This article was edited by AI.

Futu Malaysia Sdn Bhd, commonly known as Moomoo Malaysia, has achieved its significant milestone of 30,000 registered users a week ago. 

How did they manage to gain such strong traction in Malaysia? 

How much did they invest? 

Is their platform secure? 

Let's discuss these questions in this article.

1. The "How" in Malaysia

The closest comparison to Moomoo Malaysia is perhaps Rakuten Trade Sdn Bhd, which was officially launched in May 2017 as a joint venture between Kenanga Investment Bank Berhad and Rakuten Securities, Inc. from Japan. Notably, Rakuten was the first fully digital brokerage platform available in Malaysia, significantly impacting the traditional brokerage industry. After five years of hard work and benefitting from the Covid-19 pandemic, the platform finally reached 270,000 user accounts in December 2023, up from 230,000 in April 2023.

In contrast, Moomoo Malaysia achieved 30,000 users, over 10% of Rakuten Trade's figures, in just a few weeks. Moomoo's strategy involved aggressive rebates to financial influencers and Key Opinion Leaders (KOLs), with substantial cash payouts on a per-account basis. The incentives included:

Package A: For every successful account opening and a deposit of RM500, a reward of RM200 is offered.

Package B: For every successful account opening and a deposit of RM3,000, a reward of RM500 is provided.

Package C: For every successful account opening and a deposit of RM8,000, a reward of RM800 is given.

Reliable sources indicate that Packages A, B, and C offer milestone rewards, such as additional monetary incentives for reaching a certain number of "qualified accounts". If you decide to sign up for Moomoo Malaysia, it's worth noting that for every successful deposit of RM8,000, you are entitled to an APPL share, valued at approximately USD172 or around RM800, guaranteeing a 10% return for the user. With Package C, which heavily incentivizes financial influencers and KOLs, it's clear how they managed to attract such a large audience in a short period. At the highest scale, it could cost Moomoo Malaysia RM1,600 per acquired account.

2. The Backlash

While this strategy paints a rosy picture for Moomoo Malaysia, there have been disputes regarding user acquisition. Some accounts registered on the first three days of Moomoo Malaysia's launch may not have been credited to the respective financial influencer or KOL. Furthermore, Moomoo Malaysia was also offering contradictory packages, reducing the success rate of Package C client onboarding, ultimately retaining the user database.

Recent observations on social media platforms have also noted a change in stance by various financial influencers and KOLs, diminishing the "exclusive benefits" offered to their loyal user base. This raises questions about Moomoo Malaysia's promotional strategies.

3. Is the Platform Secure?

While we'd like to trust the Securities Commission, Moomoo, or its parent company Futu Holdings Ltd, was removed from Mainland China along with UP Fintech Holding Ltd (better known as Tiger Securities), amid significant data concerns. 

Though it's unlikely Moomoo would mishandle funds, the question of what they do with our data, especially considering the high client acquisition cost, remains. Given the modest fees per trade of merely RM3, how long would it take for them to recoup an investment of RM1,600 per user? Considering their treatment of financial influencers and KOLs, can we trust the platform?