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.