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Conversation Starters

August 2024

 

1. Given my financial situation, should I choose a brokerage service? Why or why not?  

The brokerage service we offer is appropriate if you wish to make your own investment decisions when you buy or sell securities. Although there are brokerage services that may advise you on making investment decisions, we do not provide those types of services. If you need assistance in making investment decisions, you might also consider opening an account with an investment adviser. Most investment advisers charge a fee based on the amount of assets they manage for you, and do not charge commissions or other transaction-based compensation. You should not buy or sell securities if, in your  current financial situation, you cannot afford to lose a substantial portion of the money invested in  securities.  

 

2. What is your relevant experience, including your licenses, education and other qualifications?  What do these qualifications mean?  

As a FINRA member, our registered representatives maintain appropriate licenses that qualify them for  their respective responsibilities. At least one of our registered representatives is currently qualified as a  General Securities Representative (Series 7); Securities Trader (Series 57); Investment Banking  Representative (Series 79); Operational Professional (Series 99); Registered Options Principal (Series 4);  General Securities Principal (Series 24); and Financial and Operations Principal (Series 27). To learn  more about permitted activities of registered representatives and registered principals, please visit here.  

Neil McDonald is our Chief Executive Officer. He joined Moomoo Financial Inc. in July 2024 and has over 30 years of experience in the financial industry, holding senior positions at various reputable firms. Prior to Moomoo, he was the Chief Operating Officer at LiquidityOne AG and has held leadership roles in risk management, trading, and quantitative analytics at major financial institutions, including FXCM, Oanda, ITG Inc., JP Morgan Securities, and Citadel.

Darren Parsons is our Chief Operations Officer. He has an extensive background in Brokerage Operations  and has worked in several different roles and capacities over the past 29 years with several broker-dealers  in the US. Mr. Parsons received a B.S. from The University of Nebraska-Lincoln and holds Series 7, 24,  27, 63 and 99 registrations from FINRA.  

 

3. Help me understand how these fees and costs might affect my investments. If I give you $10,000  to invest, how much will go to fees and costs, and how much will be invested for me?  

Moomoo Financial Inc. will not invest your money for you and will not recommend investments to you.  Moomoo Financial Inc. will only implement instructions received from you or your introducing broker.  You are solely responsible for evaluating the merits and risk of your investment choices and your  investment decisions.  

The fees and costs charged to you will depends on a number of factors that include your status as U.S.  resident, the amount of margin interest charged, and the types of transactions you make.  

For example, if you are a U.S. resident or a non-U.S. resident and buy $10,000 worth of stock with your  own cash, you will not incur any margin interest.  

However, if you are a U.S. resident who buys $10,000 with 50% margin, you will—on an annual basis— be charged $340 in margin interest rate at the current margin interest rate of 6.8% per year. Similarly, if  you are a non-U.S. resident who buys $10,000 with 50% margin, you will—on an annual basis—be charged $240 in margin interest rate at the current margin interest rate of 4.8% per year. Please note that  the margin interest rates are subject to change without notice and in all cases, you will be charged  regulatory fees imposed by the SEC and FINRA when you sell the stock.  

For a complete fee schedule, please visit our Fee Schedule page. 

 

 

4. How might your conflicts of interest affect me, and how will you address them?  

Generally, the more you trade or the more margin you use, the more money we will make. However, the  amount of trading you undertake and whether or not you buy on margin is entirely up to you; we do not  make recommendations about investments or investment strategies and we will not suggest any particular  investment actions to you. You are solely responsible for your investment choices and the decisions you  make about how much to trade and how much margin to use.  

We do not employ salesmen to encourage our clients to trade securities. Our employees are paid a salary;  they do not receive any transaction-based compensation, although they are eligible for a bonus based on  the overall profitability of the Futu group of companies. Conflicts of interests will be disclosed to you in  the manner prescribed by FINRA and SEC rules. For example, conflicts of interest, if any, from our  underwriting activities will in disclosed to you in the prospectuses you receive. While we do not receive  “payment for order flow”, our clearing firm which routes your orders to third-party market centers may  receive “payment for order flow” or rebates.

 

5. As a financial professional, do you have any disciplinary history? For what type of conduct?  

Moomoo Financial Inc. does not have any disciplinary history. One of our registered representatives has a regulatory and termination matter from 2001 and 2002. Another registered representative has a civil judgment matter in 2020. None of our registered representatives have disciplinary history related to sales practice. You can visit investor.gov/CRS to learn more about our firm and financial professionals.

 

6. Who is my primary contact person? Is he or she a representative of an investment adviser or a  broker-dealer? Who can I talk to if I have concerns about how this person is treating me?  

Because we do not make recommendations to you, we do not have a primary contact person assigned to your account. Customer service personnel are available to answer questions and you may reach them at cs@us.moomoo.com.