In recent years, there has been an explosion in the number of commission-free trading apps available to retail investors. Two of the most popular of these apps are Moomoo and Robinhood. While both platforms offer commission-free trading for certain types of securities, there are significant differences between the two platforms in terms of the types of securities available, the fees and margin rates charged, and the overall user experience. In this article, we will compare Moomoo and Robinhood in depth, highlighting their similarities and differences to help you make an informed decision on which platform is best for your investment needs.
Moomoo vs Robinhood Comparison
| Feature | Moomoo | Robinhood |
|---|---|---|
| Margin Rate | 6.80% and up | 6.50% and up |
| Trading Fees | $0 commission for US stocks, ETFs, and options. Futures trading fees vary. | $0 commission for US stocks, ETFs, options, and cryptocurrencies. |
| Market Cap | $6.8 billion (NASDAQ:FUTU) | $7.2 billion (NASDAQ:HOOD) |
| Mobile App | Available for iOS and Android | Available for iOS and Android |
| Investment Options | Stocks, ETFs, options, ADRs, and futures | Stocks, ETFs, options, and cryptocurrencies |
| Customer Support | 24/7 live chat and phone support | Email support and in-app messaging |
| Securities Lending Income | Up to 50% of the revenue from lending out securities | N/A |
| Research and Analysis Tools | In-app research and analysis tools, including news and market data | In-app research and analysis tools, including news and market data |
| Cryptocurrency Trading | Not available | Available for Bitcoin, Ethereum, Dogecoin, and others |
| Education and Learning Resources | In-app educational materials, including video lessons and webinars | In-app educational materials, including video lessons and webinars |
| Trading Platform | Web and mobile app | Web and mobile app |
| Minimum Deposit | No minimum deposit required | No minimum deposit required |
| Cash Management | Moomoo Cash Management offers a high yield savings account, debit card, and ATM fee rebates | Robinhood Cash Management offers a high yield savings account, debit card, and ATM fee rebates |
| New Customer Offers | Upto 18 FREE Stocks | 1 FREE Stock |
Here’s a comparison based on the available data:
- Features:
- Moomoo:
- Pre-market and after-hours trading
- Advanced charting and research tools
- Level 2 market data
- Social community and news feed
- Access to global markets (including the US, Hong Kong, and China)
- Paper trading (simulation) platform
- Robinhood:
- Pre-market and after-hours trading
- Simple and intuitive user interface
- Fractional shares trading
- Cryptocurrency trading
- Access to US market only
- No paper trading
- Moomoo:
- Margin rate:
- Moomoo: Offers margin trading with interest rates that vary depending on the account balance. For the most up-to-date rates, check their website.
- Robinhood: Offers margin trading through Robinhood Gold, which costs $5 per month and includes $1,000 of margin interest-free. For additional margin, interest rates may apply. Check their website for the latest rates.
- Trading fees:
- Moomoo: Offers commission-free trading for US stocks, ETFs, and options. There may be fees for other markets or additional services.
- Robinhood: Offers commission-free trading for US stocks, ETFs, options, and cryptocurrencies.
- Market cap:
- Moomoo: Moomoo’s parent company Futu Holdings Limited is a publicly-traded company listed on the NASDAQ stock exchange under the ticker symbol “FUTU.” The market cap may fluctuate based on the stock price, as of March 23rd, 2023, the latest value of FUTU is $6.8B.
- Robinhood: Robinhood is a publicly-traded company listed on the NASDAQ stock exchange under the ticker symbol “HOOD.” The market cap may fluctuate based on the stock price, as of March 23rd, 2023, the latest value of HOOD is $7.2B.
- Account minimums:
- Moomoo: No account minimum for US clients.
- Robinhood: No account minimum for standard accounts. A $2,000 minimum is required for margin accounts (Robinhood Gold).
- Customer support:
- Moomoo: Offers customer support via email and live chat.
- Robinhood: Provides customer support primarily through in-app help articles and email. They also have a limited phone support service for specific issues.
It’s important to consider your individual needs and preferences when choosing a trading platform. Moomoo offers advanced charting and research tools, access to global markets, and Level 2 market data, making it more suitable for advanced or active traders. On the other hand, Robinhood’s simple and intuitive interface, fractional shares trading, and cryptocurrency trading options may appeal to beginner investors or those interested in cryptocurrencies.
Please note that this table is not exhaustive and there may be other features and characteristics of Moomoo and Robinhood that are not included. Additionally, please conduct your own research and due diligence before making any investment decisions.