Estimated reading time: 7 minutes
If you have never heard of Moomoo, you surely will from now on! Moomoo just had a grand launch in Kuala Lumpur, Malaysia, and it’s likely that they are going to change the entire Malaysian landscape of brokerage. Here’s why!
TABLE OF CONTENTS
Who is Moomoo?
From the United States to Malaysia, Moomoo has made a name for themselves as a leading global investment platform, and now they’ve brought their all-in-one investment super app to Malaysian investors.
With over 21 million users worldwide and a presence in countries including, Singapore (where 1 out of 4 adults trade via Moomoo), Australia, Canada, Japan, Hong Kong, and US where its parent company, Futu Holdings Limited, is based.
Moomoo now offers Malaysians the chance to supercharge their wealth with low fees, exclusive early bird rewards (worth up to RM 1,000), and full access to the US and Bursa Malaysia stock market.
Is Moomoo Safe?
Before their official launch in Malaysia, Moomoo had earlier secured the necessary regulatory approval from the Securities Commission (SC) Malaysia, operating under its original company, Futu Malaysia Sdn Bhd. This ensures a regulated and secure environment for us as investors.
According to Moomoo, they assure that users can receive potential compensation of up to RM100,000 from the Capital Market Compensation Fund (CMC Fund) in the very unlikely event of financial insolvency due to fraud, embezzlement, or dishonest selling. Plus, it ensures that all customer funds are held in a custodian account, distinctly separate from Moomoo’s own financial resources.
What Can I Trade with Moomoo?
Moomoo provides Malaysian investors the opportunity to diversify our portfolio with access to US and Bursa Malaysia stocks at very affordable rates. Moomoo’s main trading opportunities include:
- Stocks
- Exchange-traded Funds (ETFs)
Moomoo Fees Structure
“The cheapest broker is the best broker” and it’s somewhat true! Ultimately, the fees you save is directly reflected in your returns, and this is where Moomoo stands out – the fees are so low and other similar brokers in Malaysia simply cannot compete.
Plus, it’s one of the very few platforms that facilitates Shariah-compliant investing, offers advanced trading tools at no extra cost, and ensures transparent charges – so no hidden fees!
They also don’t require the extra step of converting MYR to another currency like USD to fund your account, so that makes the investing experience straightforward and secure.
Breakdown of fees structure
For reference: Total Fees to Pay = Commission Fees (0.03% of trading value) + Platform Fees (USD 0.99/order or RM 3/order) + Other Fees
Timeline of Fee Progression:
First 6 months
- US Stocks -> USD 0.99/order (commission fee is waived)
- Bursa Stocks -> RM 3/order (commission fee is waived)
After 6 months
- US Stocks -> USD 0.99/order + 0.03% of trading value
- Bursa Stocks -> RM 3/order + 0.03% of trading value
Fees for: Malaysia Stocks, ETFs, REITs and Warrants
Fees for: US Stocks, ETFs and REITs
Other Fees
- CDS Account Opening Fees: In Malaysia, if you’re trading stocks, you need a CDS (Central Depository System) account. This one-time fee is basically the cost of setting up this account.
- Clearing Fees: After you make a trade, it needs to be officially processed or “cleared.” This fee covers the cost of that process, ensuring everything’s legit and above board.
- Stamp Duty: This is a tax imposed by the government on your transactions.
- Settlement Fees: Once your trade is done, there are some behind-the-scenes actions to officially complete the deal. This fee is for handling all that administrative actions.
- SEC Fees: In the US, the Securities and Exchange Commission (SEC) charges this small fee on stock sales (not buys). It’s their way of covering the costs of regulating and keeping the stock market safe for investors.
- Trading Activity Fees (TAF, sells only): This is a fee charged by the Financial Industry Regulatory Authority (FINRA) in the US for each sale transaction. Think of it as a tiny toll fee for the security and oversight they provide on each sale you make.
- ADR Custodian Fees: For those investing in foreign companies via American Depositary Receipts (ADRs), this fee covers the cost of the bank that holds these foreign stocks and handles all the paperwork and currency conversion for your dividends.
Price Comparison:
- US Stocks and ETFs
- Bursa Malaysia Stocks and ETFs
Some Moomoo Limitations
Despite all the great things about Moomoo, there will always be room for improvement that could better serve the needs of modern investors.
1. Limited Market Reach: Right now, Moomoo Malaysia mainly has their eyes on the US and Malaysia markets. But there is talk about spreading their market reach to the Singaporean and Hong Kong markets soon. And imagine if they also decide to step into the UK market? That would be a game-changer, especially for getting our hands on tax-smart ETFs. It’s definitely something exciting to look forward to.
2. No Fractional Shares Trading: Fractional shares are commonly not provided by many Malaysian trading platforms, but it could still be viewed as an opportunity for future enhancements, especially for investors who wish to invest in expensive companies with less capital.
3. Nominee CDS: At the moment the CDS account for Bursa Malaysia stock trading is a Nominee CDS account, which is inferior to a Direct CDS account, where you can participate in Initial Pubp/pc Offerings (IPO), have direct ownership of your stocks, receive Annual General Meeting (AGM) invitation, and experience no delay in receiving your dividend payments. But for most people, this is actually a non-factor (even for myself, a nominee CDS does all the job for me).
Exclusive Launch Offer: Early Bird Rewards 🎁
To celebrate its official launch, Moomoo is giving away new users a complimentary Apple share when they set up a Moomoo Malaysia universal account and deposit RM8,000 by 31st March 2024. For those who find this deposit requirement steep, there’s an alternative: a RM100 cash reward with just a deposit of RM500 made before the end of 31st March 2024.
Claim your Free Apple Share here!
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