Why Moomoo (by FUTU) is ideal as an alternative low-cost brokerage

Earlier this year during the Gamestop saga, Robinhood and other brokers restricted trading of GME stock and options.

That action has resulted in many investors leaving Robinhood and transferring their holdings to other brokerage firms that did not have such restrictions.

The whole fiasco led to a realization among many investors that the need for a secondary trading account is important, not only during situations when you are restricted from purchasing/selling those counters but also during unforeseen downtime of your primary brokerage firm.

After all, is it really a free market and is it wise to stick to a broker who would not give you the opportunity to purchase the counter you desire?

Till date, Robinhood and other brokers who restricted trading at the height of the saga are counting the cost of that action and working to repair their image.

As readers may know, I am an advocate of IBKR as my brokerage firm.

However, I do see the need for a secondary brokerage firm in the event the earlier scenarios mentioned above occurs once again.

Why I believe Moomoo (by FUTU SG) is ideal as a low-cost brokerage firm in the market today:

• Competitive Low-Cost Trading Fees

• Excellent Customer Support

• Great Analytical Tools

• Amazing Sign Up Bonuses! (more on this below, you already made a profit with the bonuses!)

I will delve deeper into the above pointers in a bit. Let me share more on the company background.

FUTU Holdings Limited

FUTU Holdings Limited is listed on the NASDAQ (ticker: FUTU) and strategically backed by Tencent Holdings, Sequoia Capital etc.

Securities products and services in Moomoo are offered by wholly-owned subsidiaries of FUTU Holdings Ltd. In Singapore, the brokerage firm is registered as FUTU Singapore Pte. Ltd. (Futu SG).

The firm uses technology to enhance the overall trading experience. With their ability to reduce costs that traditional brokers normally incur, it is able to pass on such savings to their customers.

FUTU SG is a capital markets services license holder regulated by the Monetary Authority of Singapore (Licence No. CMS101000), so rest assured that they are not a third tier brokerage who do not possess the right credentials and regulations.

Competitive Low-Cost Trading Fees

One of the benefits is that the commission fees are low and it is comparable with what is in the market.

A quick comparison on the Seedly site shows that the Moomoo platform via FUTU SG has the cheapest minimum fee in Singapore (not withstanding Firsttrade and TD which charges $0).

Do remember that for the first 90 days, it is commission-free trading for US, HK and SG stock markets so that is an added bonus if you are an avid trader.

You can take a look at the fees on FUTU SG’s website.

Moomoo platform, powered by FUTU SG, is ideal for my investing journey where I would use it to purchase my HK shares.

They have a competitive offering for the HK market and is the natural choice of brokerage to purchases shares in the HK market for me.

Moomoo platform, powered by FUTU SG, is ideal for my investing journey where I would use it to purchase my HK shares.

They have a competitive offering for the HK market and is the natural choice of brokerage to purchases shares in the HK market for me.

This is particularly timely for those who are looking to purchase shares of Chinese companies, who are listed in the US, in the Hong Kong market instead due to the delisting possibility.

Some may have seen that there is a platform fee being charged in the pricing table, FUTU SG charges a min. platform fees and this is similar with other brokerages who may place this into their fine prints or combined it with other charges.

FUTU invest heavily into their technology, allowing their users a fully digitized platform. In comparison with other brokers, this platform fee is at a very low rate, and I find it fair so long FUTU continue to innovate and work on the Moomoo platform, allowing users to enjoy better services on the platform.

Excellent Customer Support

Customer support is a deal breaker for me and it is how I gauge if a brokerage is to be excellent or fair.

I have seen my fair share of slow responses from the support desk of other brokers, resulting in a frustrating experience where I have had slow account issues resolved, causing a poor user experience.

Thankfully, in all my dealings with the helpdesk ([email protected]), it has been fast and intuitive. There has not been a bad experience thus far.

For those who have used other brokers where English may not be the language of choice and you are wondering if the customer support team will face difficulties conversing or understanding your queries, this will not be a problem.

In all my conversations with FUTU SG’s client service representative thus far, their command of the language is excellent.

Great Analytical Tools – Enhancing your Investing Journey

One of the main draw of utilizing the Moomoo platform is the analytical tool provided.

I chanced upon it on a Telegram investing group I was in and was pleasantly surprised with the level of details and analysis it provided.

This adds on a new perspective to your investing experience in my opinion and is not available on many brokers. In fact, I have seen some brokers charging for charts like these to be made available through an added fee/purchase.

This adds on a new perspective to your investing experience in my opinion and is not available on many brokers.

In fact, I have seen some brokers charging for charts like these to be made available through an added fee/purchase.

The user interface of the Moomoo app is also seamless and intuitive. It is pleasant on the eye (hello, dark mode) and easy to navigate.

I like how the application’s headers and wording does not feel directly translated from Chinese, making it feel well worked on and polished.

The mobile app is easy to navigate and I find myself often relying on it to view the premarket and postmarked prices of the stocks.

In fact, I have added my stocks watchlist onto the Moomoo app and no longer rely on the default “stocks” app.

Amazing Sign Up Bonuses

In line with their launch, FUTU SG is currently offering the following promotion on their Moomoo app:

• Commission-free trading in the US, HK and SG stock markets for 90 days

• Free Level 2 Market Data for US Market

• SGD 30 Cash Coupon (Cash, not credits – which is withdrawable)

• 1 free Apple (AAPL) Share (For users who deposits SGD 2,700 or USD 2,000 or HKD 18,000 before 30th April 2021)

In terms of potential cash payout – you are looking at approximately: SGD 30 + 1 free AAPL (worth USD 131 today) = SGD 205

That is approximately SGD 205 just for signing up with Moomoo platform and depositing the SGD 2,700. You are already +$205 in your portfolio!

Conclusion – Experience thus far

As I have stated in the start of my blogging journey, I will not recommend something which I do not use or would not recommend to my siblings and partner.

My family members and partner are also utilizing FUTU SG as their choice of broker so rest assured that I am not here to promote a product that I do not use.

My user experience of the Moomoo platform has been great thus far and should my opinion change in future, you can be sure that I will inform my readers.

What is in for you if you sign up?

There are no additional cost to readers in any way when you click on my referral link. I like what I have seen of the app so far and am an advocate of using it as your broker.

How do I sign up?

Step 1: Sign up using this link

Step 2: Click on “Claim Now”

Step 3: Sign up with your Email and Set a Password to get your Moomoo ID

Step 4: Download the Moomoo app on your phone and then log in

Step 5: Set up and open the trading account with FUTU SG (either via MyInfo or a more manual process where you have to furnish supporting documents)

Step 6: Wait for the account to be approved (email will be sent – may take a day or so, Mine took around 30 mins)

Step 7: Complete an initial deposit of SGD 2,700 (or HKD 16,000 or USD 2,000) (it can take from 12 hours – 72 hours for your deposit to be cleared)

The whole process was quick and fuss free. I took 20 mins end to end for signing up. 20 mins of work for $205 worth of rewards! Hurry get the Apple share here – Sign up here!

I hope you enjoy the Moomoo app and platform as much as I do. Feel free to share with me your experience. You can drop me an email and inform me of your support, will be very happy to buy you coffee.

Disclaimer: This article is written in collaboration with FUTU Holdings but the views expressed here are entirely from myself based on my experience.