Moomoo

About Moomoo

Moomoo is next-generation investment platform looking to use the latest FinTech functionality to revolutionise the ways Australian investors can build their wealth. Founded in Silicon Valley in 2018 the firm’s innovative approach was first introduced to Australian clients in 2022, but despite being a relatively new entrant into the broker sector moomoo already has a global user base of 24m+ . Annual trading volumes have exceeded A$768bn and client assets have grown to A$137bn.

There are plenty of good reasons for moomoo experiencing such rapid growth. The regulatory infrastructure is sound, trading costs are low, and being able to apply the latest technology to the platform’s trading platform has resulted in moomoo clients benefiting from a range of nice-to-have features which make investing more user-friendly.

Commitment to the Australia market extends beyond Moomoo Securities Australia Ltd providing a high-quality service and having an office in downtown Sydney, at Level 17, 570 George Street Sydney NSW 2000. The investment in ‘outreach’ and ‘engagement’ includes invitations to face to face meetings and events such as the moomoo’s Australia analyst Jessica Amir visiting the University of New South Wales to engage with university’s FinTech Society and discuss investing techniques with students.

Whilst moomoo undoubtedly has a ‘new kid on the block’ feel, that doesn’t mean that operational risks are greater than they are with any other broker. Moomoo’s Australian operations are provided by Moomoo Securities Australia Ltd, ABN 51 095 920 648, an Australian Financial Services Licensee (AFSL No. 224663).

Additional security features include the fact that the parent company of moomoo is the Nasdaq-listed FinTech company Futu Holdings Limited. That means the company has to comply with the reporting rules and regulation of the Nasdaq exchange and provide transparency to investors. It’s listing on the Nasdaq being under the ticker FUTU, which at time of writing has a market capitalization of A$ 18.9bn

The move by moomoo into the Australian market has been met with popular and industry recognition. Glowing client testimonials can be found on the moomoo site and there has also been positive feedback from local financial publications and platforms. These include moomoo being awarded “Outstanding Value for Active Investors” and “Outstanding Value for Casual Investors” by Australia’s leading financial comparison site, Canstar, at its 2024 Online Share Trading Platform Awards. In the same year, moomoo was also presented with the title of “Best Stock Trading App” at the FinTech Breakthrough Awards.

Judging by the growth in the client base Moomoo’s distinctive approach is obviously ticking the box for a lot of traders and investors. This review will consider the pros and cons of their approach and outline the reasons why the broker might be the best fit for your style of trading.

Products and Trade Offers

Moomoo offers its clients the opportunity to trade in 22,000 markets. It provides access to Australian and international investment opportunities via investments in stocks, ETFs, and options.

The impressive number of markets available to trade illustrates one element of the moomoo approach, taking steps to offer clients something different. The fact that the broker offers clients only one type of account offers a view of the other side of the moomoo way of doing things, keeping things as streamlined as possible.

The moomoo cash account is set up to support individuals. It does not offer leverage, and joint accounts are not yet available; however, corporate and SMSF accounts are supported. The live account is backed up by a free to use Demo / Paper Trading account which allows clients to get a better understanding of how things work and test new strategies in a risk-free environment. That approach might be disadvantageous to some, but the uptake of the cash account is proof enough that the rest of the moomoo service is getting things right.

The CHESS sponsored ASX trading and Cash Plus tools offered by moomoo are neat features which will appeal to many. CHESS, short for Clearing House Electronic Subregister System, is the system used by the Australian Securities Exchange (ASX) to record shareholdings. Clients of moomoo who trade and hold ‘CHESS Sponsored’ shares can take additional comfort form the ASX having a direct record of ownership. They are held in the client’s name which provides an extra layer of security over assets. The Cash Plus tool allows moomoo clients to sweep uninvested cash into an account which pays interest on the balance, these funds can be diverted to investing in financial instruments or returned to your personal banking account at any time.

Getting set up to take advantage of the moomoo service requires a minimum account opening balance of just $1 and there are no registration or ongoing administration charges. Opening an account is done online, and involves working through a range of industry standard questions which form part of the broker’s KYC (Know Your Client) protocols. Once your account is set up you can fund it using Bank Transfer (BSB+Account) and PayID. The length of time taken for funds to be credited to your account will vary depending on which payment provider you use, and some third parties may apply a charge on cash transfers.

Commissions and Fee Charges

One of Moomoo’s major selling points is the way it aims to provide Australian investors with cost-effective trading. There are no fees associated with opening and holding an account which means that any costs can be easily assessed by calculating the charges associated with each trade.

You can trade US stocks & ETFs from $0.99 per order, though it is important to check if pass-through fees and FX conversion costs apply when trading international markets. Commissions on trades in Australian listed instruments start from as little as $3 per order, or 0.03% of transaction value, whichever is larger, and that very competitive rate includes GST.

Not only are moomoo trading fees and commissions low, but they are laid out in a clear and transparent manner which just makes investing easier. The headline rates on commissions cover most instruments and those who want to take their cost-benefit analysis to a deeper level can make use of the Fee Calculator tool which breaks down total charges to their respective elements.

Online feedback suggest that those looking to ensure they keep frictional costs to a minimum would do well to check the T&Cs regarding cash deposits and withdrawals and selecting the most cost-effective approach. Moomoo does not charge any fees regarding your deposits, but there may be bank charges but your bank or a third-party. When funds are returned to clients banking accounts there any handling fees applied which will be passed on to clients.

What Others Say

The potential advantages of the FinTech aspect of moomoo’s approach has been picked up on by The Australian

“Moomoo leverages artificial intelligence to deliver an intuitive and powerful investing experience for both beginners and seasoned traders. The platform uses state-of-the-art technology to deliver real-time data and features a robust suite of analytic tools, empowering traders to navigate the sharemarket with precision.”

Bankrate.com is a fan of the moomoo trading experience. In their review they stated that.

“Moomoo provides traders quick views of the most active stocks or the biggest movers, and allows you to quickly shift between winners and losers across several markets… If you want to break things down even further, you can quickly search for high-performing stocks by exchange … 

You can screen for stocks meeting certain financial or technical criteria, and then store them on a watchlist for later…

When it’s time to trade, moomoo offers free real-time Level II data from Nasdaq, helping traders make smarter decisions about the depth of the markets for individual stocks. It’s a nice add-on feature for clients looking to trade actively.” 

One of moomoo’s advantages as a relatively new entrant is that the functionality of its trading dashboards and apps benefits from the latest technology. Investopedia picks out how this converts to a new style of trading experience.

“The trading experience on moomoo’s platforms is smooth. It is easy to choose the type of trade you want to make and to identify the individual security. The interface can be customized and changes made on one platform are visible on the other platform, so you do not have to make the same configuration more than once.“

Analysts at Daytrading.com took time to compliment moomoo on the suite of research and analysis tools on offer.

“Moomoo’s library of stock analysis features is particularly impressive. The platform is packed with analysis tools and financials, including sentiment indicators, institutional data and balance sheets.

I particularly appreciate the customizable stock screener, which allows me to filter through thousands of stocks using 100+ indicators.”

Customer Service

Moomoo customer support can be contacted seven days a week. During trading days, the service runs around the clock which helps the broker score highly in this category and on weekends and holidays support is available between 9.30 am and 9.30 pm, AET.

There is a telephone service hotline, a Live Chat function, and the option to use email when there is a need to provide a more detailed explanation of what support is needed. During our testing we found the moomoo support team to be informed, customer focused, and able to address our issues at the first time of asking.

The FAQs section of the brokers site is very well thought. It covers a range of commonly raised issues and also expands into how to trade, what different instruments are, and how to get the most out of the services moomoo offers. Information is provided in the form of standard FAQs but there are also bite-sized informational videos which do a good job of providing answers to many of the questions which might be raised.

Platform Features and Tools

Trading through moomoo is done via in-house developed desktop, web, and mobile app platforms. The desktop dashboard and mobile app are closely aligned in terms of functionality. Whichever dashboard you choose to use they all have the feel of an app rather than a conventional trading platform. That is not necessarily a bad thing. The layout can be set out to suit personal preference and the aesthetics are those of a modern-day software package.

Trading support features are kept to one side to allow the main screens to remain uncluttered, but a range of advanced tools can be seamlessly applied to price charts to help with analysis and spotting the next trading opportunity. These additional monitors include a Market Depth monitor which allows clients to look into price action to a granular level and a Sentiment Indicator which scours market data points to give an easy to use ‘bullish’ or ‘bearish’ reading on a stock, ETF, or option.

Other high-level trading tools which can be used include Pattern Recognition software, automated and manual Risk Management orders, Real Time alerts, Short Sale analysis, and Market Position graphics which highlight technical analysis support and resistance levels.

Those wishing to utilise even more charting and technical analysis tools have the option to link their moomoo account to the well-regarded TradingView platform. That provides traders with access 110+ more trading indicators and market leading news updates.

Mobile Trading

The moomoo app has been set up with enough functionality and features for clients to be able to use handheld devices as the cornerstone of their investing. It is fully integrated with the desktop platform so clients can seamlessly move from one device to another, but the app is strong enough to be used on its own – as borne out by it winning the “Best Stock Trading App” at the FinTech Breakthrough awards of 2024.

Moomoo clients can use the app to access to advanced charting tools, technical analytics, and in-depth data. It also offers more than just ‘trading on the go’ with users able to join forum discussions, monitor trending topics, and take part in seminars to better their investment knowledge and understanding.

Robo Trading

Moomoo’s approach to Robo Trading mirrors the one it takes to the rest of the investment process. It uses innovative features to provide a user-friendly way for clients to trade the markets using automated trading models and pursue a hands-off style of trading.

The Moomoo Algo tool allows clients to develop algo based trading models without having to learn how to code. Instead, a neat interface allows users to drag and drop conditions and metrics they want to apply to their trading. Once your theoretical model has been set up, you can back test it against historical market data to establish how effective it is before deploying it into the market.

Research and Learning Section

One area where moomoo scores highly is on research and learning, and analysis tools. This is partly because the platform uses its FinTech credentials to fully embrace some innovative ways of developing the trading and investing skills of its clients.

With moomoo being a natural starting point for complete beginners there is no surprise that the educational materials start at the base level. Articles on ‘What are stocks’ are ideally pitched to their target audience and the intermediate materials which provide for natural progression are equally informative and engaging. The use of both written and video format ensuring that all learning approaches are catered for.

The research library also covers current topics and trading ideas, such as the relative strengths of EV and AI investing. There is information on housekeeping matters such as account management with the library of resources covering topics ranging from tax filings to effective cash management.

One of the most popular and standout features of the moomoo platform is the Moo Community social trading service. Moo Community provides a forum for the millions of moomoo users to share their own ideas and take on those of others. The Feed is a catch-all forum ideal for those looking for their next investment idea, the Topics section allows users to filter their research to favoured sectors and stocks, and the Featured Content area of the Moo Community captures key market events which could trigger changes to higher level macroeconomic trends.

Regulatory Details

Moomoo Securities Australia Ltd is regulated by the Australian Securities and Investments Commission (ASIC). Australian Financial Services Licensee (AFSL No. 224663). The Australian entity is part of a wider group of companies which between them hold 52 global licences in major financial markets.

Australian client funds are held in segregated accounts at top-tier banks including HSBC Bank Australia. This separation of the broker’s capital, and funds held by clients protects users in the unlikely event that moomoo goes bust.

Additional protection comes due to Moomoo Financial Inc. being a member of Securities Investor Protection Corporation (SIPC). This protects moomoo users for up to $500,000 worth of US securities, and an additional $250,000 for cash holdings.

The firm also has an edge on most of its peer group in terms of technical security. It employs a team of over 2,000 R&D personnel (who constitute 65% of the total workforce) and has secured 272 patents for both invention and design. Two-Factor Authentication is required whenever logging onto a new device and clients can also keep track of all login times and login history. With an eye on developing threats to client security moomoo demonstrates a commitment to tackling online fraud by setting up its platforms with handy tools to help clients establish if they may be being approached by scammers.

OUR SUMMARY