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When you want to trade stocks, commodities, or ETFs, you could use a brokerage account to do so. This is a type of trading account that many companies offer, but each company often has its own unique features and fee structure. Before you start investing, it's wise to take some time to choose a brokerage account that best fits your needs.
Although you may already be familiar with Robinhood, there are two newer investment platforms that aim to stand out by offering simple trading tools and unique features. These two platforms are Moomoo, which was founded in 2018, and Webull, which was founded in 2017. Both investment platforms offer simple exchange-traded funds and stock trading for beginners while also having more advanced tools available.
However, one service may be a better fit than the other for you based on the features they offer. Here's how they compare.
Moomoo vs. Webull
Although Moomoo and Webull have a lot in common, it's easy to see some differences when you compare the two investing services side by side.
Moomoo |
Webull |
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| Best for... | People who want access to free Level 2 market data | People who want to be able to trade cryptocurrencies |
| Visit Moomoo | Visit Webull |
How does Moomoo work?
Moomoo is a platform you could use for stocks, ETFs, American depository receipts, and options trading. Although the platform is marketed as the Moomoo trading app, the margin account you can open actually uses the Futu Inc. brokerage.
Futu Inc. is a U.S.-registered subsidiary of Futu Holdings, Ltd., which is based in Hong Kong. The platform offers commission-free trades, but it has a disclaimer that this may change. Moomoo states it may charge a platform fee at any time with a 30-day notice, which might be a bit unsettling.
Moomoo offers mobile and desktop platforms you could use to make trades on the crypto and stock markets. The Moomoo app is available for both Apple and Android devices. Both mobile and desktop platforms offer several trading tools you could use to identify potential trades, including AI market monitors, advanced charts, and customized alerts. The platforms also offer full extended trading hours, free Level 2 market data, and profit-and-loss analysis tools.
You could learn about the investing process and receive financial advice from Moomoo's education section. The platform also offers a library of essential trading information. Paper trading is another feature the site offers, which allows people to make pretend trades to see how a strategy would play out in real-time without committing real money.
For more details, check out our Moomoo review.
How does Webull work?
Webull is another platform you could use to trade stocks, options, ETFs, and ADRs. In addition to these options, you could also use the platform for crypto trading. Webull itself is a brokerage platform, so you don't use another service to make your trades. The platform also offers commission-free trades.
Webull offers several account types, including IRAs, traditional brokerage accounts, and margin trading accounts. The platform offers full functionality on your mobile device or desktop. You could trade U.S. stocks, ETFs, and options during full extended trading hours. Webull provides analysis tools for traders, including advanced charts, three free months of premier Level 2 data through Nasdaq TotalView, as well as technical indicators.
Webull does not have an educational library to help you learn how to trade, but it offers paper trading to learn without using real money. This allows you to practice your trades and strategies for educational purposes without using real money or earning actualized financial benefits.
For more details, check out our Webull review.
What both investment services excel at
Both Webull and Moomoo share a lot in common, including the following features:
Several investment options
Both platforms allow you to trade stocks, options, ETFs, and ADRs. These investment types should give you plenty of choices to build a diversified portfolio.
Commission-free trades
Neither app charges commissions for trades. That said, expense and regulatory fees may still apply.
Paper trading
You could engage in paper trading, or pretend trading, on both platforms to test strategies or get a feel for investing. You can't earn any money doing this, but it could help new traders get their feet wet before putting money into their investment strategies.
Extended hours trading
Both platforms allow you to trade during extended hours. This could be important if you want to trade based on news events before the market opens the next day, such as after earnings releases.
Charting tools
When you invest in individual assets, analysis tools may be vital in choosing which investments to make. Both platforms offer several tools, including several charting tools, to help you choose your assets.
5 important differences between Moomoo and Webull
Moomoo and Webull definitely have some differences. Here are some of the bigger ones you should know:
1. Webull offers more account types
Moomoo offers margin accounts only for its account holders. Webull allows you to choose from taxable brokerage accounts, traditional IRAs, Roth IRAs, rollover IRAs, or margin accounts.
2. Webull offers cryptocurrency trading
If you want to trade cryptocurrencies, Webull might be a more fitting choice. Moomoo doesn't offer cryptocurrency trading, but Webull supports trading several cryptocurrencies, including bitcoin, dogecoin, litecoin, and ethereum, among others.
3. Webull is its own brokerage
Webull is its own brokerage, whereas Moomoo uses Futu Inc. as a broker. Webull's model might be more straightforward for its clients, as they would only deal with one legal entity.
4. Webull offers accounts with no minimum initial investment
Moomoo only allows you to open margin accounts which means you have to have a minimum of $2,000 to open an account. On the other hand, Webull offers account types that require no minimum initial investment to get started.
5. Moomoo's Level 2 data access remains free
Webull gives you access to Level 2 data, which is used for technical trading by offering deeper insights into asset prices, trading volumes, and available offers in the market. However, Webull's fine print shows the access is only a three-month free subscription. Moomoo's free Level 2 data doesn't have a stated end date.
Which investment service should you choose?
When you're ready to start investing money, choosing an investment platform can feel like a big decision. You should aim to make this decision based on your circumstances and needs. Both Moomoo and Webull offer many strong features, including commission-free trades.
Overall, Webull may come out ahead for many investors. Webull offers more account types, cryptocurrency trading, and no account minimums. These features could be important for new investors looking to get started.
More advanced investors who want access to Level 2 data could access it with both Webull and Moomoo, initially. However, Webull charges for this access after a three-month introductory period. People who want access to this feature for free may want to consider Moomoo instead of Webull.
FAQs
Is Moomoo better than Webull?
Whether Moomoo or Webull is better depends on your needs. Both Moomoo and Webull offer plenty of features. Moomoo may stand out to some users who want Level 2 data without paying a subscription after the first three months. Ultimately, Moomoo may be better for some users, whereas others may prefer Webull. Deciding whether Moomoo or Webull better fits your needs is up to you.
Can you day trade on Moomoo?
Yes, you can day trade on Moomoo. But if you want to protect yourself from being marked as a pattern day trader, you can also turn on pattern day trading protection. The system will notify you when you make a second or third day trade during five trading days when this feature is on. The platform will, in theory, stop you before making trades that may mark you as a pattern day trader. However, Moomoo states the protection cannot guarantee you won't be marked as a pattern day trader.
Is Moomoo safe?
Any platform, including Moomoo, could be subject to being hacked or breached. However, Moomoo does use a regulated brokerage company to make its transactions. Futu Inc., the broker-dealer Moomoo uses, is registered with the U.S. Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority.
Additionally, it is a member of the Securities Investor Protection Corp., which offers up to $500,000 of protection should the brokerage fail and your assets disappear. This coverage does not protect against loss of value from investment price changes.
Is Webull safe?
As with any other platform, Webull could technically be hacked or breached. However, Webull is also regulated. Webull is a registered broker with the SEC and is a FINRA member. Webull is also a SIPC member, which provides up to $500,000 of coverage for asset loss should your broker fail.
Bottom line
Understanding the similarities and differences between Moomoo versus Webull could help you make an educated decision between both investment platforms.
However, if both investing platforms don't seem like a good fit, you can check out our lists of the best investment apps. You can also read about the best brokerage accounts to find an option that meets your needs. Once this decision is made, you could open an account and start investing.
