moomoo Review: A Customizable Trading Platform for Active Traders

Moomoo is an online stock broker with zero-commission trading for stocks, ETFs, and options. Moomoo offers a robust mobile and desktop trading platform that offers similar features to those of other top stock brokers. In this Moomoo review, we'll look at the pros and cons of the trading platform and what investors should expect.

This stock broker is a good fit for: Advanced and active traders who want a wide range of trading tools, and beginner traders who want to learn more about trading. Traders who want an IRA will need another broker.

Moomoo is an online and mobile app trading platform that offers free trades, advanced tools, and a customizable platform. Traders can download the mobile app on their iOS and Android devices, as well as the desktop version of the platform on a Mac or PC. Traders can sync customized setups, alerts, and notifications across all their devices.

Moomoo is a wholly owned subsidiary of Moomoo Financial. Moomoo Financial is a broker-dealer registered with U.S. Securities and Exchange Commission and member of FINRA and the Securities Investor Protection Corporation (SIPC), which protects customers if their brokerage firm fails.

Top perks

Commission-free trading

Moomoo is commission-free for stocks, options, ETFs (exchange-traded funds), and ADRs (American Depository Receipts) for U.S. traders trading in U.S. markets. ADRs let U.S. investors invest in non-U.S. stocks without dealing directly with foreign stock markets.

Advanced and customizable trading platform

Moomoo offers a user-friendly mobile trading app. It is easy to search for stocks and place different order types. Investors can easily set up alerts and push notifications. The desktop trading platform is also user-friendly and highly customizable.

Advanced research tools

While many trading apps offer free trading, Moomoo differentiates itself through its vast research tools. Its charting and technical research tools are far ahead of some competitors'. WIth Moomoo's advanced charting tools, you can analyze trends and patterns with 60-plus technical indicators and add visuals to charts using 38-plus drawing tools. You can also see what institutional investors are buying and selling.

Free real-time Level 2 market data

Moomoo is one of the only trading platforms to offer free real-time Level 2 market data from the New York Stock Exchange (Level 2 shows the real-time bids and asks from the NYSE). Traders can leverage this tool normally reserved for professional traders to gain valuable insights.

Free paper-trading

Traders who don't feel comfortable trading with real money can use Moomoo's paper-trading platform to simulate trading. Traders can take advantage of all of Moomoo's advanced tools to test trading strategy without worrying about losing money.

Low margin rates

Moomoo currently offers margin rates at 6.8% for U.S. investments. With many other brokerages raising their rates above 10%, Moomoo is setting itself apart from the rest and could potentially attract a big pool of investors.

Access to Hong Kong and China investments

Moomoo provides the tools and resources necessary to take advantage of the growing economic opportunities in Hong Kong and China. Moomoo is a Chinese-owned company, allowing investors the ability to diversify their portfolios by giving them access to Hong Kong and China investments directly.

What could be improved

Limited products and account types offered

Moomoo does not offer forex, bonds, mutual funds, or cryptocurrency. It does offer access to Hong Kong and Chinese stocks, but charges a fee per trade. In addition, Moomoo only offers taxable accounts. Traders cannot open individual retirement accounts (IRAs).

High transfer-out fees

While transfer-out fees are not uncommon among investment apps, Moomoo charges $75 per outgoing stock transfer, one of the highest in the industry. This fee will deter you from transferring any stocks, including your entire portfolio if you want to close your account.

Tools and trading platforms may be overwhelming

The sophisticated tools and customizable features on Moomoo's trading platforms may overwhelm beginning investors. Even experienced investors will need time to learn all the features. Moomoo does offer educational courses to help traders understand and navigate the platforms.

Moomoo doesn't charge commissions for stock, ETF, and options trades placed through its online and mobile platforms. There are no platform fees, inactivity fees, or minimum deposit requirements. However, there are some fees traders should be aware of:

• Returned check or ACH fee:
  • Deposit: $5 for first deposit and $10 for subsequent deposits
  • Withdraw: $10 per order
• Domestic wire, incoming: $0
• Domestic wire, outgoing: $20
• International wire, incoming: $0
• International wire, outgoing: $25
• Stock transfer, incoming: $0
• Stock transfer, outgoing: $75
• Paper statements: $3
• Assisted phone trades: $10

The Moomoo desktop trading platform is available for Windows and Mac. The mobile trading platform is available for Android and iOS. Traders can sync their account settings and customized alerts across all platforms. Moomoo does not offer a web-based platform.

The trading platform is user-friendly and highly customizable. Traders can set up personalized alerts for important market events, stock movements, and other functions. Traders can sort stocks by technical factors, fundamental analysis, and market factors.

Traders can use the "strategy selection" to get real-time trading ideas based on the market, and Moomoo offers detailed fundamental data and advanced charting tools. There are 63 technical indicators, 38 drawing tools, and options profit-and-loss analyses to help traders of all styles.

Moomoo charges 6.8% for U.S. and Hong Kong stocks, and 8.8% for Chinese stocks. Compared to many brokerage firms we've reviewed, Moomoo's margin rates are on the low side. Traders need a minimum of $2,000 in an account to use margin. This is a regulatory requirement that applies to all brokerages, not just to Moomoo.

Moomoo's research and investing tools are extremely robust. Traders can access Moomoo's multiple built-in screeners to find real-time investment opportunities. It also offers 24/7 financial news, with detailed analysis of stock price fluctuations. There is a 19-million-member global investment community where investors can share and discuss trading insights. Here are some of the other tools Moomoo offers:

• Free real-time Level 2 market data
• Customizable and built-in stock screeners
• AI monitor that helps find more investment opportunities
• Visual graphs for fundamental analysis
• Custom charts and technical indicators
• Analyst ratings from third-party researchers
• Insight into capital flows
• Advanced alerts and notifications for tracking individual securities

Moomoo could be an excellent option for you if:

• You're an active trader who only wants to trade stocks, ETFs, and options. Moomoo's $0 commissions means traders can keep more of their money in their pockets.
• You're an advanced trader who values sophisticated trading tools. Moomoo's mobile and desktop trading platforms offer a wide range of resources and trading tools to monitor market trends.
• A robust trading platform is important to you: Moomoo's mobile and desktop trading platforms are easy to use and offer high-level market insight for finding investing opportunities.
• You don't have a ton of money to invest. Moomoo has no minimum deposit requirement and offers free Level 2 data.
• You want to trade Hong Kong and Chinese stocks. Investors have access to Hong Kong and some Chinese stocks with Moomoo.

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology