Moomoo vs. Schwab Introduction
Charles Schwab has been a major player in the financial world since the 1970s. Moomoo, on the other hand, entered the scene in 2018. Does experience make a difference? Let’s find out.
Commissions and Account Minimums
|
|
|
| Rating |
|
|
| Stocks |
$0 |
$0 |
| Options (per contract) |
$0 |
$0.65 |
| Mutual Funds |
na |
$49.95 buy and $0 sell |
| Initial Funding Requirement |
$0 |
$0 |
| Inactivity Fee |
$0 |
$0 |
| IRA Annual Fee |
na |
$0 |
| IRA Termination Fee |
na |
$0 |
Investing
Moomoo allows trading in stocks, ETFs, options, and closed-end funds. The platform also provides access to some Chinese exchanges.
Schwab doesn’t include mainland Chinese exchanges but does support trading on the Hong Kong Stock Exchange and several other global markets, including multiple European exchanges. Schwab also offers access to U.S. mutual funds, fixed-income securities, equities, options, ETFs, closed-end funds, and futures.
Additionally, Schwab has a robust investment-advisory program that includes robo-advisors and full Wealth Management services. These programs provide financial planning and professional advice. Schwab also offers various account types, such as custodial and joint accounts, while Moomoo only provides individual taxable accounts.
Winner: Schwab
Promotions
Charles Schwab: Satisfaction guarantee and $0-fee trades at Charles Schwab.
Moomoo:
Get 60 free stocks and no commissions at Moomoo.
Banking
Schwab clients can link checking and savings accounts through Schwab Bank, offering features like checkwriting and worldwide ATM fee refunds. Credit cards and home loans are also available.
Moomoo provides no cash-management services beyond basic ACH and wire transfers.
Winner: Schwab
Margin Trading
While Moomoo lacks cash-management features, all its accounts are margin accounts. Moomoo charges a flat 6.8% annualized rate for U.S. or Hong Kong stock positions, with China A-shares at 8.8%. Non-U.S. residents trading U.S. stocks pay 4.8%.
Schwab allows clients to open cash or margin accounts. Its tiered margin rate ranges from 12.575% to 10.825% and is higher than Moomoo’s flat rate.
Winner: Moomoo
Mobile Apps
Schwab offers two apps: the main app and thinkorswim. Thinkorswim is designed for futures trading and includes advanced trade types and decent charting.
Schwab’s main app includes features like mobile check deposit, live financial news, audio market updates, AI assistance, and advanced charting options. It also supports mutual fund orders.
Moomoo has a single app that packs in features like eight order types, including market if touched, trailing stop, and stop limit orders.
Moomoo’s app allows horizontal charting with time & sales data and numerous drawing tools. It also includes a social feature called moo for discussing market news. The Discover tab has a Papertrade link for simulated trading, which Schwab’s apps lack.
Winner: Toss up
Computer Software
Schwab offers simulated trading on both of its desktop platforms. These platforms provide robust features for practice trading.
The thinkorswim platform is a highly advanced program with excellent features. These include detailed charting with a variety of tools, Level II quotes, direct-access routing, and powerful search engines. The order ticket supports advanced trade types, such as:
- 1st triggers OCO
- Pair
- Market on close
Moomoo offers a single trading platform that functions as a desktop program. It has several useful features, including a stock screener, time & sales data, full-screen charting, social networking, and simulated trading. Its order ticket supports 12 trade types, such as trailing stop market and limit sell.
Moomoo’s website does not support trading but offers helpful market-research tools. These include heat maps, an economic calendar, on-demand Bloomberg videos, and a stock screener for U.S. and Chinese equities. Simulated trading is also available on the website.
Winner: Schwab
Supplementary Services
Fractional-share Trading: Not available at Moomoo. Schwab allows whole-dollar investing in mutual funds and the 500 stocks in the S&P Index.
Extended Hours: Both firms offer pre-market and after-hours trading. Moomoo provides longer hours. Both firms also allow trading on foreign exchanges, and Schwab offers futures trading 24 hours a day, six days a week.
DRIP Service: Only available at Schwab.
Individual Retirement Accounts: Schwab provides several IRA types with no fees.
IPO Access: Both firms offer IPO access.
Fully-paid Securities Lending Program: Available at Schwab.
Automatic Mutual Fund Purchases: Schwab customers can set up recurring mutual-fund trades, including sales.
Winner: Schwab
Our Recommendations
Active Stock Trading: Both Moomoo and Schwab are excellent choices.
Retirement Planning & Long-Term Investing: Schwab stands out for offering annuities, target-date mutual funds, financial planners, tax-advantaged accounts, and branch locations.
Small Accounts: Schwab’s advisory accounts have minimum deposit requirements, making them less suitable for small accounts. However, brokerage accounts at both firms have no minimums or fees.
Mutual Funds: Schwab is the clear winner, with an extensive selection and strong fund resources.
Beginning Investors: Managed accounts are a great starting point. Schwab offers a variety of options, including a free robo-advisory service.
Promotions
Charles Schwab: Satisfaction guarantee and $0-fee trades at Charles Schwab.
Moomoo:
Get 60 free stocks and no commissions at Moomoo.
Moomoo vs Charles Schwab Judgment
While newer isn’t always better, Schwab frequently outperformed Moomoo in this comparison.
Open Charles Schwab Account
Open Schwab Account
Open Moomoo Account
Open Moomoo Account
Updated on 4/11/2025.
Continue Reading