Interactive Brokers (IBKR) Long-Term Review: The BEST broker in the world?
Interactive Brokers (IBKR) is a global broker that offers users access to different asset classes across 150 markets.
I've been an IBKR user for some time and in this review, letâs learn about IBKR, and if it is for you!
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Highlights of Interactive Brokers (IBKR)
- Strong regulation background: IBKR is a global broker regulated in 10 countries including the US, Canada, the UK, Ireland, Europe, Australia, Hong Kong, and Singapore.
- Global market access at highly affordable commission: IBKR offers access to over 150 markets in 34 countries, such as the US, UK, HK, Singapore, Australia, Canada, Europe, Singapore, Japan, and more at a highly competitive commission.
- Trade multi-assets with just one account: In addition, IBKR users also gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures, and options at a highly competitive commission.
- For who: IBKR is a no-brainer for investors looking to gain access to global markets at a low commission. However, IBKR's downside (in my opinion) is a platform design and user experience that is not as beginner-friendly as other investing platforms around.
Regulation and Safety
With financial scams on the rise globally, it is crucial to choose a broker that is well-regulated and reliable.
IBKR is one of the most reliable global brokers in the world as it is regulated by financial authorities in over 10 countries. Regulation by the major financial authorities in the world ensures that IBKR usersâ interests are always protected.
Some of the key regulations that IBKR has obtained include:
- US: Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
- UK: The Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investments Commission (ASIC)
- Hong Kong: Hong Kong Securities and Futures Commission
- Singapore: Monetary Authority of Singapore (MAS)
In addition, IBKR is a publicly-listed company in the US (NASDAQ: IBKR) with a strong presence globally. It handles over 2M client accounts worldwide.
4 reasons why IBKR is the best global broker
If you have been investing for a while, you should be familiar with Interactive Brokers (IBKR) among all other brokerages.
What exactly makes IBKR so well-known compared to other brokers in the market?
#1 IBKR offers a huge selection of markets + asset classes for new & seasoned investors
IBKR is truly a platform that accommodates the needs of beginners and experienced investors alike.
- Multi-assets: Aside from the usual stocks, ETFs, and bonds, IBKR users will get access to instruments such as futures, forex, mutual funds, and options. With an IBKR account, you are almost certainly going to find an investment vehicle that suits your need.
- Global market access: IBKR offers access to over 150 markets in 34 countries. Aside from the usual US market, you get access to markets in the UK, Europe, Canada, Hong Kong, Singapore, Japan, and more with just one account.
--
A personal note as an IBKR user:
The global access that IBKR brings to the table for everyday investors like myself is truly valuable. It brings a lot of flexibility to investors with investing options outside of the US.
Example: As a non-US citizen that wants to invest in the S&P500, in order to avoid the 30% withholding tax that the US government charges on dividends, I have to opt for Ireland-domiciled S&P500 ETF listed in the London Stock Exchange (eg. CSPX, VUAA) instead of US-listed S&P500 ETFs (eg. VOO, SPY).
Since most brokers do not offer access to the UK stock market, IBKR comes in as a solid choice.
#2 Highly competitive commission plans
On top of global market access, IBKR offers these markets at a highly competitive commission.
In my opinion, IBKR is the platform to go for investors looking for affordable access to the global market.
Refer to the next commission section of this article for more detailed elaboration.
#3 Fractional Trading
IBKR offers access to fractional shares in the US and European stock market, which is a rare feature among brokers.
Fractional trading allows investors to buy stocks at a fraction of the price via smaller units. Hence, it makes owning expensive stocks much easier for everyday investors.
#4 Beginner + advanced trading platforms
To accommodate different investors, IBKR offers several trading platforms for users to select from. 3 of the more commonly used IBKR platforms are:
- Client Portal (web)
Client Portal is the desktop interface that all IBKR users will come across when they log in to their IBKR account.
Client Portal offers a straightforward and featureful interface for users to view their portfolios and execute simple buy and sell orders.
Investors who prefer a simple investing interface would find the Client Portal the most convenient way to navigate around IBKR.
- IBKR Mobile
IBKR Mobile is the simplified mobile version of IBKR's Client Portal. It makes it easy for users to trade on the go via their mobile devices.
- IBKR Trader Workstation (TWS)
TWS is IBKRâs dedicated trading platform for a more in-depth customization and trading experience.
Traders that require more in-depth charting and a platform that is highly customizable could opt for TWS as their go-to platform.
IBKR Commission/Pricing for Stocks & ETFs
When it comes to commission, IBKR offers several commission plans - mainly Tiered or Fixed fees for non-US residents.
In other words, the commission you pay when you trade will differ based on the plans that you choose.
Letâs look at the commission plans for some of the familiar stock markets below:
US market:
| Monthly Volume (shares) | IBKR Pro - Tiered | IBKR Pro - Fixed | IBKR Lite (only for US residents) |
|---|---|---|---|
| ⤠300,000 | USD 0.0035 | USD 0.005 | USD 0.00 |
| 300,001 - 3,000,000 | USD 0.0020 | USD 0.005 | USD 0.00 |
| 3,000,001 - 20,000,000 | USD 0.0015 | USD 0.005 | USD 0.00 |
| 20,000,001 - 100,000,000 | USD 0.0010 | USD 0.005 | USD 0.00 |
| > 100,000,000 | USD 0.0005 | USD 0.005 | USD 0.00 |
| Min. per order | USD 0.35 | USD 1.00 | USD 0.00 |
| Maximum per order | 1% of trade value | 1% of trade value | USD 0.00 |
| Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees, pass-through fees | Regulatory fees | Regulatory fees |
Canada market (for CAD-denominated stocks/ETFs):
| Monthly Volume (shares) | Tiered | Fixed |
|---|---|---|
| ⤠300,000 | CAD 0.008 | CAD 0.01 |
| 300,001 - 3,000,000 | CAD 0.005 | CAD 0.01 |
| 3,000,001 - 20,000,000 | CAD 0.004 | CAD 0.01 |
| 20,000,000 | CAD 0.003 | CAD 0.01 |
| Min. per order | CAD 1.00 | CAD 1.00 |
| Maximum per order | 0.5% of trade value | 0.5% of trade value |
| Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | None |
p.s. Click HERE for IBKR's commission on USD-denominated CAD stocks/ETFs.
UK (GBP-denominated stocks/ETFs):
| Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRoutine | Fixed - Direct Routing |
|---|---|---|---|
| ⤠40,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
| 40,000,000.01 - 80,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
| 80,000,000.01 - 400,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
| > 400,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
| Min. per order | GBP 1.00 | GBP 3.00 | GBP 4.00 |
| Additional 3rd party fees | Regulatory, Exchange & clearing fee | None | None |
UK (for USD-denominated stocks/ETFs):
| Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRouting | Fixed - Direct Routing |
|---|---|---|---|
| ⤠50,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
| 50,000,000.01 - 100,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
| 100,000,000.01 - 500,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
| > 500,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
| Min. per order | USD 1.70 | USD 4.00 | USD 6.00 |
| Additional 3rd party fees | Exchange & clearing fee | None | None |
Hong Kong (HKD-denominated stocks/ETFs):
| Monthly Trade Value (HKD) | Tiered | Fixed |
|---|---|---|
| ⤠15,000,000 | Tier I - 0.05% of Trade Value | 0.08% of Trade Value |
| 15,000,000.01 - 300,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
| 300,000,000.01 - 900,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
| 900,000,000.01 - 2,000,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
| > 2,000,000,000 | Tier V - 0.015% of Trade Value | 0.08% of Trade Value |
| Min. per order | Tier I - HKD 18.00 Tier II - HKD 12.00 Tier III - HKD 8.00 Tier IV - HKD 6.00 Tier V - HKD 4.00 |
HKD 18.00 |
| Maximum per order | 0.5% of trade value | 0.5% of trade value |
| Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | Regulatory Fees |
p.s. Refer HERE for IBKR's commission on China RMB-denominated stocks/ETFs listed in Hong Kong.
Singapore (SGD-denominated stocks/ETFs):
| Monthly Trade Value (SGD) | Tiered | Fixed |
|---|---|---|
| ⤠2,500,000 | Tier I - 0.08% of Trade Value | 0.08% of Trade Value |
| 2,500,000.01 - 50,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
| 50,000,000.01 - 150,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
| > 150,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
| Min. per order | Tier I - SGD 2.50 Tier II - SGD 1.60 Tier III - SGD 1.20 Tier IV - SGD 0.90 |
SGD 2.50 |
| Additional 3rd party fees | Exchange fees | None |
p.s. Refer HERE for IBKR's commission on USD, GBP, HKD, and EUR-denominated stocks/ETFs listed in Singapore.
IBKR Commission for Futures, Options, Forex, CFD, Mutual Funds, and more
Aside from stocks, IBKR also offers access to instruments such as Futures, Options, Forex, CFD, Bonds, Mutual Funds, and more.
Feel free to view IBKR's full list of commission below:
Which IBKR commission plan to choose?
As you can see, IBKR offers access to a lot of markets, alongside different plans, mainly Tiered and Fixed.
The question is, which IBKR fee structure should you choose?
In my opinion, IBKRâs Tiered plan makes the most sense for most investors. This is because it has a lower minimum commission per trade, and it gets cheaper as your trade value or trade volume increases.
While opening your IBKR account, you will be asked to select the kind of account (Tiered/Fixed) you are planning to open. But donât worry, you can always change your account types once you open an account.
What I donât like about IBKR
Despite all the good things about IBKR, it is not a perfect platform.
The irony is, IBKR's biggest downside stems from its pursuit of offering every market and feature available in the investing world to the users.
As a result, it makes IBKR rather not beginner-friendly to navigate around. As a new IBKR user, it is easy to feel overwhelmed to use IBKR.
You will most likely need to google for guides on most things relating to IBKR (in order to do it right) - from account opening, funding & withdrawals, how to make a trade, and more.
The bright side?
Resources and guides around IBKR are plentiful on the internet so it is not the end of the world.
However, the fact that I have to google around for guides just to navigate around the IBKR platform is still annoying at times.
Is Interactive Brokers (IBKR) for you?
In my opinion. IBKR is the most featured-packed investing platform that the investing world can offer so far.
As such, it is more than fair to say that IBKR is created for all investors and traders â beginners to seasoned alike.
If I need to be more specific, here are 3 reasons why you should consider IBKR over other brokers:
- You want to have affordable access to global markets aside from the usual US market offered by all other brokers. (eg. I get access to Ireland-domiciled ETFs on the London Stock Exchange via IBKR)
- You want to invest in a reliable platform that has gone through the test of time.
- You want to trade different instruments (eg. Forex, futures, options) aside from the usual stocks and ETFs offered by most of the other brokers.
How to open an Interactive Brokers (IBKR) account: A step-by-step guide
Before you open an account, you will need to create a username & password on IBKR.
Click the button below to start creating your username and password. Once done, you will need to verify your email address.
Once done, login to IBKR and begin your application.
Step 1: Personal Information
Select your account type (Individual) and key in your personal information.
You will also be required to key in your Tax Identification Number (TIN) [LHDN number if you are from Malaysia].
Tips: Do not have a TIN?
If you are a student or do not have a TIN for some reason (eg. Housewife), click 'Not Applicable' and justify why you donât have a TIN under âOtherâ (eg. I am still a student).
Next, select the base currency (USD) for your account.
This streamlines all the figures displayed in your IBKR account in USD. Donât worry too much about this, as your IBKR account can hold other currencies and you can still trade in different currencies.
Step 2: Configure your trading account.
Account type: Cash or Margin
In this step, you will be asked if you want to open a Cash or Margin account.
- IBKR cash account: You will only be using your existing funds in IBKR to trade. Hence, you have to ensure that your funds cover the cost of the stocks and commission. A key downside is:
- Trading limitation: You cannot trade products that require margin, such as futures. You also cannot day-trade US stocks.
- IBKR margin account: You get access to margin and hence, can trade in margin (ie. loaned money). But it is not necessary to trade in margin even though you have a margin account. Upsides include access to more instruments and products and the ability to day-trade US stocks.
Personally, I opened a Margin account myself (even though I do not trade with margin) as there are certain product/service limitations with a Cash account. (eg. You need a margin account to day-trade US stocks)
Income & Worth, Investment Objectives, Trading Experience:
Your answer to these questions determines the kind of products/markets you will gain access to. Donât worry this can still be updated once you open your trading account.
Select the assets/instruments that youâd like to invest in or trade. Whether you are eligible to trade these assets depends on your income, investment objectives, and experience:
Step 3: Regulation and Tax
Confirm that you are not a public figure with any conflict of interest.
Then, decide if you want to opt-in for IBKRâs Stock Yield Enhancement Program which will pay you interest by loaning your shares to IBKR. This is optional.
Then, confirm your tax residence and whether you qualify for treaty benefits with other countries based on the country of your residence.
Step 4: Review and sign agreements
Step 5: Upload documents & fund your IBKR account
Funding your IBKR account
Refer HERE to a full guide on how to fund your IBKR account.
Step 6: You will receive an email once your account is approved.
For me, my IBKR account is approved within 1 working day.
Verdict - IBKR is the only global broker you need (to get used to)
As an investor and reviewer, I have tried and used many brokers in my investing journey.
Of all, it is not exaggerating to say that IBKR is the most complete global broker that the investing world has to offer to everyday investors right now.
With just one account, IBKR allows me access to almost all tradable instruments in the financial market at an affordable price.
If you can get used to its overwhelming features, IBKR is THE account you must have as an investor in the global market.
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Guide: How to make your first trade on Interactive Brokers (IBKR)
Interactive Brokers (IBKR) is my go-to platform to invest in the US stock market, as well as accessing other markets such as the London and Canadian stock market.
In this guide, letâs go through 2 of my favourite ways on how to make your first trade on IBKR, either via IBKR's Client Portal or IBKR Mobile!
USEFUL IBKR TIPS & GUIDE:
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Dear friends, if you find this post helpful, I'd appreciate it if you can click on the button below to learn about IBKR via IBKR's official site.
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Before you start: Fund your IBKR account
Make sure you have funded your Interactive Brokers (IBKR) account before placing your trades.
Check out my IBKR funding guide HERE.
#1 Placing trades via IBKR Client Portal
IBKR Client Portal is my favorite way to buy stocks/ETFs on IBKR as it is the most straightforward approach in my opinion.
Step 1: Log in to your IBKR Client Portal
Click HERE to log in to your IBKR Client Portal.
Step 2: Search for your stock/ETF
At the search bar, search for the stocks or ETFs that you want to invest in:
As an example, let's say I am looking to invest in the share of Apple.
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within IBKR, there are a few order types available for investors to choose from while executing trades. Check out the bottom section of this post where I explain more about the different order types on IBKR.
For this example, let's say I want to set a buy limit order for Apple shares at $180.00. Meaning, instead of trying to buy Apple shares at its market price, I am lining up to buy the share when the price drops to $180.00.
Buying via limit order indicates that I may miss my entry IF the price goes up and never pulls back to $180.00, but I will get a better price if it does pull back to my desired price level.
Step 5: Determine the number of units of shares to buy, OR simply key in the amount to invest in:
- 5a: Determine the number of shares you want to buy, and you'll be shown the amount required for you to buy the shares. In this case, buying 100 Apple shares at my limit price of $180.00 will require about $18,000 on my end (before commission).
- 5b: Alternatively, you can key in the amount you want to invest in, and you'll be shown the number of shares that you can buy. In this scenario, for $1000, I would be able to buy about 5.56 units of Apple shares.
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
There are 4 types of Time-In-Force mechanisms in IBKR Client Portal, but I will go through 2 most common ones, namely:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Fill outside Regular Trading Hours (RTH)?
Some markets tend to allow orders to be filled outside of RTH, such as pre-market open hours and after the market is closed.
Depending on your preference, you can allow your trade order to be filled outside RTH.
Step 8: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, submit your trade.
Step 9: Check your order and Modify the order if needed
Once you placed your trade, you can head over to 'Trade' and select 'Orders & Trades' to check the status of your trade.
Should you want to modify your trades while it is not filled, you can do so by clicking the 3 dots on the far right, and select 'Modify':
#2 Placing trades via IBKR Mobile
If you are investing on the go, installing the IBKR Mobile app is a must for you.
In this section, let's look at how you can place your trade via the IBKR Mobile app:
Step 1: Install IBKR Mobile app
Next, log in to your IBKR account HERE.
Step 2: At the search bar, search for the stocks or ETFs that you want to invest in:
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within the IBKR Mobile app, the default order types are 'Market' and 'Limit' order.
That said, users who need more advanced order types can select 'Show More Options' to access the different order types within the app. Refer to the next section to learn about the meaning of different order types.
Similar to the example in the prior section, let's say I want to set a buy limit order for Apple shares at $180.00.
Step 5: Determine the number of units of shares you want to buy:
You'll be shown the amount required for you to buy the shares.
In this case, buying 5 Apple shares at my limit price of $180.00 will require about $900 on my end (before commission).
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
The 2 most common Time-In-Force mechanisms are:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, slide to submit your trade.
Note: What is IBKR Mandatory Cap Price?
Upon placing your trade, you might come across a pop-up to seek your acknowledgment on IBKR Mandatory Cap Price.
IBKR Mandatory Cap Price refers to IBKR's initiative to avoid traders placing trades at price levels at are way outside the normal level capped by IBKR.
One key benefit of IBKR Mandatory Cap Price is it helps traders avoid typo (by denying the order), such as me mistakenly typing my buy limit price of Apple shares at $18,000 instead of $180.
For me, I'll just go ahead and select 'Accept and Continue' when I get this pop-up while placing my trades.
Step 8: Cancel or Modify the order if needed
Once you placed your trade, you can adjust or cancel your trade if needed:
A beginner's Guide to Different Order Types on Interactive Brokers (IBKR)
While trying to place your trades on IBKR, you'll come across a variety of order types on the platform.
In this section, let's go through the 3 common order types that you may use while placing your buy trades on IBKR:
#1 Limit Order
A Buy Limit Order allows investors to line up their orders to buy shares at a specific price or better.
- Example: As shown in the screenshot below, Appleâs share price is $184.70.
- If you want to buy Apple shares at a lower price, say $180.00, then set your limit price to $180.00. Essentially, what you are doing is telling the system that âExecute Buy Order ONLY if the price drops to $180.00 or less.
#2 Market Order
A Buy Market Order allows investors to enter immediately at market price. In other words, to enter the market immediately, you as a buyer will need to accept whatever the Ask Price that the most immediate sellers are asking for.
- Example: In the screenshot below Apple's share price is $184.70, with Ask Price at $184.79.
- If you want to buy Apple shares immediately at market price, you will find yourself entering at the Ask price of $184.79, which is the price that the most immediate sellers are asking for.
#3 Stop Order
A Buy Stop Order is an order that is triggered when the price hits a specific level defined by the investor.
- For instance, Apple share price is priced at $184.70. I'd only like to buy the share once there is a bullish momentum that pushes the price above $190.00.
- To do this, I'll set a Buy Stop order at $190.00. Once Apple's share price reaches $190.00, my Buy Stop order will be triggered and my order will be filled at the most immediate available price at that moment.
- The downside of using a Stop Order is the execution price is NOT guaranteed. In a scenario where Apple's share price breaches above $190.00 in an aggressive market move where there are no sellers at $190.00, then I'd find my Buy Stop order being filled at a higher immediate price where there are sellers to meet my buy order (eg. $191, 192).
Verdict â Use IBKR to access the global stock market!
So there you have it - a detailed step-by-step guide on how to buy your first stock or make your first trade via Interactive Brokers (IBKR) Client Portal or the IBKR Mobile app!
I hope this is helpful and if you have any questions just leave them in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Guide: How to link your Interactive Brokers (IBKR) account and place trades on TradingView
Interactive Brokers (IBKR) has been my go-to broker for all-things global stocks and ETFs.
Meanwhile, TradingView is one of my top charting platforms thanks to its simple-to-use interface and feature-rich charting tools.
Wouldn't it be perfect if I could link my IBKR account to TradingView - so I gain access to the vast markets that IBKR offers while executing my trades on my favourite charting platform?
In this post, let me show you how to do so!
RELATED POST:
Support this blog with a small gesture!
Dear friends, if you find this post helpful, Iâd appreciate it if you can click on the button below to learn about IBKR via IBKRâs official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content â thanks in advance my friends!
Step-by-step: Linking your Interactive Brokers (IBKR) account on TradingView
Pre-requisites: Opening your IBKR account
To start, you'll need to have an IBKR account and TradingView account
- To open an IBKR account, check out my full guide HERE.
- To open a FREE TradingView account, click HERE.
- If you already have an IBKR and TradingView account, move on to the next step.
Step 1 - 2: Look for Interactive Brokers (IBKR) under 'Trading Panel'
Under TradingView's charting interface, select 'Trading Panel' in the bottom section.
Then, look for Interactive Brokers:
Step 3: Once you select Interactive Brokers, click 'Connect'
Step 4 - 5: Log in to your IBKR account and authorize the linking of your IBKR account to TradingView
Once connected, you'll be able to see your IBKR account ID displayed on TradingView's bottom panel:
Executing a trade on TradingView with your IBKR account
In the previous section, we've successfully connected our IBKR account to TradingView.
Now, let's see how to execute a trade on TradingView with your IBKR account connected:
Step 1: At the search bar, search for the ticker/symbol of the stocks/ETF/instruments that you intend to trade
To see if the instrument is tradable on your IBKR account, keep the 'Interactive Brokers' icon selected.
Step 2: At the bottom panel, select 'Trade'
Step 3: Placing trades on TradingView
You'll be greeted with an execution panel. Here's how to execute a trade on TradingView:
- (a) Choose 'Order' to place your trades. Meanwhile, DOM (or Depth of Market) shows you the orders across each price level
- (b) Select 'Buy' to place a long trade and 'Sell' to close your trade (or place a short trade). The figure in the middle (0.04, for this example) shows the Bid-Ask spread - which is the difference between the best price that the buyers and sellers are willing to transact.
- (c) Order type: Choose your order types to execute your trade. The most common order types are:
- Market order: Allows investors to enter immediately at market price.
- Limit order: Allows investors to line up their orders to buy shares at a specific price or better.
- Stop Order: A Buy Stop Order is an order that is triggered when the price hits a specific level defined by the investor.
- To learn more about the common Order Types on IBKR, check out my guide HERE.
- (d) Order sizing: Define your trade size either in (i) no. of shares you want to purchase OR (ii) monetary value of your trade
- (e) Optional: Set your Take Profit and/or Stop Loss level for your trade as you see fit. You can define them in Ticks value/Price level/Monetary value/% distance from your entry price. This feature is useful for traders with a pre-defined price level to exit their trades.
- (f) Determine Time-In-Force of your trade order: Time-In-Force determines how long your trade order will stay valid. 2 of the most common Time-In-Force mechanisms are:
- Day: A âDayâ order will stay valid until the end of the trading session and cancel itself should the order is not filled.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
- (g) Set your Order Routing (I will usually keep it to the default setting) and if you'd like your Take Profit (where applicable) to be triggered outside of Regular Trading hour (RTH).
- (h) Once you've done the selections above, select 'Buy' to proceed with your trade.
- (i, j) Check your trade details, and click 'Send Order' if all is okay. A confirmation pop-up will appear - select 'Accept' if you are aware and acknowledge the terms.
Once your trade is placed and executed, you'll be able to check for your trades under ' Trade History':
No Money Lah Verdict: Getting the best of both worlds with Interactive Brokers (IBKR) and TradingView
I hope this guide has been helpful!
IBKR and TradingView are my favourite platforms - for broker and charting respectively, and I am super happy to share how to combine both in my investing journey in a seamless manner - give it a try, you'll like it!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Promotional Relationship Disclosure:
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.
The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.
Any trading symbols, entities or investment products displayed are for illustrative purposes only and are not intended to portray recommendations.
The information in this podcast does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.
Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Guide: How I track my dividends on Interactive Brokers (IBKR)
Have you ever wondered how much dividend you have received for the last month, quarter, or year?
As a dividend investor myself, I lose track of my dividends too when life gets too busy at times.
In this post, I'd like to show you how I keep track of my dividends from my Freedom Fund from my go-to broker, Interactive Brokers (IBKR).
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How much dividend did I make last month?
As a dividend investor, I'd always like to know how much dividend I made in the prior month (or quarter/year).
My personal habit is to track my monthly dividend based on the Ex-Date of the dividend announcement.
Dividend Ex-Date refers to the day you have to hold on to a companyâs shares to be eligible for their announced dividend.
For instance, if a stock or ETF announces a dividend with an Ex-Date of 31/3/2025 with a Payable Date of 2/4/2025, I will consider this as part of the dividend I receive for March.
Interactive Brokers (IBKR) makes it easy to track your dividends:
Before we start, make sure you've logged in to your Interactive Brokers account HERE.
Tracking your dividends on Interactive Brokers (IBKR)
Step 1 & 2: Under 'Performance & Reports', select 'Statements'.
Step 3: Select 'Realized Summary'
Step 4 & 5: Select your Period and Date for your report, then select your preferred format for viewing.
For this example, I will choose to view my dividend on a monthly basis for March 2025 - and to view it in HTML.
Step 6: Select 'Change in Dividend Accruals'
Step 7: Identify dividends with ex-date for March 2025 (or any period of your selection)
There are 3 'Date' columns:
- (a) The first 'Date' column refers to the date of the change in dividend accrual.
- (b) The second 'Ex-Date' column is the column that I'll usually refer to as I track my dividends. To recap, Ex-Date refers to the day you have to hold on to a companyâs shares to be eligible for their announced dividend.
So, for dividend tracking for March, I will consider all dividends with Ex-Date in the month of March as my March dividends.
- (c) The third column, 'Pay Date' tells you the date your dividends will be reflected on your IBKR account.
'Po' and 'Re' in Interactive Brokers (IBKR) statement:
Column (d) shows the remark of the dividend information with 2 codes:
- The postings (with code Po) are done for new accrual additions to the account.
- Meanwhile, reversals (with code Re) are done for the following three reasons: correction in dividend accruals, cancellation in dividend accrual, and reversal due to payout in cash.
For this example, I noticed 2 rows of dividends with Ex-Date in March to have a 'Re' code, which may indicate a reversal due to cancellation or correction.
As such, I will exclude them as I track my dividends:
- (e) Gross Rate also means 'Distribution Per Unit' (DPU) of your holding. It is the amount of dividend you receive per unit of share you own.
- (f) Gross Amount (Gross Rate x Quantity of Shares Owned) refers to the total dividend you receive for the shares you own before considering tax in (g).
- (g) Tax refers to the tax involved for the respective dividends. As a Malaysian, this usually refers to Dividend Withholding Tax (WHT).
- (h) Net Amount is the final dividend you'll receive after deducting tax (if any) from (g).
Finally, after sorting the details above, the dividends with Ex-Date in March 2025 is as below:
Interactive Brokers (IBKR) Message Center Notification: Receive Email Updates on Your Dividends
Aside from logging into my IBKR account, I also like the fact that IBKR will inform me via email whenever there's an upcoming dividend:
No Money Lah's Verdict: Track your dividends with ease on Interactive Brokers (IBKR)
As a dividend investor, I find it essential to have a reliable platform to track my dividends easily, in addition to the ability to execute my trades.
I hope this is helpful and let me know in the comment section if you have any questions!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Promotional Relationship Disclosure:
This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.
The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.
Any trading symbols, entities or investment products displayed are for illustrative purposes only and are not intended to portray recommendations.
The information in this podcast does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.
Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Moomoo Malaysia Review (2026): Almost perfect, with some room for improvements
The highly anticipated Moomoo MY is finally launched in Malaysia in late February 2024, allowing Malaysians to trade the US and Malaysia stock market at a highly competitive fee.
Personally, Iâve been using Moomoo MY since their launch.
So, what is it like to invest through Moomoo MY? How's their pricing/fees like compared to other local brokers?
Letâs find out!
Highlights of Moomoo MY
- Locally-regulated broker: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MY's operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to US, Singapore, Hong Kong, China, and Malaysia stock markets + US options market: Invest in the US, Singapore, Hong Kong, China, and Malaysia stock markets + US options market within the moomoo app.
- Best fee structure for Malaysia-regulated brokers: Moomoo MY offers the most competitive fees for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all moomoo users for the first 180 days.
- Powerful features: Investors of all levels and experience will appreciate the useful features that will alleviate their investing experiences, such as fractional share trading, a powerful stock screener, 24/7 news, Moo community, and more.
- (NEW) Moomoo AI: Moomoo AI makes it super easy for users to gather insights on a stock or ETF - making your research process a breeze.
- Room for improvements: A rather lackluster Help section in the app, where you would not be able to find answers to many important questions.
How is Moomoo MY regulated + Safety of Funds
In terms of regulation, Moomoo MY (registered under the name Futu Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
This ensures Moomoo MY is operating under the best practices and guidelines set by the Malaysian authority.
In addition, clients' funds are kept separately from Moomoo MY's finances through a custodian bank account. Moomoo MY will not have access to your funds and assets, ensuring clear transparency to avoid fraud. This also ensures that if something happens to Moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
Furthermore, Moomoo MY clients' fund is protected by Capital Market Compensation Fund (CMC Fund), where clients can claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that Moomoo MY is not able to pay clients due to bankruptcy.
Moomoo MY fees & pricing for the US, Malaysia, and Singapore stock markets
One of the reasons why Moomoo MY took the investing community by storm is its highly competitive pricing for the US, Malaysia, Singapore, Hong Kong, and China stock markets.
For pricing, Moomoo MY charges a commission and platform fee respectively. The great news is, new Moomoo MY users will enjoy 0* commission for the first 180 days:
(a) Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant:
| Moomoo MY pricing for Malaysia stocks, ETFs, REITs, and Warrant | |
| Commission | RM0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | RM3/trade |
(b) Moomoo MY pricing for US stocks, ETFs, and REITs:
| Moomoo MY pricing for US stocks, ETFs, and REITs | |
| Commission | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | USD0.99/trade |
(c) Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs:
| Moomoo MY pricing for Singapore stocks, ETFs, REITs, Warrants, and DLCs | |
| Commission | SGD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. SGD3/order) |
| Platform Fee | 0.05% x Transaction Amount, min. SGD5/order |
(d) Moomoo MY pricing for Hong Kong Stocks & ETFs
| Moomoo MY pricing for HK stocks & ETFs | |
| Commission | HKD 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. HKD 3/order) |
| Platform Fee | HKD15/order |
(e) Moomoo MY pricing for China Stocks & ETFs
| Moomoo MY pricing for China stocks & ETFs | |
| Commission | CNH 0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter, min. CNH 3/order) |
| Platform Fee | CNH 15/order |
(f) NEW: Moomoo MY pricing for US fractional shares:
May 2024: Fractional share trading for the US market is a newly launched feature by Moomoo MY.
It allows investors to buy and sell shares in fractional units instead of 1 whole unit. Check out the next section ('My Experience' section) as I cover more about fractional trading on Moomoo MY.
| Fractional: Trade Size <1 Share | Normal: Trade Size >= 1 Share(s) | |
| Commission | Waived | USD0* for the first 180 days to new users (*0.03% x Transaction Amount thereafter) |
| Platform Fee | 0.99% x Transaction Amount (capped at USD 0.99/trade) | USD0.99/trade |
Moomoo MY pricing vs other locally-regulated brokers:
Check this out as I put Moomoo MY's pricing structure in comparison to the likes of Rakuten Trade and Webull Malaysia:
(i) Moomoo MY vs Webull Malaysia vs Rakuten Trade fee comparison for the Malaysia stock market (Promo: First 180 days 0 commission trades for new users):
(ii) Moomoo MY vs Webull Malaysia vs Rakuten Trade fee comparison for the US stock market (Promo: First 180 days 0 commission trades for new users):
Also, take note of other non-platform trading fees that are NOT charged by Moomoo MY while you trade the stock market:
- Malaysia stock market
- US stock market:
My experience investing via Moomoo MY (Features):
The moomoo app is one of the most well-designed investing apps that I've used, which managed to combine useful features without compromising much on ease of use.
Below are some of my personal favourites while using the moomoo app to invest in stocks:
LATEST: Elevate your investing experience with Moomoo AI!
Moomoo AI makes it fast and easy to gather investing insights - be it on the overall market or a specific stock/ETF.
I like that it gives me quick insights on stocks with just a simple prompt. I can also get ideas on how to filter for stocks.
The ways to use Moomoo AI to elevate your investing experience are limitless.
#1 Real-time US and Malaysia price quotes (or price feed)
Moomoo users will be happy to learn that moomoo offers real-time level 2 US market data for FREE (where you usually have to pay on other trading platforms), as well as FREE level 1 MY market data.
What exactly is Level 2 market data?
Essentially, Level 2 market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 market data is equivalent to having an aerial view of the market. For instance, with Level 2 market data, you can detect in real-time if buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 market data, you can get a better gauge of market strength.
#2 Fractional share trading for the US market on Moomoo MY
Fractional share trading is a newly introduced feature by Moomoo MY. It allows users to invest in a fraction of a share from just $5.00 instead of buying the whole share.
Simply put, fractional share trading makes investing with a small capital much more friendly and flexible.
i. Example: Buy fractional share from just $5.00
1 unit of Apple share is worth $189.73/unit. With fractional share trading on Moomoo MY, I am able to buy 0.03 units of Apple share at $5.6919 ($189.73 x 0.03 units).
ii. Cost of Fractional Trading on Moomoo MY vs Rakuten Trade
At this point, Rakuten Trade is another locally-regulated broker that offers fractional share trading.
Let's compare which is better in terms of cost when it comes to fractional trading:
iii. Conditions for Fractional Trading on Moomoo MY
- Not all US stocks and ETFs support fractional trading. To see if a stock or ETF is eligible for fractional share trading, look for the 'Fractional Share' symbol:
- Only day orders are supported, and attached orders or short selling are not allowed
- The minimum order size for fractional trading is 0.0001 shares on Moomoo MY. For fractional trading buying, the minimum order amount is $5.00.
- Once submitted, the quantity of fractional shares orders is not allowed to be edited
- Whole share orders are not allowed to be changed to fractional shares orders
- Editing the price of a limit order for fractional shares is supported after submission and before the order is fully executed or closed.
#3 Visual information on stocks or ETFs within the app
In terms of app design, the moomoo app is also the best stock investing app I've tried so far which puts financial information into easily understandable visuals & charts.
From revenue breakdown, shareholders, dividends, and more, I can get a clear picture of a stock without having to visit other external websites:
#4 Complete trade order execution features, from basic to advanced executions
Having tried many locally-regulated brokerages, I come to appreciate the different trade order execution features that Moomoo MY is offering to users on the moomoo app.
Aside from the basic market and limit orders, I discovered various order execution features (eg. Stop order, Limit-if-Touched), which makes trade execution more versatile for investors and traders alike, regardless of style.
#5 Powerful screener & 24/7 news update
The stock screener within the moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
#6 Moo community
Within the moomoo app, you'll find a vibrant Moo community, comprised of global moomoo users sharing their thoughts and insights on the market.
Not to mention various live webinars that allow you to keep up with the most happening events in the market:
#7 Earn up to 3.5%* per annum on your cash via Cash Plus (*T&C applies)
As a Moomoo MY client, you can also enjoy a low-risk, competitive return on idle cash when you sign up for moomoo's latest Cash Plus funds.
Benefits of Cash Plus:
- Daily returns: Up to 3.5%* p.a. daily returns even on weekends. (*Based on 1-year past returns on Maybank Retail Money Market-I Fund and United Money Market Fund-Class R as of May 2024).
- Low barrier of entry: Subscribe to Cash Plus from RM0.01. There is no maximum amount on how much you deposit in Cash Plus.
- Flexible: Your Cash Plus deposits can be redeemed for stock trading at any time.
- Zero Fees: All you earn is yours to keep
3 types of Cash Plus funds:
2 of the Cash Plus funds are MYR money market funds, while there is 1 USD cash fund:
This means you have the choice to earn interest/returns in either MYR or USD, neat!
Check out how to subscribe to Cash Plus below!
Explore many more exciting and useful features that moomoo has to offer!
Aside from the features that I mentioned above, there are MANY more useful gems waiting for you and me to discover on moomoo!
Some other useful features include Market Position Overview, 'Concepts', and Short Sale Analysis, which I covered in my Moomoo MY feature review.
Personally, I am always discovering new features as I explore the moomoo app, and I will update this review as I come across features that I really like!
What I wish could be improved
From my time using the moomoo app, there are a few things that I wish could be improved:
#1 Lackluster 'Help section'
As an online stock investing platform, I find the 'Help' section of moomoo's app to be lacking in important information compared to other competitors.
Simply put, I couldn't find answers to many commonly asked questions, such as:
Are there fees to corporate action, such as Dividend Reinvestment Plan (DRIP) and rights issue? What to do if I want to subscribe to corporate action?
How is Moomoo MY regulated? Who/which bank is the custodian bank that Moomoo MY has appointed to hold customers' funds?
Is Moomoo MY a nominee or direct CDS account for investing in the Malaysia stock market?
Can I apply for an IPO? If yes, how?
Can I apply to join an AGM? If yes, how?
As such, from my time using moomoo, I find myself reaching out to Moomoo MY's customer support for help - which is a mixed-bag experience on its own - more in the next point.
#2 My experience with Moomoo MY's customer support is rather hit-or-miss
Thanks to a half-baked 'Help' section, I spent a fair amount of time reaching out to Moomoo MY's 24/5 customer support for help and clarification.
Moomoo MY offers 3 channels for users to reach out for help, namely: Livechat, Phone support (03-9212 0708), and email ([email protected]).
What I appreciate about Moomoo MY customer support:
- Multiple channels to reach out for help.
- 24-hour support for live chat and phone support on working days.
- Simple questions that require standard answers are addressed quickly.
What I wish could be better with Moomoo MY customer support:
- As an existing Moomoo SG and Moomoo MY user, I am always directed to Moomoo SG chat agent before I am redirected to Moomoo MY support, where I'll need to readdress my questions. I wish Moomoo could streamline the system for both Moomoo MY and Moomoo SG users so it is easier for us to get help.
- I also faced a difficult time trying to get answers to certain questions, such as which exact custody bank/trust is Moomoo MY using to store clients' assets (eg. funds, stocks).
As a whole, as an online investing/trading platform, I wish to see more improvements in Moomoo MY's Help section and customer support, as they are the only way users can seek assistance when they need help.
Regardless, since Moomoo MY is still relatively new to the local market, I shall revisit their Help section and customer support in the coming months and see if there are any improvements.
Verdict: Moomoo MY is providing the best value for money for Malaysia investors
The launch of Moomoo MY in Malaysia has certainly disrupted the brokerage industry with its attractive pricing & fee offering, coupled with a featureful investing platform.
Now, it is even more affordable for Malaysians to get access to the US, Singapore, and Malaysia stock markets thanks to Moomoo MY.
Despite missing a few features and a slightly lackluster customer support (which I think could be improved with time), I think all these are not dealbreakers for me to recommend Malaysians to give Moomoo MY a try.
Step-by-step: How to open a Moomoo MY universal account & make your deposit
Opening a Moomoo MY universal account is one of the smoothest I've experienced among all the other investing platforms I've tried.
Step 1: Use my referral link HERE to open your Moomoo MY universal account, where you'll get to enjoy various account-opening perks.
Step 2: Fill in your personal details
Step 3: Verify your identity through your IC
Step 4: Provide your tax information, including your Tax Identification Number (TIN) (ie. LHDN number).
Alternatively, if you do not have a TIN number (eg. you are a student), you can enter your IC accordingly.
Step 5: Enter your employment details and financial information:
Step 6: You'll be required to scan your face for verification purposes.
Step 7: Read through the Customer's Declaration and proceed should there be no issue
Step 8: If the application goes smoothly, your account should be approved within 1 - 3 business days. At the same time, you'll also receive an email once your account is approved.
Step 9: Head over to 'Account' > 'More' > 'Deposit' to get instructions on how to make your deposit.
Essentially, the deposit process can be done through (i) FPX transfer (recommended, as deposit is usually done within 5 minutes) or (ii) Bank transfer.
As for deposit via (ii) Bank transfer, log in to your bank account and make the transfer to the Moomoo MY bank details as shown to you.
[Reminder] Remember to claim your account-opening perks! (Under 'Me' > 'Promotion' > Click to redeem your account opening and deposit reward)
Moomoo MY FAQ (Answers extracted directly from customer support)
Ques: Can I attend AGM for the MY and US stocks that I invest in?
Answer: AGM for US stocks: Moomoo MY does not currently support US Shareholders Meeting
AGM for MY stocks: If you want to attend the MY Shareholders Meeting, kindly drop Moomoo MY an email at least 10 business days before the Shareholders Meeting date at [email protected], the email needs to include: 1. A description of the content: Live voting or E-voting. 2. Your Name, Moomoo ID, Contact Number, and Stock code for the meeting. 3. The address of current status quo residence. (in English) Upon receiving your email, Moomoo MY will reply to you with any details.
Ques: I am an existing Moomoo SG user, can I still use my Moomoo SG universal account after opening my Moomoo MY universal account?
Answer: Moomoo MY and Moomoo SG are two different independent brokerage, will not affect each others
Ques: Any fees for corporate actions like DRIP, and rights issue?
Answer: Moomoo MY does not charge any processing fees for corporate actions of stocks (except for handling General Meeting matters). However, any third-party/exchange charges are still applicable to client.
Ques: Is Moomoo MY a nominee or direct CDS account for investing in Malaysia stocks?
Answer: Nominee CDS account
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Futu Malaysia Sdn. Bhd. ("Moomoo MY"). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
I didn't trust Moomoo Malaysia (MY), until I learned thatâŚ
You've probably come to this article as you are unsure if you should use moomoo MY as your go-to platform to build your investment and trading portfolio.
Over the past 1 year since its launch in Malaysia, I've received many inquiries on moomoo MY.
In today's post, I'd like to address the most-asked question of all:
Is moomoo MY a trustworthy and reliable platform to invest and trade stocks?
In this post, I'll focus my research on the reliability of moomoo MY as a trading platform - let's go!
Related Links
Highlights: I didn't trust Moomoo, until I learned that...
- It is a locally-regulated broker in Malaysia: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that moomoo MYâs operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- My funds in moomoo MY are safe & protected: Moomoo MY clientsâ fund is protected by Capital Market Compensation Fund (CMC Fund), allowing me to claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that moomoo MY is unable to pay clients due to bankruptcy or fraud.
- It is owned by a publicly-listed company: Moomoo MY's parent company, Futu Holdings is publicly listed in the US (NASDAQ: FUTU) with a market cap of over USD 16 billion as of Financial Year (FY) 2024.
- Futu Holdings is a strong brand & reliable brand for securities trading: Aside from Malaysia, FUTU has a growing & strong presence in the US, Canada, Australia, Japan, Singapore, and Hong Kong, with over 25 million global users.
What is Moomoo Malaysia (MY)?
Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is Malaysia's top one-stop trading platform that offers access to the stock market in addition to the most updated financial news, investment education, and community learning.
Its parent company, Futu Holdings, is listed in the US stock market (NASDAQ: FUTU).
Who are FUTU largest shareholders?
Founded in 2007, Futu Holdings is listed in the US stock market (NASDAQ) in 8th of March, 2019.
As of March 2025, FUTU 2 major shareholders are the CEO of FUTU, Mr Leaf Hua Li (36.6%), with backing from Tencent Holdings (20.55%) - the largest publicly-listed company in Hong Kong by market cap. Aside from that, BlackRock and Morgan Stanley also own a stake of 1.92% and 1.73% in FUTU respectively:
How is Moomoo MY regulated + Safety of Funds
(1) Regulated by Securities Commission Malaysia (SC)
In terms of regulation, Moomoo MY (registered under the name Moomoo Securities Malaysia Sdn. Bhd.) is regulated by the Securities Commission Malaysia (SC), with a Capital Markets Services License to operate a legal brokerage business:
(2) Member & trading participant of Bursa Malaysia
As a trading participant of Bursa Malaysia, Moomoo MY must adhere to just & equitable principles, act with due skill, care, and diligence, and ensure the market remains orderly and fair.
In other words, moomoo MY must ensure its business activities are run as per the best practices & rules set by the authority:
(3) Moomoo MY does not have access to your funds and assets
To ensure clear transparency and avoid fraud, clientsâ funds are kept separately from moomoo MYâs finances through a custodian bank account.
This also ensures that if something happens to moomoo MY (eg. Bankruptcy), your funds & assets will not be affected.
(4) Your funds are protected by Capital Market Compensation Fund (CMC Fund)
As an additional layer of security, Moomoo MY clientsâ fund is protected by Capital Market Compensation Fund (CMC Fund).
This allows clients to claim up to RM100,000 on eligible Malaysia securities/assets in the unlikely event that moomoo MY is unable to pay clients due to bankruptcy or fraud.
p.s. One thing to note is that just like all other brokerages in Malaysia, Moomoo MY is not covered under Perbadanan Insurans Deposit Malaysia (PIDM) which covers eligible deposits up to RM250,000 per depositor per member bank. Instead, moomoo MY's clients are covered under the Capital Market Compensation Fund as mentioned above.
How Moomoo MY is establishing a strong presence in the investing community
In this section, I'll take an aerial view and explore not just Moomoo MY, but its parent company, Futu Holdings, as a business:
Part 1: moomoo business in Malaysia
Moomoo MY is launched in Malaysia in late February 2024. At the time of this writing, it has been more than 1 year from the launch.
Moomoo MY started by offering access to the Malaysia and US stock markets, which then incrementally introduced features such as:
- Access to Malaysia, US, Singapore, Hong Kong, and China stock markets
- The first Malaysia-regulated broker to offer options trading for the US market
- Cash Plus feature, consisting of low-risk, competitive yield funds for idle cash
- Fractional share trading for US market and odd lots trading for Malaysia & Hong Kong markets
- One-stop e-IPO subscription while offering margin facility to subscribe to IPO
- And many more
For more in-depth review of moomoo MY features and pricing, check out my full review HERE.
Within 7 months of operation, moomoo MY has attracted 500,000 users, with an average of 2,300 new sign-ups daily, demonstrating strong market recognition.
Part 2: moomoo Business around the world
moomoo MY's parent company, Futu Holding (FUTU), has been established for 12 years and was listed on the NASDAQ exchange in 2019.
Besides Malaysia, FUTU has securities businesses in the US, Canada, Australia, Japan, Singapore, and Hong Kong, with over 25 million global users.
In other words, the entities of FUTU are licensed & regulated by the respective authorities of the countries they are in:
- US: Regulated by the US. Securities and Exchange Commission (SEC) and National Futures Association (NFA)
- Singapore: Regulated by the Monetary Authority of Singapore (MAS)
- Australia: Regulated by the Australian Securities and Investments Commission (ASIC)
- Canada: Regulated by the Canadian Investment Regulatory Organization (CIRO)
- Malaysia: Regulated by the Securities Commission Malaysia (SC)
Is FUTU, Moomoo MY's parent company thriving as a business?
With growing presence globally, FUTU has achieved steady growth throughout the years.
That said, how does FUTU make money?
As of the latest Financial Year (FY) 2024, FUTU's key revenue comes from Interest Income (49.06%) and Brokerage Commission (44.48%).
While it is no secret that Interest Income and Brokerage Commission are 2 important sources of income for a brokerage business, FUTU's unique expansion strategy is what makes the company shine:
As of the Financial Year (FY) 2024, FUTU has acquired more than 25 million registered users globally.
By growing their presence via competitive fees and quality products & service, it has helped accelerate FUTU's customer acquisition. With this trajectory, I am optimistic about FUTU's growth as a company.
#1 Steady Revenue & Net Income Growth:
FUTU has delivered steady growth in revenue and net income over the years.
In Financial Year (FY) 2024, FUTU achieved a USD1.75B in revenue (+36.52% growth) and USD699.56M in net income (+27.66% growth) respectively.
#2 Steady growth delivered continuous value to investors
FUTU's steady growth has been rewarding to investors in return.
For instance, FUTU's Earning-Per-Share (EPS) continued to grow with time, hitting USD5.01/share in FY 2024, a 27.79% growth over the previous year.
FUTU's Return on Equity (ROE) has also been encouraging at 20.71% in FY2024 (+9.86% growth over previous year). A positive and growing ROE indicates that FUTU is utilizing investors' capital efficiently to grow the company.
#3 A healthy margin and efficient headcount
FUTU also runs its business at a healthy margin of 39% to 40+% over the years.
A key advantage of FUTU as a digital brokerage over traditional brokerages is the company's ability to:
- Leverage on technology (eg. online account opening and customer support) and;
- Rely less on physical space, resulting in a more efficient business which translates to a more profitable business model.
Despite the company's expansion, FUTU ensures that revenue continues to grow with every hire (headcount).
No Money Lah's Verdict: Featureful & reliable trading platform for all Malaysians
So there you have it - my walkthrough on Moomoo MY's background as a brokerage and the business of its parent company (FUTU).
I hope this gives you a clearer picture of moomoo and the progress the team made over the years, as a display of their commitment to serve the global community when it comes to wealth-building and investing.
If you have any questions, feel free to leave them at the comment section!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (âMoomoo MYâ). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
How I find meaning in my work (+ Last-minute tax reliefs)
Have you ever lost passion in your work?
As a self-employed creator, I struggled with 'meaning' in my career way too often in the past 7 years.
For instance, I always doubt the impact of my work because, most of the time, I don't get to see the people (like yourself) who read my articles.
"Do my readers find value in my work?"
"Do my readers resonate with my experiences?"
"Is it useful for them?"
Hence, while being a 'content creator' seems like a sexy and desirable career, the truth is that I spend the majority of my time typing in front of the laptop.
Kinda like most 9-5s, but more like 24/7 in the world of self-employment.
What changed my perspective?
2 things happened to the person I loved most lately - my mom.
- She now needs to rely on a walking stick to walk due to intense pain in her leg muscles.
- We found out that there's a lump in her breast (non-cancerous, luckily), but it has to be removed just in case.
In the first case, a physio friend of mine helped my mom relieve her muscles (p.s. reply to this email if you need more info!). The latter, the doctor who'll perform the surgery, is coincidentally a neighbour in my housing area.
Besides being grateful, something clicked for me:
The beautiful things that we experience in our lives are thanks to the people who show up daily to perform their craft.
This includes people like you and me.
Don't underestimate the impact you bring to the society
Regardless of your craft and expertise, you will always leave an impact on society.
Like how a chicken rice uncle would serve a hungry doctor, and the doctor would treat a sick teacher, to how the teacher would, in return, build the next generation of students.
Every craft has its place in the world because they make the society a better place to live in - yours and mine included.  Â
This is the mindset that I'd like to keep going into 2026:
To produce quality content to make a difference in your life, so you can use your craft do the same for others too.Â
Last-minute tax reliefs (do before 2025 ends)
Ok, here is a list of last-minute tax reliefs that you can take advantage of:
- Boost your EPF contributions: RM7000
- RM4000 from mandatory contribution (if your salary >RM3030, then you'll hit this one already)Â
- RM3000 from voluntary contribution
- Deposit into SSPN (saving for kid's education):Â RM8000
- Contribute to PRS: RM3000Â (Guide: How to choose a PRS fund)
- Buy medical insurance: RM4000
- Health screening (RM1000), Dental checkup (RM1000), Vaccination (RM1000) - applicable for self, spouse, or child Â
- Lifestyle: RM2500
- Books, Computer/Smartphone/Tablet, Upskilling courses, Internet Subscription under your own name
- Sports equipment and gym membership (RM1000)Â -Â applicable for self, spouse, child, or parents
Hope this is helpful!
2025 has been great thanks to you. See you again in 2026 - enjoy the year-end!Â
[Disclaimer]
Not financial advice. Sharing is based solely on my own research. Do your own due diligence and seek guidance from a licensed financial planner.
A simple, fool-proof plan to make my (future) child a millionaire
"What's the simplest, yet fool-proof way to make your child a millionaire ($1,000,000)?"
Recently, I asked this question to a friend - so I figured it'd be fun to do this with you too.
Give this a thought, I'll show you my plan at the end of this newsletter.
Now, 2 quick (and important) updates:
Firstly, I've recently become an Associate Member of the Financial Planning Association of Malaysia (FPAM)!
This means I am about halfway through my Certified Financial Planner (CFP) journey - can't wait to share many more takeaways with you!
Secondly, in my CFP class, I've been fortunate to learn about Estate Planning, including will-writing, directly from Mr. Azhar, the group CEO of Rockwills.
Let me tell you - this is one of the most interesting classes in my journey so far!
Next, back to our question:
"What's the simplest, yet fool-proof way to make your child a millionaire ($1,000,000)?"
"Invest loh" my friend said
Investing is one way to build 1 million for your kids, but it is certainly NOT fool-proof.
- Say, from the time your kid is born, you invest RM250/month in an investment that generates an average return of 8% every year. That'd take close to 43 years to hit a million.
- What if... you pass away from an accident (*touch wood*) after the first year investing? Your kid would be left with some of your invested funds, but definitely very far off from RM1,000,000.
Don't get me wrong, PLEASE invest for your kids.
My key message here is that investing is not fool-proof... so what is?
My simple, yet fool-proof way to build RM1,000,000 for my (future) child:
Get a life insurance policy with RM1,000,000 coverage, naming my child as the beneficiary.
Simple as that. Here are why this is fool-proof:
- As long as I pay for the policy, I can be 99% certain* that my child will get the payout if I pass away. It could be tomorrow, next month, or 10 years later - the timing risk is eliminated.
- *An exclusion is if su(i)cide happens within a certain window of time, usually 1 - 2 years after the policy is issued. (p.s. YOU MATTER. Seek help, okay?)
- It is also affordable. As an example, at 31, I can buy a RM1,000,000 term-life insurance coverage online for RM233.95/month, locking in the price for the next 20 years.
- Finally, if I pass away, payout from life insurance bypasses any court procedures. This means my child will be able to access the money quickly to sustain their life.
In my opinion, life insurance is one of the most affordable and reliable tools to leave wealth to your loved ones, but...
But my friend foresees a problem:
"What if your child is still too young to make good use of the RM1,000,000?"
That's a valid concern. This is where 'Trust' comes in.
In estate planning, a Trust is a legal arrangement where one person transfers his assets to a 3rd party (a.k.a. a Trustee), who manages them for the benefit of the beneficiary.
Examples of companies that offer Trust services are Rockwills Trustee and RHB Trustee (note: I am not affiliated with them).
Simply put, for my case:
- I'd set up a Trust, placing the RM1,000,000 life insurance policy under the Trust - with specific instructions.
- When I pass away, my Trustee would receive the RM1,000,000 payout. Â
- The Trustee would distribute the RM1,000,000 to my child according to my instructions. It could be something like:
- "Every month, pay RM3,000 to my child's guardian for living expenses."
- "Reward my child with RM10,000 if he achieves 10 As in SPM."
- "Distribute everything to my child once he hits 30 y/o."
Doing so ensures that the money will be spent wisely until my child becomes mature enough to manage it on his own.
Final note:Â
I hope this newsletter has been helpful - especially if you are a parent who is planning to leave something for your child.
What I shared with you today is just a glimpse of what is possible when we combine financial tools like insurance and Trust.
And we are barely scratching the surface!
Stay tuned, as I will share more useful insights like this in my upcoming newsletters!
--
âQuestion: Do you find this newsletter useful? Feel free to share your thoughts with me by leaving your comments below!
Disclaimer
Not financial advice. Sharing is based solely on my own research. Do your own due diligence and seek guidance from a licensed financial planner.
Guide: When to deploy your extra cash into the stock market?
Recently, a good friend of mine asked me:
"I have some extra 'bullets' (cash)... but given the stock market at an all-time high (ATH), I am not sure if I should deploy them right now. Any thoughts?"
That is a valid concern.
Timing the market is extremely difficult to do - but let me share the next best thing with you:
How I spot ideal risk-reward opportunities:
Personally, I have my fixed monthly investing routine. At the same time, I always have some extra 'bullets' ready in case the market drops.
But how much of a 'drop' would it take for me to consider deploying my 'bullets'?
The short answer: I look at past data.
It's pretty simple - let me show you how:
The picture above shows you the annual return of the US stock market, the S&P500, over the past 45 years (1980 - 2024).
Now, I want you to focus on the red dots. These dots reveal the largest decline each year.
What can you observe from the red dots?
Here are my insights:
- Purple zone: It is common to see a decline of <20% in the S&P500 in a year. That happened in 36 of the past 45 years (80%).Â
- Green zone: Meanwhile, a decline of >20% only occurred in 9 of the past 45 years (20% of the time). For me, that's the ideal risk-reward zone to deploy my bullets in the S&P500.
- Simply put, our 'bullets' have a higher chance of delivering more meaningful returns (relative to risk taken) the closer we get to a 20% drop.
In my opinion, using past data is one of the simplest ways to gauge if it is a good window to deploy your extra cash.
But it is not the easiest to execute in real life.
Caveat: The data shown above is specifically for the S&P500. Please gather your own data if you are curious about other markets.
Psychological Challenges:
- You might feel FOMO and deploy your bullets too early. (Confession: That was me)
- You might be too afraid to deploy your capital when the market drops >20%. By then, social media would have painted the sentiment as if it is the end of the world.
- Since big declines are rare, you might not see the drop you want. You will need to be at peace with your 'bullets' not being invested.
- eg. In 2023 and 2024, the largest declines in the S&P500 were only 10% and 8% respectively.
Ultimately, I'd say one will become better with more experience with stock market fluctuations.
My approach:
My biggest challenge is that I can't stand seeing my 'bullets' not invested.
So these days, I do two things:
- I still invest monthly regardless of market conditions (Dollar Cost Average)
- I save my 'bullets' in low-risk funds to generate returns while waiting for market opportunities. That helps with my psychology.Â
Question: Do you have your own approach to deploy your 'bullets'? Feel free to share with me by leaving your thoughts in the comment section!
Disclaimer:
Not buy/sell advice. Do your own due diligence before investing.
How to research for quality Malaysia REITs? My top 5 steps, revealed! (via moomoo app)
Real Estate Investment Trusts (REITs) are companies that own income-producing real estates, such as shopping malls, offices, warehouses, and hospitals.
In Malaysia, publicly-listed REITs have been well-received among dividend investors thanks to REITs' tendency to pay a competitive dividend yield:
As a dividend investor, Malaysia-listed Real Estate Investment Trusts (REITs), such as IGB REIT and Axis REIT make up an important portion of my Freedom Fund portfolio:
In this post, let me walk you through 5 key steps on how I use the handy features within the moomoo app to research for REIT!
RELATED POSTS:
[đ p.s. Exclusive 2x RM20 cash coupons for No Money Lah readers! Use promo code 'NML01' when depositing to claim your exclusive reward. Refer to 'Account Opening & Deposit Promotion' section of this article to find out more!]
My 5-step approach to REIT research (via moomoo app)
Personally, if I were to start from zero, I'd generally start my research from a top-down approach with a few key questions:
- Entire sector: How is the REIT sector doing compared to other sectors?
- Within the sector: Which REIT is the top-performing Malaysia REIT?
- REIT vs REIT: How is a particular REIT doing compared to another?
- Individual REIT study: How good/bad are the fundamentals of the REIT?
- Is a REIT overvalued/fairly valued/undervalued?
For that, I find the suite of features within the moomoo app very handy in my research.
Moomoo MY offers beginner-friendly stock research tools
The features & tools on the moomoo app are also very beginner-friendly, as there are easy-to-understand explanations for the financial terms & indicators in the app:
Step 1: How is the REIT sector doing compared to other sectors?
**Before we start, it is important to note that the tools & features that I show below can be used for stocks from other sectors as well.**
To begin, open the moomoo app, select 'Markets' and select 'MY' which indicates the Malaysia stock market:
Feature #1: Heat Map
With the Heat Map feature in the moomoo app, I can see how, as a whole, the REIT sector performs relative to stocks from other sectors in Malaysia.
- Step i: Select Heat Map, and change the view to list view.
- Step ii: Under 'Filter', select 'YTD' which will show us the Year-to-Date performances of each sector:
- Step iii: Sort the performance from highest to lowest:
From this, we can see that the entire REIT sector has been showing a positive Year-to-Date (YTD) performance of 11.62% in 2024:
Step 2: Which REIT is the top-performing REIT?
Next, I'd also like to find out which REIT is the top-performing REIT Year-to-Date.
Feature #2: Compilation of stocks within the same sector
To do so, select 'Real Estate Investment Trusts' from the Heat Map:
- Sort 'YTD' from largest to lowest to view the best-performing REIT year-to-date (YTD).
As of the time of writing this article (Sept 2024), REITs like Pavilion REIT (+26.58%), and IGB REIT (+24.64%) have been outperforming the return of the entire REIT sector (11.62%) year-to-date.
- Sort 'Market Cap' from largest to lowest to view the largest REIT by market capitalization.
Generally, companies with a larger market cap tend to be more established relative to companies with a smaller market cap.
Step 3: REIT vs REIT: How is a particular REIT compared to another?
Want to compare which REIT is better in terms of their dividend yield, and other fundamentals like Earnings Per Share (EPS) and Net Margin?
'Compare' is a powerful feature in the moomoo app that allows me to compare up to 7 stocks side-by-side.
Under 'Compare', I can have all important insights of multiple companies at a glance, such as Dividend Yield, financial indicators, and valuation indicators.
Feature #3: Side-by-side stock comparison
- Step i: Start by selecting a REIT that you'd like to compare. For this demonstration, I'll be selecting IGB REIT.
- Step ii: Select the 3-dot button at the bottom right to activate the expanded menu. Next, select 'Compare'.
- Step iii: Use the '+' icon to add up to 6 other REITs for comparison. For this example, I'll add Pavilion REIT (PAVREIT) and Atrium REIT.
We can get many important insights from the 'Compare' feature. Some key insights that I look for include:
- Price trend comparison over different timeframe (1/3/6-month, 1 & 3-year, and YTD performances)
With this, I can compare the performance of all 3 REITs from a shorter time frame, or even for the past few years.
From a 3-year price trend timeframe, IGB REIT is the top performer among all 3 REITs.
- Dividend yield TTM (Trailing 12-month)
Dividend yield TTM indicates the dividend yield (%) after taking into account of the distribution for the past 12 months.
Atrium REIT comes out top in terms of yield (5.76%), follow by IGB REIT (5.17%) and PAVREIT (3.78%).
- Valuation indicators like Earning-Per-Share (EPS)
EPS measures a company's profitability per unit of the company's outstanding shares.
Generally, a high EPS indicates greater value because investors tend to pay more for a company's shares if they think the company has higher profits relative to its share price.
IGB REIT comes top with the highest EPS among 3 REITs.
- Financial indicators like Return of Equity (ROE), Net Margin, Debt to Asset, Current Ratio
On it's own, financial indicators may not mean much, but there are many insights that we can gather by comparing companies side-by-side.
- To start with, among 3 REITs, IGB REIT has the highest Return on Equity (ROE), which signals that IGB REIT uses its shareholder's equity more efficiently to generate income.
- Next, IGB REIT also has the highest Net Margin, which means it is making the most in terms of net profit per dollar of revenue gained.
- IGB REIT also has lowest Debt to Asset, which indicates that only 26.66% of the assets own by IGB REIT is financed by debt, with the rest owned by shareholders.
- Finally, IGB REIT has the highest Current Ratio of 1.16. A current ratio 1.16 means that IGB REIT has 1.16x more in current assets (eg. cash, short-term receivables), which is enough (>1.0) to cover its short term liabilities (short-term debt).
Step 4: Individual REIT study
In Step 3, we've compared REITs side-by-side. Let's look at how we can use features within the moomoo app to conduct research on an individual REIT.
For this study, let's use IGB REIT, which has displayed an overall competitive dividend yield and decent financial health in Step 3.
Feature #4: Stock insights within the moomoo app
Start by searching for IGB REIT in the moomoo app. Then, select 'Company'
A few key insights that I'll normally look at are:
- ďź1) Dividend payout consistency or Dividend growth
As a dividend investor, I prefer REITs with a consistent dividend payout, even better are those with a track record of growing their dividends.
With IGB REIT, it has raised its dividend per share (DPS) for the past 2 years since recovering from the pandemic in 2021:
- (2) Company overview
It is also important to know what does a company do while doing a research.
IGB REIT manages 2 retail malls in Klang Valley, namely Mid Valley Megamall and The Gardens Mall.
- (3) Financial strength
Finally, I like to dive into the financials of a REIT. For this, I sort the financials on an 'Annual' basis:
(i) EPS: IGB REIT has been showing strong earnings recovery after the pandemic, which is encouraging for a REIT managing retail malls.
(ii) Net margin: IGB REIT has also shown an increase in net margin post-pandemic, indicating rising profitability.
Step 5: Is a REIT overvalued or undervalued?
To find out if a REIT is overvalued, fairly valued, or undervalued, I usually like to compare its share price to Net Asset Value (NAV) Per Unit:
- NAV Per Unit= (Total Asset - Total Liabilities)/Shares outstanding
In general:
- REIT share price > 3x NAV Per Unit = Overvalued
- REIT share price > NAV Per Unit, but <3x NAV Per Unit = Fairly valued
- REIT share price < NAV Per Unit = Undervalued
How to get NAV on moomoo app?
Let's find out if IGB REIT is over or undervalued:
- Step (i): Find out the total shares for a REIT.
- Step (ii): Deduct Total Assets and Total Liabilities to get Net Asset
Using the latest quarter (Q2 2024) available as reference, IGB REIT has a total assets of RM5.5B and total liabilities of RM1.47B.
Hence, the latest Net Asset Value (NAV) of IGB REIT is RM4.03B.
- Step (iii): Calculate Net Asset Value (NAV) per unit
NAV Per Unit of IGB REIT = NAV/Shares outstanding = RM4.03B/3.61B = RM1.11/unit
As of 10/9/2024, IGB REIT's share price is RM2.04. This makes the share price larger than IGB REIT's NAV per unit of RM1.11 (Price > NAV Per Unit), BUT lower than 3x NAV Per Unit of RM3.33 (Price < 3x NAV Per Unit).
Hence, we can conclude that IGB REIT is currently fairly valued and we can make our investing decision accordingly.
Quick Guide: How to buy your first stock via moomoo app
Looking to place your first stock, REIT, or ETF trade on the moomoo app?
Here's a quick guide on how to place your trade:
- Step (i): Search for the stock that you'd like to buy, and select 'Trade'.
- Step (ii): Choose the order type for your trade. The moomoo app has a suite of basic to advanced order types, alongside the explanation of how each works.
- Step (iii): Select your trade quantity.
- Step (iv): Review the amount needed for the trade. Ensure you have enough cash to place your trade under 'Max Qty to Buy (Cash)', or enough buying power if you trade on margin under 'Max Qty to Buy (Margin)'.
- Step (v): Proceed to place your trade by clicking the 'Buy' button.
Verdict: Make stock research a breeze with the powerful tools & features in the moomoo app!
Having used Moomoo MY since its launch in early 2024, I find the moomoo app to be one of the most feature-packed, yet user-friendly investing platform that I've used so far.
I hope this walkthrough of my REIT research showcase inspires you to explore the features in the moomoo app to improve your investment research process!
Disclaimers:
All views expressed are the independent opinions of myself, which are not shared by Moomoo Securities Malaysia Sdn. Bhd. (âMoomoo MYâ). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.