Overview of Schwab and Moomoo
Can an upstart with a funny name outperform an old stalwart like Charles Schwab? Here’s the answer:
Cost Comparison
Services
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Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
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Moomoo
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Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Moomoo:
Get zero commissions at Moomoo.
1st Category: Tradable Assets
Schwab traders have access to these investment vehicles:
Fixed-income securities
Equities
Funds (closed-end, mutual, and exchange-traded)
Options
Futures
Options on Futures
Annuities
Moomoo customers don’t get futures, mutual funds, annuities, or fixed income.
Besides all the American-listed products mentioned above, both brokerage firms offer access to some foreign markets. Schwab customers can trade on 30 exchanges around the world. Moomoo offers 3. Both brokers also charge commissions on foreign trades.
Winner: Schwab
2nd Category: Margin Borrowing
Using someone else’s money to buy securities is a sure fire way to amplify gains and losses. If you’re so inclined, here are the rates:
Moomoo:
flat 6.8% (securities on the U.S. and Hong Kong exchanges)
flat 8.8% (securities on the Shanghai and Shenzhen markets)
Schwab:
lowest rate: 11.325%
highest rate: 13.075%
Moomoo has incorporated margin check tools into its trading platforms so that users know exactly what the margin details are for any ticker symbol. Schwab unfortunately hasn’t done this.
Winner: Moomoo
3rd Category: Websites
On Moomoo’s website, we found basic information on the trading services and software tools the broker offers. There is no login and no educational materials beyond a list of Frequently Asked Questions.
Schwab’s website is a different beast altogether. There are tons of learning resources, including not only general educational articles and videos, but also security analysis tools.
For actual trading, Schwab steps up to the plate once again with many useful tools. A trade bar sits
at the bottom of the screen. Although order submission isn’t one of the features, the widget does
nevertheless offer real-time trading details, updated news articles, and an intraday chart.
The broker’s web-based order ticket appears on a discrete page. There are multiple order types available, including trailing. For the most advanced orders, you can use thinkorswim. This is the broker’s browser platform, which sits inside its own tab. Order types here include OTO (one triggers other), contingent on volume, market on close, and a few more.
Winner: Schwab easily
4th Category: Desktop Software
Although Moomoo didn’t offer much in the realm of website trading, it does have a very good desktop program. Compatible with both Mac and Windows, the platform has a digital order form with 12 trade types. They include trailing and stop orders.
Charts on Moomoo’s desktop system can be displayed in full-screen mode (just hit the F7 key on your keyboard or click on the expand icon in the top-right of the charting window). Tools include many drawing widgets and more than 50 technical studies.
Another highlight on Moomoo’s platform is Moo, a social networking area where users can discuss (through posts) the day’s market news and investing and trading ideas.
Schwab also has a desktop platform. Called thinkorswim, the digital trading system has quite a few features not found on Moomoo’s software. These include:
Profit-loss diagrams on hypothetical trades
Live streaming of business news
Direct-access routing
Right-click trading
While a graph on Moomoo’s software does have a right-click menu, the menu strangely doesn’t have a trade option.
Winner: Schwab
5th Category: Mobile Apps
If the electricity powering your computer goes out, you could trade on your smartphone or tablet with either broker (assuming you have enough battery power). Both brokers in this survey have user-friendly apps; Schwab also has a platform for Apple Watch.
During our testing of each app on an iPhone, we found some really useful tools. They include horizontal charting and good order tickets. Schwab’s has several media sources, including once again a feed from CNBC. Although Moomoo’s app doesn’t have any video news, it does once again provide the community forum, which Schwab’s app lacks.
Schwab has a second app that is modeled after its browser platform. This app delivers a very advanced order ticket and trade recommendations through a tool called Idea Hub.
Winner: Schwab
6th Category: Options
A good place to trade derivatives at Schwab is on the second app just mentioned. The software has many pre-installed spreads. Examples we found include:
Married put
Iron butterfly
Condor
Schwab’s website has an options market update, a graph of the CBOE Volatility Index®, a phone number to Schwab’s options desk, educational articles and videos, a strategy finder, a screener, and so much more.
Moomoo customers can trade options, too. But the broker only provides chains for calls and puts. Its software does not have the ability to place orders for multiple legs. Even worse, customers have to buy a monthly data subscription just to see option prices.
Winner: Schwab
7th Category: Miscellaneous Services
IRAs: Schwab, but not Moomoo, has Individual Retirement Accounts.
Dividend reinvestment program: Ditto.
Automatic mutual fund investing: Again, same story.
Fractional-share trading: Schwab offers whole-dollar investing in the 500 securities that make up Standard & Poor's famous index. Moomoo’s software can only place orders for a whole number of shares.
IPO availability: Both firms offer access to Initial Public Offerings.
Extended hours: Finally, an area where Moomoo will outperform its rival. Its pre-market trading period is longer than Schwab’s.
Cash management: Schwab operates its own bank (with FDIC insurance) that provides free checkwriting and ATM fee refunds worldwide. Although its checking account only pays 0.03% right now, Moomoo offers nothing at all.
Investment advice: If you ever feel that you need a professional investor on your side, Schwab offers several low-cost advisory packages. Moomoo doesn’t.
Winner: Schwab
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Moomoo:
Get zero commissions at Moomoo.
Now, Our Recommendations
Stock/ETF trading: With fractional-share trading and multiple platforms, Schwab is the easy choice.
Beginners: Schwab provides many learning resources on its website, a great service that we didn’t find at Moomoo. Moreover, Schwab has 24/7 customer service and online chat, neither of which will be found at Moomoo.
Small accounts: Neither broker charges any ongoing account fees. But Schwab doesn’t have any monthly options data fees, and this gives it an edge over Moomoo.
Retirement savers and long-term investors: Not only does Schwab have IRAs, it also has an individual 401(k) plan, branch locations, financial-planning services, and several annuity choices.
Moomoo vs Schwab Final Judgment
Although Moomoo has the cuter name, it doesn’t deliver the better trading experience.
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