Stock Tokens vs Brokers Like Futu, Tiger and Interactive Brokers
Stock tokens compared with buying shares through a broker: what you own, shareholder rights, dividends, trading hours, minimums, funding and investor protection.
There are two common ways to buy US stocks: open an account with a broker such as Futu (moomoo), Tiger or Interactive Brokers and buy the shares, or buy stock tokens on a crypto venue. Both follow the share price, but they differ a lot in what you own, trading hours, minimums and protection. This guide lays out the differences.
The differences at a glance
| Aspect | Shares via a broker | Stock tokens |
|---|---|---|
| What you own | Shares registered to you (or held by the broker for you) | A token issued by an issuer and backed by custodied shares; you have a claim on the issuer rather than holding shares directly |
| Shareholder rights | Voting and corporate actions | Usually no voting rights |
| Dividends | Cash, paid after tax | Depends on the issuer; often reinvested as more shares per token (see How stock token dividends work) |
| Trading hours | US market hours; some brokers offer pre-market, after-hours and overnight | Mostly around the clock, including weekends |
| Minimum | Many brokers support fractional shares | Usually a few dollars |
| Account and funding | Broker account funded in fiat | Crypto venue account or wallet, funded with stablecoins such as USDT or USDC |
| Price | Live exchange price | Follows the stock with a premium or discount, wider when the market is closed |
| Investor protection | Securities regulation; US brokerage accounts usually have SIPC coverage | Depends on the issuer, custodian and venue; generally less protection than a securities account |
| Leverage and shorting | Requires a margin account | Stock perpetuals allow long and short with higher leverage and higher risk |
When a broker fits better
- Long-term holdings or larger amounts where you want securities regulation and account protection.
- You care about shareholder rights and cash dividends.
- Your region does not allow crypto venues for stock products.
When stock tokens are more convenient
- Your funds are already on a crypto venue and you would rather not convert and transfer to a broker.
- You want to adjust positions on weekends or when the US market is closed (accepting that prices may drift).
- Small amounts, or keeping stocks and crypto in one account.
Extra steps before buying stock tokens
- Make sure your region and the venue's terms allow it; see Buying stock tokens by region.
- Check the token's issuer and shares per token to understand how it relates to the stock.
- Compare premiums and volume across venues and pick the one closest to the stock price with the best liquidity. Every stock page on this site compares venues.
- Understand the issuer and custody setup; see Are stock tokens safe?
Summary
A broker gives you the shares themselves and fuller protection. Stock tokens offer round-the-clock trading, low minimums and a link to your crypto holdings, at the cost of premiums, issuer risk and less investor protection. They are not mutually exclusive; choose by purpose.