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 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 is advisable 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 secure place to place your cash.
On this article, we’ll assessment all the pieces 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 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 completely 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 & Change 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 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 gives buying and selling platforms in nations resembling 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:
Stand up to 25 free shares after a qualifying deposit with Moomoo as we speak!
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 based on 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 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 Change and the HKEX awards since 2022.
FUTU additionally has a deep dedication to neighborhood 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 vital factor right here is that moomoo is legit and so is its mum or dad 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 accountable for licensing broker-dealers in the USA. Anyone licensed by the SEC should additionally be a part of FINRA. Moomoo is licensed by the SEC and a FINRA member.
Dealer-dealers are topic to an extended checklist of rules in the USA. Listed below are just some of the necessities.
Responsibility of Truthful Dealing (an anti-fraud measure)
Suitability Necessities (recommending solely investments which are appropriate to their purchasers)
Responsibility of Finest Execution (in search of one of the best deal/value for his or her purchasers)
Restrictions on quick 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 academic 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 the USA, the Securities Investor Safety Company (SIPC) is accountable for defending buyers if their brokerage fails. It supplies 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, however it doesn’t protect in opposition to market losses or poor funding selections.
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 underneath 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 lengthen to securities resembling 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 robotically 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 supplies as much as $250,000 in protection per depositor at collaborating 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 clients 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, guaranteeing that buyers can get well their property.
Equally, FDIC insurance coverage protects in opposition to 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 provide 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. Nonetheless, neither insurance coverage program protects in opposition to 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 in opposition to 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 provide further fraud safety packages or insurance coverage past SIPC protection. It’s vital for buyers to assessment their brokerage agency’s insurance policies and take precautions, resembling utilizing robust passwords, enabling two-factor authentication, and monitoring accounts for suspicious exercise.
Finally, SIPC and FDIC insurance coverage present important safeguards for buyers, however they aren’t substitutes for prudent funding methods or danger administration. Understanding these protections—and their limitations—will help buyers make knowledgeable selections about the place and the right way to allocate their funds.
Professional Tip:
Stand up to 25 free shares after a qualifying deposit with Moomoo as we speak!
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 gives its paper buying and selling function.
Every of those nations has its personal rules and necessities for broker-dealers. It’s moomoo’s duty to conform.
Is Moomoo Secure for Deposits & Withdrawals?
Any time you make a deposit or withdraw cash on-line, it’s essential to verify that the positioning or service you’re utilizing your buying and selling expertise on is safe. So, are moomoo customers secure for deposits and withdrawals on their buying and selling journey? The quick reply is sure!
Deposit Safety
If you deposit cash to your moomoo account, will probably 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 won’t cost a price for an ACH, however they are going to 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 best place and stored safe while you need 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 significantly. There are a number of protections in place in opposition to fraud.
Two-factor authentication, or 2FA, is required of all customers. You need 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.
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 must 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 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 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 as we speak!
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 shield you from investment-related danger.
Margin buying and selling is likely one of the riskiest types of funding. You’re principally borrowing cash (buying and selling on margin) hoping to make cash. 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 possibly can 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 steadiness of at the very least $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 Examine to Scams & Fraudulent Brokers?
You is perhaps questioning how moomoo compares to scams and fraudulent brokers. How are you going to inform the distinction?
Purple Flags in Pretend Brokers
Let’s begin with pretend and illegitimate brokers. Listed below are among the largest pink flags to search for.
No regulation is a large 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 info that must be simple 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 simple to withdraw. It’s commonplace for there to be a brief ready interval, significantly for those who’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 should 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 for those who’re not happy with what you discover, don’t use that dealer.
How Moomoo Stands Aside
Moomoo checks all of the containers relating to proving its legitimacy.
Moomoo charges are utterly clear and you may view them right here.
Their mum or dad firm is absolutely disclosed and publicly-traded, that means you possibly can 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 supplied 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 pretend and fraudulent brokers.
What Are Customers Saying? Moomoo Belief & Critiques
Discovering actual evaluations for apps could be a problem. A few of the firms that personal apps rent folks to submit pretend evaluations.
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 info supplied, whereas noting that the app will not be for novices. Additionally they stated they’d fast 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 complicated for novices and sometimes-slow response instances from customer support. Some folks have been additionally sad with the withdrawal course of.
Closing Verdict: Ought to You Belief Moomoo?
Our closing verdict is sure, you possibly can belief moomoo. It’s a completely 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 absolutely clear they usually make use of state-of-the-art safety to guard buyers and monitor in opposition to fraud.
It’s not essentially the best platform for novices, however it’s excellent for energetic merchants who need superior analysis instruments to assist them discover the best investments and monitor their portfolios.
