Moving from a basic brokerage to something more powerful is a major step in your trading journey. Usually, this means you’ve outgrown simple interfaces and now need better data, lower costs, and faster execution.

The two names that come up most often for this upgrade are Moomoo and Fidelity. One is a high-tech platform built for mobile-first speed; the other is a massive institution that has defined the brokerage industry for decades.

If you are trying to decide where to park your capital, here is a breakdown of how they compare for the intermediate trader.

The Real Cost of Trading: Margin Rates

For many, margin is a key tool for managing capital. It allows you to enter larger positions or hedge your portfolio without selling existing holdings. The interest you pay on that borrowed money varies wildly between these two.

Moomoo has taken an aggressive approach to interest. They offer a flat rate of about 6.80%. It doesn't matter if you are borrowing a few thousand dollars or several hundred thousand; the cost stays the same.

Fidelity uses a traditional tiered system. For the average person borrowing $25,000, the rate can be over 13%. To get a rate that competes with Moomoo, you’d typically need a balance in the millions.

Let's look at the numbers. If you hold a $50,000 margin balance for a year:

  • Moomoo: You pay roughly $3,400.
  • Fidelity: You could pay over $5,500.

That difference is a massive hit to your yearly returns. If you trade on margin regularly, Moomoo is hard to beat.

Getting an Edge with Free Level 2 Data

Intermediate traders know that price is only half the story. To see where a stock is actually going, you need to see the "order book." This shows you the specific buy and sell orders waiting in the wings.

Historically, this data—known as Level 2—was a paid feature. Moomoo changed that by offering it for free to anyone with a funded account. You get real-time access to the NYSE Arcabook, showing 60 levels of bids and asks. Having this on your phone while you are on the go is a huge advantage for timing your entries.

Fidelity offers Level 2 data as well, but it lives inside their desktop software, Active Trader Pro. While the software is powerful, it is clunky compared to Moomoo’s modern design. If you want to see the order book on a mobile device, Moomoo provides a much smoother experience.

Options Trading and Execution Quality

If your strategy involves selling calls or trading spreads, you have to weigh commission costs against execution speed.

Moomoo offers $0 per contract for equity options. If you trade ten contracts a day, those savings add up to thousands of dollars a year. However, Moomoo uses Payment for Order Flow (PFOF). This means they get paid to send your orders to specific market makers.

Fidelity charges $0.65 per contract, but they don't accept PFOF on stocks. They are famous for their "price improvement." Often, Fidelity will find you a better price than the one you see on your screen.

For a single option contract, Moomoo is cheaper. For a massive stock trade, Fidelity’s better execution might save you more than a commission would have cost.

Cash on the Sidelines: Yields Compared

Nobody is in the market 100% of the time. When you are waiting for a setup, your cash shouldn't just sit there.

Fidelity automatically moves your uninvested cash into a money market fund like SPAXX. It currently yields around 5% and is incredibly stable. There is no manual work involved; your "dry powder" earns interest the moment a trade settles.

Moomoo has a cash sweep program that often has a higher headline rate. They frequently run promotions offering over 8% APY for the first few months. While the base rate is competitive, you have to keep an eye on when those promotional periods end.

Account Types and Long-Term Goals

Fidelity is a "total wealth" platform. You can have your 401(k), your kid's 529 college plan, and your HSA all under one roof. They have physical branches you can walk into and 24/7 phone support with actual humans.

Moomoo is a trading platform. While they offer IRAs, they don't have the broad ecosystem of specialized accounts that Fidelity does.

The Bottom Line

If you want the best tech, the lowest margin rates, and free Level 2 data on your phone, Moomoo is the better choice for active trading. It is built for the person who spends hours looking at charts and wants to minimize every possible fee.

If you want a stable home for your entire financial life, prefer desktop trading, and value high-quality order execution over zero-fee options, Fidelity remains the gold standard.

Which one is right for you depends on whether you are looking for a trading cockpit or a financial fortress.