Investing offers individuals a number of ways to make money. Most often we think of a stock's appreciation as the only way to make money when investing in the market.
But there are also other ways to earn when investing in various stocks. These include promotions and dividends.
In this article we will specifically review how to make money with Moomoo outside of traditional appreciation or increases in the stock price. But first, let's review the platform.
Moomoo is a high-tech, advanced trading platform that offers commission-free trading on stocks, options and ETFs.
It is headquartered in California’s Silicon Valley, and is a wholly owned subsidiary of Futu Holdings Ltd. Futu is Asia’s top-ranked online broker. Futu Holdings Ltd. is financed with venture capital from Tencent, Sequoia Capital and Matrix Partners.
Moomoo was built with several goals in mind:
The investing platform may be best for seasoned investors due to its vast array of financial updates and market statistics.
However, it also offers plenty of educational resources for people who are new to investing.
For example, it offers unlimited free level 2 data with up to 40 quotes of visualized real-time bids and asks to gain valuable insights.
Other perks include full extended trading hours. These are full pre-market (4:00 AM - 9:30 AM ET) and after hours (4:00 PM - 8:00 PM ET) sessions.
Moomoo also offers 24-hour in-app customer support on weekdays. If you have any questions, you can chat with customer support representatives online.
Read our full Moomoo review to learn more.
The first way to make money on Moomoo is to open your account before August 1, 2021 at 4:30 a.m. ET.
By doing so, you can take advantage of the summer promotion. Each new Futu Inc. account will receive a free stock valued between $3 and $350.
New Moomoo users that sign up with the platform and open a Futu Inc. brokerage account before this deadline are eligible.
Here are the requirements for this bonus:
There is also a deposit bonus running through August 1, 2021 4:30 AM ET. Moomoo users who have not made any deposits in their Futu Inc. brokerage accounts during the promotional period before 12th May 2021 4:30 AM ET will qualify for this program.
Again, the offer is only valid for U.S. residents with a valid SSN who are at least 18 years old.
During the promotion period, once your net deposit reaches:
*$100, you will get a free stock valued between $8 and $1,000.
*$5000, you will get two additional free stocks each of which has a value between $16 and $2,000.
Your free stocks are chosen randomly according to a specific probability distribution.
(1) Download the Moomoo App and register an account with Moomoo
(2) Open a brokerage account with Futu Inc. through the Moomoo app. Once your account is approved, you will be rewarded with one free stock valued between $3-$350.
(3) Deposit $100 - $4,999 into the newly approved Futu Inc. account during the Promotion Period and you will be rewarded with one free stock valued between $8 and $1,000.
(4) Deposit $5,000 or more into the newly approved Futu Inc. account during the Promotion Period and you will be given two additional free stocks valued between $16 and $2,000.
(1) Once your reward is ready, Moomoo will send you an in-app notification. Then you can go to "My Free Stocks" in the Moomoo app and scroll down to "My Rewards" in the Free Stocks page to claim your reward.
(2) You will draw your free stocks by clicking "Claim."
(3) After you successfully draw your free stock, it will be added to your account in five business days. You can check it at the bottom of your "Trade" - "Brokerage Account" page.
(4) You will be able to trade your free stock once it is added to your account.
The next way to make money on Moomoo is by earning dividends.
Dividends are payments that shareholders receive when a company sees a profit. Not all companies pay a dividend, and it is up to the company to decide whether or not they will offer one. For the companies that do offer a dividend, shareholders can expect a distribution monthly, quarterly, or yearly.
These profits that shareholders receive regularly from listed companies are made at a certain payout ratio.
Your share of dividends will be calculated based on the number of shares you hold. They are not based on the value of the stock when you bought it.
They are awarded on a set schedule, such as monthly. The dividend distribution is usually done in the second and third quarters.
The first option is to cash in on your dividends. Although this is a common choice for investors, you may want to think twice about making this move.
Ask yourself, what are you planning to do with that cash? Most likely, it will be used to pay the bills, which doesn’t increase your net worth.
The second option Moomoo offers is using dividends in the form of bonus shares. This is a way to reinvest your dividends back into company stock.
The first way to make money with Moomoo is to take advantage of the summer promotion and open a new account by August 1, 2021. By doing so, you will receive free stock valued between $3 and $350.
Then, you can earn bonus stocks by making deposits of $100, for a free stock valued between $8 and $1,000. If your deposit totals $5,000 you will get two additional free stocks each of which has a value between $8 and $1,000.
Once you have launched your trading account, you will earn money from dividends paid out to shareholders when a company profits.
Your Moomoo account will distribute profits in the form of stock dividends and cash dividends, also known as bonus shares and cash payments.
Bonus stocks put the dividend right back into the company to invest in more shares. This increases the value of your account and net worth, which is the goal of every smart investor.