Overview of Moomoo
Moomoo offers more than just trading for bullish markets. This brokerage provides tools for bearish trading and more, making it worth a closer look.
Moomoo Pros
Access to multiple markets: Includes Chinese markets.
Strong software: Advanced desktop platform for high-level trading.
Social networking: A feature rarely seen in other brokerages.
Moomoo Cons
Limited assets: Some asset types are unavailable.
No advisory services: All trading is self-directed.
Limited account options: No retirement accounts available.
Investment Service
For self-directed traders, Moomoo provides a selection of assets:
- Stocks
- American Depository Receipts
- Options
- ETFs
- Real Estate Investment Trusts
- Closed-End Funds
Though limited, Moomoo does offer access to three Chinese exchanges: Hong Kong, Shenzhen, and Shanghai, which is uncommon among US brokerages. Some over-the-counter (OTC) stocks are also available.
The account types are limited to one option: an individual taxable account.
Opening an Account
Opening an account with Moomoo is simple.
Click on the “Get Free Stocks” button
at the top-right of the website. You can also sign up using accounts like Facebook or WeChat.
You only need an email and password to start. For full trading access, a complete application is required.
Currently, only residents of the United States, Macao, Hong Kong, Malaysia, Japan, and Taiwan can open a US-based account. Moomoo also has branches in Singapore and Australia, with dedicated account options for residents of these regions.
Customer Service
Moomoo provides several customer support options. Phone support is available on weekdays from 8:30 am to 4:30 pm EST. During testing, wait times were brief, with support agents providing assistance in clear English.
A chat widget on the desktop platform and mobile app offers hybrid automated and human support 24/7.
The Help page on Moomoo’s website has answers to many common questions. However, Moomoo has no branch locations and does not provide investment advice.
Margin
All Moomoo accounts are margin accounts; cash accounts are not an option.
Moomoo’s platforms display margin details for entered ticker symbols, accessible by icons indicating long and short values. Clicking on these icons brings up detailed margin information, including:
- Initial margin
- Short pool
- Maintenance margin
- Interest rate (long and short)
Currently, the long margin rate is 6.8% across all balance tiers. This rate applies to US-listed stocks, Hong Kong stocks, and China A-shares. Short position rates vary by security and day.
Website
Moomoo's website has a simple setup, though it has improved recently. Previously, it lacked market news and charts, but now it includes both. However, the charts are basic, with no additional tools.
For market news, the site features popular stock lists, like volume leaders and top gainers. Clicking on an item opens the stock’s profile page, which provides information like financials, key metrics, executive lists, short-selling data, news articles, and valuations.
An account icon in the top-right lets users access transfer options and download account documents through a drop-down menu.
While trading directly on the website is not yet available, Moomoo has introduced paper trading for practice. This allows users to try simulated trading on several exchanges, such as:
- Mainland China
- Singapore
- Hong Kong
Only limit orders can be used in paper trading, which limits the practice experience. Additionally, trades made in demo mode do not appear in the simulated account’s position list, showing that the tool is still in development.
Moomoo also recently added a community forum called "Moo," where users can see what others are trading, find market news, and join discussions. Users can share, like, and comment on posts.
Mobile App
Moomoo’s mobile app includes trading capabilities. The order ticket supports several order types:
- Market
- Limit
- Stop limit
- Stop
- Limit if touched
- Market if touched
- Trailing stop limit
- Trailing stop
While these order types are diverse, only two duration choices—day and GTC (good till canceled)—are available. The app now includes bracket orders, which can be added to trades. If margin is used, this will be shown on the ticket.
Scrolling down reveals an order book with a depth chart displaying price and share amounts. This feature compares bid and ask volumes. Up to 60 rows of bids and asks can be shown, with multiple exchanges viewable, including:
- NYSE ArcaBook
- CBOE Direct Edge
- NASDAQ TotalView
Only ArcaBook data is free.
Charting is enhanced on the mobile app, now including technical studies and drawing tools. Historical stock data goes back at least 25 years, though using these tools on horizontal charts may feel cramped.
The main menu at the screen’s bottom includes a watchlist section, where users can create lists or view pre-installed lists, even for assets that aren’t tradable (such as crypto and futures).
Selecting an asset brings up its profile, including options. Unfortunately, only basic calls and puts are available; there are no spreads or multi-leg trade options.
Overall, the mobile app is solid with practical features, simulated trading, and good customization. However, it lacks mobile check deposit and streaming video news.
Desktop System
Moomoo’s desktop platform is its primary trading tool, available for both Mac and Windows. This is a robust platform with useful features for dedicated traders.
Charting on the desktop is detailed, with full-screen view for in-depth analysis. Real-time price action can be tracked tick by tick, ideal for active traders. There are many drawing tools available, including:
- Gann Angle line
- Rising arrow
- Parallelogram
The platform includes a screenshot tool, though the image size is limited to 937 x 694 pixels.
Technical analysis is supported by around 100 indicators. To access the complete list, users need to set the timeframe to one day and select "Indicator Management" to load additional studies.
The right-click menu lacks a direct trade link, requiring users to return to the Trade tab to enter orders. Layouts, however, can be customized to place the order ticket anywhere in view.
On the desktop, twelve order types are supported, including:
- Limit buy
- Limit sell
- Market buy
- Market sell
Similar to the website and mobile app, the desktop platform includes a practice mode, which is helpful for getting familiar with the trade ticket.
Pricing
Moomoo’s costs are low. Trading US-listed stocks and funds is free, as are OTC trades. Options carry a fee of 65¢ per contract, and Level II data is free.
For Chinese stocks, there is a 0.03% trade commission, with a minimum of HK$3 or ￥3. Additionally, a "platform fee" of 15 units (HK dollars or yuan) per order applies.
Moomoo accounts have no minimums or maintenance fees.
Security Research
Moomoo has a stock screener on its website, though it is limited to stocks. A second screener on the desktop platform includes ETFs and warrants, and the mobile app has a stock-only screener.
All three screeners cover American and Chinese stocks. The mobile app screener also includes Australian, Canadian, Japanese, and Singaporean securities, with multiple criteria available for filtering results.
A security’s profile on moomoo includes details like:
- Short interest
- Quick ratio
- EBIT
- Cash flow
- Analyst ratings
- Target price
- News articles
One area that could improve is the lack of reports from major analysts.
Extra Services
IRAs: Moomoo does not provide Individual Retirement Accounts or other tax-advantaged accounts.
DRIP Service: No dividend reinvestment option.
Extended Hours: Moomoo offers pre-market trading from 4:00 am and post-market trading until 8:00 pm.
Fractional Shares: Not available at this time.
Banking Tools: Moomoo does not offer cash management options like debit cards or checkwriting, though an ACH/wire transfer feature is available on the site.
IPO Access: Moomoo provides access to new stock releases.
Recommendations
Mutual Fund Investors: We suggest Firstrade for access to a wide range of mutual funds and a good fund screener.
Active Equity Trading: Moomoo’s desktop platform and mobile app are well-suited for active trading. For those interested in fractional shares or higher interest rates on cash, consider WeBull.
Beginners: Starting with a robo account at WeBull is a good option for new traders.
Retirement Accounts: Robinhood offers IRAs with a 1% contribution match and no fees, making it a great choice for retirement savings.
Small Accounts: Moomoo’s no-fee structure and no account minimums make it ideal for small investors.
Long-Term and Retirement Investors: For a range of long-term options like lifecycle mutual funds, bonds, and educational resources, Charles Schwab is recommended.
Moomoo Review Verdict
Moomoo offers a good selection of trading features for experienced traders, though some services are missing, which may lead some investors to consider other options.
Updated on 11/12/2024.
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