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Moomoo Automatic Investing and Recurring Investments (2024)
Does Moomoo brokerage offer automatic investment plan (AIP)? Moomoo dollar
cost averaging program (DCA) setup and review.
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Moomoo Recurring Investment Program
Moomoo's brokerage account does not offer an automatic investment plan or recurring investing at this time.
Moomoo Dollar-Cost Averaging
Automatic dollar cost averaging is not available on Moomoo's brokerage account. Investors will have
to do DCA themselves.
Brokers With Automatic Investing
Moomoo Robo Investing
Moomoo does not offer a robo investing service at this time. Consider checking out
Webull.
Tradable Assets
Moomoo currently offers a limited selection of investment products. They include:
- Stocks
- Options
- ETFs
- Closed-end funds
Despite this limited selection, the broker does offer American Depository Receipts and access to three foreign stock exchanges: Hong Kong, Shanghai, and Shenzhen.
Brokerage Accounts
A brokerage account, also known as a securities account or trading account, works much like a bank account. In a bank, you deposit money into a checking or savings account, or into a certificate of deposit.
At a bank, your money is held securely, and you can earn interest on it. The bank protects your deposited money, which is insured by the government up to $250,000 per customer through the FDIC. So if you deposit $100, that $100 is safe and won’t decrease to $99.
A brokerage account is similar but has key differences. It holds securities—not just cash. These include stocks, bonds, options, ETFs (exchange-traded funds), and mutual funds. Unlike a bank, securities in these accounts are bought and sold on the market. Therefore, a brokerage account is often referred to as a trading account.
Unlike banks that use FDIC insurance, brokerage accounts are protected by SIPC, which is not a government agency but a group of brokerage firms that safeguards the securities in your account up to $500,000 per customer.
Fees and Commissions
Moomoo has two pricing schedules: one for US residents and another for foreign residents.
US residents enjoy $0 commissions on stock, ETF, and option trades, with no per-contract fees, a significant advantage for active traders.
For international clients, the equity commission is 0.49¢ per share with a $0.99 minimum, and options cost 65¢ each with a $1.99 minimum.
Non-US customers also pay platform fees for using Moomoo’s software, with the choice of fixed or tiered pricing. The fixed option charges a minimum of $1 per order, while tiered pricing charges fractions of a penny per share based on monthly volume.
All customers pay the same rates for Hong Kong trades (0.03% with a HK$3 minimum and a platform fee of HK$15). China A-shares also cost 0.03% with a 3 RMB minimum and a 15 RMB platform fee.
A notable fee is the $75 outgoing ACAT transfer fee per security, which is unusually high compared to industry standards. Transferring three stocks, for example, would cost $225.
Updated on 7/24/2024.
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