In response to the increasing competition from neobrokers and the emergence of new trading platforms, a prominent US online brokerage firm has broadened its access to overnight trading for retail clients. This development follows a series of successful tests conducted in late 2024, aimed at enhancing trading opportunities for users.
The firm now offers extended trading hours, allowing clients to place continuous orders that remain valid until 8 PM ET on regular market days. Users can trade a larger selection of securities, including major indices like the S&P 500 and Nasdaq-100, as well as numerous exchange-traded funds (ETFs) around the clock, five days a week, through its thinkorswim platform.
In 2018, a previously acquired company was a pioneer in 24-hour trading, enabling retail clients to execute trades in a limited number of ETFs during overnight sessions. Following this foundation, the firm began testing a more extensive range of overnight trading options with a select group of clients in November 2024, gradually rolling out broader access since then.
According to a trading services executive, the move to extend trading hours comes in recognition of the unpredictable nature of market movements that can occur outside standard trading hours. Insight into trading patterns has revealed that an increasing number of traders value the ability to react to market news and volatility that unfolds in real-time.
On average, the firm reportedly processes twice as many trades as any public competitor, showcasing its commitment to providing robust trading options. The expansion of overnight trading not only marks a significant step in the firm’s growth but also reflects a broader trend within the brokerage industry. The integration of a world-class trading platform, specialized support services, and customized educational resources aims to offer a comprehensive overnight trading experience for clients, while addressing the unique dynamics and potential risks involved in such trading activities.
Analysis of trading behavior during the pilot phase revealed that trading activity followed patterns similar to those seen during the regular market hours. The first and last hours of the overnight session were identified as the busiest times for trading. Some of the most actively traded stocks during this period included high-profile companies like Tesla, NVIDIA, Palantir Technologies, MicroStrategy, and Advanced Micro Devices.
The executive remarked that the insights gained from the pilot program indicated that traders tended to exhibit consistent behavior, reinforcing established market principles regardless of the time, which would be instructive for future trading trends.
Clients interested in accessing the new 24/5 trading capability can do so by selecting the appropriate order type for eligible securities on the thinkorswim trading platform. The strategic adjustment not only enhances trading options for users but also addresses the evolving expectations of modern traders who seek flexibility and opportunities to engage with the market beyond traditional hours.
In summary, this expansion reflects a commitment to innovation and responsiveness in the brokerage space, catering to the needs of both casual and experienced investors by offering unprecedented access and support within the trading environment. As market dynamics continue to evolve, this firm’s proactive approach may set a precedent for industry standards in retail trading services.