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.
Persons are naturally skeptical about on-line buying and selling platforms, and there’s a purpose 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 good 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 evaluation all the things you want to find out 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 determine 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.
Once we say that moomoo is absolutely licensed, we’re speaking about licensing from the Securities & Trade Fee (SEC), which is the regulatory physique answerable 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 widespread and extremely rated, and the corporate additionally does enterprise and provides 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 embody particulars about regulatory investigations and infractions.
Customers’ belongings, 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 consumer 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 right now!
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 US and several other different nations. It was based in 2012 in Hong Kong.
FUTU was first listed on NASDAQ in 2019 and in keeping 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 signifies that they’re topic to public scrutiny, clear reporting, and strict monetary rules.
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 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 embody 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 the US, 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 answerable for licensing broker-dealers in the US. 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 listing of rules in the US. Listed below are just some of the necessities.
Responsibility of Honest Dealing (an anti-fraud measure)
Suitability Necessities (recommending solely investments which are appropriate to their purchasers)
Responsibility of Greatest Execution (in search of one of the best deal/worth for his or her purchasers)
Restrictions on quick gross sales and insider buying and selling
Restrictions on personal safety transactions
FINRA conducts regulatory inspections of its members to make sure they’re not in violation of any guidelines. It has the correct to impose fines and penalties.
FINRA additionally publishes academic 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 US, the Securities Investor Safety Company (SIPC) is answerable 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 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) may 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 keep up 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 similar 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 routinely transfers uninvested funds from moomoo into FDIC-insured banks, the place they will earn curiosity till the proprietor decides to speculate them. This function permits customers to profit from FDIC insurance coverage whereas their money stays uninvested, offering a layer of safety much like conventional financial institution deposits. FDIC insurance coverage gives 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 prospects if a brokerage agency fails. Nonetheless, 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, making certain that buyers can get well their belongings.
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 as a consequence 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. Buyers ought to fastidiously assess their danger tolerance and diversify their portfolios to handle potential downturns successfully.
Moreover, whereas SIPC protection doesn’t shield towards fraud or cybersecurity threats, brokerage corporations usually implement their very own safety measures to guard buyer belongings on their buying and selling platforms. Some brokerages supply further 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, similar to utilizing sturdy passwords, enabling two-factor authentication, and monitoring accounts for suspicious exercise.
Finally, SIPC and FDIC insurance coverage present vital safeguards for buyers, however they aren’t substitutes for prudent funding methods or danger administration. Understanding these protections—and their limitations—might help buyers make knowledgeable choices about the place and allocate their funds.
Professional Tip:
Stand up to 25 free shares after a qualifying deposit with Moomoo right now!
Worldwide Compliance
Along with being licensed and registered in the US, moomoo is licensed in Singapore, Hong Kong, Canada, Australia, Japan, and different nations, the place it additionally provides its paper buying and selling function.
Every of those nations has its personal rules and necessities for broker-dealers. It’s moomoo’s accountability to conform.
Is Moomoo Protected for Deposits & Withdrawals?
Any time you make a deposit or withdraw cash on-line, it’s essential to verify that the location or service you’re utilizing your buying and selling abilities on is safe. So, are moomoo customers protected for deposits and withdrawals on their buying and selling journey? The quick reply is sure!
Deposit Safety
Whenever you deposit cash to your moomoo account, will probably 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’ll cost you to ship a wire.
It’s simple 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 correct place and saved safe if 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 could 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 In opposition to Fraud
Moomoo takes consumer safety significantly. There are a number of protections in place towards fraud.
Two-factor authentication, or 2FA, is required of all customers. You have 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 have to confirm your account with 2FA.
System 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 preserve 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 if 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 robust password and utilizing these further 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 right now!
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 experiences. Whereas some investments are riskier than others, even an easy inventory funding entails some danger. Neither moomoo nor their regulators can shield you from investment-related danger.
Margin buying and selling is among 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 price 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 keep up a stability 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 could each result in penalties.
How Does Moomoo Evaluate to Scams & Fraudulent Brokers?
You could be questioning how moomoo compares to scams and fraudulent brokers. How are you going to inform the distinction?
Crimson Flags in Pretend Brokers
Let’s begin with faux and illegitimate brokers. Listed below are among the largest crimson flags to search for.
No regulation is a big 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 gained’t be coy about who owns them. That is info that ought to be simple to search out on-line.
Arduous-to-withdraw funds are completely an issue. The cash in your account is your cash, not the brokerage’s. It ought to be simple to withdraw. It’s commonplace for there to be a brief ready interval, significantly if you happen to’ve made current trades that haven’t but been cleared via the SEC.
Lack of transparency about charges is one other potential crimson flag. You shouldn’t need to guess what you’ll be paying if you make a commerce.
In the event you discover any crimson flags, don’t create an account. As an alternative, examine extra and if you happen to’re not happy with what you discover, don’t use that dealer.
How Moomoo Stands Aside
Moomoo checks all of the containers in relation to proving its legitimacy.
Moomoo charges are utterly clear and you may view them right here.
Their father or mother firm is absolutely disclosed and publicly-traded, which means you’ll be able to view details about its monetary standing and extra.
All over the 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 consumer 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 & Critiques
Discovering actual critiques for apps generally is a problem. A few of the firms 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 structure and the detailed technical info offered, whereas noting that the app might not be for newcomers. In addition they mentioned they’d fast responses from customer support.
A few of the commonest reward is for moomoo’s sturdy safety, clear price construction, and superior instruments. Customers additionally admire that they will get entry to different markets utilizing moomoo.
The 2 commonest complaints are that the interface could also be a bit too complicated for newcomers and sometimes-slow response occasions from customer support. Some folks have 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 professional buying and selling platform that’s regulated by the SEC and FINRA.
It’s backed by a publicly-traded fintech agency, and consumer 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 correct platform for newcomers, however it’s ideally suited for lively merchants who need superior analysis instruments to assist them discover the correct investments and monitor their portfolios.
