MooMoo Adds Fractional Shares To Its Trading Options

In order to offer customers more access to overseas market investments, MooMoo has expanded its trading options to include fractional shares of more than 500 US stocks and ETFs on its platform. This new feature allows users to purchase a portion of a share, lowering the entry barrier for those looking to dip their toes into the stock market.

This new feature comes as a recent survey of MooMoo users revealed that 80% of investors were likely to reinvest their EPF 3 funds into the stock market. These survey results show a transformative shift in younger Malaysians’ investment behaviour.

Malaysian investor behaviour insights

The survey provided key insights into the financial aspirations and behaviours of modern

Investors:

• Top Financial Goals: Two-thirds of respondents prioritised achieving financial freedom and retirement planning.
• Investment Plans: Nearly 6 out of every 10 respondents indicated a likelihood to reinvest their EPF Account 3 funds for retirement purposes.
• Preference for Stocks and ETFs: 80% expressed interest in investing in stocks and ETFs, reflecting a growing trend towards self-directed and informed investing.

This new insight not only reflects a shift towards more self-directed wealth accumulation strategies among local investors, but also sheds light on the greater confidence and interest in global market equities. 

This is in addition to the fact that investing in overseas markets appears to becoming more popular among local investors, with the top 10 traded US stocks on Moomoo being Nvidia, Apple, Tesla, GameStop, AMC Entertainment, SMCI, Palantir, Advanced Micro Devices, Amazon, and META platforms, reflecting the popularity of “meme stocks” and “magnificent seven” companies.

“The survey results underscore a growing trend: young investors are keen to leverage their funds to build robust, future-oriented investment portfolios. By allowing investments in fractions, we eliminate the barrier of high share prices, enabling users to invest in premium stocks with minimal funds,” said Ivan Mok, CEO of Moomoo Malaysia.

Benefits of MooMoo fractional shares

With the introduction of fractional shares, MooMoo now offers a number of strategic benefits.

• Accessibility: By offering fractional shares, investors now have a lower barrier of entry to investing in the global giants such as Apple, Tesla, etc,. This ensures that even those with limited capital can start building a portfolio with market leaders.
• Portfolio diversification: The fractional investment model allows investors to distribute their capital across a diverse set of assets without being constrained by higher share prices. This not only minimises risk but also enhances the potential for robust portfolio growth.
• Optimised Incremental Investments: Fractional shares are ideal for implementing a dollar-cost averaging strategy, which involves regularly purchasing a fixed dollar amount of a particular investment, regardless of the share price. This method allows investors to accumulate more shares when prices are low and fewer when prices are high, thus averaging the cost over time.

“Our platform is designed to support smart investment decisions, and the addition of fractional shares enhances this capability. We are excited to see how our users leverage this feature to build wealth and achieve their financial goals.” said Mok.