KUALA LUMPUR, Malaysia, May 17, 2024 /PRNewswire/ -- Moomoo Malaysia is proud to announce the expansion of its trading options to include fractional shares of more than 500 US stocks and ETFs on its platform, making overseas market investments more accessible than ever. This innovative 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 timely innovation aligns perfectly with a recent survey of Moomoo users, revealing that 80% of investors were likely to reinvest their EPF 3 funds into the stock market, highlighting a transformative shift in investment behaviour among younger Malaysians (over 70% of respondents were between the ages 18-45).
Moomoo Malaysia
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 insight not only reflects a shift towards more self-directed wealth accumulation strategies among local investors but also underscores the confidence and interest in global market equities. Furthermore, the trend of investing in overseas markets is 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' tech 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. This is particularly beneficial for young investors who are 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," said Ivan Mok, CEO of Moomoo Malaysia.
Unlocking Investment Potential with Fractional Shares
Moomoo Malaysia's introduction of fractional shares brings multiple strategic benefits:
Accessibility: By offering fractional shares of globally recognized companies like Apple, Tesla, Nvidia, and Amazon, Moomoo Malaysia opens the door for a wider demographic to participate in the wealth generated by these giants. This move dramatically lowers the financial threshold for investment, ensuring that even those with limited capital can start building a portfolio with market leaders in technology, retail, and innovation.
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 capability to invest in smaller portions across various sectors and geographic regions not only minimizes risk but also enhances the potential for robust portfolio growth. Diversification is key in managing risk and avoiding significant impacts from the volatility of a single stock or sector.
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. This strategic approach can be particularly beneficial in navigating through volatile markets, potentially leading to financial gains as markets recover.
"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. "With uncertainties over the rate cut schedule and the upcoming US presidential election, investors are keen to diversify their portfolios across different sectors. Buying fractional shares is equivalent to building your own thematic ETF, allowing for tailored exposure to sectors and trends that align with your personal investment strategies."
Education and Empowerment at the Core
The survey also highlights that the majority of investors are focused on long-term financial goals such as achieving financial freedom and planning for retirement, which underlines the critical need for improved financial literacy, especially for those who are considering the reinvestment of their EPF Account 3 funds. The platform offers comprehensive resources, including educational materials, real-time market data, and analysis tools, to help investors make informed decisions.
"It's crucial that investors understand the significance of using their EPF funds wisely. These funds are intended for retirement, and while the opportunity to reinvest them can lead to greater returns, it must be approached with knowledge and caution," emphasised Ivan Mok. "Our commitment extends beyond providing state-of-the-art trading tools. We aim to cultivate a well-informed investor community that can navigate the complexities of investing with confidence and precision."
New Users: Jumpstart Your Investment Journey with a Guaranteed Welcome Kit Worth Up to RM1,200
Moomoo Malaysia welcomes new users with a 'Guaranteed' Welcome Kit' worth up to RM 1,200. Additionally, new users who deposit RM 10,000 will receive fractional shares of top companies like Apple, Nvidia, Tesla, and TSMC, valued up to RM 420. Terms and conditions apply.
Since its launch, Moomoo Malaysia has experienced exponential growth, surpassing 200,000 users and becoming the most downloaded financial app in the country. The platform's user-friendly interface, advanced tools, and focus on investor education have solidified its position as a leader in the Malaysian investment landscape.
Moomoo Securities Malaysia Sdn. Bhd. ("Moomoo Malaysia") is a Capital Markets Services Licence (Licence No. eCMSL/A0397/2024) holder. Moomoo Malaysia is a cutting-edge digital investment platform designed to empower investors of all levels with professional-grade tools, in-depth market data, and expert insights. As a subsidiary of a Nasdaq-listed company and global partner of the NYSE and Nasdaq, Moomoo brings world-class financial technology to Malaysia.
Swiftly rising as Malaysia's No. 1 most downloaded financial app since its debut in February 2024, Moomoo builds upon its global success in the US, Singapore, Hong Kong, Australia, Japan and Canada. The platform's blend of innovative features and ease-of-use has earned it numerous accolades from Benzinga, Fintech Breakthrough and more, including 'Best Trading Technology', 'Best Investment Research Tech', and 'Best Trading Platform' awards. Moomoo is also recognised by the Securities Investors Association (Singapore) as the "Best Retail Broker" in Singapore. Moomoo is now the No. 1 most downloaded investment app (as of 31 December 2023) in Singapore with over one third of the local residents aged 20 to 70 as its users.
Dedicated to transforming the local investment scene, Moomoo Malaysia makes innovative trading tools and educational resources accessible to all investors, setting new standards in financial technology and reinforcing its position as the leading digital investment platform in the region. Find out more at https://www.moomoo.com/my
