My S$200,000 With Moomoo – Am I Worried?

When news of China cracking down on companies like Futu, Longbridge, and Tiger Brokers broke on Friday, it sparked some commotion across internet forums and chat groups.

To be honest, I was myself somewhat concerned when I saw people posting about it alongside “should I withdraw” questions. The language used by some news report was particularly strong, with words like “illegal” and “severe penalties” used by some publications.

Disclaimer

Before we continue with the article, apart from the usual “investing involves risk” disclaimer, I should also state that I’m an affiliate of Moomoo who occasionally do sponsored posts for them, and receive affiliate fees when people sign up through my link.

This piece, however, is not sponsored nor directed by them. I am centring this piece around Moomoo because they are the one platform of the 3 that I use and talk about the most. It should broadly also apply to Tiger Brokers and Longbridge, though I currently do not use Longbridge and I have not partnered with them.

Emotions can trump logic

While we all probably like to think ourselves as logical, rational people, emotions can often trump logic, especially when money is involved. I think we collectively experienced this in varying degrees in a relatively recent incident last year.

Moomoo SG is one of the platforms I use quite often, and I have some S$200,000 of assets with them built up over the years. It’s not all of my life savings, but it is nothing to sneeze at either.

Naturally, I felt concerned when I saw that the parent company of Moomoo SG was in some kind trouble. I did wonder whether I should be shifting funds out.

Why I’m not withdrawing

Eventually, when it comes to personal finance matters, I believe we have to let logic win… at least most of the time. After learning more about what really has happened over the weekend, I feel more assured to carry on with status quo and not do anything at the moment.

You can watch my short video where I elaborate on the reasons why I’m not withdrawing: TikTok / Instagram.

Reasons one might consider withdrawing some

In my short video, I alluded to some reasons why some may still wish to withdraw some funds and reallocate them.

1️⃣ Peace of mind

Spreading a large sum of money across multiple platforms can bring better peace of mind when things happen. There is no need to panic and withdraw everything, but if you find yourself with a large portion of your life savings in just one broker, you are going to have a bad time if bad news does happen to your sole platform of choice.

2️⃣ Things may change

The story is only a few days old. Based on current info I’m not withdrawing, but more developments could emerge over time. Some may wish to return to the platform only when they think that the coast is clear.

3️⃣ Diversification is key (and easy)

In the unlikely event a broker were to fail, there can be operational headaches even if the funds are ultimately safe. It may take quite some time for funds and assets to be accessible in such an event, so you will not want to be in such a situation where you cannot access large portions of your assets for an extended period of time.

Moreover, there are quite a few good brokers to choose from these days so it should not be difficult finding platforms to diversify such a risk.

Are you overlooking platform risk?

We have been bombarded with messages to “diversify” our investments, but I think this incident should remind us again that we indeed need to diversify our investments not just in asset classes, but also in the platforms we use. While this incident is more than likely a nothing burger for users (fortunately), platforms are businesses that are subject to various risks. The next event relating to any broker or investment platform in Singapore may not always be a non-issue.

To diversify such a risk, I use multiple platforms such as:

• IBKR
• POEMS
• uSMART
• Endowus

It’s of course quite convenient for me since the more trading platforms you sign up through my link, the more I receive in affiliate fees, but I think even the most cynical and anti-fiNflUenCer of persons would agree with me that there are some merits in not placing all of your assets into a single platform.

Some may not like the hassle of dealing with multiple apps, logins, and user interfaces, but I would take that over losing sleep over having all my eggs in one basket.

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The only thing certain about life is uncertainty, and as trite as that may sound, volatility is part and parcel of our reality, especially when we are talking about investments. Our portfolio will not rise in a linear, straight line with no turbulence on the way to our retirement, nor would any broker or platform be immune to business risks.

What we can do is to manage our risks, diversify accordingly, and know what we are putting our funds in. As humans, we let ourselves feel what we need to when things happen. Then, we let logic take over which would be easier if we have done the necessary beforehand.

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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.

He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.

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