Charles
Schwab has expanded 24-hour trading access to its retail client base, joining a
broader industry movement toward round-the-clock market accessibility. The
financial services firm, which oversees $10.10 trillion in client assets,
announced yesterday (Wednesday) that retail traders can now trade S&P 500
and Nasdaq-100 stocks, alongside hundreds of ETFs, outside regular market
hours.

Schwab Rolls Out 24-Hour
Trading to $10 Trillion Client Base

Through
Schwab’s thinkorswim platform, traders can now place continuous overnight
session orders (EXTO) that expire at 8 PM ET each market day. This development
follows the company’s gradual expansion of a pilot program initiated in
November 2024.

“In today’s
world, market-moving news doesn’t wait for standard market hours,” said James
Kostulias, Managing Director and Head of Trading Services at Charles Schwab. “Retail
traders know what a difference it can make to have access to the markets when
volatility spikes.”

Analysis of
the pilot program revealed that overnight trading patterns largely reflected
traditional market behavior. Peak activity occurred between 8-9 PM ET and 3-4
AM ET, comparable to volume spikes typically observed during regular market
opens and closes. Technology stocks dominated trading activity during extended
hours, with companies like Tesla, NVIDIA, AMD, Palantir Technologies, and
MicroStrategy seeing significant volume.

“Each day,
Schwab facilitates about twice the trades of any competitor that shares that
figure publicly, and we know that expanding access to overnight trading to our
millions of clients is a significant milestone not just for Schwab but for our
industry,” Kostulias added.

The service
builds upon extended-hours trading capabilities first introduced by TD
Ameritrade in 2018, prior to its acquisition by Schwab in 2020.

How Companies Offer
24-Hour Trading

In the
U.S., traditional stock exchanges like the New York Stock Exchange (NYSE) and
Nasdaq operate from 9:30 AM to 4:00 PM Eastern Time (ET). However, some brokers
and trading platforms offer 24-hour trading on popular indices like the S&P
500, Nasdaq-100, Dow Jones Industrial Average, and certain ETFs. This is made
possible through a combination of extended trading hours, futures markets, and
alternative trading systems (ATSs).

For example,
the CME Group runs nearly 24-hour futures trading, letting investors buy and
sell contracts tied to major indices outside regular stock market hours. Additionally,
electronic trading networks (ECNs) and alternative trading systems (ATSs), such
as Instinet and NYSE Arca, match buyers and sellers outside traditional
exchange hours. Some brokers even enable 24-hour ETF trading, letting investors
trade index-tracking funds overnight to react to global market changes.

However,
extended-hours trading carries distinct considerations for investors. These
sessions typically experience lower trading volumes than regular market hours,
which can lead to wider bid-ask spreads and potentially increased price
volatility. Market participants are advised to understand these characteristics
when engaging in after-hours trading.

Night Owl Trading Becomes
Popular

The move
comes as several major brokerages have recently enhanced their extended-hours
trading capabilities, reflecting increasing demand from retail investors for
flexible trading hours. While Schwab processes approximately six million daily
trades, other leading firms have also been developing similar offerings to
accommodate investors trading during non-traditional hours.

For
example, Firstrade Securities has partnered with Blue Ocean Technologies this
week to introduce overnight trading for U.S. equities , extending market access
beyond standard trading hours. The service is set to launch in the first
quarter of 2025.

Recent data
indicates increasing demand for trading beyond standard market hours. A March
report from Robinhood found that up to 25% of trading activity occurs outside
regular sessions. In response, Robinhood introduced a 24-hour trading service
last year, enabling investors to place limit orders from Sunday evening to
Friday evening. The NYSE is now considering expanding trading options to
include market orders.

Several
firms have already adapted to this shift. Interactive Brokers provides 24/5
trading on 3,500 stocks and ETFs, while Webull extended its trading hours three
months ago through a partnership with Blue Ocean Technologies, similar to
Firstrade.

This
expansion of trading hours across the industry marks a significant shift in
retail investor access to markets, reflecting both technological advances and
changing investor preferences in an increasingly global marketplace.