Futu Moomoo Singapore review (2021): Worth it for the free Apple share?

Futu Moomoo might sound like the brandname of a new type of flavoured milk, but it’s actually an online investment brokerage. Even the lactose-intolerant can partake!

Moomoo is a stock trading platform that’s new to Singapore, having been launched only in March 2021. If you’ve been outside at all, you would have seen the ads about Moomoo’s free Apple stock sign-up promotion at MRT stations.

Apart from an attractive sign-up promo and a cute cow/bull mascot, what else does Moomoo have to offer? Let’s find out.

What is Futu Moomoo?

If you’re wondering what’s up with the name…

Futu is the brokerage’s parent company, which is headquartered in Hong Kong and listed on NASDAQ. “Futu” is a Chinese phrase that can be loosely translated as “road to riches”. Futu’s largest investor is Tencent and it operates mainly in China and the US.

Meanwhile, Moomoo is the name of Futu’s actual online trading platform. Originally targeted at US customers who wanted to trade on the Chinese market, Moomoo is now available to Singapore investors.

You can trade stocks on the US, Hong Kong and Singapore markets. Other than stocks, you can also trade ETFs, REITs and American Deposit Receipts (ADRs).

Their portfolio is rather limited at the moment, but the company has plans to make a wider range of financial products available in future, including futures, US Over-the-Counters (OTCs), US options, Hong Kong warrants, Singapore Daily Leverage Certificates and certain types of derivatives.

Moomoo Singapore overview: fees, platforms & more

Are Moomoo’s commission fees cheap?

When it comes to fees, Moomoo is hands down one of the cheapest platforms to use at the moment. Their fee for Singapore stocks is 0.06 per cent, which is significantly lower than the competition.

[[nid:526274]]

If we’re going to nitpick, the only thing that can be improved is the minimum fee, which adds up to $2.49. Don’t get me wrong, it’s fairly competitive, but it’s still possible to get lower or no minimum fees elsewhere. So, if you’re making very small trades, take note.

Their fees for US stocks, at 0.0099 USD per share, and their fees for Hong Kong shares which consist of a 0.03 per cent commission + 7 HKD platform fee, are also competitive.

What’s more, Moomoo doesn’t charge any inactivity fee or require you to deposit a minimum amount. Overall, it’s hands down one of the cheapest online trading platforms in Singapore.

How does Moomoo’s free Apple stock promotion work?

Moomoo is currently offering a free Apple share when you open a new account and deposit at least 2,700 SGD, 2,000 USD or 16,000 HKD within 30 days.

[[nid:529756]]

After you deposit the money, Moomoo will transfer one Apple share to your account. Apple shares are priced at 127.05 USD (168.36 SGD) at the time of writing.

In addition, when you sign up for a free account, you enjoy commission-free trading on Singapore, US and Hong Kong markets for 180 days (platform fees are still chargeable, though).

Other perks you get during the 180-day period include free Level 2 US market data and free Level 1 Singapore real-time market data.

Is Moomoo Singapore safe?

Moomoo’s cutesy bovine mascot and lack of track record may not inspire confidence and trust. But like any other investment brokerage, Moomoo is regulated by the Monetary Authority of Singapore and complies with strict MAS requirements.

[[nid:526070]]

Moomoo’s parent company Futu is listed on NASDAQ, which means that it is under a certain degree of scrutiny and required to disclose financial, accounting and tax information, amongst other things.

Stocks in your Moomoo account will be held in a custodian account — as opposed to your CDP account — but that is normal for many online brokerages in Singapore.

Custodian accounts are safe as any assets held in them cannot be touched by others even if Moomoo goes bust. So, in response to the original question, yes, we believe Moomoo is safe to use.

What are the alternatives to Moomoo?

Moomoo’s closest competitors are low-cost online investment brokerages like Saxo, Tiger Brokers and Interactive Brokers.

Moomoo’s fees are some of the lowest in town, blowing the competition out of the water, especially for Singapore stocks. Their 0.06 per cent fees for Singapore stocks are unbeatable, and the 180-day commission-free period just sweetens the deal even further.

[[nid:516588]]

For comparison’s sake, Saxo, Tiger Brokers and Interactive Brokers all charge 0.08 per cent for Singapore stocks. However, Tiger Brokers charges no minimum, so it might be better for tiny trades.

Moomoo also doesn’t charge any inactivity fees or require you to maintain a minimum balance, making it perfect for beginning traders without much cash.

One drawback is that Moomoo’s portfolio offerings are quite limited at the moment, with access to only three markets and a limited range of products. It is thus more suitable for beginning investors who are focused on stocks, ETFs and REITs.

Advanced traders hoping to build more complex portfolios might want to check out a more established brokerage like Saxo, which has more products and features.

How to open a Moomoo account & start investing

You can open a Moomoo account and start investing easily. First, click on the apply button here:

To sign up, you’ll need to verify your email address and follow the instructions given.

[[nid:523183]]

Moomoo has just one desktop platform for Singapore users, as well as a mobile app that lets you trade on the go.

The user interface is simple and intuitive, with clearly-labelled buttons that make the functions clear. This is a good platform for newbie investors who don’t want to deal with a complicated interface.

To start trading, you’ll need to fund your account first. Once the money is in, click on the “Markets” tab to browse stocks and bookmark the ones that interest you. Check out the charts and use the platform’s research tools to learn more about a particular stock.

When you’re ready to part (hopefully only temporarily) with your money, select a stock to trade, enter your parameters and then click “Buy”. Good luck!

This article was first published in MoneySmart. All content is displayed for general information purposes only and does not constitute professional financial advice.