Moomoo Rolls Out Fractional Trading For Its US Stock Trading Service

Alex Cheong Pui Yin

15th May 2024 - 3 min read

Stock trading platform moomoo Malaysia has now enabled fractional trading for its customers who trade in the US stock market, allowing them to buy or sell fractions of a stock instead of whole shares. With this, they can start trading from as little as US$5, or a minimum order size of 0.0001 share.

On its website, moomoo explained that the new feature is expected to lower the entry barrier for interested investors, allowing them to start trading US stocks at a lower cost instead of having to pool enough money to buy a full share. That said, it also clarified that only certain US stocks and exchange traded funds (ETFs) support fractional trading, including Nvidia (NVDA), Apple (AAPL), Tesla (TSLA), Microsoft (MSFT), and Amazon (AMZN) – just to name a few.

To find the full list of shares that are available for fractional trading on moomoo Malaysia, simply fire up the app and access the “Markets” tab via the bottom navigation bar. Make sure that you are on the “US Market” section, then tap on “Fractional Shares” to check out all the US shares that allow fractional trading.

Once you’re ready to place a fractional share trade, go ahead and take these following steps:

Tap on “Trade” on your selected share’s detailed quote page.
Under the “Order Type” section, select either “Limit” or Market” as your order type (as only these two order types support fractional trading).
Enter the quantity in decimals and submit the order (you can also switch to “Amount” and key in your desired amount in US$)
After your submission, your fractional share order will be displayed in “Orders” > “Filled” or “Cancelled”.

Note that there are some conditions to moomoo’s fractional trading feature that you should be aware of, such as the fractional trading hours. Specifically, you can only perform fractional trading between 9.30am to 3.58pm (Eastern Time), or 9.30am to 12.58pm (Eastern time) in the event of half-day trading.

Aside from that, only Market orders and Day orders are supported. You are also not allowed to edit fractional share orders after it has been submitted, or change whole share orders to fractional share orders.

In terms of fees, investors who perform fractional share orders will not need to pay commission fees as it is waived. You will also not need to pay charges such as settlement fees, SEC fees (when selling shares), or trading activity fees. There is, however, a platform fee of 0.99% on the transaction amount, capped at US$0.99 per order, on top of the regular stamp duty fee of RM1.

Here’s a table from moomoo to clarify this:

In conjunction with the rollout of this new feature, moomoo is currently running a campaign where you can buy a basket of 10 top US stocks at the price of US$50, allowing you to invest in leading companies like Nvidia, Apple, Tesla, Amazon, and Microsoft. Meanwhile, new moomoo users who open a universal trading account with moomoo and deposit a minimum of RM10,000 before 30 June 2024 can also claim fractional share rewards worth up to RM420, in addition to other new user rewards.

(Source: moomoo Malaysia)

5 1 vote

Article Rating

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

See all articles