Is Moomoo a Scam?
Have you come across Moomoo recently? It’s a new company offering a variety of trading services. But is it trustworthy? We have the answers for you.
Is Moomoo Legitimate?
Moomoo Financial is a part of Futu Holdings Limited, based in Hong Kong. The company is focused on trading U.S., Chinese, and other international securities. Futu is a public company listed on the Nasdaq under the ticker symbol FUTU.
The U.S. version of Moomoo operates in Palo Alto, California. Since it is based in the U.S., it falls under U.S. securities regulations. This includes oversight from the SEC, the main authority for brokerage firms in the U.S., covering all 50 states and territories, including D.C. and Puerto Rico. Moomoo must adhere to SEC rules, or it risks legal consequences. Moomoo’s SEC registration ID is 8-69739.
Moomoo is also governed by the guidelines of FINRA. FINRA enforces additional rules that Moomoo must follow, with penalties for non-compliance. Despite this, Moomoo currently has zero disclosures on its FINRA profile. Moomoo has been registered since 2018, with a FINRA ID of 283078.
Moomoo has branches in Australia, Hong Kong, and Singapore as well, and these are regulated by the respective securities authorities in those regions.
Moomoo and the Better Business Bureau
Although the Better Business Bureau doesn’t regulate securities firms, it tracks businesses in the U.S. Unfortunately, Moomoo and its parent company Futu don’t yet have a profile with the BBB. The most likely reason is that both companies are relatively new to the U.S. market (since 2019). We’ll update when a profile is available.
Is Moomoo SIPC/FDIC Insured?
Moomoo Financial is a member of SIPC, which insures brokerage accounts in the U.S. While Moomoo doesn’t offer banking services, so it's not part of the FDIC, it partners with banks that provide FDIC insurance for uninvested cash.
All U.S. Moomoo customers are eligible for SIPC insurance covering their securities positions up to $500,000. This policy protects the number of shares a client holds but does not cover losses due to market declines. For example, if you own 300 shares of Ford, but the price drops significantly, you still hold the 300 shares, but their value may be minimal.
Moomoo doesn’t currently offer additional insurance, so SIPC coverage is the maximum available for securities, with half of the coverage available for cash that isn’t swept to partner banks.
Moomoo Promotion
Is Moomoo Safe?
While Moomoo is a newer brokerage in the U.S., it is certainly not a scam. It’s a legitimate firm with proper safeguards in place.
However, like any investment, there are risks involved. Moomoo is no different, and it’s important for investors to perform their own research and understand the protections that are offered—and those that aren’t.
Moomoo Review
Now that we know Moomoo is a legitimate brokerage, let’s take a closer look at what services it offers—and what it doesn’t.
Investment Options
Moomoo only offers self-directed accounts, so other types of accounts, like joint or custodial, are not available. Currently, only individual taxable accounts can be opened.
Moomoo’s self-directed accounts cover the following asset classes:
- Stocks
- Options
- Closed-end funds
- Cryptocurrencies
- Exchange-traded funds (ETFs)
This includes stocks from major U.S. exchanges, as well as Chinese and Hong Kong stocks. Some over-the-counter (OTC) stocks are also included. We didn’t find foreign ordinary shares (those ending in ‘F’), but other securities like ADRs and shares of U.S. companies are available.
Moomoo doesn’t support trading in bonds, mutual funds, forex, or futures contracts.
Moomoo Pricing
Trading on U.S. exchanges through Moomoo is cost-effective. There are
no commission fees on U.S.-listed stocks and ETFs (including OTC stocks). Options contracts come with no base charge but incur a 65-cent per-contract fee.
Trades of Chinese securities have a commission of 0.03% of the trade value, with a minimum commission of HK$3 (or ￥3 for mainland securities). A platform fee of HK$15 (or ￥15) is also applied per trade.
Moomoo does not charge account fees or minimums. Additionally, Level II quotes are free of charge.
Free Moomoo Account
Visit Moomoo Website
Customer Support
Moomoo offers a helpful FAQ section on their website to assist with learning more about the platform and its services. In addition, the website features a robo/human chat service that can be accessed both on the desktop and website platforms. You can activate the human representative by typing “agent” in the chat.
Moomoo also provides phone support at 650-798-5700 and email support at cs@us.moomoo.com. Currently, there are no branch locations.
Website
Moomoo’s website is fairly simple and lacks trading tools, but it includes a community forum called Moo and provides market and security information.
The website has stock profiles and charts, but no technical analysis tools are available.
Mobile App
Moomoo’s mobile app is much more robust, offering powerful trading features. It includes 8 trade types, including some less common options like market-if-touched and trailing stop limit.
The app includes charting tools, watchlists, and even a demo mode called Papertrade.
Desktop Platform
Moomoo’s desktop platform offers an enhanced experience with advanced charting tools, a social network feature called Moo, and simulated trading. It also includes more trade types than the mobile app and offers secure trading with a PIN.
The platform does lack streaming news and integrated options spreads, but it excels in other areas.
Margin
Moomoo only offers margin accounts for its taxable accounts. Margin rates are flexible and vary depending on the stock and day.
Moomoo charges competitive rates for margin trading, with an additional 2% for China A-shares.
Options Trading
Moomoo offers trading in calls and puts, with options chains available on both the mobile app and desktop platform. However, it lacks advanced features like a profit-loss graphing tool and a strategy builder.
Security Research
Moomoo provides basic stock research on its website and app, including profiles and a screener for stocks. There are also news articles and a financial calendar for important events.
The desktop platform offers more detailed research, including valuations, short interest, and stock charts.
Miscellaneous Services
Moomoo offers extended hours trading, dividend reinvesting (DRIP), and IPO investing. Fractional shares are also available. However, it does not offer tax-deferred accounts like IRAs.
Moomoo Review Summary
Moomoo is a legitimate brokerage offering competitive features for trading, including advanced tools and margin rates. It's an excellent choice for stock and options traders looking for an affordable and reliable platform.
Moomoo Promotion
Visit Moomoo Website
Updated on 1/20/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
|