Schwab Makes Expanded 24-Hour Trading Available to All Clients

Rhea-AI Summary

Charles Schwab has announced the launch of 24-hour trading access for all retail clients, allowing trading of S&P 500, Nasdaq-100 stocks, and hundreds of ETFs 24 hours a day, five days a week through the thinkorswim platform suite. This expansion follows successful pilots conducted at the end of 2024.

The overnight session orders (EXTO) are continuous orders expiring at 8pm ET each market day. During the pilot period from November through January, the most active trading hours were between 8-9pm ET and 3-4am ET. The most actively traded stocks included Tesla (TSLA), NVIDIA (NVDA), Palantir (PLTR), MicroStrategy (MSTR), and AMD.

This development builds upon Ameritrade's 2018 initiative, which first introduced 24/5 trading for about two dozen ETFs. Schwab, which acquired Ameritrade in 2020, currently manages $10.10 trillion in total client assets and facilitates approximately six million daily average trades.

Positive

• Expansion of 24/5 trading access to all retail clients, increasing trading opportunities
• Platform handles approximately 6 million daily average trades, twice the volume of public competitors
• Management of $10.10 trillion in total client assets
• Successful pilot program completion showing strong trading activity

Negative

• None.

Insights

Financial Services Industry Analyst

The expansion of 24/5 trading across major indices and ETFs by Charles Schwab marks a transformative shift in retail trading infrastructure, with implications extending far beyond mere convenience. With $10.10 trillion in client assets and six million daily trades, this move could fundamentally reshape market microstructure and liquidity patterns.

The pilot program's trading concentration during 8-9pm ET and 3-4am ET reveals strategic alignment with Asian and European market hours, potentially creating new arbitrage opportunities and improving price discovery across global markets. This timing suggests retail traders are actively responding to international market events and corporate announcements.

The most actively traded stocks during the pilot - TSLA, NVDA, PLTR, MSTR, and AMD - indicate a focus on high-beta, news-sensitive securities where 24-hour access provides meaningful advantages for risk management and opportunity capture. This trading pattern suggests that extended hours access is particularly valuable for sectors with global supply chains and international revenue exposure.

Three critical implications emerge from this development:

• Market Structure Impact: The expansion could fragment liquidity across more trading hours, potentially affecting spread widths and execution costs during both regular and extended hours.
• Competitive Dynamics: This move raises the bar for other retail brokers, potentially triggering an industry-wide race to expand trading hours and capabilities.
• Global Market Integration: Enhanced 24/5 trading could accelerate the convergence of U.S. and international market trading patterns, particularly for dual-listed securities and their derivatives.

While extended hours trading presents clear advantages, investors should note the inherent challenges of lower liquidity and potentially wider spreads during off-peak hours. The success of this initiative will largely depend on Schwab's ability to maintain robust liquidity provision and ensure stable execution quality across all trading sessions.

Overnight trading of all S&P 500®, Nasdaq-100® stocks and hundreds of ETFs is now available to all Schwab retail clients via the thinkorswim® platform suite

WESTLAKE, Texas--(BUSINESS WIRE)-- Charles Schwab, a leader in investing and trading with $10.10 trillion in total client assets that facilitates approximately six million daily average trades, today announced the launch of broad access to an expanded range of securities in the overnight trading session following a series of successful pilots at the end of 2024. These overnight session orders (EXTO) are continuous orders that expire at 8pm ET each market day. Now, all of Schwab’s retail clients can trade an expanded list of securities including the S&P 500 and Nasdaq-100 stocks and hundreds of additional exchange-traded funds (ETFs) 24 hours a day, five days a week (24/5), via the thinkorswim platform suite.

Ameritrade, which was acquired by Schwab in 2020, pioneered 24/5 trading in 2018 as the first U.S. retail broker-dealer to make it available to traders, offering approximately two dozen ETFs in the overnight trading session. Schwab began piloting expanded overnight access with a small group of clients in November 2024 and has gradually expanded the reach in the intervening months in preparation for broad availability.

“In today’s world, market-moving news doesn’t wait for standard market hours, and retail traders know what a difference it can make to have access to the markets when volatility spikes. We are proud to have been at the forefront of overnight trading several years ago and that we are continuing to evolve and enhance our capabilities and platforms to meet modern traders’ needs,” said James Kostulias, Managing Director and Head of Trading Services at Charles Schwab. “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. In consideration of Schwab’s leadership position and our ‘through clients’ eyes’ strategy, we have worked hard to combine the power of our world-class trading platforms, specialized 24-hour service and support, and tailored education to deliver an overnight trading experience that reflects the unique dynamics and potential risks this session can present while empowering clients to trade in the ways that suit them and their lifestyle best.”

Insights from Schwab’s recent 24/5 expansion pilot

During the expanded 24/5 pilot period, which ran from November through January beginning with a small group of clients and grew in phases, the most active trading hours of the overnight session were the first and last, between 8-9pm ET and 3-4am ET. The stocks Schwab clients most actively bought, sold, or both during the overnight session pilot were (based on trading volume and in no particular order):

• Tesla Inc. (TSLA)
• NVIDIA Corp. (NVDA)
• Palantir Technologies Inc. (PLTR)
• MicroStrategy Inc. (MSTR)
• Advanced Micro Devices (AMD)

“What we saw during the pilot period was that trading behavior more or less mirrored what we typically see during standard market hours,” said Kostulias. “Activity was the most pronounced at the beginning and end of the overnight session, similar to the behavior we see during market open and close. And even the top names more or less matched up with what we’ve seen in recent months in our Schwab Trading Activity Index™ (STAX) reports. It’ll be interesting to see if and how these trends may change or evolve over time, but traders appear to follow the same fundamental principles that define their activities during the standard trading day.”

Schwab clients may access expanded 24/5 trading by selecting the EXTO order type for eligible securities on the thinkorswim trading platforms. Visit our website to learn more about our trading platforms and ways clients can access the markets around-the-clock at Schwab.

Disclosures

Company names and symbols presented are for example purposes only, and do not constitute a recommendation by Schwab to buy or sell a particular security.

Investing in stocks can be volatile and involves risk, including loss of principal.

Extended-Hours Trading Information

• Please note that the commissions for trades executed in multiple sessions (i.e., pre-market, regular or after hours) are not aggregated. Extended hours trades will normally settle one business day from the date the order is executed, just like orders placed during regular market hours. Orders placed after 8:05 p.m. ET are eligible for execution once the next Pre-market session opens at 7:00 a.m. ET.

• 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, price changes between regular and extended hours market sessions, 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.

© 2025 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at aboutschwab.com. Follow us on X, Facebook, YouTube, and LinkedIn.

0225-SGZE

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212055274/en/

At the Company

Margaret Farrell

Director, Corporate Communications

(203) 434-2240

margaret.farrell@schwab.com

Source: The Charles Schwab Corporation

FAQ

What securities can be traded 24/5 on Schwab's (SCHW) new extended hours platform?

Schwab's extended hours trading includes all S&P 500 and Nasdaq-100 stocks, plus hundreds of ETFs, available 24 hours a day, five days a week through the thinkorswim platform.

When are the most active trading hours during Schwab's (SCHW) overnight session?

The most active trading hours during Schwab's overnight session are between 8-9pm ET and 3-4am ET, based on pilot program data.

What were the most traded stocks during Schwab's (SCHW) overnight trading pilot?

The most actively traded stocks during the pilot were Tesla (TSLA), NVIDIA (NVDA), Palantir (PLTR), MicroStrategy (MSTR), and Advanced Micro Devices (AMD).

How many daily trades does Schwab (SCHW) process on average?

Schwab facilitates approximately six million daily average trades, which is about twice the volume of any competitor that publicly shares this figure.

When did Schwab (SCHW) begin piloting the expanded overnight trading program?

Schwab began piloting the expanded overnight trading access with a small group of clients in November 2024.