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ETRADE vs Moomoo
Futu Moomoo vs ETRADE—which is better in 2023? Compare investing accounts,
online trading fees, stock broker extended hours, and differences.
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moomoo vs. E*Trade Introduction
E*Trade advertises a lot. Moomoo does not. Does that mean E*Trade is the better investment firm?
Let’s have a look.
Cost Comparison
Services
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Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Etrade
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Moomoo
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Promotions
E*Trade:
Get zero commission on stock and ETF trades.
Moomoo:
Get up to 17 free stocks when you open an account at Moomoo!
First, Let’s Explore Investment Opportunities
Investors at E*Trade have two programs to choose from: self-managed and investment-advisory. The former deliver the largest number of asset classes to invest in:
- Options
- Stocks
- Futures
- Mutual funds
- Closed-end funds
- ETFs
- Bonds and other fixed-income securities
The company’s advisory program offers robo accounts that trade ETFs. This setup does have an annual fee (it’s currently 0.30%).
Moomoo customers only get self-directed accounts. These accounts have some of the asset classes available at E*Trade (minus bonds, mutual funds, and futures contracts). But moomoo traders get something that E*Trade doesn’t offer: Chinese stocks.
Winner: E*Trade
Second, Let’s Look at Their Websites
E*Trade’s website has a lot of stuff on it. Nevertheless, it is easy to use. A search bar in the upper-right corner makes navigation a little easier, although the top horizontal menu is valuable as well.
An asset’s profile will have a chart, option chains, trade buttons, and much more. The trade ticket has trailing orders (in % and $ terms). Graphs have a large selection of gizmos, including:
- Logarithmic scale
- Trendlines
- Printer-friendly view
- Insider trades
- Chart cursor in multiple formats
And this is just the website proper. E*Trade also has a web-browser trading platform. Called Power, the software really lives up to its billing. There are several powerful trading gadgets on the platform, including a quick trade order form for fast order submission.
Moomoo has a website, but we found no trading tools inside our test account. The site is intended for security research and account management. The former function does present some good resources, though. For example, there are:
- Tiles of upcoming IPOs
- Hot lists of various categories
- News articles with thumbnails
- A digital bulletin board that moomoo clients can use
- Educational articles
Winner: E*Trade
Next, Let’s Examine Mobile Trading
Although moomoo failed to offer trading tools on its website, it doesn’t fail on its mobile app. During our test drive of the software, we found very effective resources for trade submission and management. The order ticket has color-coded buy and sell buttons and 8 trade types with descriptions and small graphs that show what the available trade types do.
Option chains on the moomoo app have been recently updated to include some pre-installed spreads. Examples include:
- Iron condor
- Butterfly
- Custom
Tapping on custom creates a custom multi-leg trade. Simply tap on a contract to add it to the order ticket.
Charting can be accomplished in horizontal mode with several useful tools. Paper trading is icing on the cake.
E*Trade has two apps. One of them is modeled after the Power platform we have already seen. Combined, these two apps deliver a lot of trading brawn. Highlights include:
- Simulated trading on Power
- Bloomberg TV
- Mobile check deposit
- Options trading (without multi-leg strategies, though)
- Economic calendar
Winner: Toss up
Fourth, Let’s Peruse Desktop Software
Although we really like their mobile apps, the best trading experience at either firm will be found on a PC desktop. Moomoo’s platform has some really nice features, including simulated trading, Moo (the digital bulletin board), an order ticket with 12 trade types, and full-screen charting with tools.
The graphing tools include technical studies, a snapshot gadget, and several drawing gizmos. Although there’s a right-click menu, there strangely is no trade link in it.
E*Trade’s desktop program doesn’t have social networking but it does have live streaming of Bloomberg, a great feature that won’t be found on moomoo’s platform. E*Trade’s software also has option strategies, which are missing in action on moomoo’s software.
Examples of derivative tools include a strategy builder and an options screener. It’s possible to search by 60 day IV, contracts with highest time value, and more.
The downside of E*Trade’s platform is the lack of paper trading.
Winner: Debatable
Fifth Is Margin
At moomoo, every account is a margin account. Currently, the broker-dealer charges
6.8%
for long positions on the U.S. and Hong Kong exchanges. China A-shares are an extra 2%. Rates on short positions vary by security.
E*Trade offers both cash and margin accounts. The company’s margin schedule is on a tiered system
that starts at 13.7% and drops to 11.7% for long positions.
Both firms have margin calculators on their platforms, which is super helpful.
Winner: moomoo
The Final Category Is Supplementary Services
Initial Public Offerings: Traders at both firms can get in on upcoming stock offerings before they hit the secondary markets.
Extended-hours Trading: Pre-market and after-hours trading are available at both firms. Moomoo has a longer morning session, although only E*Trade has overnight trading in a selection of ETFs.
Banking Tools: E*Trade, but not moomoo, has a variety of cash management tools, thanks to Morgan Stanley Private Bank.
Individual Retirement Accounts: Once again, E*Trade offers them, but moomoo does not.
DRIP Service: Again, E*Trade but not moomoo.
Fractional Shares: Neither brokerage house offers the ability to buy stocks or ETFs with whole dollars. At E*Trade, it is possible to sell fractional shares accumulated from dividend reinvesting.
Periodic Mutual Fund Investing: E*Trade offers it.
Winner: E*Trade
Promotions
E*Trade:
Get zero commission on stock and ETF trades.
Moomoo:
Get up to 17 free stocks when you open an account at Moomoo!
Recommendations
Small Accounts: Self-directed accounts at either firm have no minimums and no ongoing fees. E*Trade’s automated-investing service does have a $500 minimum.
Long-Term Investors & Retirement Savers: Definitely E*Trade.
Active Stock Trading: This one is a little more difficult. Both have good mobile apps and desktop platforms. Obviously, moomoo is better for trading Chinese equities. Because E*Trade has a $6.95 commission on OTC trades, moomoo might be better for over-the-counter securities, although we only found 52 OTC U.S. stocks on its platform.
Beginners: An automated account at E*Trade is the ideal way to start.
Mutual Funds: E*Trade is the only option.
E*Trade vs Moomoo: Final Judgment
E*Trade is clearly better in some areas, but it falters in some others, most notably access to
Chinese securities exchanges.
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Open Account
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Updated on 3/2/2023.
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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