforward.

Compared to apps like Public.com and Robinhood that prioritize ease of use over advanced tools, Moomoo is not quite as beginner-friendly. However, that’s a bit of an apples-to-oranges comparison and Moomoo offers excellent usability considering the many tools and functions that are included in the app.

Is Moomoo Safe?

Moomoo Financial Inc. is a registered broker-dealer with the SEC and is a member of FINRA and SIPC. That means Moomoo Financial is subject to strict regulation and has to meet high standards for safety and security.

Moomoo uses bank-level encryption to protect user data. This is the same level of protection used by virtually all online brokerages and trading apps.

In the world of online accounts, nothing is 100% safe. But Moomoo takes all of the appropriate precautions and using Moomoo is no riskier than using any other online bank or financial account.

Moomoo Pros:

  • Offers commission-free trades of stocks and ETFs. Commission-free trades are somewhat standard these days, but Moomoo stays even with the competition in this regard.
  • No account fees. In addition to free trades, Moomoo charges no account fees, management fees, or subscriptions. Like any trading platform, there are certain fees for incidentals like wire transfers and overnight mail, but most users won’t experience these fees.
  • Also offers options trading, short selling, margin trading, and ADRs. Aside from stocks and ETFs, Moomoo offers some additional possibilities that aren’t available with every competitor.
  • No minimum deposit. Getting started with Moomoo is easy because you can deposit any amount of money. That’s perfect for trying the app before making a major commitment.
  • Access to powerful tools for research and analysis. Moomoo stands out from the competition by providing free access to advanced tools like charting and a customizable stock screener. Users also get free level 2 data. No other free mobile trading app offers everything that Moomoo offers.
  • Extended trading hours. Users can trade from 4:00 AM to 8:00 PM EST instead of just standard trading hours.
  • AI monitoring and AI-powered price forecasts. Moomoo’s AI tools are unique to the platform and helpful for identifying good opportunities.
  • 24/7 customer support. Moomoo provides 24-hour customer service by email or a chat feature within the app. Phone support is available during business hours.

Moomoo Cons:

  • Does not support fractional shares. At this time, Moomoo only allows users to buy and sell full shares. Competitors like Public.com and Webull support fractional shares, so hopefully this will be added by Moomoo in the future.
  • Limited account options. Currently, an individual taxable brokerage account is the only option. Joint accounts, custodial accounts, and IRAs are not offered.

Who Is Moomoo For?

Moomoo is most appropriate for technical traders who rely on extensive data and tools to make important decisions. Moomoo users get free access to tools and data not offered by any other mobile trading app, so this is a major advantage and the most convincing reason to use Moomoo.

Active traders who place frequent trades or high volumes of trades, including day traders and swing traders, will appreciate the combination of commission-free trades and access to data and tools.

Despite the fact that Moomoo is excellent for experienced traders, it’s also appropriate for new investors. The user interface is generally well-designed and reasonably intuitive. Due to all of the tools and data offered by Moomoo, the interface isn’t as streamlined as some other apps like Public.com that emphasize simplicity. However, Moomoo is still an appropriate trading app for beginners.

Frequently Asked Questions

Is Moomoo legit?

Moomoo is a legit trading platform. Moomoo Financial is the broker-dealer that all trades on Moomoo are placed through and Moomoo Financial is regulated by FINRA and the SEC.

Is Moomoo better than Webull?

Moomoo and Webull are both excellent mobile trading apps. They’re both commission-free, offer powerful tools for research and analysis, and have user-friendly interfaces. However, there are some differences. Webull offers fractional shares and cryptocurrency. Moomoo offers some data and tools that aren’t available with Webull, plus access to the stock markets of Hong Kong and China. Neither app is better than the other. It just depends on which is a better fit for your needs.

Is Moomoo better than Robinhood?

Moomoo and Robinhood are both commission-free. Both platforms offer mobile trading, although Moomoo’s app is more full-featured. Moomoo also offers some data and tools that Robinhood doesn’t provide. Overall, Moomoo is the better platform for experienced traders while Robinhood’s streamlined approach is more appropriate for beginners.

What is Moomoo’s minimum deposit requirement?

Moomoo doesn’t have a minimum deposit requirement. You can start trading with any amount of money.

Can I trade after hours on Moomoo?

Yes, you can trade extended hours on Moomoo from 4:00 AM to 8:00 PM EST.

Is Moomoo good for beginners?

Yes, Moomoo is a good platform for beginners. The app is user-friendly and offers some helpful resources for new investors. However, there are other mobile trading apps that have a more streamlined interface (like Public.com and Robinhood) and might be better suited for absolute beginners.

How much does Moomoo cost?

Moomoo is free to use. There are no account fees, management fees, or subscription fees. However, like any financial platform, there are certain incidentals with associated fees that some users may encounter.

Can you day trade on Moomoo?

Yes, you can day trade on Moomoo. However, keep in mind that pattern day trading rules apply, just like any other broker or platform.

Moomoo Review: Final Thoughts

Moomoo is an excellent mobile trading app for experienced investors and traders. The platform offers commission-free trades, access to international markets, and powerful tools for research and analysis. Moomoo is also appropriate for new investors, although there are other apps that might be more user-friendly for absolute beginners. Overall, Moomoo is a great choice for active traders who want commission-free trades and extensive data and tools.

Join Moomoo and get up to 15 free stocks worth up to $3,500.



Disclosure: Information presented on Vital Dollar and through related email marketing is intended for informational purposes only and is not meant to be taken as financial advice. Please see our Disclosure for further information.