Moomoo announces 5.1% APY on surplus funds of US securities accounts

Rick Steves

The essence of Moomoo’s Cash Sweep program lies in its capacity to serve as a safe harbor for clients who possess surplus funds in their US securities accounts, providing a shield against the unpredictability of market fluctuations while fostering the generation of passive income.

Moomoo has updated its Cash Sweep program in the United States by introducing a 5.1% annual percentage yield (APY) for eligible clients, positioning it as one of the highest yields for uninvested cash in the brokerage industry.

Operated by Moomoo Technologies Inc., based in Palo Alto, California, Moomoo offers its services globally, including in the U.S., Singapore, Australia, Japan, Malaysia, and Canada.

While Moomoo Technologies Inc. is not a broker-dealer, its U.S. securities products and services are rendered through Moomoo Financial Inc., a subsidiary of Futu Holdings Limited and a registered broker-dealer with the SEC.

FDIC-insured US securities accounts with 5.1% APYs on surplus funds

The essence of Moomoo’s Cash Sweep program lies in its capacity to serve as a safe harbor for clients who possess surplus funds in their US securities accounts, providing a shield against the unpredictability of market fluctuations while fostering the generation of passive income.

This program stands out not only for its high yield but also for its seamless integration into the client’s financial strategy. The funds, though swept into program bank accounts for interest accrual, retain their utility, ensuring that the client’s purchasing power within their brokerage accounts remains unaffected.

The implementation of the Cash Sweep feature epitomizes user-friendliness; a mere few taps on the screen suffice for new clients to activate it while existing clients can still tap into the lucrative 5.1% APY through recent promotional activities, albeit subject to certain conditions.

An added layer of assurance comes from the Federal Deposit Insurance Corporation (FDIC) insurance, safeguarding the funds within the program banks up to a specified limit. This program is distinguished by its absence of a cap on the interest-accruing principal and the elimination of minimum balance requirements, further sweetened by the lack of any additional service fees.

Margin trading and $0 commission on US stocks, ETFs, options

For investors seeking broader opportunities, Moomoo extends $0 commission trading on US stocks, ETFs, and options to eligible users, alongside a waiver of exchange proprietary fees for index option trading until February 2024. The platform also boasts margin trading rates as competitive as 6.8%, catering to the needs of more aggressive investors.

Eligibility for the 5.1% APY is straightforward: it is automatically available to all new brokerage account holders, while existing clients can achieve this rate by meeting specific promotional criteria.

Beyond its financial offerings, Moomoo emerges as a comprehensive ecosystem for investment education and growth. It provides an array of advanced tools, analytics, and resources, coupled with access to investment courses and interactive learning experiences. This makes Moomoo not just a trading platform but a journey in investment learning and growth.

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