Let’s begin with a solution to questions on moomoo’s legitimacy with inventory and choices buying and selling:
Sure, Moomoo is legit!
After all, there’s much more to it than that.
Individuals are naturally skeptical about on-line buying and selling platforms, and there’s a motive to be after they’ve known as customer support at most buying and selling platforms. Buying and selling scams are on the rise, and all of us want to guard our cash and private info from scammers and hackers.
There are many issues to consider everytime you’re contemplating an digital buying and selling platform. It’s essential know what safety measures they’ve in place, whether or not the corporate behind the platform is cooperative with regulators and adheres to buying and selling guidelines and necessities, and whether or not it’s a secure place to place your cash.
On this article, we’ll evaluation the whole lot you must find out about moomoo, together with the corporate’s background, legitimacy, and the safety it has in place to maintain customers such as you secure on their buying and selling platforms.
Proceed studying to get a full image of moomoo and resolve your reply to the query: Is Moomoo Legit?
Is Moomoo a Legit Buying and selling Platform?
Moomoo is a totally licensed and controlled brokerage agency. In easy phrases, sure, it’s a legit firm. It’s owned by Futu Holdings, a NASDAQ-listed firm.
After we say that moomoo is absolutely licensed, we’re speaking about licensing from the Securities & Alternate Fee (SEC), which is the regulatory physique accountable for overseeing brokers. The corporate was based in 2018 and obtained a buying and selling license that permits it to function in all 50 states.
The moomoo buying and selling app is extraordinarily common and extremely rated, and the corporate additionally does enterprise and gives buying and selling platforms in international locations comparable to Malaysia, Japan, Canada, Singapore, and Australia.
Moomoo is a member of FINRA, a self-regulating group of broker-dealers. FINRA publishes dealer profiles that embrace particulars about regulatory investigations and infractions.
Customers’ property, together with investments and money, are insured by the SIPC as much as $500,000, which incorporates $250,000 of safety for money deposits.
Lastly, and simply as necessary as regulatory oversight and insurance coverage safety, moomoo is closely invested in person safety. They’ve employed state-of-the-art safety protocols, which we’ll evaluation extensively later on this article.
Professional Tip:
Stand up to 25 free shares after a qualifying deposit with Moomoo in the present day!
Who Owns Moomoo?
As we’ve already famous, moomoo is a subsidiary of Futu Holdings Ltd, a public firm that trades on NASDAQ as FUTU.
Futu Holdings is a Chinese language-owned firm that’s licensed to do enterprise in america and a number of other different international locations. It was based in 2012 in Hong Kong.
FUTU was first listed on NASDAQ in 2019 and in accordance with MarketWatch, has a market cap of $4.8 billion as of March, 2025.
The truth that FUTU is a public firm is necessary as a result of it implies that they’re topic to public scrutiny, clear reporting, and strict monetary rules.
The corporate has received a number of awards from the Chicago Mercantile Alternate and the HKEX awards since 2022.
FUTU additionally has a deep dedication to group assist and charitable giving. A few of its most up-to-date donations have been to the Make A Want Basis, Oxfam, and the North Texas Meals Financial institution.
Main buyers in Futu Holdings embrace Tecent, Matrix, and Sequoia Capital.
The necessary factor right here is that moomoo is legit and so is its father or mother firm.
Is Moomoo Regulated?
Like all licensed and registered broker-dealers in america, moomoo is regulated. There are protections in place for buyers and there are additionally licensure and compliance necessities in different markets on buying and selling platforms.
U.S. Regulation
The SEC is accountable for licensing broker-dealers in america. Anyone licensed by the SEC should additionally be part of FINRA. Moomoo is licensed by the SEC and a FINRA member.
Dealer-dealers are topic to an extended record of rules in america. Listed here are only a few of the necessities.
Responsibility of Truthful Dealing (an anti-fraud measure)
Suitability Necessities (recommending solely investments which might be appropriate to their shoppers)
Responsibility of Finest Execution (looking for the very best deal/worth for his or her shoppers)
Restrictions on brief gross sales and insider buying and selling
Restrictions on non-public safety transactions
FINRA conducts regulatory inspections of its members to make sure they’re not in violation of any guidelines. It has the appropriate to impose fines and penalties.
FINRA additionally publishes instructional and informative content material for the general public, together with its on-line brokerage search and detailed studies a few dealer’s standing and any regulatory infractions.
Investor Protections
In america, the Securities Investor Safety Company (SIPC) is accountable for defending buyers if their brokerage fails. It offers as much as $500,000 of protection, together with $250,000 in safety for money deposits. This safety ensures that buyers can get well their securities and money within the occasion of a dealer’s failure, but it surely doesn’t protect towards market losses or poor funding choices.
The Federal Deposit Insurance coverage Fee (FDIC) might also present some safety in particular situations. Whereas financial institution deposits are protected by the FDIC, not all funding accounts fall below its protection. The FDIC was established to take care of public confidence within the U.S. banking system by insuring deposits at banks and thrift establishments. It covers as much as $250,000 per depositor, per insured financial institution, for funds held in checking accounts, financial savings accounts, cash market accounts, and certificates of deposit (CDs). Nonetheless, FDIC safety doesn’t prolong to securities comparable to shares, bonds, or mutual funds held on buying and selling platforms.
Uninvested funds on moomoo are held in FDIC-insured banks below the MFI money sweep program. This program robotically transfers uninvested funds from moomoo into FDIC-insured banks, the place they’ll earn curiosity till the proprietor decides to take a position them. This function permits customers to learn from FDIC insurance coverage whereas their money stays uninvested, offering a layer of safety just like conventional financial institution deposits. FDIC insurance coverage offers as much as $250,000 in protection per depositor at collaborating banks, making certain safety in case of a financial institution failure.
It’s essential for buyers to grasp the excellence between SIPC and FDIC insurance coverage. SIPC safety applies to brokerage accounts and safeguards clients if a brokerage agency fails. Nonetheless, it doesn’t assure the worth of investments or cowl losses because of fraud, cybersecurity breaches, or market downturns. SIPC protection is restricted to lacking money and securities held by a failed broker-dealer, making certain that buyers can get well their property.
Equally, FDIC insurance coverage protects towards the failure of an insured financial institution however doesn’t cowl losses associated to funding merchandise. If a financial institution fails, the FDIC steps in to reimburse depositors as much as the protection limits. Nonetheless, if an investor loses cash because of poor market efficiency, neither the FDIC nor SIPC will supply compensation.
For buyers utilizing moomoo, which means whereas uninvested money within the MFI money sweep program advantages from FDIC insurance coverage, as soon as funds are used to buy securities, SIPC safety takes over. Nonetheless, neither insurance coverage program protects towards funding losses. Traders ought to rigorously assess their danger tolerance and diversify their portfolios to handle potential downturns successfully.
Moreover, whereas SIPC protection doesn’t defend towards fraud or cybersecurity threats, brokerage corporations typically implement their very own safety measures to guard buyer property on their buying and selling platforms. Some brokerages supply extra fraud safety packages or insurance coverage past SIPC protection. It’s necessary for buyers to evaluation their brokerage agency’s insurance policies and take precautions, comparable to utilizing sturdy passwords, enabling two-factor authentication, and monitoring accounts for suspicious exercise.
In the end, SIPC and FDIC insurance coverage present crucial safeguards for buyers, however they don’t seem to be substitutes for prudent funding methods or danger administration. Understanding these protections—and their limitations—can assist buyers make knowledgeable choices about the place and learn how to allocate their funds.
Professional Tip:
Stand up to 25 free shares after a qualifying deposit with Moomoo in the present day!
Worldwide Compliance
Along with being licensed and registered in america, moomoo is licensed in Singapore, Hong Kong, Canada, Australia, Japan, and different international locations, the place it additionally gives its paper buying and selling function.
Every of those international locations has its personal rules and necessities for broker-dealers. It’s moomoo’s duty to conform.
Is Moomoo Protected for Deposits & Withdrawals?
Any time you make a deposit or withdraw cash on-line, it’s essential to substantiate that the location or service you’re utilizing your buying and selling abilities on is safe. So, are moomoo customers secure for deposits and withdrawals on their buying and selling journey? The brief reply is sure!
Deposit Safety
While you deposit cash to your moomoo account, it will likely be protected by bank-level encryption.
It’s possible you’ll deposit funds utilizing both an ACH switch or a wire switch. Your financial institution may not cost a payment for an ACH, however they may cost you to ship a wire.
It’s straightforward to confirm your financial institution with moomoo and hyperlink it to your account. Banks have safety in place, together with encryption, and so does moomoo.
Withdrawal Safety
For apparent causes, it’s important to make sure your cash goes to the appropriate place and stored safe once you wish to switch it to your financial institution.
Right here once more, moomoo has put end-to-end encryption in place. There are different methods to guard your switch, together with putting in a moomoo token and enabling two-factor authentication. Funds might solely be withdrawn to verified financial institution accounts.
It’s possible you’ll add a checking account at any time. It’s possible you’ll not take away a checking account when there’s a pending switch.
How Moomoo Protects Towards Fraud
Moomoo takes person safety severely. There are a number of protections in place towards fraud.
Two-factor authentication, or 2FA, is required of all customers. You will need to allow it, and you may be required to make use of it the primary time you log in from any new gadget. After the primary login, you received’t have to confirm your account with 2FA.
Machine lock protects you within the occasion that somebody tries to log in to your account with out your permission. Turning it on means you’ll have to enter your moomoo ID, password, and a verification code the primary time you utilize a brand new gadget. After that, utilizing SMS login on that gadget would require you to finish a safety verification puzzle and enter a one-time verification code despatched to your registered cell quantity.
Moomoo tokens are cell merchandise that hold your account safe. You’ll have to obtain the moomoo token out of your app retailer. You’ll have to enter each your common password and a dynamic password to entry your account.
Portfolio privateness requires you to unlock your portfolio with both facial recognition or a gesture once you’re utilizing the cell app.
Fraudulent exercise monitoring is in place to permit moomoo to identify any suspicious exercise and notify customers.
Setting a powerful password and utilizing these extra safety measures will make it extraordinarily troublesome for anybody else to entry your account.
Professional Tip:
Stand up to 25 free shares after a qualifying deposit with Moomoo in the present day!
Are There Any Different Dangers with Moomoo?
We’d be remiss if we didn’t point out that there are another dangers with moomoo that don’t have anything to do with their safety or with regulation.
Market danger is current with any dealer, significantly after huge occasions like earnings studies. Whereas some investments are riskier than others, even a simple inventory funding entails some danger. Neither moomoo nor their regulators can defend you from investment-related danger.
Margin buying and selling is among the riskiest types of funding. You’re principally borrowing cash (buying and selling on margin) hoping to become profitable. When you’re a high-leverage margin dealer, you’re susceptible to sustaining main losses. Once more, moomoo’s safety measures received’t defend you, even with low value buying and selling choices.
Lastly, there are account limitations. For instance, you’ll be able to day commerce shares on moomoo, however there are limitations in place. You can also make limitless trades with a money account, however with a margin account, you’ll want to take care of a steadiness of no less than $25,000 otherwise you’ll be restricted to simply three day trades in any rolling five-day interval, even with fee free inventory. Exceeding this restrict or buying and selling with unsettled money might each result in penalties.
How Does Moomoo Evaluate to Scams & Fraudulent Brokers?
You is likely to be questioning how moomoo compares to scams and fraudulent brokers. How are you going to inform the distinction?
Crimson Flags in Faux Brokers
Let’s begin with faux and illegitimate brokers. Listed here are a number of the largest crimson flags to search for.
No regulation is a large crimson flag. If a dealer isn’t regulated by the SEC, they’re not legit. The identical is true of brokerages that aren’t within the US: they need to be regulated in no matter nation they’re in, and in the event that they’re not, steer clear.
Unclear possession is one other signal of illegitimacy. A reliable broker-dealer received’t be coy about who owns them. That is info that must be straightforward to search out on-line.
Laborious-to-withdraw funds are completely an issue. The cash in your account is your cash, not the brokerage’s. It must be straightforward to withdraw. It’s common for there to be a brief ready interval, significantly for those who’ve made current trades that haven’t but been cleared by way of the SEC.
Lack of transparency about charges is one other potential crimson flag. You shouldn’t must guess what you’ll be paying once you make a commerce.
When you discover any crimson flags, don’t create an account. As an alternative, examine extra and for those who’re not happy with what you discover, don’t use that dealer.
How Moomoo Stands Aside
Moomoo checks all of the bins relating to proving its legitimacy.
Moomoo charges are fully clear and you may view them right here.
Their father or mother firm is absolutely disclosed and publicly-traded, that means you’ll be able to view details about its monetary standing and extra.
In every single place it operates, moomoo is regulated by monetary authorities. Within the US, meaning regulation by the SEC and FINRA and insurance coverage offered by the SIPC.
You may simply discover actual person testimonials and belief tales with a fast on-line search.
Right here’s an outline of how moomoo compares to faux and fraudulent brokers.
What Are Customers Saying? Moomoo Belief & Critiques
Discovering actual critiques for apps is usually a problem. A few of the corporations that personal apps rent folks to submit faux critiques.
Right here’s a rundown of how customers have rated moomoo.
Trustpilot: Common of three stars out of 5
Google Play: Common of 4.5 stars out of 5
Apple Retailer: 4.7 stars out of 5
TradingView: 4.6 stars out of 5
One five-star evaluation on the Apple Retailer identified that they love the format and the detailed technical info offered, whereas noting that the app might not be for newbies. Additionally they stated that they had fast responses from customer support.
A few of the most typical reward is for moomoo’s sturdy safety, clear payment construction, and superior instruments. Customers additionally respect that they’ll get entry to different markets utilizing moomoo.
The 2 most typical complaints are that the interface could also be a bit too complicated for newbies and sometimes-slow response instances from customer support. Some folks had been additionally sad with the withdrawal course of.
Remaining Verdict: Ought to You Belief Moomoo?
Our remaining verdict is sure, you’ll be able to belief moomoo. It’s a totally respectable buying and selling platform that’s regulated by the SEC and FINRA.
It’s backed by a publicly-traded fintech agency, and person deposits and investments are insured by the SIPC as much as $500,000.
Moomoo’s charges are absolutely clear they usually make use of state-of-the-art safety to guard buyers and monitor towards fraud.
It’s not essentially the appropriate platform for newbies, however it’s superb for lively merchants who need superior analysis instruments to assist them discover the appropriate investments and monitor their portfolios.
