In the past, many obstacles prevented the average person from investing in the stock market. However, stocks, ETFs, and commodities have become readily accessible thanks to free trading apps and platforms.
Since Robinhood launched its commission-free business model, many platforms have followed suit. Here we’ll look at two popular free trading platforms that appeal to traders of all experience levels.
Moomoo vs. Webull Overview
The main difference between Moomoo and Webull involves account types and the specific tools available. Both platforms provide outstanding access to data and tools for researching potential investments. However, Moomoo offers free level 2 data to all users. Webull only provides three months of level 2 data for free, with an option to pay for a subscription beyond that point. Data on Moomoo is also updated faster than Webull.
Moomoo only offers individual taxable brokerage accounts. However, Webull offers individual retirement accounts (IRAs) and taxable accounts. Additionally, Webull users can buy and sell popular cryptocurrencies, while Moomoo currently doesn’t support crypto.
The Moomoo Basics
Moomoo has been operating since 2019 and is a wholly-owned subsidiary of Futu Holdings Ltd (FUTU on Nasdaq). The Moomoo app provides commission-free trading of stocks, options, exchange-traded funds (ETFs), and American depository receipts (ADRs). ADRs allow Americans to invest in foreign companies.
You can access Moomoo from a desktop or mobile device, allowing you to trade at home or on the go. Both platforms feature numerous trading tools so you can identify potential trades, including advanced charting, AI market monitors, and customized alerts. Users can access profit and loss analysis tools, extended trading hours, and free Level 2 market data.
The Moomoo platform has a solid education section with trading information and a financial advice library.
Moomoo was created to be a one-stop investing shop, so it has a solid feature set that includes:
- Charts and Technical Data: Moomoo not only allows you to see capital flow trends for specific companies but also financial reports that provide a more detailed view of the financial situation for companies. The charts include line, bar, mountain line, candlestick, and other technical indicators.
- Level 2 Market Data: Moomoo offers free access to Level 2 market data, and you can obtain real-time quotes.
- Third-Party Ratings: Moomoo features an integrated research and rating section with data from various professional third-party researchers. This can help you to look at comparisons between stocks to evaluate your buying and selling decisions.
- Smart Reminders: You can use the platform to generate automatic notifications and alerts for price changes or movements in the stocks you’re watching.
- Margin Trading: Moomoo offers access to margin trading with a flat rate, which is currently lower than the starting rate for Webull.
- The Moomoo Community: Platform users can also access the Moomoo community. This is where you can share investment insights or get opinions from more experienced traders.
- Access to Asian Markets: With Moomoo, you can also trade in China A-Shares and the Hong Kong Stock Exchange, in addition to the U.S. stock exchanges.
The Webull Basics
Webull has been operating a little longer than Moomoo, as it was founded in 2017. It began as a mobile app, but Webull launched its desktop trading platform in 2020. You can use the Webull platform to trade stocks, options, ETFs, ADRs, and crypto.
You can also access several account types, including traditional brokerage accounts, IRAs, and margin trading accounts, with full functionality whether you’re using a mobile device or desktop. As with Moomoo, you can access extended trading hours.
Webull also has analysis tools, including advanced charting and technical indicators, but it only offers Level 2 market data for three months (paid subscription is required after that time). Another key difference between Webull and Moomoo is that Webull does not provide an educational library to assist new traders. But, Webull does have paper trading, so you can practice and test your trade strategies without the risk of losing real money.
Webull does have many similar features to Moomoo, but the stand-out features include:
- Access to IRAs: You can open a traditional Roth or rollover IRA account to invest for your retirement within the Webull platform.
- 24/7 Support: While Moomoo also offers 24/7 support, Webull has email and phone support, so you can speak to someone anytime if you have any queries or questions.
- Platform Access Without Sign Up: You can access the Webull platform and explore the tools and platform features before signing up for an account. This is an excellent option if you’re unsure whether the platform would work for you and don’t want the hassle of opening an account you won’t fully use.
- Margin Trading Tiered Pricing: Moomoo has a flat rate for margin trading, but Webull uses a tiered structure. The commission fee starts at 6.99%, but the larger your account, the less you’ll pay for margin.
Moomoo vs. Webull: Similarities and Differences
Since both platforms appear quite similar on the surface, it may be worthwhile to highlight the key similarities and differences between them.
- Multiple trading possibilities: You can trade stocks, ETFs, options, and ADRs with no trade commissions.
- Paper Trading: Both platforms offer paper trading. This allows full access to the platform features, but you’ll be using pretend money. While you won’t earn any returns on your investments, there’s no risk of losing money. Instead, you can test your strategies and investing ideas.
- Charting Tools: The analysis tools allow you to examine individual assets to help make investment decisions.
- Extended Hours: Both Moomoo and Webull allow trading during extended hours. This may be important to you if you want to trade based on the information when the market isn’t open or if your schedule prevents you from being active during regular trading hours.
- Webull Offers More Account Types: Moomoo only offers traditional taxable accounts and margin accounts. However, Webull also offers traditional IRAs, rollover IRAs, and Roth IRAs.
- Crypto Trading: If you’re interested in cryptocurrencies to diversify your portfolio, Webull is the better option for you. The list of available crypto on Webull includes Bitcoin, Litecoin, Ethereum, and Dogecoin.
- Webull is a brokerage: While Moomoo uses the Futu Inc brokerage, Webull is its own brokerage. This may be more straightforward for investors as you will only be dealing with one legal entity.
- Level 2 Data Access: While Webull offers free access to Level 2 data, it’s only for three months. After this time, you’ll need to pay a subscription fee. Moomoo offers access with no stated end date.
- Data Update Frequencies: Moomoo also has more frequent data updates. Its real-time quotes are updated every 0.3 seconds, while short-selling data is updated daily instead of Webull’s bi-weekly.
Pricing and Fees
Both Moomoo and Webull offer commission-free trading. You won’t incur trading fees when buying or selling stocks, ETFs, or ADRs. You can also access commission-free options trading, but you will incur small fees that the regulators and exchanges charge. Webull also offers cryptocurrency trading.
The only other fees you’ll incur are when you trade with margin. Moomoo and Webull have different fee structures for this service. Moomoo currently has a commission rate of 6.8% for all margin trades. This is slightly cheaper than the base rate for Webull, but the higher your account balance, the lower the margin rate. You could pay as low as 3.99% depending on your account balance.
Opening an Account
Moomoo makes it simple to create an account and get started. The entire account opening procedure can be done in a few minutes. You’ll need to provide your name, Social Security Number, date of birth, email, phone number, and a valid US address. Moomoo also requires some basic income and employment information.
After you enter your information, you’ll need to agree to the Moomoo risk statement. When you submit the application form, it will be reviewed, and you can expect approval in one to three business days. After your application is approved, Moomoo will guide you through linking your bank account and making your initial deposit.
Webull also makes account creation simple. However, since this platform offers different account types, the first step is to choose which one you want to open. Once you select an account type, the signup process is similar to Moomoo. In addition to the details needed for Moomoo, you will also need to provide a copy of your driver’s license or other government-issued ID. As with Moomoo, you can expect to complete this process in a few minutes, but account approval typically takes a day or less.
As with any platform, Moomoo and Webull could be subject to breach or hacking. However, both platforms are regulated brokerage companies, Webull in its own right and Moomoo via Futu Inc.
Both platforms are registered with the U.S Securities and Exchange Commission (SEC) and are members of the Financial Industry Regulatory Authority (FINRA). Both are also members of the Securities Investor Protection Corp (SIPC), which offers coverage of up to $500,000.
Pros and Cons
No platform is perfect, and there are pros and cons associated with Moomoo and Webull that you should be aware of before deciding which one is best for you.
- Superb Analytical Tools: Including graph reports, charts with more than 50 technical indicators, and third-party analyst ratings.
- Learning Resources: Moomoo also has a library of learning resources that can help you whether you’re a newbie learning the ropes or a more experienced trader looking to extend your skill set.
- Full Mobile App Accounts: All accounts are opened through the mobile app, so you don’t need to log in to a desktop to start trading.
- Active Trading Community: Moomoo has an active community where you can discuss strategies and share insights about trades.
- Customer Service: Support is available by phone, chat, and email.
- Limited Withdrawal Methods: You can only withdraw your funds via ACH or bank transfer.
- Limited Investment Opportunities: Moomoo does not offer cryptocurrencies or fractional shares.
- No Retirement Accounts: Currently, Moomoo does not offer IRAs.
- Access to Crypto: If you want to trade crypto to diversify your portfolio, Webull offers this possibility.
- Fractional Shares: You can buy fractional shares of stocks and ETFs for as little as $5. This is ideal for beginners and allows all investors to diversify rather than investing in a single stock or fund.
- Tiered Margin Rates: You can access lower margin rates with a higher account balance. So, if you have a higher investment fund, you can access rates as low as 3.99%.
- Retirement Accounts: Webull offers a variety of account types, including multiple IRA accounts.
- Phone Support Available: Webull does have a phone helpline if you want to speak to someone to discuss your question or query.
- Limited Educational Resources: Although Webull does offer paper trading, there are limited educational tools and resources. So, if you’re a newbie needing help or want to explore advanced strategies, you’ll need to look at third-party platforms.
- Limited Level 2 Data: Although Webull provides access to Level 2 Data for three months, you would need to pay a subscription to continue using the service after this initial period.
- Slower Updates: While Webull updates its real-time and short-selling data frequently, it is not as often as Moomoo’s.
On the surface, Moomoo and Webull have many similarities and are both well equipped to provide investors with a one-stop shop for their investing needs. However, some key differences will impact which one is best for you.
If you’re interested in access to the Asian markets and more comprehensive learning resources, Moomoo is a solid choice. However, if you’re more interested in retirement accounts and crypto trading, Webull is likely to be a better fit.
Both platforms are free to sign up for and have no minimum initial deposit, so you can fully explore both to determine which works best. Both platforms offer paper trading so that you can try out different trading strategies with no risk.
Hopefully, this Moomoo vs. Webull comparison has highlighted the features that appeal to you, so you can decide which one is the right choice for you.