The world of retail options trading has undergone a significant transformation over the past decade, thanks to digital technologies and online trading platforms. These advancements have democratized trading, allowing virtually anyone to participate with varying degrees of knowledge and potentially achieve success. The necessity of having a broker to access the stock market and options trading is a thing of the past.
The modernization of the stock market and options trading has been largely driven by digital technology, enabling potential investors to bypass brokers and hedge funds. With the evolution of technology, financial companies have emerged to provide retail traders with access to day trading and options trading. The global pandemic further accelerated interest in the stock market, with meme stocks such as GameStop (NYSE: GME), AMC (NYSE: AMC), and Bed Bath & Beyond (OTC: BBBYG) capturing global attention. The 2021 GameStop short squeeze, driven by online forums like Reddit’s WallStreetBets, highlighted the power of retail investors and the democratization of investing.
Between January 25 and February 1, 2024, retail traders set a new record, contributing to 23% of the total trading volume, according to Forbes. However, while online trading platforms have become popular, they have faced criticism for accumulating fees. Moomoo, an all-in-one trading platform and financial information app, has garnered attention as a low-cost alternative to platforms like Robinhood.
Moomoo, provided by Moomoo Technologies Inc., expanded to U.S. customers in 2018, offering commission-free online investing services aimed at providing an intuitive and powerful experience for investors at any level. The platform distinguishes itself by offering a wide range of tools and resources, including real-time market data, educational materials, and a robust community forum for trading ideas—all at low or no cost.
Features such as commission-free trades, access to premium market news, 16-hour trading days, and $0 commissions on U.S. stocks, ETFs, and options have set Moomoo apart from its competitors. The platform also offers free real-time Level 2 data and $0 account minimums and trade minimums. Moomoo has been highlighting its options features, such as zero options trading commission fees, reduced contract fees for index options, and zero contract fees on equity options, making it a budget-friendly premium options platform.
Moomoo's competitive edge is further enhanced by its variety of free options analysis tools. These tools include real-time Level 2 data for funded accounts, unusual options activity, 0 Days to Expiration (0DTE) options by volume, a customizable options chain, an options calculator, implied volatility analysis, and 13 pre-built options strategies with customization opportunities.
Retail trading is expected to continue its upward trend. Last year saw a stock market rally with 40% of retail investors reporting profits, up from 15% in 2022, according to a moomoo survey. Cboe Global Markets, one of Moomoo's partners, saw its fourth straight record-breaking year with 3.7 billion contracts across its four options exchanges in 2023.
Despite market challenges, there is an optimistic outlook for 2024. A recent moomoo user study indicated a belief in the potential for a bullish trend to continue into 2024, encouraging increased trading activity and investments.
"More users seem to be buying into the 'soft landing' economic scenario in the U.S., leading to a more positive outlook on markets and increased stock trading," said Justin Zacks, Vice President of Strategy at moomoo. Retail trading is poised to remain a significant force, driven by platforms like Moomoo pushing the industry forward.
