McFadden worked under Moyes during two spells at Goodison Park and feels his ability to get the best out of players makes him the "natural successor" to the retiring Sir Alex Ferguson.
McFadden said: "He is extremely hard-working and sets high standards of his players.
"He loves football and his attention to detail is second to none.
"They have got somebody who will be hungry for success. He has not won many trophies in his career and it's something he is desperate to do. He will do well there, he is a great manager.
"He wants nothing but the best and if your standards slip even half a per cent then he is right on you. He wants you to do well and he wants the best out of you.
"He's a manager that expects nothing but everything - 100 per cent. The work he does on the training ground sets you up for every game - everything you do is geared towards the game.
"You watch videos, you cover everything and he tells you exactly how he wants the game to be played.
"You can see Everton in terms of their budget have over-achieved most seasons he has been there. I think that tells you that he gets the players playing and doing well for him."
Ferguson will remain at Old Trafford as director and will be on hand to guide Moyes when he takes over in the summer, but McFadden is sure his former boss will instigate his own ideas.
"He's his own man, he has got his own ideas on the game and has massive belief in his ability," the Motherwell player said.
"He changed everything at Everton. The new training ground, I think he designed everything in it.
"He is definitely a hands-on manager and will have his own ideas. I know he is close to Sir Alex Ferguson as well, so I don't think it's a bad thing that he will be able to speak to him for advice and support."
Speculation is rife that United striker Wayne Rooney will seek to leave Old Trafford this summer.
But McFadden feels there will be no problem if his former Everton team-mate decides to stay and play under a manager who once launched legal action against the player over comments in his autobiography.
"In football, you don't really hold a grudge too much," McFadden said.
"Everybody is professional and you get on with your job.
"Since he (Rooney) left, whenever I've been there he has been in the dressing room speaking to the players and speaking to the manager, so I don't think they have had a big bust-up and never spoken again.
"I don't think there will be much of a problem there."