Is moomoo a Scam?
Have you heard of moomoo lately? This is a new outfit with a variety of trading services. But is it safe? We have an answer.
Is moomoo Legitimate?
moomoo Financial is a division of Futu Holdings Limited, which is headquartered in Hong Kong. The company focuses on the trading of American, Chinese, and other securities. Futu is a public company that trades on the Nasdaq with ticker symbol FUTU.
The American version of moomoo is incorporated in the United States with headquarters in Palo Alto, California. Because it is based in the U.S., it is subject to American securities regulators. These include the SEC first and foremost. The SEC oversees brokerage firms in all 50 states and territories, such as the District of Columbia and Puerto Rico. moomoo must follow SEC regulations. If it doesn’t, it could face civil and criminal penalties. moomoo’s SEC registration ID is 8-69739.
moomoo is also subject to the rules and guidelines of FINRA. This group creates a second cluster of rules and regulations that are binding on moomoo. There are frequently stiff fines and penalties from FINRA, but amazingly moomoo has zero disclosures on its FINRA profile right now. moomoo has only been registered since 2018. Its FINRA ID is 283078.
Other versions of moomoo are based in Australia, Hong Kong, and Singapore. These entities are regulated by the securities watchdogs in those jurisdictions.
Is moomoo SIPC/FDIC Insured?
moomoo Financial is a member of SIPC, which is America’s major protection program for brokerage accounts. Because moomoo doesn’t offer any banking products directly, it’s not a bank and is not itself an FDIC member. However, idle cash can be swept to partner banks, where the cash will be FDIC insured.
Every moomoo brokerage customer in the United States is
eligible for $500,000 of protection on positions of securities. The policy is with SIPC and protects securities customers up to $500,000, including up to $250,000 for cash claims. It does not protect against market decline. For example, if the account holder has 300 shares of Ford Motor Company, and the stock price of Ford declined to a few cents, the position would be worth almost nothing, although the 300 shares would still be there.
moomoo Financial does not appear to advertise an auxiliary insurance policy at this time, so SIPC coverage is the maximum specifically described for securities. Cash swept to partner banks is no longer protected by SIPC, although it becomes eligible for FDIC insurance under the cash sweep program.
moomoo Promotion
Is moomoo a Safe Judgment
Although moomoo is a new broker-dealer in the United States, it is definitely not a scam. moomoo is a
legitimate operation with several safeguards in place.
Nevertheless, investing in securities always carries risks that will be present with any brokerage firm. moomoo is no different in this regard. As always, traders are advised to conduct due diligence before making any financial decision and be aware of what guarantees are in place—and what guarantees are not available.
Trading and Investing
Moomoo is a broker-dealer with operations based in Hong Kong. Even though the company is headquartered there, it also has branches in several countries, including the United States.
U.S. clients can trade stocks, options, cryptocurrencies, ETFs, and closed-end funds. Other investments, such as mutual funds and fixed-income products, are not available. Moomoo’s stock offering does include access to certain foreign exchanges, including markets in Hong Kong and mainland China.
Moomoo accounts based in other countries may come with different investment choices. For instance, the Singapore branch offers access to U.S. Treasuries and options on Hong Kong-listed stocks.
Since Moomoo’s branches in different countries offer different products, they may be worth a look for traders who qualify to open accounts there. A U.S.-based Moomoo account is available to both U.S. citizens and non-U.S. citizens.
Brokerage accounts with Moomoo’s U.S. branch are self-directed. There are no managed portfolios or full-service advisory accounts. In addition, the broker only provides individual taxable accounts; retirement and joint accounts are not available.
Cash Features
Moomoo is a broker-dealer, so it does not provide traditional bank accounts. It does offer an FDIC sweep program
that transfers idle cash from a brokerage account into partner banks. Once this happens, the cash receives FDIC
insurance and earns an APY (currently
3.35%).
Because Moomoo has enrolled many banks in its sweep network, it can raise the usual
level of FDIC coverage to $2 million. While this is a strong feature, Moomoo does not
provide other cash-management tools, such as checkwriting or a debit card.
Free moomoo Account
Visit moomoo Website
Mobile App
Moomoo’s mobile app is loaded with features. One good starting point is the Markets page. There, the broker shows a wide range of information on indexes, earnings, news, and more. A separate News tab provides additional articles. Each stock profile inside the app includes a comments section where traders can talk about the security. On those same profiles, users will also find advanced option tools, inflow and outflow data, technical sentiment, short-sale information, and more.
The app’s trade ticket offers 12 order types and several extras, including bracket orders (you need to switch to Pro mode in the upper-right corner to use this). Charts come with many tools and can be viewed horizontally. We especially like the variety of chart styles, including Heikin Ashi.
Open the Discover tab on the bottom menu and tap the Papertrade button to access simulated trading.
Website
Moomoo’s website is a bit less impressive. To start, there is no live trading. There is, however, a simulator if you want to practice. The site’s stock screener, located under the Market Analysis tab, is very helpful. We also like the stock research tools found under the same tab. Discussion boards are located under the Resources tab. The website does offer charts, although they are not as strong as the ones on Moomoo’s desktop platform.
Desktop Platform
Charts on the desktop platform can be stretched across the full width of the monitor. From there, users can take screenshots and place several charts into one layout. There are many drawing tools and technical studies, although there are only five chart styles. The platform’s order ticket supports 16 order types; our only criticism is that there is no separate button for selling short.
Moomoo has packed so many tools into its desktop software that it would be hard to name them all. Users can expect Level II quotes, built-in option spreads, links to Moomoo videos, alerts, watchlists, and many other features.
Margin
Moomoo offers brokerage accounts in both cash and margin versions. That applies to its
securities accounts; crypto accounts, by contrast, are always cash accounts. Margin clients can short stocks, trade
advanced options spreads, and purchase additional securities with borrowed funds. These kinds of margin
transactions can result in interest charges; Moomoo’s margin rate is a flat
6.8%.
Short positions have separate rates that depend on both the stock being shorted and the day.
Moomoo’s trading platforms also show margin information on stocks and ETFs. Examples include the short margin rate
noted above, along with long initial margin and short maintenance margin requirements.
Supplemental Features
IPO Service: Moomoo has recently added Initial Public Offerings to its lineup of tradable assets. The IPO service covers U.S. stocks. Upcoming offerings appear inside Moomoo’s software.
Fully-paid Stock Lending: Moomoo America does not offer it, although the Singapore branch does.
Dividend Reinvestment Plan: DRIP can be enabled or disabled for specific securities. To do this, sign into the mobile app and tap the Accounts button at the bottom. Then choose the account you want (if you have more than one). On the Account page, tap the More icon. On the More page, you will see the DRIP button.
Individual Retirement Accounts: Not available.
Fractional Shares: Moomoo supports whole-dollar trading in cryptocurrencies, stocks, and funds.
Extended-Hours Trading: Moomoo clients can trade securities before the market opens and after it closes. The broker also provides an overnight session for certain securities.
Recurring Purchases: There is no order type on Moomoo’s trade ticket for setting up recurring purchases of securities. Still, the desktop platform includes an Algo tool for automatic or semi-automatic trading.
Our Recommendations
Small Investors: With fractional-share trading and no minimums or account fees, Moomoo is a strong choice.
Frequent Stock Trading: Moomoo offers many useful tools that active traders will appreciate. While its desktop platform is very solid, some features are available only on the website.
Retirement Planning and Long-Term Investing: Without IRAs or financial planners, it is difficult to
recommend Moomoo here. We suggest Charles Schwab.
Beginners: We recommend a robo account at a broker such as Robinhood. Paper trading on Moomoo’s website is also a smart way to practice.
Mutual Funds: A self-directed brokerage account at a firm like Charles Schwab would make sense.
Judgment
Moomoo is a strong broker for self-directed taxable trading. Non-U.S. residents can also access it fairly easily. Still, many helpful features are missing, so some investors may want to consider another broker.
moomoo Promotion
Visit moomoo Website
Updated on 3/23/2026.
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.
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