Moomoo vs. Robinhood: What’s the Best Commission-Free Trading Platform?

The days of needing a lot of money and access to a financial advisor to start investing are long gone. Instead, investing is as easy as downloading an app and getting started.

But with the democratization of investing came an infinite number of options for investment apps and platforms, and it can be difficult to choose the right one. Two popular investment platforms are Moomoo and Robinhood, both known for their commission-free trading.

If you’re trying to decide where to start, these apps offer you a chance to learn the ropes without paying steep fees or meeting high investment minimums. Here’s what you need to know about Moomoo versus Robinhood so you can decide whether either app is the right choice for you.

Moomoo vs. Robinhood

	Moomoo	Robinhood
Minimum investment required	$0	$0
Management fees	None	None for the regular platform; $5 per month for Robinhood Gold
Asset classes	Stocks ETFs Options ADRs	Stocks ETFs Options2 <p>Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the <a href="https://cdn.robinhood.com/assets/robinhood/legal/Characteristics%20and%20Risks%20of%20Standardized%20Options.pdf">Characteristics and Risks of Standardized Options</a> before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.</p> <p>Robinhood Financial does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. Supporting documentation for any claims, if applicable, will be furnished upon request.</p> <p>Financebuzz is compensated by Robinhood to produce this content.</p> Cryptocurrency
Account types available	Brokerage Margin	Brokerage Margin Retirement Crypto
Features	Extended hours trading until 8 p.m. Fractional shares Options analysis Trade on the Hong Kong Stock Exchange Knowledge library	Extended hours trading until 6 p.m. IPO access Fractional shares3 <p>Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of the Robinhood Customer Agreement. All investments involve risk and loss of principal is possible.</p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer.</p> Knowledge library Robinhood Cash Card
Best for...	Intermediate traders who want to try different strategies and access after-hours trading.	Beginners who want to learn about trading and who want exposure to cryptocurrency.
	Visit Moomoo	Visit Robinhood

When to go with Moomoo

Moomoo, a subsidiary of Futu Holdings, is a stock trading app that offers access to stocks, exchange-traded funds (ETFs), and options. Moomoo and Robinhood share several great features, but there are a few things that make Moomoo stand out.

Here are a few situations where Moomoo might be the right choice for you:

• You want a stock analysis tool
• You want access to the Hong Kong Stock Exchange
• You want to practice investing

Powerful stock analysis

The Moomoo app has an array of free advanced trading tools and analysis resources. Robinhood offers several tools, but you’ll have to subscribe to Robinhood Gold for $5 to get access.

One of Moomoo's tools is options analysis, which can be helpful when you’re trying to determine a strategy. Another tool is the insights it offers, which may help you execute more effective options strategies if that’s what you’re interested in.

On top of that, Moomoo compares prices on assets across exchanges so you can get the best price. There’s also an advanced stock screener to help you identify ideas for your next investment. Moomoo also has access to updated real-time quotes through the Arcabook, which is used by the NYSE.

For intermediate to advanced traders who want access to more tools and insight and a more advanced platform, Moomoo might be the better choice since it offers these tools for free.

Access to the Hong Kong Stock Exchange

In addition to U.S. stocks, Moomoo also allows you to participate in the Hong Kong stock market. Moomoo offers access to almost 3,000 Hong Kong stocks, a feature you can’t get with Robinhood.

Learn the ropes with paper trading

If you want to practice a new investing strategy without risking your money, you can do so with Moomoo’s paper trading. Paper trading is basically fake investing. The platform gives you $1 million of virtual money, and you can practice trading stocks, options, and futures.

Moomoo has a library of educational resources, including more than 900 courses to help you learn the ropes. You can put these techniques to the test with paper trading and feel more confident when you’re ready to start trading for real.

Visit moomoo | Read our Moomoo review

When to go with Robinhood

Like Moomoo, Robinhood offers commission-free trading on stocks, ETFs, and options. It’s one of the most popular trading apps on the market, and for good reason. Let’s talk about a few reasons you might prefer Robinhood over Moomoo:

• You want to invest in cryptocurrency
• You want to invest for retirement
• You want to place pre-IPO orders
• You want a cash back credit card

Cryptocurrency investing

Robinhood offers exposure to cryptocurrencies, including Bitcoin, Litecoin, Ethereum, and Dogecoin. If you’re interested in trading crypto, Robinhood could be a good choice.

Robinhood doesn’t charge any fees or commissions for cryptocurrencies, so it can be cheaper than using an exchange like Coinbase or Gemini. On the other hand, the available cryptos are much more limited with Robinhood.

Moomoo doesn’t offer the ability to trade cryptocurrencies, but you can get access to cryptocurrency news and follow the prices and latest trends.

Investing for retirement

In addition to taxable brokerage accounts, Robinhood also offers both traditional and Roth IRAs.⁴ <p>The IRA Match is automatically added after eligible contributions from an external account. Keep the contributions in your IRA for at least 5 years from the date you contribute. IRA Match <a href="https://robinhood.com/us/en/support/articles/ira-match-faq/">FAQ</a>.</p> <p>You must have earned income to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice.</p> <p>This is not a recommendation to roll over. Before taking any action with a former employer's retirement plan, be sure to consider the various options: <a href="https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers">https://www.finra.org/investors/investing/investment-accounts/retirement-accounts#loans-and-rollovers</a></p><p>The Robinhood IRA is available to any customer with a Robinhood brokerage account in good standing.</p><p>Other fees may apply. See our Fee Schedule for details.</p><p>Recommendations are not available to Massachusetts residents. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).</p> You’ll have access to the same stocks and ETFs, but with some major tax advantages that you won’t get in a standard brokerage account.

Additionally, you’ll get an additional 1% match on your retirement contributions (or 3% if you’re a Robinhood Gold subscriber⁵ <p>The 3% matching on contribution requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to the <a href="https://robinhood.com/us/en/support/articles/ira-match-faq/">IRA Match FAQ</a>.</p> <p>Robinhood Gold is offered through Robinhood Financial LLC and is a subscription offering premium services for a monthly fee.</p> <p>You must have earned (wage) income in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least five years to avoid a potential Early IRA Match Removal Fee. For more information, see the IRA Match FAQ. </p> <p>Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions. </p> <p>The Robinhood IRA is available to any of our U.S. customers with a Robinhood brokerage account in good standing. </p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC),is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).</p> ). You can think of this boost the same way you would an employer match on your 401(k). However, you’ll have to leave your money invested for at least five years to keep the match.

Pre-IPO orders

If you’re interested in placing pre-IPO orders, Robinhood offers that as a trading choice. You aren’t technically buying pre-IPO shares, but you’re able to enter your order before the IPO goes live. Then, once trading begins, Robinhood will execute your trade.

However, it’s important to note that Robinhood won’t guarantee your order will be filled. These are limit orders, so you might not get an execution on your order. On top of that, Robinhood doesn’t offer pre-IPO orders on all stocks that go public.

If you’re interested in IPO investing, learn how to buy IPO stocks before you get started.

Cash back credit card

In addition to its trading features, Robinhood also offers the Robinhood Gold Card, which is a cash back credit card available to Robinhood Gold subscribers. With this card, you’ll earn 3% cash back on all categories and 5% cash back on travel booked through the Robinhood travel portal.

Other card perks include:

• $0 annual fee
• No foreign transaction fees
• Trip interruption protection
• Purchase protection
• Auto rental collision damage waiver
• Extended warranty protection
• Return protection
• Travel and emergency assistance
• Roadside dispatch

You can redeem your cash back for statement credits, deposits into your Robinhood brokerage account, travel points, shopping points, and gift cards.

Read our Robinhood review for more information to help you decide between Moomoo vs. Robinhood.

What both investment platforms excel at

Moomoo and Robinhood have more similarities than differences, which means either option could be a good fit for most investors. Here are a few things both platforms do very well:

• Commission-free trading: Both Moomoo and Robinhood offer commission-free trading for stocks, ETFs, and options. Additionally, both platforms make trading and investing accessible to many people. Although Moomoo might be better suited for those at the intermediate and advanced levels, even beginners can use the app with relative ease. Robinhood is more suited to beginning investors, but more advanced traders can use the app to accomplish their goals.
• Fractional shares: Both Moomoo and Robinhood offer fractional shares, which means you can buy just a portion of a share instead of an entire one. For example, if a stock trades at $100 per share, you could buy just a quarter of a share for $25. This makes stocks more accessible for investors who may not be able to buy full shares.
• Margin trading: Both Moomoo and Robinhood offer margin trading, which is essentially when you borrow money from your broker to increase your investment. Then, you’ll pay back the broker with your investment earnings. Margin trading is risky and isn’t right for every investor, but both Moomoo and Robinhood offer this option.
• After-hours trading: The normal stock trading day ends at 4 p.m. ET, but both Moomoo and Robinhood have extended trading hours until 8 p.m. ET. Your trade won’t technically execute while the market is closed. Instead, the order will be queued for the beginning of the next trading day. Keep in mind that pricing is based on the last trade price of the day, and there’s no guarantee that’s the price your order will execute at.
• High-yield cash sweeps: Of course, you can earn money by investing in the market, but both Moomoo and Robinhood allow you to make money on your uninvested dollars. Moomoo allows you to earn 4.60% (as of 9/19/24) APY on your uninvested cash, while Robinhood allows Gold members to earn 4.25% (as of 11/15/24) APY. Keep in mind that these rates are subject to change, and they likely will as interest rates go down.
• Investor protection: With both Moomoo and Robinhood, you’re getting access to a broker that is registered with the Financial Industry Regulatory Authority (FINRA). Additionally, both platforms carry Securities Investor Protection Corp. (SIPC) insurance, protecting your account in the event the online broker goes out of business. It’s important to note, however, that SIPC insurance won’t protect you from market events or losses in stock value.

Which investment platform should you choose?

When deciding on an investment platform, it’s important to consider what’s important to you. Some factors to consider when choosing between Moomoo and Robinhood include:

• Available asset classes
• Fees
• Features you’re looking for

Generally, it’s a good idea to consider the types of assets you’re likely to trade and how often you expect to trade. If you know you’re going to trade options frequently, it might make more sense to choose Robinhood because you could avoid the contract fee that Moomoo charges. Additionally, if you want access to cryptocurrencies, Robinhood could be a better choice.

Also, keep in mind that Robinhood Retirement accounts give you access to the tax advantages of both traditional and Roth IRAs. On the other hand, Moomoo doesn't offer any type of retirement savings account.

On the other hand, if you’re a trader who is intermediate to advanced and you want access to more tools and analysis, Moomoo could be the better choice. Moomoo offers analysis tools for options trading and a stock screener that’s effective for those with a little more experience. If you want features that go beyond what Robinhood offers, Moomoo could be a good option.

FAQs

Bottom line

When learning how to invest money, a good investment app or brokerage can help. Both Robinhood and Moomoo could help you practice the basics of trading by offering fast trade execution and allowing you to trade options.

To decide whether either of these apps is right for you, it can be helpful to look at other options. Review our picks for the best investment apps to see how Moomoo and Robinhood compare.

Of course, neither app offers tailored financial advice, so if you’re not certain of where to start, you may want to seek the assistance of a financial advisor.