|
Is Moomoo FDIC and SIPC Insured?
Is Moomoo SIPC and FDIC insured in 2024? For how much brokerage and IRA accounts' cash and funds
have SIPC insurance coverage at Moomoo?
|
Is Moomoo Insured?
Have you ever wondered about how safe your money is with Moomoo? Maybe you’re curious about whether or not your money is insured?
If so, you’ve come to the right place! Read on to learn more about if your cash, investments, and crypto are insured with Moomoo.
Is Moomoo SIPC Insured?
Moomoo is a member of SIPC (Securities Investor Protection Corporation), which means that your securities are covered up to $500,000, including up to $250,000 for cash claims. According to the Moomoo website, they also share that their clearing firm, Apex Clearing, maintains an additional insurance policy. This provides additional coverage for securities and cash up to $150 million in total, with maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash.
Moomoo is also a FINRA member, with an SEC# of 8-69978 (New York District Office). According to the FINRA BrokerCheck site, Moomoo does not have any disclosures, which is generally a good sign (Robinhood cannot say the same).
So, thanks to SIPC coverage, your cash and securities are as protected with Moomoo as with any other major broker. In fact, possibly even more so thanks to their additional insurance policy through Apex Clearing.
Is Crypto on Moomoo Insured?
If you’re a cryptocurrency holder, however, bear in mind that cryptocurrency investments held
through Moomoo are not protected by SIPC.
Is Moomoo FDIC Insured?
Also, as Moomoo is not a bank, it is not a member of the FDIC (Federal Deposit Insurance Corporation), which insures consumer deposits in U.S. banks. Unlike its competitor Robinhood, Moomoo also doesn’t offer any kind of bank sweep program that would automatically grant FDIC coverage.
It is unusual, but not unprecedented, to have a large amount of cash sitting in an investment account. If this total reaches more than $900,000, then you may want to consider re-allocating that money as your cash is insured up to that amount by Moomoo.
Best Brokers
Is Moomoo SIPC Insured Recap
In short, your money is fully safe with Moomoo, except any cryptocurrency you may hold with them.
You should keep in mind, however, that Moomoo isn’t a bank and thus your cash does not have standard FDIC protection that comes with cash held in regular bank accounts. Luckily, Moomoo has an additional policy that helps cover your cash up to $900,000, which will be more than enough for most people.
Moomoo, like any broker, has its pros and cons. If nothing else, though, it offers strong
coverage for your cash and investments, which not all discount brokers can say. As this is an
important aspect of any broker, it’s a good indication that Moomoo is one of the better—or at
least safer—discount brokers.
Updated on 7/4/2024.
|