We Review moomoo: Should You Try Futu’s Hot New Investment App?

moomoo is a new investment platform and app that’s attracted a lot of attention. Maybe it’s its positioning as a user-friendly platform, or maybe it’s the Apple shares they were giving away to new sign-ups (details below) but we wanted to take a dive in to see what all the fuss was about.

But first, what is moomoo?

moomoo is a trading platform offered by Moomoo Inc, a subsidiary of Chinese digital brokerage Futu Holdings Limited (FUTU), a Nasdaq-listed company. FUTU has 43 licenses globally in major finance markets such as the United States, Hong Kong SAR, and Singapore. In May 2021, Futu reported a user base of 14.2 million.

FUTU is backed by strategic partners such as Tencent, Sequoia Capitals and Matrix Partners, and was listed in 2019. The year before, it launched moomoo Inc, for U.S. users in March 2018.
In Singapore, investment products and services on moomoo app are offered by Futu Singapore Pte. Ltd. (FUTU SG) which is licensed and regulated by MAS. They were launched in March 2021 and by June they already boasts 220,000 users in the island. 

A one-stop shop for trading

Powered by FUTU, moomoo boasts being a single destination for a wide selection of investment products, such as US, Hong Kong, Singapore stocks, China A Shares, derivatives, Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Daily Leverage Certificates (for Singapore), and warrants (for HK), options, and American depositary receipt (ADRs).

It provides analytics tools, with trading charts and AI-driven data screens so users can visualise their trading performance. In addition, it tries to make the markets more accessible to newbies with tutorials and guides.

Everything’s social now

You can read up on guides, but sometimes asking a friend is just easier. So the app provides an investment community where you can ask questions, and just lurk and read people exchanging investing ideas.

Source: extracted from moomoo mobile application

Review Q&A: We asked a real user about his experience

Who: Nicholas Ko’s age 30, video producer and a newbie in investing

Q: How did you discover this platform?

A: My friend who has been using it for a long time recommended it.

Q: What was the learning curve like?

A: It took about 2-3 weeks of daily usage for me to start using it smoothly.

Q: Does moomoo app provide you with the tools to make informed investment decisions?

A: moomoo app has a lot of real-time news and articles that are sent to me via notifications. I also love all the investment strategy articles. I use the function “Similar charts” if I want to find stocks with similar movement, and I can also easily check an entire sector’s movement so I can see if there are other better choices.

Q: How did you decide how much to invest?

A: I’m quite new to investing so I geeked out on YouTube. I consider myself an aggressive investor as I am young, with a stable job with many working years ahead. Hence I allow myself to invest 80%-90% of my savings at the moment.

Q: Do you invest a lump sum or a regular amount?

A: I tried investing regularly into funds before, but it did not suit me. I prefer investing a lump sum whenever I can so it does not restrict my monthly spending patterns.

Q: Are you investing towards any goals? 

A: I wish to own a yacht before 40. And I am working towards that by doubling my capital invested each year. 

Q: Have you tried other trading platforms?

A: I’ve tried SoFi, and I found it unintuitive and not informative. It created more barriers to investing for me and I gave up.

Q: What impressed you most about moomoo app?

A: Honestly the whole package and product offerings. Aside from being an all-rounded investment platform that actually helps investor do better, I love that they have these mini games that reward you for example, free commission for trades on that particular day. 

Their social media accounts like their Instagram is also really attractive, because investment can be so dull. They really know how to catch the investor’s mindset, especially the new ones. 

An example that comes to mind is right after a big drop earlier this year, noobs like me got struck hard. They immediately posted some relevant content that explained why I made those decisions, and how to improve in the future. 

Lastly — and this is not investment-related — I love their mascot figurines. The tail of that little orange cow is an arrow going upward! I’m a fan. My friends actually actively follow all the merchandise updates.

Q: Do you believe moomoo can be your main investment platform, or a supplement to your bigger tools?

A: Yes, and I even buy their stocks periodically. 

However, I do see myself shifting my investments towards more stable and less tedious instruments like Index ETFs in the future when I have less time.

Fees

In an effort to be more accessible, there are no custodian fees charged by Futu to hold your portfolio. The platform also offers some of the lowest fees and trading minimums in Singapore for investing in Hong Kong and U.S. securities, futures and options. The company does charge a platform fee though.

Fee comparison, Futu SG, Tiger Brokers, and Interactive brokers (IBKR)

  Futu SG Tiger Brokers Interactive brokers
Minimum deposit None None None
Commission fees SG stocks: 0.03% of transaction amount, min. S$0.99

US stocks: US$0.0049/share, min US$0.99/order

HK stocks: 0.03% of investment amount or HK$ 3 whichever is higher

SG stocks:0.04% of trade value
US stocks: US$0,005/share, min US$1/order
HK Stocks:0,03% trade value, min HK$7/Order
SG stocks: 0.08% of trade value, min. S$2.50/ order

US stocks: US$0.005 per share, min. US$1 /order
HK Stocks:0,08% trade value, min HK$18/Order

Custodian fees None None None, with the exception of some fees related to specific products or events.
Platform fees SG stocks: 0.03% of transaction amount, min. S$1.50

US stocks: US$0.0005/share, min US$1/order

HK stocks: HK$15/order

SG stocks: 0.04% of trade value

US stocks: US$0.005/share, min US$1/order

HK Stocks: 0.03% trade value, Min HK$8/Order

Minimum monthly activity fee requires accounts to generate a minimum in commissions each month or be charged the difference as an activity fee.

The minimum is $10 per month

Some of moomoo promotions to check out

  • One free Apple (AAPL) share when you successfully deposit S$2,700 or US$2,000 or HK$16,000 within 30 days from account opening. That’s an estimate of US$148 in your pocket if you were to sell the AAPL share when you receive it in your account. 
  • 180 days commission-free trading for US, HK & SG markets.
  • Free Level 2 market data for US stocks.
  • One free Nio Inc. (NIO) share when you successfully complete five trades, or attain the app’s Level 1 Trading badge within 30 days from account opening.
  • Futu SG referral program: new users and their friends are able to earn up to 20 Twitter (TWTR) shares. After the referral completes the total minimal deposit of S$2,700 or USD 2,000 or HKD 16,000 successfully within 30 days from successfully account opening day.

If you are interested in moomoo powered by FUTU’s July promotion (Ending at August 2), sign up here.

Here’s what your FUTU SG account will look like when you’ve deposited S$2,700 and receive your free AAPL share. 

Terms and conditions here.

Investing still takes research and work

Although apps like these are made to help smoothen the road to investing, there is no substitute for research and homework. As Nicholas points out, he was not immune to getting burned when the market took a downturn, despite his reading up and keenness on investing.

If you want to practise, there is a paper trading function that you could try before using real money. Planner Be also recommends setting aside a sufficient emergency fund before investing—that fund is not for putting into your investments!

The other pillar of financial planning that cannot be ignored is insurance coverage. Without these proper foundations in place, some might end up selling their investments at a loss, should there be a sudden need for cash.

Conclusion

After exploring the user interface, we were convinced that the platform was created to lower the barrier to the intimidating world of investing. If you’re new to this world, you can join the millions in the community trading every day, to learn more about how market movement can affect you. Happy trading, and tell us how it goes!

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