Moomoo vs. Robinhood [2024]: Which Is Better?

INVESTING - BROKERAGES & ADVISORS
What you need to know before you decide between Moomoo and Robinhood.
Updated April 11, 2024
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The days of needing a lot of knowledge and a lot of money to invest are long gone. Instead, investing is as easy as downloading an app and getting started.

But how do you know which is the best trading platform? There are several apps available, including apps that don’t charge trading fees, such as Moomoo and Robinhood. If you’re trying to decide where to start, these apps offer you a chance to learn the ropes without paying steep fees.

Here’s what you need to know about Moomoo vs. Robinhood so you can decide whether either app is the right choice for you.

In this article

Moomoo vs. Robinhood

Here’s a quick overview of how Moomoo and Robinhood stack up.

Moomoo Robinhood
Minimum investment $0 $0
Management fees None None for the regular platform;

$5 per month for Robinhood Gold

Asset classes
  • Stocks
  • ETFs
  • Options
  • ADRs
  • Stocks
  • ETFs
  • Options
  • Cryptocurrency
Account types available
  • Brokerage
  • Margin
  • Brokerage
  • Margin
  • Retirement
  • Crypto
Features
  • Extended hours trading until 8 p.m.
  • Options analysis
  • Trade on the Hong Kong Stock Exchange
  • Knowledge library
  • Extended hours trading until 6 p.m.
  • IPO access
  • Fractional shares
  • 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

How does Moomoo work?

Moomoo is a stock trading app that offers access to the markets. It’s a subsidiary of Futu Holdings, an international company. You can choose to trade stocks, exchange-traded funds (ETFs), and options.

Moomoo also offers the ability to trade American depository receipts (ADRs), which is a way of trading foreign companies without the need to go to a foreign stock exchange. A unique feature of Moomoo is that you can also trade stocks on the Hong Kong Stock Exchange in addition to U.S. stock exchanges like the New York Stock Exchange and Nasdaq.

As with many investment apps, Moomoo offers commission-free trades and has no minimum deposit requirement.

In addition to offering options trading, Moomoo offers options analysis so you can get insights to help with your investment decisions. The analysis tool shows helpful information like the break-even point and potential advantages and disadvantages of the option. Additionally, Moomoo offers free level two market data from the NYSE’s Arcabook and advanced charting.

Finally, Moomoo offers extended-hours trading until 8 p.m. EST, so it’s possible for you to reposition yourself and make trades outside public trading hours.

How does Robinhood work?

Like Moomoo, Robinhood offers commission-free trades on stocks, ETFs, and options and has no minimum investment requirement. You can also invest in IPOs and buy a fractional share rather than a full share of certain companies using your brokerage account.

Purchasing a share of stock can be pricey, so fractional shares could make investing more accessible if you’re on a budget. In addition to offering exchange-based products, Robinhood also offers limited exposure to cryptocurrencies through its crypto accounts.

Additionally, Robinhood gives you access to a margin account that increases your purchase power, but you must submit an application to enable it. Lastly, you can also set up a Robinhood Retirement account to invest in a tax-advantaged Roth or traditional IRA. Robinhood Retirement provides a distinctive advantage with a 1% match on eligible deposits, not frequently found on other investment platforms.

Robinhood has a membership level called Gold, which costs $5 per month. With Robinhood Gold, you can trade using a margin account and access more in-depth research and higher instant deposit amounts. Trading on margin means borrowing money from a brokerage — in this case, Robinhood — to carry out trades. Robinhood also offers after-hours trading, but only until 6 p.m. EST.

In addition to investing and trading capabilities, Robinhood recently added a cash card that is linked to an FDIC-insured spending account. The card allows you to automatically invest your change in stocks or cryptocurrencies. When you opt in for this feature, Robinhood will round up your transactions to the nearest dollar and invest the difference in assets of your choice.

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

What both investment platforms excel at

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. 

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.

Both apps are available for Apple and Android devices. Both Moomoo and Robinhood offer access to research tools and allow you to execute trades quickly and relatively easily. Both investment platforms also offer extended hours trading. When deciding between Moomoo and Robinhood, it’s really more about which features you’re looking for and what assets you want to trade.

4.2

Robinhood Benefits

  • Earn more interest on your uninvested cash with 5.00% APY (as of April 12, 2024)
  • Get up to $50K of your deposits instantly, so you can jump on investment opportunities faster
  • Borrow money to increase your buying power with margin investing at 8% (as of Nov. 15, 2023) APY for Gold members
Join Robinhood Gold here

6 important differences between Moomoo and Robinhood

When choosing between Moommoo and Robinhood, carefully consider the differences so you can decide which is likely to work best for you in the long run.

1. Robinhood offers exposure to cryptocurrencies

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.

2. Robinhood doesn’t charge options contract fees

Although both Robinhood and Moomoo don’t charge commissions to trade options, Moomoo does charge a per-contract fee.

Robinhood‌ doesn’t even charge a per-contract fee for options. This can make options trading cheaper at Robinhood.

When trading options, it’s important to consider whether there’s a contract fee because trading options usually comes with two parts: the commission and the contract fee. Although many brokers now don’t charge commissions for trading options, some of them, like Moomoo, still have the contract fee.

3. Robinhood offers access to pre-IPO companies

If you’re interested in pre-IPO companies, Robinhood offers that as a trading choice. Being able to buy shares before the initial public offering on a stock can come with advantages (though there is risk as well).

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 access to all the IPOs coming out.

However, for those who are interested in attempting to get in on hot companies before they go public, Robinhood could be a good choice.

4. Moomoo offers free advanced analysis and trading tools

The Moomoo app has an array of free advanced trading tools and analysis resources. Robinhood offers several tools, but you must 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.

5. Robinhood offers a cash card

Although Moomoo focuses on trading and investing, Robinhood offers additional products and services. One of the main offerings is the Robinhood Cash Card. It offers the following features:

  • Weekly bonus between 10-100% on round-ups (round-ups are capped at $100 per week and bonuses are capped at $10 per week)
  • Paycheck splitting using direct deposits
  • Ability to send checks
  • No hidden fees or account minimums
  • Access to 90,000 fee-free ATMs
  • Cashback opportunities when you spend on offers from participating brands

6. Moomoo offers 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.

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

Is Moomoo legit?

Yes, Moomoo is legit. It’s a subsidiary of Futu Holdings, which is registered with the SEC and FINRA. Moomoo also carries SIPC insurance.

Can you day trade on Moomoo?

Yes, you could day trade on Moomoo if you meet the day-trading margin requirements. Moomoo offers real-time quotes and fast execution of trades. As a result, it’s possible to day-trade using Moomoo.

Are Moomoo and Futu the same?

Moomoo is a subsidiary of Futu Inc.

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.

4.2

Robinhood Benefits

  • Earn more interest on your uninvested cash with 5.00% APY (as of April 12, 2024)
  • Get up to $50K of your deposits instantly, so you can jump on investment opportunities faster
  • Borrow money to increase your buying power with margin investing at 8% (as of Nov. 15, 2023) APY for Gold members
Join Robinhood Gold here

Author Details

Miranda Marquit Miranda Marquit has covered personal finance for more than a decade and is a nationally-recognized financial expert and journalist, appearing on CNBC, NPR, Forbes, Yahoo! Finance, FOX Business, and numerous other outlets.

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