This article is not sponsored by Moomoo SG and is intended to provide an objective analysis of the promotion, highlighting its pros and cons. Readers should conduct their own due diligence and decide whether the promotion is suitable for their financial situation. This content should not be considered financial advice.
Moomoo Financial Singapore Pte. Ltd. finally released a brand new promotion for existing users with Moomoo Cash Plus, offering up to S$730 in rewards. This promotion aims to incentivize users to deposit fresh funds and maintain their deposits for 60 days. Let's delve into the details to understand the pros, cons, and overall worth of participating in this event.
New to Moomoo SG? Collect welcome rewards worth up to S$1,034* Details here
Promotion Overview
Event Period
5/8/2024 at 10:00PM SGT - 15/10/2024 at 9:59PM SGT (EXTENDED)**
Eligibility:
Existing users who have previously made deposit of fresh fund of any amount into their Moomoo SG Universal account before 10:00PM SGT on 23/7/2024
Existing users who have previously participated in the past existing user promotions are still eligible to participate in this promotion.
How to Participate:
Register for the event and select a membership tier (Elite, Prestige, Solitaire).
Deposit the required fresh funds within 5 days of registration.
Maintain the minimum daily net deposit for 60 days to qualify for rewards.
Membership Tiers and Rewards
Membership Tier | Minimum Deposit | Maximum Reward (6.8% p.a. for 30 days) | Stock Cash Coupons | Total Reward Value |
Elite | S$10,000 | Up to S$111 | S$10 | S$121 |
Prestige | S$50,000 | Up to S$447 | S$30 | S$477 |
Solitaire | S$100,000 | Up to S$670 | S$60 | S$730 |
That's about it for the rewards. Now let's dive into the exact T&Cs and analyse whether it is worth it to participate in this promotion.
Criteria 1: Numbers
If the calculations do not make sense and there is no net benefit, there will be no point to continue this analysis. So, let's break it down:
1.1 Potential Return Users can earn up to 6.8% p.a. on their Cash Plus subscription, which on first sight, you may assume that it is similar to the previous Cash Plus promotions where Moomoo SG will top-up the returns difference to make it 6.8% p.a., but it is not.
According to T&C FAQ #19, it will be a maximum of 1.68% interest booster, added on to your Cash Plus yield. So assuming you chose Fullerton SGD Cash Fund with a yield at 3.5%, the total return is only 3.5% + 1.68% = 5.18%
So how to arrive at 6.8% p.a.? Moomoo SG put it out clear that you could get it with CSOP USD Cash Fund.
1.2 Effective Return Only 30 days out of the 60 days holding period will get the 1.68% p.a. Interest Booster. At the highest S$100,000 tier, the user will receive up to S$670 & S$60 Stock cash coupons for a S$120,000 subscription after 60 days.
Effective return = (670+60)/120,000 * 365/60 = 3.7% p.a.
If this number looks sad to you, give me one more minute.
1.3 Realistic Return
Even though only 30 days out of 60 days get the interest booster, the remaining 30 days can be invested in other funds e.g. Uni**d SGD fund or H**C GIF Ultra Short Duration Bond at ~4.0% p.a. (as of 8/8/24)
CSOP USD Cash Fund return (first 30 days) = (670+60)/120,000 * 365/30 = 7.4% p.a.
Fund return (last 30 days) = 4.0% p.a.
Realistic return = (7.4 + 4.0)/2 = 5.7% p.a.
Now it doesn't look that bad ain't it? But let's move on.
Criteria 2: Eligibility
One of my pet peeves about such promotions in the past is that it is difficult to ascertain whether one is eligible for the promo in terms of fresh funds, so let's look at the T&Cs again.
2.1 Fresh Funds Criteria
According to T&Cs, if you withdraw your funds before clicking "Register Now", it will not be qualified as fresh funds even if you re-deposit it after registering for the event.
Unfortunately, this time it belongs to the more stringent criteria where you cannot re-deposit your funds as "fresh funds".
However, let's address a few questions.
Q: Are there cases in the past where Scenario 1 worked as "fresh funds" criteria?
A: Yes.
Q: But is it expected to work again?
A: No one really knows unless they have tested it themselves.
Criteria 3: Execution
The final stage is execution, to determine if it is simple enough for existing users to navigate the platform and meet the requirements to get the rewards at the end.
3.1 Cash Plus
Cash Plus is pretty simple and straightforward to get started. You may refer to https://www.moomoo.com/sg/fund/cashplus for the step by step process which I will not cover here.
3.2 Exchange rate risk
In the past, I wouldn't worry about this since both the SGD and USD funds with Moomoo Cash Plus will earn the guaranteed 6.8% p.a., so it is easier to chose SGD funds for Cash Plus to avoid this risk. However, now that it is a 1.68% interest booster instead, you are looking at a difference of around 1.62% p.a., which may be a deciding factor for which fund to choose.
*Note that USD:SGD exchange rate has been highly volatile especially for 2024
3.3 Performing Buy Trades
Based on the T&Cs, "Buy trade is defined as the action of buying stocks/warrants/ETFs, options (US stock options, index options), futures, bonds, Fund Plus only. Selling of stocks, options, ETFs or funds is not considered as a buy trade. The minimum trade amount per transaction required is at least S$1."
So you cannot use Cash Plus subscriptions to qualify for the buy trade requirements. Alternatives include buying SGX ETFs (min 1 unit) of min S$1 order or subscribe to non-Cash Plus funds from S$100.
Conclusion
Moomoo SG's Existing User Exclusive promotion is an attractive incentive program offering good rewards for those who meet its conditions. However, some may find it too tedious and prefer other alternatives, which can be found in my YouTube videos.
Potential participants should carefully weigh the pros and cons based on their financial situation and risk tolerance. For those ready to commit and understand the net benefits through thorough calculations, this promotion could be a valuable opportunity to enhance their investment returns.
New to 🐮 Moomoo SG https://hmsg.link/sgmoomoo
Event page: https://hmsg.link/moomooeup
Disclaimer: Principal is not guaranteed. Returns are not guaranteed and not an indication of future performance. All investments involve risks and are not suitable for every investor. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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