Moomoo review

Who Moomoo suits

Moomoo’s Canadian accounts are held with Moomoo Financial Canada Inc., an indirect subsidiary of Futu Holdings, which is listed on the Nasdaq. Its app is built around active trading, with Level 2 U.S. quotes, analyst ratings and paper trading. It suits investors who trade U.S. stocks, ETFs and options and want to deal in both Canadian and U.S. dollars.

It is a weaker match for long-term savers who need an FHSA, RESP or RRIF, and for anyone buying small amounts often, since every order carries a minimum charge. Canadian-listed options aren’t offered, and we found no fractional share trading on Moomoo’s Canadian site.

How Moomoo’s pricing works

Moomoo’s price has two parts, a commission and a platform fee, each charged per share with its own minimum per order. ETFs are priced the same as stocks, and there is no commission-free ETF list. Pricing pages show no effective date, and Moomoo says it can change fees without prior notice. The combined figures are what you pay:

• Canadian stocks and ETFs: CA$0.0149 a share, CA$1.49 minimum (a CA$0.0049 commission plus a CA$0.01 platform fee)
• U.S. stocks and ETFs: US$0.0099 a share, US$1.99 minimum (a US$0.0049 commission plus a US$0.005 platform fee)
• U.S. stocks under US$1: US$0.0005 commission plus US$0.0005 platform fee per share
• Canadian stocks priced in U.S. dollars follow the U.S. schedule, and an SEC fee applies to U.S. sells
• U.S. options: US$0.65 a contract, US$1.00 minimum, with the platform fee waived until further notice and no exercise or assignment fee

Account fees and currency exchange

Moomoo lists $0 account fees. EFT withdrawals are free, wires cost $50 in either currency, and RRSP de-registration costs $75 in full or $50 partial. Transferring an account out costs $75 in full or $50 partial, charged per currency plus sales tax, so a full transfer of an account holding both dollars could cost $75 in each.

You can trade in Canadian and U.S. dollars, and cash, margin and TFSA withdrawals are available in both. RRSP withdrawals are paid in Canadian dollars, and Moomoo doesn’t say whether RRSPs can hold U.S. dollars. It lists a 0% currency exchange fee, waived until further notice, but conversions use its Preferred Rate, a live rate that includes a spread it doesn’t publish.

Margin accounts need at least US$2,000 or CA$2,500, and Moomoo lists margin rates from 3.85% on Canadian dollars and 6.4% on U.S. dollars for balances over $100,000. A Cash Sweep feature pays interest on uninvested cash for members of Moomoo Engine, a paid subscription whose price we couldn’t confirm.

Accounts, promotions and protection

Account choice is narrow. Moomoo’s own FAQ lists RRSP, TFSA, cash and margin accounts, and spousal RRSPs are also offered. We found no FHSA, RESP, RRIF, joint or corporate account on its official pages.

Moomoo runs promotions for new accounts and transfers. Many rewards are paid as trading coupons or stock with holding conditions rather than cash, and its landing page and terms describe some offers differently, so read the full terms before you sign up.

Moomoo Financial Canada Inc. is regulated by the Canadian Investment Regulatory Organization (CIRO) and is a member of the Canadian Investor Protection Fund (CIPF). Its home page says CIPF protects client assets up to $1 million per account, and Canaccord Genuity Corp. is the carrying broker. CIPF covers you if a member firm becomes insolvent, not when your investments fall in value.