New on Moomoo Malaysia: Fractional Shares of Top US Stocks & ETFs

Moomoo Malaysia has unveiled a new feature on its platform that allows users to purchase fractional shares of over 500 US stocks and ETFs. This innovation significantly lowers the entry barrier for individuals eager to enter the stock market by enabling them to buy portions of shares instead of whole ones.

By introducing fractional shares of globally renowned companies, Moomoo Malaysia is broadening access to the wealth opportunities offered by these corporate giants. This move is particularly beneficial for investors who can now distribute their capital across a diverse range of assets without being restricted by the higher costs of full shares.

The fractional investment model is pivotal for investors looking to diversify their portfolios, which is essential for managing risk and mitigating the effects of market volatility. Diversification helps investors avoid significant impacts from the fluctuations of a single stock or sector.

Fractional shares are ideal for those employing a dollar-cost averaging strategy, which involves regularly investing a fixed dollar amount in a particular stock, regardless of its price. This approach allows investors to acquire more shares when prices are low and fewer when prices are high, thus averaging the purchase cost over time.

Ivan Mok, CEO of Moomoo Malaysia, emphasized that the platform is designed to support smart investment decisions, and the addition of fractional shares enhances this capability. He highlighted the excitement to see users leverage this feature to build wealth and achieve their financial goals. Mok also noted that with uncertainties over the rate cut schedule and the upcoming US presidential election, investors are keen to diversify their portfolios across different sectors. He compared buying fractional shares to building a thematic ETF, allowing for tailored exposure to sectors and trends that align with personal investment strategies.

New users on the platform are welcomed with a ‘Guaranteed Welcome Kit’ valued up to RM 1,200. Additionally, those who deposit RM 10,000 will receive fractional shares of leading companies like Apple, Nvidia, Tesla, and TSMC, worth up to RM 420.

A recent survey of Moomoo users, predominantly aged 18-45, showed that 80% of investors are inclined to reinvest their EPF 3 funds (a retirement savings account) into the stock market. The study further revealed that two-thirds of respondents prioritize financial freedom and retirement planning, with nearly 60% indicating a likelihood to reinvest their EPF Account 3 funds for retirement purposes.

The survey also indicated that 80% of participants are interested in investing in stocks and ETFs, reflecting a shift towards more self-directed wealth accumulation strategies among local investors. The trend of investing in international markets is gaining traction among local investors, according to Moomoos findings.

Mok pointed out that 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, Moomoo Malaysia eliminates the barrier of high share prices, enabling users to invest in premium stocks with minimal funds. This approach is particularly beneficial for young investors at the beginning of their investment journeys and those looking to diversify their portfolios to gain exposure to international equities, such as the Magnificent Seven stocks, with the flexibility to invest amounts that align with their financial comfort levels.

Mok also stressed the importance of investors understanding the significance of using their EPF funds wisely. He acknowledged that while the opportunity to reinvest these funds can lead to greater returns, it must be approached with knowledge and caution. Moomoo Malaysia's commitment extends beyond providing state-of-the-art trading tools, aiming to cultivate a well-informed investor community capable of navigating the complexities of investing with confidence and precision.