If you have been browsing the web recently for anything related to online investments, you might have read about the Moomoo trading platform and wondered if it’s available to you, similar to other platforms like Webull, Robinhood, and Public.com.
Well, we have wondered that ourselves, we have done the research, and we are ready to answer all your questions!
In this article, we will explain what Moomoo is, we’ll discuss if it’s eligible in the UK and what are some pros and cons of choosing it. We’ll then discuss some alternatives and explore the best options available for a wide range of different investor profiles.
Is Moomoo Available in the UK?
Let’s get straight to the point. Yes, Moomoo is currently available in the UK.
But before you get excited, you should know that it is definitely far from a fully operational convenient platform for UK users.
And if you are wondering if it ever will be, we can’t be certain. Our research has led us to believe that while Moomoo is definitely an investment platform that should be kept under our radar, it is currently far from optimal for UK investors and we would recommend alternative brokers. You can find a list of the best alternatives according to our team further down in the article.
What is Moomoo?
Moomoo is a relatively new, fast-growing commission-free trading App based in the US. The platform is gaining popularity with its advanced professional trading tools and lucrative welcome bonuses. The company was founded in 2018 and is currently regulated by the SEC, and the MAS. Moomoo is a subsidiary of Futu Holdings Ltd, which since March 8, 2019, is listed on the NASDAQ under FUTU.
Is Moomoo a good choice for a UK customer?
The answer to that question is probably no. Even though Moomoo offers commission-free trading, there are a few drawbacks for UK users: it is not regulated by the FCA, and lacks important features for UK users, such as the ability to invest in UK-listed shares, accepting GBP as the account currency, and having procuts like the ISA.
Here is our experience when we tried to register and trade on the platform:
Firstly, doing a quick research on the internet lets us believe that Moomoo is only available in a few countries (U.S., Singapore, Australia, Japan, and Malaysia). Trying to create a new account also seemed to strengthen feelings, because those are the options sitting on top of the drop-down menu for country selection:
We were certain that trying to continue the registration process from the UK would eventually be blocked, but it seemed to keep going and going.
Confused, we turned to customer support and directly asked them if we could register and invest from the UK. We quickly received a positive answer and now, even more confused, asked for more details.
This time we received the detailed answer that we were hoping for, and it said that if we wanted to invest from the UK, we would need to deposit funds through a bank wire that would take 1-2 business days to process and 5-10 days to return your funds if they are not accepted (with a fee being charged to you). As you can probably guess, we weren’t thrilled about that and left the registration as it was.
This being said, we are not in any way saying that Moomoo is a bad platform, on the contrary, it seems to be an advanced platform with many tools and great benefits for newcomers. Unfortunately, the platform hasn’t yet made an official UK market entry, which is making it difficult to use.
Moomoo Alternatives for UK Investors
eToro – Best for Beginners & Social Trading
76% of retail CFD accounts lose money.
eToro in a nutshell
eToro is a pioneer in the world of social trading, with a global community of over 30 million users. Launched in 2007, this platform has carved a niche for itself with its innovative features, such as CopyTrader™ and Smart Portfolios. These tools empower users to mirror the trades of successful investors or invest in a diversified portfolio, making eToro a fantastic platform for beginners looking to learn from seasoned traders.
The platform’s user-friendly interface is another feather in its cap, making it a breeze for newcomers to navigate the world of trading. eToro is also regulated by top-tier entities, including the UK’s Financial Conduct Authority (FCA), providing users with an added layer of security.
eToro’s commission-free stock and ETF trading make it a cost-effective alternative to Moomoo. Its primary revenue source is the spread, which is the difference between a security’s buy and sell price. This pricing model is straightforward and transparent, making it easy for beginners to understand what they’re paying for.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers – Best for Advanced Traders & ISAs
Interactive Brokers in a nutshell
Interactive Brokers (IBKR), established in 1978, is a titan in the online brokerage industry, catering primarily to active and sophisticated investors. With a reputation built on resilience and robust risk management, it has weathered numerous economic storms, demonstrating its reliability. The company offers a wide range of products and top-notch research tools, making it a treasure trove for advanced traders.
While the website can be a bit daunting for beginners, the IBKR GlobalTrader mobile app is a game-changer. This app offers a more streamlined and user-friendly experience, making it an ideal choice for novice investors looking to dip their toes into the trading world.
Interactive Brokers’ low commission structure makes it a cost-effective alternative to Moomoo for UK investors. The company offers low fees for trading US stocks/ETFs and UK Stocks/ETFs, with a transparent fee structure that’s easy to understand. But, for small transactions (under 2000€), the spreads will have a smaller impact, so we believe both eToro and Trading 212 are cheaper alternatives. Also, IB lacks eToro’s Social Trading feature.
What sets Interactive Brokers apart is its comprehensive range of products and markets. The platform offers several investment options that few competitors can match, from stocks and ETFs to options. This wide variety makes it a fantastic platform for advanced traders looking to diversify their portfolios.
Lastly, Interactive Brokers offers a Stocks and Shares ISA and a Junior ISA (JISA). It makes Interactive Brokers a standout choice for those looking to make the most of their tax-free savings allowance.
Trading 212 – Best for Low-Cost Investing
Investing involves risk of loss.
Trading 212 in a nutshell
Trading 212 is a UK-based online broker that’s been making waves in the world of low-cost investing. Established in 2006, the platform has grown to serve over 15 million users worldwide, offering commission-free Stocks and ETFs trading along with an automated investing feature called “AutoInvest & Pies.”
Regulated by top-tier authorities, including the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Bulgarian Financial Supervision Commission (FSC), Trading 212 provides a secure environment for investors to trade with confidence.
Trading 212’s commission-free trading model also makes it an excellent low-cost alternative to Moomoo. The platform charges minimal fees, with one of the few being a 0.15% currency conversion fee. It also shares profits on share lending on a 50/50 basis, providing an additional income stream for investors.
The platform’s user-friendly web and mobile apps and a wealth of educational materials and real-time market data make it an excellent choice for beginners and experienced traders. Its “AutoInvest & Pies” feature allows users to automate their investing, making building and managing a diversified portfolio easier.
However, it’s worth noting that Trading 212’s product portfolio is somewhat limited compared to Interactive Brokers, charges high forex fees, and lacks the social trading feature that sets eToro apart.
In conclusion, while Moomoo seems to be available in the UK, it is currently neither the most convenient nor the legally safest platform to choose. There are several robust alternatives available for UK investors. Each platform has its unique strengths and caters to different types of investors. eToro shines with its social trading feature and user-friendly interface, making it an excellent choice for beginners. Interactive Brokers offers a comprehensive range of products and advanced trading tools, catering to more experienced traders. Trading 212 stands out with its low-cost, commission-free trading model, making it an attractive option for cost-conscious investors.
|Beginners & Social Trading
|Real Stocks, ETFs, Forex and CFDs on Stocks, ETFs, Cryptos and Commodities
|0% commissions on stocks and ETFs (spreads apply)
|Advanced Traders & ISAs
|Stocks, ETFs, Bonds, Forex, Funds, Commodities, Options, Futures and CFDs
|Up to $0.0035 per stock (min: $0.35)
|Real Stocks, ETFs, Forex, CFDs on stocks, crypto, indices and ETFs
|0% commissions on stocks and ETFs (spreads apply)
It’s important to remember that each platform has its limitations. eToro and Trading 212 have a somewhat limited product portfolio compared to Interactive Brokers. Trading 212 charges high forex fees and lacks the social trading feature of eToro. Interactive Brokers’ platform can be overwhelming for beginners, and its fees can be higher compared to the commission-free trading offered by eToro and Trading 212.
Ultimately, the best platform for you will depend on your individual needs and investment goals.