Today, most discount brokerages offer free trades on most US-based stocks, ETFs, mutual funds, and bonds. Whether you’re a long-run investor or an active day trader, it's easy to find a platform like Moomoo that offers free trades on most securities and an easy-to-use platform to execute those trades. 

Moomoo is a newer entrant to the free online trading space. Backed by some of the largest names in venture capital, this app is likely to make a splash soon. It offers a huge library of articles that cover the basics of stock trading, and it has great visuals in its app.

The app got its start in Asia, with a focus on Hong Kong. As it enters the US-market, it not only offers US-based trading, but it also offers low-cost trading in the Chinese Stock Market (A-Share Market) and the Hong Kong Stock Exchange (HK Market). 

If you’re looking to trade in an emerging market, Moomoo could be the most cost-effective platform to execute your trades. Here’s what you need to know about Moomoo.

What Is Moomoo?

Moomoo is one of a growing number of online trading platforms that offer free trades on U.S.-based securities. It was founded in Palo Alto, California in 2018, and it is currently backed by venture capital giants like Tencent and Sequoia Capital.

While most free trading apps focus primarily on crypto and the U.S. securities markets, Moomoo takes its low-cost trading technology into other emerging markets. It allows you to make low-cost trades through the Chinese and Hong Kong stock exchanges. 

This opens up a whole new world of trading opportunities for those seeking to trade outside of the United States.

What Does It Offer?

Moomoo is a discount brokerage that offers direct access to the Hong Kong and Chinese stock exchanges. Its standout low fees make it a contender for people seeking access to international trading.

Low-Cost Trading In International Markets

Unlike most discount brokerages, Moomoo doesn’t limit trading to US-based stock exchanges. You can trade directly in international stock exchanges including the Hong Kong stock exchange and the Chinese Stock Exchange.

Option To Trade On Margin

Traders, who want to place larger bets than their balances allow, can take on debt (called margin) to make trades in Moomoo. Right now, margin rates on Moomoo range from 6.8% to 8.8% depending on the market you’re trading in. 

While Moomoo offers margin to most users, it is not a suitable tool for most investors or traders. It dramatically increases volatility and could lead you to wipe out your entire portfolio with a few bad trades.

Free Trades On U.S. Securities

You can use Moomoo to place free trades on U.S.-based stocks and ETFs. While compelling, this feature is not unique to Moomoo. Most discount brokerages now offer similar commission-free trades.

Options Trade For $0.65 Per Contract

While free trades are common, many companies still charge exorbitant rates to trade options contracts. 

However, Moomoo charges just $0.65 per option contract. Webull and a few other sites offer free trading on all options trades, but $0.65 per contract is a very good price. 

All other fees that it charges are mandated by law and don’t vary from brokerage to brokerage.

Are There Any Fees?

While Moomoo bills itself as a commission-free trading platform, it charges fees.

• If you want to trade on the Hong Kong stock exchange you’ll pay a 0.03% trading fee plus HK$15 per trade, which is approximately $2 per trade, given current exchange rates.
• Likewise, you’ll pay 15CNH (approximately $2) plus a 0.03% trading fee for all trades made in the A-Shares market.
• U.S. stock and ETF trades are free, but you will pay $0.65 per options contract if you choose to trade options.

Margin rates on Moomoo fluctuate based on market conditions but are currently 6.8% APR for the U.S. and Hong Kong Markets and 8.8% for trading in the Chinese stock market.

How Do I Contact Moomoo? 

To contact Moomoo call [email protected] or call 650-798-5700. The company is headquartered at 550 S. California Ave. Suite 201 Palo Alto, CA 94301.

How Does Moomoo Compare?

When it comes to trading U.S. stocks or ETFs, Moomoo is nothing special. Its fees are low, but companies like M1 Finance, Robinhood, and even brokerages like Fidelity match Moomoo on cost but offer more functionality.

Moomoo has detailed graphs and interesting educational articles built into its information library. However, these features may lead novice traders to have confidence that outstrips their competence in the financial space. 

Learning to trade involves understanding downside and upside risks. It takes more than a flashy app to be a successful trader. Apps like Moomoo and Robinhood that over-emphasize the trading experience can often lead young investors down the wrong path.

The one thing that Moomoo has that other apps don’t is access to the Chinese stock markets. If you want to trade directly on the Hong Kong or A-Shares exchanges, you can do that through Moomoo. Your likelihood of making money doesn’t increase by using Moomoo, but it is a unique functionality.