Schwab to Significantly Expand Its 24-Hour Trading Capabilities to Include the Stocks in the S&P 500®, Nasdaq-100® and Hundreds of Additional Exchange-Traded Funds

Rhea-AI Summary

Charles Schwab announced plans to expand its 24-hour trading capabilities to include stocks in the S&P 500, Nasdaq-100 and hundreds of additional ETFs for 24/5 trading. The company will begin piloting expanded overnight access with select clients, aiming for full client access in 2025. The expansion builds upon Ameritrade's 2018 pioneering of 24/5 trading. Additionally, Schwab unveiled new platform enhancements across thinkorswim, Schwab.com, and Schwab Mobile, including improved options chain functionality, order status features, and streaming quotes.

Positive

• Expansion of 24/5 trading to include major indices and ETFs, potentially increasing trading volume
• Platform improvements across multiple trading interfaces enhancing user experience
• Company handles approximately 6 million daily average trades
• Substantial asset base of $9.92 trillion in total client assets

Negative

• Gradual rollout until 2025 may delay competitive advantage
• Extended hours trading carries increased risks of lower liquidity and higher volatility

Insights

Market Research Analyst

The expansion of 24/5 trading to include S&P 500 and Nasdaq-100 stocks represents a significant competitive advantage for Schwab in the retail brokerage space. With $9.92 trillion in client assets and approximately 6 million daily trades, this move could substantially increase trading volume and revenue streams. The gradual rollout strategy through 2025 allows for proper risk management and system optimization.

The platform enhancements, particularly the new options chain features and Walk Limit™ orders, position Schwab to better compete with newer trading platforms while maintaining their established market presence. This comprehensive update targets both casual investors and sophisticated traders, potentially increasing client retention and market share in the competitive retail trading landscape.

Financial Technology Expert

The technological infrastructure required to support 24/5 trading across major indices represents a substantial operational advancement. Key innovations include:

• Real-time streaming quotes integration
• Enhanced options chain functionality
• Advanced charting capabilities with position overlay

The platform improvements, particularly the thinkorswim suite updates, demonstrate Schwab's commitment to providing institutional-grade trading technology to retail investors. This could drive increased platform engagement and transaction volume, especially from active traders who previously relied on multiple platforms for comprehensive trading capabilities.

Schwab also announces another round of enhancements to the Schwab.com, Schwab Mobile, and thinkorswim^® trading platforms

WESTLAKE, Texas--(BUSINESS WIRE)-- Charles Schwab, a leader in investing and trading with $9.92 trillion in total client assets that facilitates approximately six million daily average trades, today announced it will begin piloting additional access to the overnight trading session by expanding to include stocks in the S&P 500, Nasdaq-100 and hundreds of additional exchange-traded funds (ETFs) available for trading 24 hours a day, five days a week (24/5).

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. Schwab will begin piloting expanded overnight access with a small group of clients and gradually expand to full client access in 2025.

“More than six years after Ameritrade was the first U.S. retail broker-dealer to launch 24/5 trading on the thinkorswim platforms, we’re proud to see how the overnight market has evolved,” said James Kostulias, Managing Director and Head of Trading Services at Charles Schwab. “Our goal has always been to offer and expand access to 24/5 trading in a responsible way that takes into account client demand, the evolving dynamics of the overnight trading market, and – importantly – providing clients with the full library of Schwab’s educational content and 24-hour support to help them balance the opportunities and risks, as well as the unique considerations of overnight trading.”

Overnight trading is just one way Schwab clients can engage with the markets outside of standard trading hours. Schwab also offers pre- and post-market extended hours trading sessions across its trading platforms. Futures, including options on futures, and forex trading are available to clients with appropriately approved accounts via thinkorswim.

Additional Enhancements to Schwab’s Trading Platforms

In addition to expanding overnight trading, Schwab has also recently introduced a range of new trading features and capabilities, including:

thinkorswim Platform Suite:

• Positions on Charts: Across all thinkorswim platforms (thinkorswim desktop, thinkorswim web, and thinkorswim mobile), clients can add a horizontal line to a chart for any symbol they hold a position in that will show the trade price of their equity position or strike price of their options position.
• Options Chain Gadget: Clients using thinkorswim desktop can now view the option chain and chart at the same time using this Charts feature.
• Index Monitor: Clients using thinkorswim web can monitor indices throughout the day with a rotating chart and quote carousel at the top of the Charts feature.
• Analyst Ratings: On thinkorswim mobile, clients can now view analyst reports and ratings for their positions.
• Money Movement: Clients using thinkorswim mobile can now add funds to their account using the remote check deposit feature.
• Coming Soon: Walk Limit™ Orders: Clients using all thinkorswim platforms will have the ability to automatically aim to execute at a more favorable price than initially set for single- or multi-leg options trades.

Schwab.com and Schwab Mobile:

• Options Chain: Now easier-to-use and more customizable than ever, the updated options chain on Schwab.com and Schwab Mobile allows clients to more efficiently identify and trade single- and multi-leg options strategies; add, remove and rearrange data points; filter by strike price and expiration date; and set default page display settings.
• Order Status: Clients on Schwab.com can now add, remove and rearrange their order status columns; change the filter, sort and condensed view preferences and establish new default settings; and add new data points including Mark Price, Day Range, and 52 Week Range.
• Streaming Quotes: Clients on Schwab.com and Schwab Mobile no longer need to refresh or toggle between timeframes with indices now updating automatically on Research pages.
• Symbol Snapshot: This new, convenient view offers up essential details and interactive charts on a given security without navigating away from the Schwab.com Research page.
• Closing Orders: Manage your positions more easily with convenient new actions—including Sell All for equities and Close and Roll, meaning the ability to close an existing position and open another in one trade for options—on Schwab.com and Schwab Mobile.
• Coming Soon: Custom Positions Table: Clients on Schwab Mobile will be able to add, remove and rearrange up to 30 columns of quotes, positions and fundamental data points with this new table view on the Positions page.

The expansion of overnight trading and these latest platform enhancements reinforce Schwab’s position as a leader in serving a wide range of retail investors and traders, from those just getting started to highly experienced and sophisticated active traders who need a comprehensive suite of platform, product and support capabilities. For traders, Schwab Trading Powered by Ameritrade™ provides a holistic experience that includes:

• Desktop, web, and mobile trading platforms including thinkorswim®, Schwab.com and Schwab Mobile.
• A massive library of educational content and resources including articles, videos, webcasts, podcasts, courses, in-person events and more, to help clients make informed trading decisions and manage risk, as well as Schwab Coaching™, which enables clients to learn from trading professionals in a live, interactive setting.
• Specialized service and support for traders through Schwab’s Trade Desk team of trading specialists.
• paperMoney®, the virtual trading experience that lets clients practice trading on thinkorswim® using real-time market data—all without risking a dime.
• A wide range of trading products, which today includes stocks and ETFs; equity, ETF and index options; options on futures; futures; forex; and portfolio margin.

Kostulias added, “We have built a powerful trading experience over a long period of time and are a strong leader in this space thanks to the breadth and depth of our platforms, products and professional support. Our expansion in overnight trading combined with our steady stream of meaningful platform enhancements demonstrates our overall commitment to keeping our foot on the pedal and continually innovating to meet traders’ rapidly evolving needs. That has always been part of our firm’s DNA.”

To learn more about trading at Schwab, visit www.schwab.com/trading.

Disclosures

Investing involves risk, including, for some products, more than your initial investment. Consider your individual circumstances prior to investing.

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.

Equity and index options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Supporting documentation for any claims or statistical information is available upon request.

​Multiple leg options strategies will involve multiple transaction costs.

Portfolio margining involves unique and significantly greater risks than cash accounts and is not suitable for all investors.

Futures, and Futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.

Forex trading involves leverage, carries a substantial level of risk, and is not suitable for all investors. Please read the Risk Disclosure for Forex.

Futures and forex accounts are not protected by the Securities Investor Protection Corporation (SIPC). Forex accounts do not receive a preference in any bankruptcy proceeding pursuant to Part 190 of the CFTC’s regulations.

Read additional CFTC and NFA futures and forex public disclosures for Charles Schwab Futures and Forex LLC.

Futures, futures options, and forex trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify. Forex accounts are not available to residents of Ohio or Arizona.

Charles Schwab Futures and Forex LLC is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member and a subsidiary of The Charles Schwab Corporation.

Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

© 2024 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.

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At the Company

Margaret Farrell

Director, Corporate Communications

(203) 434-2240

margaret.farrell@schwab.com

Source: The Charles Schwab Corporation

FAQ

When will Schwab (SCHW) launch full 24/5 trading for S&P 500 and Nasdaq-100 stocks?

Schwab plans to gradually expand access to full client availability in 2025, starting with a pilot program for a small group of clients.

What new trading features has Schwab (SCHW) added to its platforms?

Schwab has added features including Positions on Charts, Options Chain Gadget, Index Monitor, improved order status features, streaming quotes, and enhanced options chain functionality across its platforms.

How many daily trades does Schwab (SCHW) process?

Charles Schwab facilitates approximately six million daily average trades.