What You Need to Know About 24/5 Trading

February 11, 2025
Traders can buy and sell hundreds of stocks and ETFs on Schwab's thinkorswim® platform when the market opens on Monday until the market closes on Friday (holidays excluded).

Overnight markets were once the province of arbitrageurs looking for a little action in Asia and Europe while most American traders were sound asleep. Over the decades, after-hours trading has become a bigger share of the total market. 

Ameritrade, which was acquired by Schwab in 2020, pioneered 24/5 trading in 2018 when it was the first U.S. retail broker-dealer to make it available to traders. Since then, clients using the thinkorswim® trading platforms at Ameritrade and now Schwab have had access to approximately two dozen ETFs in the overnight trading session.

After hours trading on the thinkorswim platform

thinkorswim platform users will also have access to stocks in the S&P 500 and Nasdaq 100 as well as hundreds of additional exchange-traded funds (ETFs) available for trading from 8:00 pm Eastern time on Sunday to 4:00 pm Eastern time on Friday (excluding market holidays). The initial launch will have 800 symbols available, with more added based market activity. This next step in the evolution of retail trading creates potential opportunity, especially for those who can't trade during regular market hours. 

When 24/5 trading becomes available, customers can log into the thinkorswim platform and buy and sell shares in the stocks and ETFs included in Schwab's after-hours program by choosing order type EXTO.

Why trade extended hours?

While not everyone will want to trade during extended market hours, some will. Here are a few reasons that might resonate:

  • Put lessons into practice: At Schwab, we've noticed that people tend to read trader education content in the evening. With 24/5 trading, they can quickly put what they learn into practice in their accounts. 
  • Trading the US markets during business hours in Europe and Asia: Schwab customers in Asia and Europe who want to invest in US companies and trade US markets can do this more readily if they can trade during their business day. 24/5 trading makes this possible.
  • Breaking news happens around the clock: Companies are global, and so are markets. News events that move markets don't wait until the New York Stock Exchange is open. Traders who like to work with news events without delay can pursue potential opportunities.
  • Earnings announcements often happen before and after market hours: Many companies announce their earnings before the market opens or after the market closes. This could create potential opportunities for people to respond to earnings reports by buying or selling in extended hours trading.

Things to keep in mind

Placing trades can be pretty straight forward, but there are some additional considerations to understand. The markets may behave differently after hours than during the trading day. In particular, there is less activity and less news flow. The stocks and ETFs in Schwab's program are US-based and are most active during US business hours, although there will sometimes be news and activity that affects US companies coming from European and Asian markets. Traders should expect lower liquidity and heightened volatility outside of regular market hours. 

Overnight trading can be helpful to people who can't trade during regular trading hours, and it offers possible opportunities for traders to find and place trades. However, people who aren't careful may overtrade, placing more trades or riskier trades than they should, especially when they are tired. Having a trading plan and sticking to it can help manage this risk.

Bottom line

Expanded 24/5 trading on the thinkorswim platform gives traders access to hundreds of different stocks and ETFs overnight during the workweek. This could be an opportunity for many clients, as long as they take a disciplined approach to their trading.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. 

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. 

Investing involves risk, including loss of principal. 

Extended Hours Trading may not be suitable for all investors and poses certain risks. These risks include, but are not limited to, lower liquidity, higher volatility, extended hours pricing not reflective or different than pricing during regular trading hours, impact to price display and execution quality from unlinked markets, news announcements, and wider spreads. To learn more call 1-800-435-4000.

Due to limited liquidity in Extended Hours Trading sessions, there are no assurances that an investor's stock order will be executed.

Extended Hours Trading will not take place on official Exchange holidays or when Exchanges close early. Schwab reserves the right to change or modify hours of operation for Extended Hours Trading at any time. A Schwab Extended Hours Trading session, or any security traded therein, may be temporarily or permanently suspended at our discretion.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

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