Is Moomoo FDIC Insured?

What Is And Isn’t FDIC Insured At Moomoo

At Moomoo, only cash moved to a partner bank through the Cash Sweep program (interest is earned on uninvested cash) can be FDIC insured. This is similar to some other firms, such as Interactive brokers. All other assets in a US Moomoo account depend on SIPC protection or may have no federal coverage.

Moomoo’s disclosures make it clear that none of its US companies are banks. Futu Clearing Inc. is responsible for custody, and any crypto held by Moomoo Crypto Inc. is not covered by FDIC or SIPC. SIPC also does not protect cash used in commodities trades, and it never covers losses from a drop in your shares’ value. It only protects assets that go missing if the broker fails.

Moomoo’s Own Pages Quote Four Different FDIC Limits

When I checked Moomoo’s US website, I found four different answers about how much swept cash the FDIC covers.

I would trust the terms and conditions, since they are the program’s rules, and the $1 million cap is mentioned three times there. In this context, the $2 million figure only applies to joint accounts, because the FDIC insures each co-owner up to $250,000 per bank. For a two-person account, this doubles the limit.

One article says the Cash Sweep puts idle cash into “FDIC-insured money market funds.” However, the terms state that the bank program is Moomoo’s only sweep option, and there is no money market fund choice. The comparison page also lists the FDIC as one of Moomoo’s regulators, but the FDIC only insures deposits at partner banks and does not regulate Moomoo itself.

If you want to keep more than $250,000 in cash at Moomoo, I recommend you ask its support team to confirm in writing which limit applies to your account.

How Cash Sweep Moves Your Money Between SIPC And FDIC

At any time, your cash is covered by either SIPC or the FDIC, but not both. Moomoo says it moves available cash to partner banks at 14:00 ET each trading day and automatically brings it back when you make a purchase. Swept cash still counts toward your buying power.

Timing matters for large deposits. According to the program terms, cash that clears after 14:00 ET may stay in your brokerage account or at a single bank until the next business day. For example, if you deposit $600,000 late in the day, only $250,000 of it is protected overnight, no matter what.

Overlap is the other catch. Moomoo’s current partner banks are Apple Bank, American State Bank, Bank United, Central Bank, Eagle Bank, East West Bank, Prime Alliance Bank, Producers Bank and Trust, and Webster Bank (a division of Santander Bank, NA).

Money you already keep at any of them in the same ownership capacity counts toward the same $250,000 limit, and Moomoo’s terms make tracking that your job.

Three more points in the terms stood out to me:

1. You can choose to exclude a bank, but this may lower your total coverage since the list of banks is short.
2. ERISA retirement accounts are not eligible for the program.
3. If a partner bank fails, the FDIC has no set deadline for payouts, and Moomoo will not advance the money.

How To Check Your FDIC Coverage On Moomoo

These steps will help you see where your swept cash is held and if any of it is above FDIC limits.

1. First, make sure you are enrolled in the Cash Sweep program. Under Moomoo’s terms, cash moves only after you join the program. Until then, your cash stays in your brokerage account and is covered by SIPC.
2. Find your swept balance. Open ‘Fund Details’ in your securities account and filter for “Cash Sweep records”. Interest is credited monthly.
3. Check which banks are holding your cash. Your monthly statement lists the closing balance at each partner bank. You can also contact Moomoo’s 24/7 online support for this information.
4. Add up your own deposits at those banks. Any amount over $250,000 at one bank ($500,000 for a joint account with two people), including money you hold there directly, is not insured.
5. If you are over the limit at a bank, ask support to mark it as ineligible. Moomoo will then move your cash to the next bank on its list.

Bottom Line

Moomoo is not a bank, so its brokerage accounts are not FDIC insured. SIPC protects your investments, which limits cash claims to $250,000 and does not cover market losses.

The only FDIC-eligible part of a US account at Moomoo is cash in the Cash Sweep program. Until Moomoo’s pages are consistent, I would assume $250,000 per bank and $1 million total for an individual account. For larger amounts, get written confirmation.

Another important consideration is that FDIC coverage only applies to US accounts with Moomoo Financial Inc. Other regions have their own systems, like CIPF in Canada, as shown in the entity table in our full Moomoo review.

For details on Moomoo’s licenses and regulatory record, see, Is Moomoo legit and safe?