Invest Smartly
with
moomoo's
Cash
Account
What is
cash account?
A cash account requires you to pay for securities in full when you make the trade. It's a non-registered account that does not permit borrowing funds or short selling, unlike a margin account.
Why should you
choose moomoo
cash account?
Quick and Easy
Open a cash account in a few minutes.
Currency conversion
Automatically convert your funds for foreign investments, like US stocks.
Cash Rebates
2% p.a. uninvested cash rebates distributed every week.
Maximize your returns with lower costs
Save up for 90% on costs trading US stocks with lower FX and commission fees.
Disclosures
Make your
uninvested money
work harder
Join our Cash Plus Program to have your idle cash generate rebates.
2%
For idle cash exceeding CA$ 10,000, you can enjoy a 2.0% p.a. rebate*.
Flexible
No account balance requirement. No lock-in period.
Weekly
distribution
distribution
Cash rebates distributed automatically every week.
Invest at
any time
any time
You can invest your funds at any time without the need to redeem them.
Rest assured.
Your
money is protected
Moomoo Financial Canada Inc. is a member of CIPF, which protects securities clients of its members up to $1 million each one general account.
Disclosures
FAQ
What is cash account?
A cash account is a type of brokerage account where investors must pay the full amount for the securities they purchase when using this account type. Cash is commonly deposited via the Electronic Fund Transfer (EFT) network. This usually takes two to three business days to settle in an account and be available for trading. This cash deposit needs to be settled before the trade settlement date to avoid an account violation.
Is a cash account a savings account?
A cash account is not the same as a savings account. A cash account is used for buying and selling securities with the cash available in your account. It offers a straightforward and low-risk way to trade in the financial markets. In contrast, a savings account is held at a bank or financial institution to earn interest on your deposited money, and they don't support buying or selling securities.
What are the advantages of cash account?
There are few advantages of opening cash account:
- Lower risk: No risk of incurring debt or interest charges, making it a potentially safer option for investors with a low risk tolerance.
- Simplicity: Offers a straightforward way to trade securities without the complexities of margin requirements or the risk of margin calls.
- Reduced stress: Without margin calls, investors avoid the pressure of meeting equity requirements or facing forced sales of their investments.
- Lower risk: No risk of incurring debt or interest charges, making it a potentially safer option for investors with a low risk tolerance.
- Simplicity: Offers a straightforward way to trade securities without the complexities of margin requirements or the risk of margin calls.
- Reduced stress: Without margin calls, investors avoid the pressure of meeting equity requirements or facing forced sales of their investments.
What are the disadvantages of cash account?
There are a few disadvantages to opening a cash account:
- Limited buying power: You can only buy securities with the cash you have available, which might limit your investment opportunities.
- Slower growth potential: Cash account returns may be lower compared to margin accounts, especially in rising markets, as you can't use leverage to amplify gains.
- Liquidity requirements: You need to have enough liquid assets to cover transactions, as you can't borrow funds.
- Limited buying power: You can only buy securities with the cash you have available, which might limit your investment opportunities.
- Slower growth potential: Cash account returns may be lower compared to margin accounts, especially in rising markets, as you can't use leverage to amplify gains.
- Liquidity requirements: You need to have enough liquid assets to cover transactions, as you can't borrow funds.