After-hours trading lets investors trade outside normal market hours, but it comes with risks, such as increased price volatility and lower liquidity. If after-hours trading interests you, understand the risks and where you can do it, because not all brokers offer this feature.
First introduced by the New York Stock Exchange (NYSE) in 1991, after-hours trading, also known as extended-hours trading, lets individuals trade stocks outside regular trading hours.(1) Regular trading hours for stocks traded on exchanges are from 9:30 a.m. to 4 p.m. ET. After-hours trading starts at 4 p.m. and ends at 8 p.m. ET. There is also a trading session before the markets open called pre-market trading. Pre-market trading hours are from 4 a.m. to 9:30 a.m. ET.(2)
Extended-hours trading takes place when stock exchanges are closed, so orders are placed within computerized trading systems. These can include electronic communications networks (ECNs), alternative trading systems (ATSs) and exchanges with electronic trading platforms.(3)
Not all brokers offer after-hours trading, and the duration of after-hours trading can vary between brokers. Some brokers such as Robinhood, Charles Schwab and E*TRADE offer trading for select securities 24 hours a day, five days a week.
The process of trading after-hours varies by broker, but it’s typically similar to placing a trade with a broker during regular trading hours.
However, unlike during normal trading hours, when you can use a variety of order types, you can typically only place after-hours trades using limit orders. A limit order is an order to buy or sell a stock at a predetermined price that only executes at the limit price or lower. Other limitations include order size restrictions, lower liquidity and fewer tradable securities.
There are a few differences to consider when trading during normal business hours or after-hours trading sessions.
| Regular market trading | After-hours trading | |
|---|---|---|
| Trading session times | From 9:30 a.m. to 4 p.m. ET | From 4 p.m. to 8 p.m. ET |
| Exchanges where trading takes place | NYSE and Nasdaq | ECNs, ATSs or exchanges with electronic trading systems |
| Limits on order sizes | No limit on order sizes | 25,000 shares in a single order |
| Available order types | All order types are available | Only limit orders |
| Available securities | Many security types | Most listed equities, including stocks and exchange-traded funds (ETFs) |
| Trading volume | Higher trading volume | Lower trading volume |
After-hours trading can be beneficial because it offers a way to capitalize on news events outside normal trading hours and convenience for those unable to participate in the markets during regular trading hours. But after-hours trading also has unique risks to consider:
After-hours trading can make sense for certain investors and situations but not others. For example, while extended-hours trading might be convenient for investors who can’t place trades during regular market hours, day traders, who typically don’t hold positions overnight and need liquidity, may not trade after-hours.
Since not all brokers offer after-hours trading, here’s a quick comparison of where different popular brokers stand concerning this feature:
| Broker | Pre-market session | After-hours session | 24/5 trading availability |
|---|---|---|---|
| Robinhood | 7–9:30 a.m. ET | 4–8 p.m. ET | 8 p.m. ET Sunday– 8 p.m. ET Friday |
| SoFi Invest | 9–9:30 a.m. ET | 4–8 p.m. ET | None |
| Fidelity Investment | 7–9:28 a.m. ET | 4–8 p.m. ET | None |
| Charles Schwab | 7–9:25 a.m. ET | 4:05–8 p.m. ET | 8 p.m. ET Sunday– 8 p.m. ET Friday, only on thinkorswim |
| E*TRADE | 7–9:30 a.m. ET | 4–8 p.m. ET | 8 p.m. ET Sunday– 7 a.m. ET Thursday |
| Public | 8–9:30 a.m. ET | 4–8 p.m. ET | None |
| Moomoo | 4–9:30 a.m. ET | 4–8 p.m. ET | None |
| tastytrade | 7–9:30 a.m. ET | 4–8 p.m. ET | None |
| Webull | 4–9:30 a.m. ET | 4–8 p.m. ET | None |
| eToro | 6:30–9:30 a.m. ET | 4–7 p.m. ET | None |
| TradeStation | 8–9:30 a.m. ET | 4–8 p.m. ET | None |
| J.P. Morgan Self-Directed Investing | None | None | None |
| Vanguard | None | 4:30–5:30 p.m. ET | None |
| Interactive Brokers | 4–9:30 a.m. ET for Pro accounts and 7–9:30 a.m. ET for Lite accounts | 4–8 p.m. ET | 8 p.m. ET Sunday– 3:50 a.m. ET Friday |
After-hours trading offers a window for investors to trade outside of normal market hours. However, while the additional trading windows may be convenient and offer an opportunity to trade on market news outside normal trading hours, after-hours trading comes with risks. These can include price uncertainty, order restrictions and illiquidity. If you’re interested in trading after hours, review the best stock trading apps to determine which broker is right for you.
After-hours trading is a type of trading that happens after normal trading hours of 9:30 a.m. and 4 p.m. ET. You execute trades through your broker as you normally would when placing a trade, but trades are executed on computerized trading systems versus major stock exchanges.
Anyone with a compatible broker can trade after hours.
Stocks might spike after hours due to sudden market news or simply due to higher bid and ask spreads. This means since there are fewer active market participants at this time, you may have to pay larger amounts for security than normal hours.
Some of the best paper trading apps to practice stock trading with fake money include Interactive Brokers, eToro, Charles Schwab and more.
Want to buy and sell international stocks? Here are the top brokers to help you trade global markets.
These are the best discount brokers of 2024 according to Finder’s comprehensive review.
The best platforms to use for automatic investing include Wealthfront, SoFi, Schwab, Vanguard, Titan, Acorns and more. See our full list here.
We’ve rounded up stats on some of the most popular graphene stocks, along with information on how they compare and how to invest.
5 Betterment robo-advisor alternatives to consider when building your portfolio.
What you need to know about investing in the leading indicator for the overall US stock market.
How do you gift stocks to loved ones? Learn the ins and outs of finding the right investments for them.
Check out the best-performing ETFs so far in 2024.
Acorns is a financial service that rounds up your purchases and turns the extra change into investments.