Not for Scalpers or Day Traders:Blocked from opening nearly every position I try to take.
I've been using MooMoo as one of my active trading accounts, and the execution speed and interface are genuinely good — that's not the issue. The problem is that MooMoo restricts opening new positions on a huge share of the volatile, thin-float stocks I actually trade, with orders returning "Order error: you can only close positions for this security. Opening new positions is not supported." This isn't occasional. On one trading day, I attempted to buy into 6 different tickers and was blocked on every single one except one — a 10-for-13 block rate on buy orders that day alone, all on legitimate, actively-trading NASDAQ-listed stocks, not obscure OTC names. I contacted a MooMoo rep who had reached out to me when I opened the account and offered to help with any issues — he never responded. Their AI support essentially told me this is just how it is, with no explanation of what triggers the restriction or whether there's any way around it. For a platform marketed at active/momentum traders, being unable to open positions in the exact stocks that are moving is a major limitation. I understand brokers sometimes restrict extremely volatile names for risk reasons, but the frequency and lack of transparency here made the account nearly unusable for my strategy. I ended up having to run a second brokerage account in parallel just to take the trades MooMoo wouldn't let me enter. If you're a scalper or momentum trader relying on volatile small/mid-cap names, be aware you may find yourself locked out of a large percentage of your target trades with no clear criteria and no real support response.