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Written by Cari Scribner on October 7, 2020
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Moomoo Review 2020: Best Free Trading App?

Moomoo is an advanced trading platform that offers commission-free trading on stocks, options and ETFs.

Designers have set a mission to provide investors with an intuitive and powerful investing platform by using the most up-to-date technology. At the same time, Moomoo offers a creative and highly customizable experience for users.

They aim to improve their customer trading experiences with continuous upgrades. Their key focus is on driving industrial innovation backed by independent technological research and development. These fine tune the entire trading process.

Many platforms out there today allow you to buy and trade stocks, options, and ETFs without having to pay commissions. However, Moomoo makes it easy for you to get free real-time quotes, graphical financial analysis and press releases on the go.

Instead of just simply offering commission free trades, which is a commonplace today, they offer a wide array of research tools and data. They aim to be a one stop shop for placing trades and conducting research on potential investments.

It has plenty of bells and whistles, and although the app offers educational resources for beginning traders, the wide and meticulous scope of data available may be overwhelming to newbies.

Here's our full review of the up and coming free trading app Moomoo.

This article is sponsored by Moomoo.

Moomoo
  • Pricing
  • Research Tools
  • Beginner Friendly
  • Sign Up Incentive
  • Operating History
3.7

Summary

Moomoo seems to have very competitive offerings.

A common complaint among investors is that other free trading apps out there are lacking the research tools and data they are looking for. Moomoo offers a lot of tools for research, but it might overwhelm a complete beginner. Paper trading is a huge plus, as this allows you to take the platform for a test drive 100% risk free. You can learn the ins and outs without risking real money.

At the end of the day, it is completely free, so you can feel free to give it a shot and see if it's for you.

Pros

Commission free trading

Short selling and margin trading offered

Free stock worth up to $200 when you deposit $100+

Enhanced market data and research tools

Cons

Might be overwhelming for complete beginners

Limited track record

About Moomoo

Based in the Silicon Valley in California, Moomoo Inc. is a wholly-owned subsidiary of Futu Holdings Ltd.

Futu is a recognized FinTech Unicorn and Asia’s top-ranked online broker, providing one-stop online investing services. This is an online broker-dealer registered and regulated by the Financial Regulatory Authority (FINRA).

Futu Holdings Ltd is backed by world-class investors including venture capital affiliated of Tencent, Sequoia Capital and Matrix Partners.

Since its inception, Futu's overseas affiliates have used specially designed trading systems, developed in-house. Its designers emphasize these systems are time-tested internationally. They say their innovative trading system solves challenges to traders and drives industry innovation.

Experts designed Moomoo as a next-generation broker/dealer. It cuts out the costs of operating traditional branches and the excess brokerage firm overhead. Combining technology with on-the-go trading, Moomoo aims to offer an enhanced overall trading experience by combining the latest technology with the ability to trade via a mobile app.

Enhanced Market Data

Moomoo offers traders Level 2 market data at no charge.

Level 2 market data displays the real-time bids and asks at a certain price for any stock and the trades being executed right in front of you. With this information, you can determine entry or exit points that assure the liquidity needed to complete the trade.

One of the great advantages of this enhanced data is getting real-time quotes. These are the actual price of a security at that very instant in time.

Real-time quotes give active traders the price they will pay when having their order filled. Some platforms offer only delayed quotes.

Unlike real time quotes, these delayed quotes lag behind the real trading market by about 15 to 20 minutes.

If you base your trade on a delayed quote, you may find you significantly overpaid for the shares you are adding to your portfolio. Many competing trading apps charge for real-time market quotes. With Moomoo, there is no charge for this advantage.

In addition to real-time information prices, you can also view ticker data and Nasdaq best bid and ask data.

moomoo lvl 2

Where Moomoo Shines

There are many positive points for the trading app that again, may be too sophisticated for beginners.

However, more advanced traders could find these capabilities very useful:

  • Capital Flows: Moomoo lets you see the trends in capital flowing in and out of specific companies you may be looking at.
  • Intuitive Graphs: These are financial reports that give investors a more detailed view of the company’s financial situation.
  • Charts & Technical Indicators: The charts include candlestick, line, mountain line, bar and other technical indicators.
  • Third Party Ratings: This is integrated research ratings from diverse professional third-party researchers. This research helps investors look at comparisons between various stocks.
  • Smart Reminders: These alerts generate automatic notifications for you on any price movement or changes in stocks you are watching.

Other Moomoo Strengths

Beyond the features listed above, here are some other areas where Moomoo stands out:

  • You can buy and trade corporate, municipal and US Treasury bonds.
  • The app allows short selling in margin accounts.
  • Ladder option binary trades are offered.
  • You can set up custom watchlists to analyze price movements and spot trading opportunities.
  • Instant funding allows you to gain access to up to $1,000 to trade with before the deposit settles.
  • You can trade pink sheet listings and other penny stocks.
  • P&L charts show profits and losses for specific companies.

Free Stock Rewards

Moomoo has an exclusive offer for Investing Simple readers where you can earn up to 4 free stocks! You must use our link.

  1. Get your 1st free stock worth up to $200 when you open an account and deposit $100
  2. Then, if you deposit $1,500 or more you get a 2nd free stock worth up to $1,000
  3. Lastly, deposit $5,000 or more to receive your 3rd and 4th free stock worth up to $1,000 each

In a nutshell, if you open an account and deposit $5,000+ you will earn 4 free stocks with a combined value of up to $3,200!

(Promotional Period 10/12/2020 to 12/31/2020)

moomoo charts

Is Moomoo Safe?

Moomoo is a member of the Security Investment Protection Corp (SIPC). This corporation protects you investments in the unlikely event that Moomoo closes when the firm is bankrupt or in financial trouble, and your assets are missing.

The SIPC insures the value of your investment portfolio, as well as any cash you have in reserve. This insurance covers up to $500,000 in your portfolio. It also insures $250,000 of cash.

You are ultimately responsible for monitoring your total to be certain you do not exceed SIPC insurance limits. This could mean some of your funds are uninsured.

However always remember there are limits on the safety and security of your accounts. Any losses you incur on money you invested – such as a dip in the market value – are not covered by any type of insurance.

Investing carries risks. You need to know your tolerance for risk and invest accordingly. Some take a conservative approach, some are middle-of-the-road, and others are comfortable with swings in the stock market.

Moomoo or any other governing agency will not refund any money you lose on your investments and trades.

Paper Trading

Moomoo has a paper trading application that many of the competing online investing platforms do not offer.

The term “paper trading” comes from the stock exchange, where investors would write their picks down on paper and track the market movements.

Paper trading simulates actual money trading. This means you are just practicing buying and selling stocks and ETFs and building a diversified portfolio without worrying about losing money.

You chart progress and market fluctuations up and down and tally up your results at the end.

Margin Trading

Moomoo lets users open margin accounts them borrow money against the value of the securities in their accounts.

Margin gives investors access to increased funds without having to sell off all the assets in their current portfolio.

When you use a margin account, you open the door for both major profits or huge losses. This is because it’s possible to lose not only the borrowed money, but also the value of the securities in your cash account.

Your broker can trigger a margin call if you start to show losses that are greater than the limit they set. When this happens, the brokerage platform can force the sale of securities or other assets in your account.

The firm can also sell your securities or other assets without contacting you. While you are in a margin call, laws do not require your broker to grant you a time extension.

Interest rates for margin vary based on the federal funds rate. Check the Moomoo site for the most current margin rates.

News Updates

Moomoo has a very comprehensive, up-to-the-minute news section to keep you in the know about important current events that will affect the market.

Recent topics have included:

  • Stocks making the biggest moves in the pre-market
  • U.S. economy contracts slightly less than expected in quarter 2
  • David Attenborough leads call for the world to invest $500 billion a year to protect nature
  • The home cooking trend is “becoming a habit” says CEO of spice maker McCormick

News events like this can have a massive impact on your portfolio. Moomoo aims to keep you updated on the companies that matter most to you.

moomoo UI

Moomoo Pros

  • Promotional opportunity to get up to 4 free stocks
  • Free real time/level 2 data access
  • Extended trading hours of 4:00 a.m. to 8:00 p.m. EST
  • Lets you trade international securities
  • Paper trading for newcomers to practice risk-free
  • Allows margin borrowing and short selling
  • Enhanced market data and research tools

Moomoo Cons

  • Possible information overload
  • So many customizations available on the platform means more time figuring out how it all works

The Verdict: Moomoo

This brokerage seems to have very competitive offerings.

A common complaint among investors is that other free trading apps out there are lacking the research tools and data they are looking for. Moomoo offers a lot of tools for research, but it might overwhelm a complete beginner.

Paper trading is a huge plus, as this allows you to take the platform for a test drive 100% risk free. You can learn the ins and outs without risking real money.

At the end of the day, it is completely free, so you can feel free to give it a shot and see if it's for you. If not, there are countless other investing apps for beginners.

Moomoo Review
Article written by Cari Scribner
Cari Scribner is a career journalist with 20 year’s experience writing for newspapers and magazines. Now a freelance writer, she is also a published fiction writer with more than 15 short stories in literary mags. She recently completed a novel that is on the desk for consideration at two publishing houses. She lives with her two small dogs, Miloh and Lucy, in Upstate NY.

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