Let’s begin with a solution to questions on moomoo’s legitimacy with inventory and choices buying and selling:
Sure, Moomoo is legit!
In fact, there’s much more to it than that.
Individuals are naturally skeptical about on-line buying and selling platforms, and there’s a cause to be after they’ve referred to 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 data from scammers and hackers.
There are many issues to consider everytime you’re contemplating an digital buying and selling platform. It’s worthwhile to 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 protected place to place your cash.
On this article, we’ll assessment every thing that you must learn about moomoo, together with the corporate’s background, legitimacy, and the safety it has in place to maintain customers such as you protected 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 totally licensed, we’re speaking about licensing from the Securities & Trade Fee (SEC), which is the regulatory physique liable for overseeing brokers. The corporate was based in 2018 and acquired a buying and selling license that enables it to function in all 50 states.
The moomoo buying and selling app is extraordinarily in style and extremely rated, and the corporate additionally does enterprise and presents buying and selling platforms in nations similar 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 vital 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 assessment extensively later on this article.
Professional Tip:
Rise 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 the USA and several other different nations. It was based in 2012 in Hong Kong.
FUTU was first listed on NASDAQ in 2019 and in line with MarketWatch, has a market cap of $4.8 billion as of March, 2025.
The truth that FUTU is a public firm is vital as a result of it implies that they’re topic to public scrutiny, clear reporting, and strict monetary laws.
The corporate has gained a number of awards from the Chicago Mercantile Trade and the HKEX awards since 2022.
FUTU additionally has a deep dedication to neighborhood help 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 vital factor right here is that moomoo is legit and so is its dad or mum firm.
Is Moomoo Regulated?
Like all licensed and registered broker-dealers in the USA, 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 liable for licensing broker-dealers in the USA. 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 laws in the USA. Listed below are just some of the necessities.
Obligation of Honest Dealing (an anti-fraud measure)
Suitability Necessities (recommending solely investments which are appropriate to their purchasers)
Obligation of Finest Execution (looking for the very best deal/worth for his or her purchasers)
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 best 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 experiences a few dealer’s standing and any regulatory infractions.
Investor Protections
In the USA, the Securities Investor Safety Company (SIPC) is liable for defending buyers if their brokerage fails. It gives as much as $500,000 of protection, together with $250,000 in safety for money deposits. This safety ensures that buyers can get better their securities and money within the occasion of a dealer’s failure, nevertheless it doesn’t protect towards market losses or poor funding selections.
The Federal Deposit Insurance coverage Fee (FDIC) may present some safety in particular situations. Whereas financial institution deposits are protected by the FDIC, not all funding accounts fall underneath 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). Nevertheless, FDIC safety doesn’t lengthen to securities similar to shares, bonds, or mutual funds held on buying and selling platforms.
Uninvested funds on moomoo are held in FDIC-insured banks underneath the MFI money sweep program. This program routinely transfers uninvested funds from moomoo into FDIC-insured banks, the place they’ll earn curiosity till the proprietor decides to speculate 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 gives as much as $250,000 in protection per depositor at taking part banks, guaranteeing 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 prospects if a brokerage agency fails. Nevertheless, it doesn’t assure the worth of investments or cowl losses as a consequence of fraud, cybersecurity breaches, or market downturns. SIPC protection is proscribed to lacking money and securities held by a failed broker-dealer, guaranteeing that buyers can get better 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. Nevertheless, if an investor loses cash as a consequence of poor market efficiency, neither the FDIC nor SIPC will supply compensation.
For buyers utilizing moomoo, which means that 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. Nevertheless, neither insurance coverage program protects towards funding losses. Traders ought to rigorously assess their threat tolerance and diversify their portfolios to handle potential downturns successfully.
Moreover, whereas SIPC protection doesn’t shield towards fraud or cybersecurity threats, brokerage companies typically implement their very own safety measures to guard buyer property on their buying and selling platforms. Some brokerages supply further fraud safety applications or insurance coverage past SIPC protection. It’s vital for buyers to assessment their brokerage agency’s insurance policies and take precautions, similar to utilizing robust passwords, enabling two-factor authentication, and monitoring accounts for suspicious exercise.
Finally, SIPC and FDIC insurance coverage present essential safeguards for buyers, however they don’t seem to be substitutes for prudent funding methods or threat administration. Understanding these protections—and their limitations—may help buyers make knowledgeable selections about the place and the best way to allocate their funds.
Professional Tip:
Rise up to 25 free shares after a qualifying deposit with Moomoo in the present day!
Worldwide Compliance
Along with being licensed and registered in the USA, moomoo is licensed in Singapore, Hong Kong, Canada, Australia, Japan, and different nations, the place it additionally presents its paper buying and selling function.
Every of those nations has its personal laws 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 expertise on is safe. So, are moomoo customers protected for deposits and withdrawals on their buying and selling journey? The brief reply is sure!
Deposit Safety
Once you deposit cash to your moomoo account, it is going to be protected by bank-level encryption.
You could deposit funds utilizing both an ACH switch or a wire switch. Your financial institution may not cost a price 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 best place and saved safe while 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.
You could add a checking account at any time. You could not take away a checking account when there’s a pending switch.
How Moomoo Protects Towards Fraud
Moomoo takes person safety significantly. There are a number of protections in place towards fraud.
Two-factor authentication, or 2FA, is required of all customers. It’s essential to allow it, and you can be required to make use of it the primary time you log in from any new gadget. After the primary login, you gained’t must confirm your account with 2FA.
Gadget 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 must enter your moomoo ID, password, and a verification code the primary time you employ 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 cellular quantity.
Moomoo tokens are cellular merchandise that maintain your account safe. You’ll must obtain the moomoo token out of your app retailer. You’ll must 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 while you’re utilizing the cellular 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 further safety measures will make it extraordinarily tough for anybody else to entry your account.
Professional Tip:
Rise 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 threat is current with any dealer, notably after huge occasions like earnings experiences. Whereas some investments are riskier than others, even an easy inventory funding entails some threat. Neither moomoo nor their regulators can shield you from investment-related threat.
Margin buying and selling is without doubt one of the riskiest types of funding. You’re mainly borrowing cash (buying and selling on margin) hoping to generate profits. In the event you’re a high-leverage margin dealer, you’re vulnerable to sustaining main losses. Once more, moomoo’s safety measures gained’t shield you, even with low value buying and selling choices.
Lastly, there are account limitations. For instance, you may 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 stability of not less than $25,000 otherwise you’ll be restricted to only 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 will you inform the distinction?
Pink Flags in Pretend Brokers
Let’s begin with faux and illegitimate brokers. Listed below are a few of the largest pink flags to search for.
No regulation is a big pink 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 gained’t be coy about who owns them. That is data that ought to be straightforward to search out on-line.
Exhausting-to-withdraw funds are completely an issue. The cash in your account is your cash, not the brokerage’s. It ought to be straightforward to withdraw. It’s commonplace for there to be a brief ready interval, notably in the event you’ve made current trades that haven’t but been cleared by means of the SEC.
Lack of transparency about charges is one other potential pink flag. You shouldn’t need to guess what you’ll be paying while you make a commerce.
In the event you discover any pink flags, don’t create an account. As an alternative, examine extra and in the event you’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 dad or mum firm is totally disclosed and publicly-traded, that means you may view details about its monetary standing and extra.
In every single place it operates, moomoo is regulated by monetary authorities. Within the US, which means regulation by the SEC and FINRA and insurance coverage offered by the SIPC.
You possibly can simply discover actual person testimonials and belief tales with a fast on-line search.
Right here’s an summary of how moomoo compares to faux and fraudulent brokers.
What Are Customers Saying? Moomoo Belief & Opinions
Discovering actual critiques for apps generally is a problem. A few of the corporations that personal apps rent individuals 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 assessment on the Apple Retailer identified that they love the structure and the detailed technical data offered, whereas noting that the app is probably not for newcomers. Additionally they mentioned that they had speedy responses from customer support.
A few of the commonest reward is for moomoo’s robust safety, clear price construction, and superior instruments. Customers additionally admire that they’ll get entry to different markets utilizing moomoo.
The 2 commonest complaints are that the interface could also be a bit too advanced for newcomers and sometimes-slow response instances from customer support. Some individuals had been additionally sad with the withdrawal course of.
Closing Verdict: Ought to You Belief Moomoo?
Our ultimate verdict is sure, you may belief moomoo. It’s a totally professional 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 totally clear they usually make use of state-of-the-art safety to guard buyers and monitor towards fraud.
It’s not essentially the best platform for newcomers, however it’s perfect for lively merchants who need superior analysis instruments to assist them discover the best investments and monitor their portfolios.
