If you invest in US stocks, you might be pleased to find out that Moomoo has announced free trading for US stocks and ETFs forever. No commissions, nada. nil.
The commission rate used to be US$0.0049 per share with a minimum of US$0.99 per order. Well is this a good promo? Let's find out 👇.
What is Moomoo?
Moomoo is a stock trading platform app developed by Futu SG, a popular competitor of Tiger Brokers. Futu SG holds a capital markets services license and it is regulated by the Monetary Authority of Singapore.
It is a next-generation trading app with great technology and charting capabilities. It is also able to offer one of the lowest trading fees for trading stocks in US and Singapore markets.
Moomoo lets you trade US, HK, SG stocks and US options at one of the lowest prices
If you're an active trader of US stocks like Tesla, Microsoft and Apple, forget about using clumsy apps like FSM One and Stanchart Online Trading. Next-generation technology apps like Moomoo allow you to trade the same stocks for free.
Here's the cost to trade on the US stock exchange:
|Provider||Min. commission||Trading commissions*|
*excluding other costs such as settlement fees and trading activity fees outside of the broker's control, Moomoo's offering is the lowest across the list, including my favorite IBKR.
Outside of US stocks, Moomoo's fee structure also looks much more competitive compared to the competition.
Here's the cost to trade on the SG stock exchange:
|Provider||Min. commission||Trading commissions|
Responsive, multi-platform trading app
The Moomoo app is extremely responsive and quite delightful to use, unlike the traditional banking apps that we are accustomed to. It is super fast, multi-platform and available on Windows, MacOS, iOS and Android so you can download and have all your watchlists synchronized across all of your devices.
If you frequently trade, Moomoo's diverse functionality like charting, paper accounts, reading news and doing fundamental analysis all within the app itself can be really useful.
We like two things most about the app - one is the ability to easily draw technical indicators on the price chart and customize the interface to show whatever indicator we like, such as MACD, RSI and others.
Moomoo supports 62 technical indicators and 22 drawing tools for you to discover trends and potential opportunities for your own investment strategy.
We also like how Moomoo interprets the indicators to tell us about the bullishness of a stock. For example, we can set an indicator (e.g. KDJ) and Moomoo helps us interpret what it means with historical backtesting results. Obviously this isn't 100% accurate but we definitely like to see what the AI thinks!
There are a whole lot of other features that we think might be useful such as conditional alerts, fund flow information and an integrated news page for each company, but a full review is beyond the scope of this article.
What's the catch?
Lots of goodies - great platform, free trades - what's the catch?
We think Moomoo, first of all, isn't the most reputable platform to trade on, given it's relatively new in the market and hasn't exactly established the level of trust that it can safekeep lots of money on its platform.
Hence, while we would recommend them for smaller sums of money, especially for trading stocks with the intention to sell after a period of time, we are more hesitant to recommend Moomoo as the main brokerage to store your retirement funds there.
Secondly, even though trading US stocks have zero commissions, you may still incur fees such as regulatory, exchange and third-party fees outside Moomoo's control.
Lastly, there is also a platform fee that will be charged after 12 April 2023 for existing clients, or one calendar year after account opening for new clients. This will be charged at US$0.99 per order. This platform fee is currently waived for 1 year.
Overall thoughts and sign-up promo
Overall, we think that this promotion is quite the no-brainer if you trade US stocks frequently. If you already trade 5 times a month, you can save US$5 to US$50 on commissions each month by switching to Moomoo. The platform fee issue can be relooked at again in a year, who knows if they decide to waive it?
If you don't have a Moomoo account, then you can take advantage of their sign up promo and receive:
- Lifetime free US stock trading
- 1 year free platform fee for US market
- SGD 10 stock coupon
- SGD 30 fund coupon
- Free real-time level 2 market data for US market
- Free real-time level 1 market data for SG and CN market
And if you deposit more than S$2700 on your first deposit, you can get 1 chance to spin a lucky wheel to receive one free share worth between SGD 20 to SGD 1000.
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