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Tuesday, 13 April 2021

My Review on the New Trading Platform, moomoo (Update)

When it comes to online and mobile trading platform for equities, ETFs, options and other investment products, we are clearly spoilt for choice here in Singapore.
 
From the traditional local-based brokerages to the foreign-based new entrants to our local scene, I can easily count at least 10 off my head right now.
 
One of the latest platforms that was recently launched in Singapore on 8th March 2021 is a one-stop investment platform, moomoo, powered by Futu Holdings Limited which is Nasdaq-listed.
 
And it's so apt that they chose to launch in Singapore this year since 2021 is the ox year in the lunar calendar.
 
  
 
At this point of writing, Futu boasts more than 13 million users worldwide with yours truly adding to the rank this week.

As of now, you can trade the Hong Kong, US and Singapore markets using the moomoo platform.

You must be thinking what is the difference between Futu SG and moomoo?

Futu SG is the brokerage and moomoo is the platform.

You will need to get a moomoo ID before you can open a Futu SG securities account to start trading. More details will be shared in the later part of this article.
 
And if you are still thinking about whether to sign up for a Futu SG securities account, here are some reasons that might help you in your decision making:
 
1) Regulated by the Monetary Authority of Singapore (MAS) 
 
Securities products and services in moomoo are offered by wholly-owned subsidiaries of Futu Holdings Ltd.

In Singapore, it is registered as Futu Singapore Pte. Ltd. (Futu SG) and is a capital markets services license holder regulated by the Monetary Authority of Singapore (License No. CMS101000).

That gives me a piece of mind. 
 
2) Low Trading Fees  
 
Low trading fees will continue to be offered after promotion period has ended - see below comparison.

3) Free Real-time Level 2 Quotes  
 
The level 2 market data comes with millisecond-level updates.

This is for the US market only which is one of the most traded market for Singapore-based traders.
 
 
4) Fast Order Placement 
 
Orders are placed as fast as 0.0037 s. That certainly provides an edge over other platforms with slower order placement. This is especially useful for volatile price changes often seen in the US market.

5) Good Customer Service and Support
 
Personally I placed a big emphasis on this area and I must say moomoo did not disappoint.
 
As a new user, you will need to get a moomoo ID first and use this ID to open a Futu SG securities account. After that you should receive an email informing you that your account has been approved. However I did not receive this email.

Nevertheless the moomoo's representative whom I liaised with helped to resolve this in a responsive and fast manner which impressed me.
 
6) Welcome Bundle 
 
I believe this should be appealing to most investors: Commission-free trading* for 90 days in US, HK & SG markets, SGD 30 cash coupon and one free Apple (AAPL) share.

* not applicable for options trading.
 
 
One important thing to take note on the welcome bundle is that it will end by 30th April 2021.

So do get your moomoo ID and use it to sign up for a Futu SG securities account before the end of April 2021. Once this is successful, you can proceed to deposit a minimum of SGD 2,700 within 45 days into your Futu SG securities account to qualify for the welcome bundle.

In my case I received the welcome bundle the next day after I deposited my funds.
 
 
Straightforward and easy isn't it?
 
It is the same for using the moomoo platform. More on that later.

Apart from the attractive welcome bundle, I have also done some homework to ascertain the competitiveness of fees charged by moomoo.

Here is the comparison against two other platforms:

 
As you can see, the fees charged by Futu SG on moomoo’s platform are mostly competitive with some minimum fees actually lower compare to its competitors'.
 
One thing to note here is that Futu SG charges a min. platform fee and this is similar to other brokerages who may place this into their fine prints.
 
Futu invest heavily into their technology to allow their users a fully digitised platform and continuously work to improve it. The platform fee that Futu charge is at a very low rate compared to others so as to allow their users to enjoy better services on the platform.
 
Besides this, Futu SG doesn't charge custodian fee for foreign shares as well.
 
I think the low trading fees and zero custodian fee are definitely helpful towards enhancing our profit & loss from investing.
 
Now the next question you would probably be asking is how to get your moomoo ID and open a Futu SG securities account.
 
The steps are pretty easy and straightforward. Before we head into that, if you find this post helpful to you in any way, please feel free to use my referral link to sign up for your Futu SG account on moomo’s platform and claim your welcome bundle.
 
My referral link is here.
 
Thanks in advance.

Getting Your moomoo ID and Opening Your Futu SG Securities Account
 
Step 1: Click on my referral link as above and you should be redirected to the moomoo's website with a prominent 'Claim Now' button. 

 
Step 2: Click on this 'Claim Now' button and the website will guide you along to get your moomoo ID and lead you to download the moomoo App via the App Store or Google Play Store.
 
Step 3: Once you have downloaded the moomoo App, you can open an account with Futu SG securities. If you are a Singaporean, you can use MyInfo to facilitate the signing up as well.
 
All in all, it took me only about 5 min to complete my account opening with Futu SG on the moomoo App.
 
Step 4: Once that is done, you should receive a confirmation email from Futu within 10 min (or up to a day) to inform you that your account opening has been completed and approved.

Step 5: After that you can start using the moomoo platform to trade.

it's that intuitive.
 
Depositing Funds into Your Futu SG securities Account on the moomoo App
 
Step 1: Click on the 'Me' icon in your moomoo App.

Step 2: Click on the 'All' icon.


Step 3: After that click on the 'Deposit' icon and follow the steps accordingly.

 
You can deposit funds via FAST which is a free transaction from the local banks.
 
On the moomoo platform, Futu SG does not charge any fee for incoming funds deposit.
 
The funds are expected to be deposited into your trading account within 1 - 3 working days after you made the transfer. However my funds took less than 5 min to be reflected in my moomoo App after I made the transfer.
 
This is another plus point to use the moomoo platform.
 
I remember it took several hours to have my funds reflected in my account when I was using another trading platform previously and that resulted in missed trading opportunities.
 
Just in case you run into issues during the sign up or fund deposit process and need a quick guide on how to do it, included below are two video links to help guide you along.
 
If you have any question, you can also reach out to Futu Singapore's client servicing team at +65 6439 1100 or email them at clientservice@futusg.com.
 
 

Last but not least, I personally find the features inside the moomoo platform useful especially the charts with excellent features, the news articles as well as the stocks ideas which you can take reference from.

So if you are keen in investing in the SG, HK or US markets, make use of this promotion with the welcome bundle to sign up. Start using this one-stop investment platform moomoo, powered by Futu.

Cheers and good luck in your investment journey.

27th April 2021 Update

Just received an update on the new welcome bundle promotion named "Share Leh!" from Futu SG. 

This welcome bundle will apply to new account openings from 1st May to 30th June 2021.

The main difference between the existing welcome bundle and the new "Share Leh!" welcome bundle is that the latter will no longer include the SGD 30 cash coupon. 

However commission-free trading for the US, HK and SG markets has been extended by 90 days to total of 180 days. 

The comparison below illustrates the differences between the two bundles in table form. 


Comparing between the two bundles, my take is that the existing bundle will benefit those who don't trade often. The SGD 30 would be more worth it for this group. 

For those who trade more often, the new welcome bundle will be more beneficial.

I will illustrate this with an example, taking a base scenario of trading in the US market. 

No. of Usable Additional Commission-free Trading Days: 90 - estimated no. of weekends = 65 days

Min. Charges per Trade: USD 1.99

No. of Trade Done per Day: assuming one trade per day

Amount of Savings Achieved: 65 days x USD 1.99 x 1 trade per day = USD 129.35

As you can see, even with such a conservative approach the amount of savings is far greater than the SGD 30 cash in the existing bundle. 

In a nutshell for the new bundle, the more you trade, the more you save. 

Just a gentle reminder, if you feel the existing welcome bundle is more worthwhile for you, be sure to sign up latest by 30th April 2021 and deposit the minimum SGD 2,700 into your account within 45 days to qualify for the existing bundle benefits.

You can use my referral link to sign up should you wish to enjoy the benefits from either bundle. 

I will receive a referral fee from Futu SG for the sign up through my referral link. 

Thank you in advance. 

This post is written in collaboration with moomoo.

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