moomoo SG 2023 Review: Low-Cost Trades, Zero Commission Fees, And More

With an annualised 5% return on their cash management account, moomoo SG — a trading platform by Moomoo Financial Singapore Pte. Ltd. could be a good place to park your cash for better return. Here’s what else moomoo SG has to offer investors in Singapore. 

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moomoo SG is a trading platform that is a wholly-owned subsidiary of NASDAQ-listed Futu Holdings, a company backed by Tencent. 

Having entered the Singapore market only in March 2021, moomoo SG announced its arrival by offering a free AAPL share pre-launch and during their launch, and has been offering different free shares ever since.

Signup perks aside, moomoo SG boasts competitive commission fees, particularly if you’re an investor looking to trade stocks in the U.S, Hong Kong or Singapore markets. 

Before you jump on the bandwagon and open a moomoo SG trading account, here’s what you’ll need to know.  

• Pros and cons of using moomoo SG
• Reasons to use moomoo SG
• Pricing, charges and fees involved 
• moomoo SG vs Tiger Brokers vs IBKR vs TD Ameritrade
• How do you open and fund your moomoo SG account?

Overview of moomoo SG

Product summary

What you can invest in: US, HK, China, and SG stocks, ADRs, ETFs, REITs
 
Minimum balance required: No minimum required

Commission fees: 

• • US stocks: 0% for eligible customers, 
  • Hong Kong stocks: 0.03% of the investment amount or HK$3, whichever is higher
  • Singapore stocks: 0.03% of the transaction amount, min. S$0.99

Platform fees:

• U.S stocks: 0% for the first year, US$0.99 thereafter
• Hong Kong stocks: HK$15 per order
• Singapore stocks: 0.03% (min S$0.99)

moomoo (Futu) is also the first digital brokerage in Singapore that has full SGX membership, which includes trading and clearing memberships for securities and derivatives.

This means that investors have the option to open a Central Depository (CDP) account to trade in SGX products such as equities and derivatives. At the time of writing, this service isn't available yet.

Here are the pros and cons of using moomoo SG for your investment and trading needs.

Pros of using moomoo SG as your trading platform

#1 Attractive sign-up promotion of a free share

From l June to 30 June 2023, new users who open a moomoo SG account will receive the following:

• Lifetime commission-free trading in the U.S stock market

• Free access to Lvl 2 U.S stock market data

• Free access to Lvl SG stock market data

• Free access to Lvl 1 China A-share market data

• S$2 cash coupon every day for 10 days when you deposit at least S$100 before 31 June 2023 and maintain at least S$100 in your account for 10 days

• One free Coca-Cola (KO) share worth around S$80 when you deposit a cumulative amount of at least S$2,000 before 30 June 2023 and complete at least two buy trades before 7 July 2023 while maintaining their assets for 30 days

• One S$108 cash coupon when you deposit a cumulative amount of at least S$10,000 before 30 June 2023 and make at least seven buy trades before 7 July 2023

#2. Low commission fees

The commission fees charged by moomoo SG for your trades made on the US, Hong Kong and Singapore markets are amongst the most competitive rates available.

For example, moomoo SG charges just 0.03% of the transaction amount for stocks on SGX and US$0.0049 per share for US stocks. There's also no commission fee for trading in U.S stocks for eligible customers.

At HK$3 for HK stocks and S$0.99 for SG stocks, the minimum commission fee required is also low – even more so than the likes of Tiger Brokers and Interactive Brokers (IBKR).

Tiger Brokers charges a minimum commission fee of US$0.005 per trade for US equities, while IBKR charges a minimum of US$1 per order for US stocks and S$2.50 for Singapore stocks.

On this note, do not be fooled by zero-commission free trades that might convince users that trading is absolutely free, as advertised by brokerage accounts. Do beware of other fees like a per-share settlement fee that some brokerage accounts charge, especially those without a cap. This could potentially put you in a deficit if the price of each share is low.

A recent article by The Business Times highlighted a trader who sold his shares for a total of US$5,000, only to realise that he found himself in an US$11,000 deficit because of the high settlement fee that he was charged.

Also read: Brokerage Fees And Other ‘Hidden Fees’ To Know When Investing In Singapore