Retail Trading Is Booming But Which Platform Is The Best For Investors?

The world of retail options trading is drastically different than a decade ago. Digital technologies and online trading platforms have enabled the democratization of trading and ushered in a new era of modern traders. Now virtually anyone can enter the industry with varying degrees of knowledge and potentially be successful. Long gone are the days when interested parties had to be connected with a broker to help them reap the potential rewards of the stock market and options trading.

Interest In Online Trading Soared During The Pandemic

The advent of digital technology has largely driven the modernization of the stock market and options trading because potential investors are no longer reliant on brokers or hedge funds to access the market and gain education. As technology evolved, financial companies entered the scene to provide access to retail traders interested in day trading as well as options trading. 

What no one could predict, however, was the effect that the global pandemic would have on retail trading. During the pandemic, interest in the stock market soared, and meme stocks like GameStop GME, AMC AMC, and Bed Bath & Beyond BBBYG garnered global attention. The 2021 GameStop short squeeze was a monumental event in trading where online forums like Reddit's WallStreetBets conversations helped drive up the stock price of Gamestop, causing influential hedge funds to report major losses. The GameStop short squeeze brought attention to the democratization of investing and the potential power that retail investors had in the markets.

Between Jan. 25 and Feb. 1 2024, retail traders set a new trading volume record, amassing 23% of total trading volume according to Forbes. While online trading platforms have gained popularity and allowed new traders to access the stock market, they have also been criticized for fees that add up. Companies like moomoo have recently gained attention as an alternative to platforms like Robinhood due to its low costs, among other things. 

What Makes Moomoo Different?

Moomoo is an all-in-one trading platform and financial information app provided by moomoo Technologies Inc. In 2018, the company expanded its audience to the U.S. customers with a platform that offers commission-free online investing services, aiming to provide an intuitive and powerful investing experience for investors at any level, at a low cost.

Moomoo stands out in the market by providing users with access to a wide range of tools and resources such as real-time market data, including Level 2 data*, educational materials, and a robust, inclusive community forum to share trading ideas. All at no or low costs.

By offering features like commission-free trades**, and access to market news from premium sources, the company has set itself apart from competitors in additional ways. Moomoo offers 16-hour trading days and is well known for its $0 commissions on U.S. stocks, ETFs, and options**. The company also boasts free real-time Level 2 data* and $0 account minimums and trade minimums. 

Recently, moomoo has been highlighting its options features and tools to investors. Along with offering options trading through competitive rates, such as zero options trading commission fees*, their pricing includes reduced contract fees for index options and zero contract fees on equity options. The company says this makes them unique in a crowded field, helping them to be in position to become the market's budget-friendly premium options platform of choice.

So, what else makes moomoo stand out from their options trading competition? It's also their variety of free options analysis tools on the app.

Take a look at some features from their comprehensive options toolkit for traders – all without any additional fees or charges. 

• Real-time Level 2 data for funded accounts with up to 60 level bids/asks price levels
• Unusual options activity
• 0 Days to Expiration (0DTE) options by volume
• Customizable options chain
• Options calculator
• Implied volatility analysis
• 13 pre-built options strategies*, including customization opportunities
• Seamless trading across the app and the desktop

Moomoo also offers promotions for new and current users. They change throughout the year, but at the time of writing, promotions included 8.1% APY(1) on idle cash for a limited time and up to 15 free stocks with a qualified deposit, until Sept 30, 2024. Learn more about moomoo's promotions here for new users and current users. 

Retail Trading Is Here To Stay

Last year marked a stock market rally with 40% of retail investors responding to a moomoo survey reporting profits – an increase from just 15% in 2022. The options market had a strong year too with record-setting volume numbers. Cboe Global Markets, one of moomoo's partners, saw total volume across its four options exchanges hit 3.7 billion contracts – its fourth straight record-breaking year.

Despite market challenges, there is an overall optimistic view of 2024's potential. A recent moomoo user study, demonstrated the belief in the potential for the bullish trend to continue into 2024, leading many to increase their trading activity and invest more in their accounts.

“More users seem to be buying into the ‘soft landing’ economic scenario in the U.S. This has led to a more positive outlook on markets on average and increased stock trading,” said Justin Zacks, Vice President of Strategy at moomoo. Retail trading isn't going anywhere, anytime soon and platforms like moomoo are only driving the industry forward.

Featured photo by Aidan Hancock on Unsplash

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.

1. Enrollment in the Cash Sweep Program is required to earn interest on uninvested cash. Promo 8.1% APY (as of 05/29/24): Base Rate is 5.1% APY (as of 11/3/23), plus a 3% temporary boost is available for 3 months on up to $20K in the Program once coupon is activated. Actual APY earned may differ as the base rate may change. Moomoo is not a bank.

*Level 2 data is complimentary for 30 days for users with new approved Moomoo Finanical Inc. brokerage accounts. Thereafter, users who don’t maintain a minimum account value of $100 will only have access to level 1 data. Other conditions apply, to learn more, visit https://www.moomoo.com/us/support/topic3_435

** $0 commission trading is available only to U.S. Residents trading in the U.S. markets through Moomoo Financial Inc. Other fees may apply, for more information, visit moomoo.com/us/pricing

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. It is important that investors read Characteristics and Risks of Standardized Options (https://j.us.moomoo.com/00xBBz) before engaging in any options trading strategies.

Margin trading entails greater risk, including risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin. The Margin Rate is subject to change without notice. See https://www.moomoo.com/us for the most current rates.

Investing involves risks. There is no guarantee or assurance that the use of any tools or data provided on the moomoo app will result in investment success or reduce investment risk.

Past performance is no guarantee of future results.

Benzinga was commissioned for this article and is not affiliated with the moomoo app or it’s affiliated companies. This includes Moomoo Technologies Inc. (MTI) provider of the app and Moomoo Financial Inc. (MFI) Member FINRA/SIPC, which offers securities in the U.S. Any comments or opinions provided herein are Benzinga's. MTI, MFI, or their affiliates do not endorse any trading strategies that may be discussed or promoted herein.

Day trading generally isn’t appropriate for someone of limited resources, limited investment or trading experience and low risk tolerance. A day trader should be prepared to lose all of the funds used for day trading. Before considering day trading, read and understand the Day-Trading Risk Disclosure Statement. 

(https://www.finra.org/rules-guidance/rulebooks/finra-rules/2270)

Meme stocks tend to have high volatility and can experience significant fluctuations in short periods or time and the potential for limitations in liquidity. A meme stock is a stock that gains popularity among retail investors through social media. Investing in these stocks involves risks, including the potential of losing the entire investment quickly.