Posted: 24 September 2021
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Disclaimer: In the interest of full disclosure, when you sign up for a moomoo trading account with my affiliate link in this article, I will also receive a cash incentive from FUTU Singapore. While this article is written in collaboration with FUTU Singapore Pte. Ltd. the interests of my viewer’s remain front and centre to me.
In an attempt to broaden The Hatch Fund’s reader base, this article serves as a short primer on how to get started with investing. It is aimed at getting people to explore and think more deeply about the topic of personal finance, saving and investing. So if investing is new to you, you have come to the right place. I will keep the information as easy to understand as possible to help you get started on your investing journey.
In case you are new to investing and you missed our starter’s guide to investing, you can find it below:
Promotion: Sign up with FUTU Singapore ("FUTU SG") and earn up to SGD 280!
From now till 2nd October 2021, 1959hr (SGT), new users who sign up for a moomoo trading account via this link will get to enjoy the following:
- 1 Free Apple (AAPL) share worth around SGD 200 for the First Deposit of ≥ SGD 2,700, USD 2,000 or HKD 16,000 & trade 5 times on any market and product except Futures.
- 180 days unlimited commission-free trading for the US, HK & SG stock market
- Free access to Lvl 2 Market Data for the US stock market
- Free access to Lvl 1 Market Data for the SG stock market
- Free access to Lvl 1 Market Data for China A Shares market data
Additionally, for users who sign up with my link above between 17th Sep to 30th Sep, will get additional SGD 88 cash coupons when they deposit SGD 2,700 by 30th Sep.
Just by (1) signing up with moomoo & open a FUTU SG Securities account via this link, (2) depositing at least S$2,700 and (3) doing 5 trades, users will already stand to earn approximately S$300 of benefits! This is definitely not many hoops to jump through to earn ~S$300.
As of today, the Apple stock is still available, so do sign up as soon as possible!
Position/Shares transfer-in Offer
Users who successfully complete a positions/shares transfer-in to Futu Singapore securities account, will receive SGD 50 Cash Coupon for the first transfer-in only (applicable to US/HK stocks only).
Sign-up link: https://moomoo.com/en-sg/act/welcome?channel=1002&subchannel=446 or click below!
1. What is "moomoo powered by FUTU"?
investors including including venture capital affiliates of Tencent, Sequoia Capital and Matrix Partners.
Who is Futu Holdings & Futu Singapore?
Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing and securities lending services; and stock yield enhancement program. It also offers online wealth management services under the Futu Money Plus brand, which gives access to mutual funds, private funds, and bonds; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. In addition, the company provides initial public offering subscription and employee share option plan solution services to corporate clients under the Futu I&E brand; and services, including trade execution, as well as margin financing and securities lending, which allow its clients to trade securities, such as stocks, ETFs, warrants, options and futures, across different markets. Futu Holdings Limited was founded in 2007 and is headquartered in Hong Kong, Hong Kong.
Futu, and its subsidiaries, has 43 licenses globally in major financial markets such as United States, Hong Kong, Singapore and others. In Singapore, capital markets products and services on moomoo are offered by Futu Singapore Pte. Ltd. (FUTU SG) licensed and regulated by the Monetary Authority of Singapore (MAS) (Licence No. CM101000).
After almost 9 years of development, Futu’s trading platforms has garnered almost 16 million users from more than 200 regions around the world, with more than one million average daily active users.
moomoo has one of the fastest growing investor community in the region which enable investors to stay abreast of latest investment trends.
2. Is trading via moomoo safe?
While being backed by highly reputable investors and holding multiple operating licenses globally, as well as with the MAS, give assurance to the level safety when investing via moomoo app, let’s take a deeper dive into their financials to check for ourselves.
As seen above, the bulk of Futu’s revenue comes from commission fees received from its brokerage accounts. Over the past three years, Futu has steadily grown its customer base with the no. of deposited users growing from 133k person in 2018 to 517k person in 2020. This comes on the back of aggressive marketing / advertising campaigns which now costs about 20% of the revenue.
Futu 1H21 net profit/total revenue rose 221%/333% yoy to HKD3,781/1,696mn. In 2Q21, Futu’s number of paying clients increased, but client asset turnover fell significantly, which caused its revenue growth to come in lower than expected.
Futu’s number of paying clients net increased 0.21mn in 2Q21 (of which c. 50% came from Singapore), up 227% yoy but down 23% qoq, due to the weaker market business climate. Futu achieved the 1 million paying client milestone at end-2Q21.
When compared to its peers, Futu is also experiencing one of the fastest revenue and net income growth. However, it is worth noting that Futu is one of the most highly levered brokerages when compared to its peers.
Moreover, the saving grace is that FUTU has been able to generate high levels of free cash flows to service its operational expenses, capital expenditure and mandatory debt repayments to keep the firm running and growing.
3. Key features of the moomoo trading platform
Here are some key features that make moomoo powered by FUTU a compelling trading platform to use:
- Stay on top of global financial news and detailed analysis of stock price fluctuations with moomoo’s 24/7 financial news headlines and Earnings Calendar.
- Global Investment Community to leverage on. The brightest ideas often come from collective thinking. Much like websites like the infamous “r/wallstreetbets” or “seekingalpha.com”, moomoo has its very own online community of about 16 million users where people share and discuss trading insights.
- Professional Trading Analytics Tools that help you with technical analysis / charting, keep track of your options portfolio, and provides insights on your profit and losses from your investments.
- Funds Security – Invest with a peace of mind as U.S. securities are protected up to US$ 500,000 by the SIPC in the event of financial failure of the brokerage.
- Research Tools to help you to screen and select your own stocks to invest in. These include company introductions, announcements, financial reports, ratios and analysis, conference calls, and competitor research.
- Low Cost Platform which does not charge any custodian fee and offers a 180-day commission-free unlimited trading if you sign up with this link now!
- 24 hours customer service with additional customer service support available. Within the moomoo app, customers can use an in-app live chat function via “customer service” where a customer service representative will attend to your queries. If that’s not enough, queries can also be submitted in-app “Help Center”, hotline (+65 6321 8888 (working day:24 hours, Weekdays: 9am – 9:30pm)), email (email@example.com) and social medial platforms (@moomoosingapore).
Overall, the verdict is that Futu SG offers a very attractive proposition for people who are looking to sign up a new brokerage account. Given the current intense customer acquisition conducted by various brokerages, retail investors like you and me should take advantage of these promotions and get the rewards with minimal effort needed.
4. How to Sign up
Step 1: Sign up using this affiliate link (https://moomoo.com/en-sg/act/welcome?channel=1002&subchannel=446)
Step 2: Click on “Deposit Now” button
Step 3: Set up your moomoo account ID
Step 4: Download the moomoo app on your phone and log in.
Step 5: Set up and open a FUTU SG securities account and wait for it to be approved.
Step 6: To be eligible for the promotional SGD 88 cash coupon, you must complete an initial deposit of at least SGD 2,700 (or HKD 16,000 or USD 2,000) by 30 September 23:59PM (SGT)
*Ensure that at least S$2,700 is transferred in one transaction and not send a test amount first.
Step 7: To be eligible for 1 free Apple share, you must (1) deposit at least SGD 2,700 by 2 October 19:59PM SGT, AND (3) make 5 trades within 60 days from the deposit.
Since there is 180 days of commission-free trade, there is no need to worry about incurring any additional costs!
For users who wish to preserve their initial capital, buying ETFs like the SPY (S&P500 index fund) would be a good start
Again, this is cash coupon promotion expires on 30 September 2021, and the free Apple share promotion ends 2 October 2021 or as soon as they run out of promotional shares. So act fast and sign up now!
Sign-up link: https://moomoo.com/en-sg/act/welcome?channel=1002&subchannel=446 or click below!