Have you ever noticed that there are pre-market and after hours stock quotes on finance websites and on CNBC? Did you know that these prices are from actual trade activity that takes place outside of market hours? Did you also know that most online brokers offer both pre-market and after hours trading (also known as extended hours trading)? It's not as exotic as you might think. Let us explain more about extended hours trading and show you which brokers offer the best programs.
Extended Hours Trading
Extended hours trading is a way for investors to place stock trades outside of normal exchange hours. The regular exchange hours for US stock markets are 9:30am - 4pm Eastern Standard Time (EST), Monday through Friday, excluding holidays. Pre-market trading can take place from 7:00am - 9:30am while after hours trading can take place between 4:00pm and 8:00pm, though the specific hours vary from broker to broker.
How Does it Work?
Extended hours trading is made possible by electronic communications networks (ECNs), which are automated systems that match buy and sell orders. Two of the largest ECNs are NSDQ, which is owned by NASDAQ, and NYSE Archipelago (ARCA), which is owned by the New York Stock Exchange.
Some brokers require users to accept an extended hours agreement form (usually via their website). Once users have access, the stock trading menu usually has a separate tab or order entry selection to submit extended hours trades.
Extended hours trading is for stock trading only and does not include options, futures, bonds or other securities. For US stocks, extended hours trading is only available for listed (NYSE, AMEX) and NASDAQ stocks. In general, regular brokerage commissions apply but some brokers charge a premium for extended hours trading. Because of the order matching system only limit orders are allowed in extended hours trading. Short sales are allowed though may be difficult to execute because of the reduced liquidity outside of market hours.
Extended Hours Trading by Broker
Below is a breakdown of the extended hours trading programs offers by each broker. All trading hours listed below are in Eastern Standard Time (EST) and are only for those days when US exchanges are open.
| Broker | ECN | Trading Hours | Commissions | How to Trade | Additional Notes |
| E*TRADE | NSDQ | 8am-9:30am 4pm-8pm | Regular + $0.005 / sh ECN fee | In the stock trading menu set the trade term to Extended Hours | Pre-market orders roll to the regular market session (9:30am-4pm) and then again to after hours but are canceled at the end of extended hours (8pm) Quotes are available starting at 7:30am Round or odd lots both accepted |
| eOption | ARCA / NSDQ | 8am-9:30am 4pm-6pm | $25 | In the stock trading menu set the Time in Force to Extended Market | $25 commission purchases max 5000 shares, $0.003 / share commission for 5000+ shares Pre-market orders roll to the regular market session (9:30am-4pm) and then again to after hours but are canceled at the end of extended hours (6pm) |
| Fidelity | ARCA | 7am-9:15am 4pm-8pm | Regular | Must sign an agreement form and then talk to a representative before gaining access. Then select the Trade Extended Hours tab from the stock trading menu. | Orders are canceled at the end of each pre-market and after hours session Immediate or cancel orders have a minimum requirement of 100 shares Max order size is 10,000 shares |
| Firstrade | Internal routing system | 8am-9:25am 4:05-5:30pm | Regular | Accept the agreement on the website. Then select a duration of Ex. AM or Ex. PM in the stock trading menu. | Orders are canceled at the end of each pre-market and after hours session |
| Interactive Brokers | Varies | Varies | Varies | Select the exchange from the stock trading menu | Interactive Brokers offers many customized trading features which includes extended hours. For example, NASDAQ and ARCA have after hours trading while ArcaEdge has pre-market trading. See a full list of available market centers and their trading hours here |
| Just2Trade | ARCA / NSDQ | 7:05-9:30am 4pm-8pm | Regular + $0.003 / sh ECN fee | In the stock trading menu select the time in force as Day + and the destination as ARCA or NSDQ | |
| Merrill Edge | ARCA | 7:30-9:30am 4:01pm-8pm | Regular | In the stock trading menu select the Extended Hours tab | Pre-market orders can be submitted starting at 7:30am but will not execute until 8am Orders are canceled at the end of each pre-market and after hours session All orders must be in lots of 100 shares, with a max order size of 100,000 shares |
| Options House | Internal routing system | 8:30-9:30am 4pm-5pm | Regular | In the stock trading menu set the duration to Extended Hours | Pre-market orders roll to the regular market session (9:30am-4pm)and are canceled at the end of that session. After hours orders are canceled at the end of that session (5pm). |
| options Xpress | ARCA | 7am-9:30am 4pm-8pm | Regular | In the stock trading menu select the Extended Hours tab | Orders are canceled at the end of each pre-market and after hours session |
| Schwab | Internal routing system | 8am-9:25am 4:15pm-8pm | Regular | In the stock trading menu select the Extended Hours Trading tab | Pre-market orders can be submitted starting at 8:05pm on the previous business day but will not execute until 8am the next morning. After hours orders can be submitted starting at 4:05pm but will not execute until 4:15pm. There is a max order size of 25,000 shares |
| Scottrade | Internal routing system | 7am-9:28am 4:02pm-8pm | Regular | In the stock trading menu select the link for Pre-Market / After-Hours | Orders are canceled at the end of each pre-market and after hours session There is a max order size of 100,000 shares |
| Share Builder | N/A | N/A | N/A | N/A | ShareBuilder does not offer extended hours trading |
| SogoTrade | NSDQ | 8am-9:30am 4pm-6pm | Regular | In the stock trading menu set the duration to either Day + Extended Hours or GTC + Extended Hours | Pre-market orders roll to the regular market session (9:30am-4pm) and then again to after hours. Day + Extended Hours trades are canceled at the end of the after hours session (6pm). GTC + Extended Hours trades can have customized expiration dates (max 90 days) |
| TD Ameritrade | ARCA / NSDQ | 8am-9:15am 4:15pm-8pm | Regular | In the stock trading menu set the time in force to Day + Extended Hours or GTC + Extended Hours | Can select either ARCA or NSDQ in the stock trading menu Orders can be submitted at any time Pre-market orders roll to the regular market session (9:30am-4pm) and then again to after hours. Day + Extended Hours trades are canceled at the end of the after hours session (8pm). |
| thinkorswim | ARCA | 7am-9:30am 4pm-5:30pm | Regular | In the stock trading menu set the time in force (TIF) to extended hours (EXT) | Pre-market orders roll to the regular market session (9:30am-4pm) and then again to after hours but are canceled at the end of that session (5:30pm). |
| TradeKing | ARCA | 8am-9:30am | Regular | In the stock trading menu select the Extra Hours tab | Orders are canceled at the end of each pre-market and after hours session |
| Vanguard | Internal routing system | no pre-mkt 4:15pm-6pm | Regular | The stock trading menu will change during extended hours | |
| WellsTrade | N/A | N/A | N/A | N/A | WellsTrade does not offer extended hours trading |
| Zecco | N.A | N/A | N/A | N/A | Zecco does not offer extended hours trading |
Recommended Brokers for Extended Hours Trading
In total, 16 out of the 19 brokers we cover offer extended hours trading. Which ones would we recommend? First, let's eliminate brokers that charge more than $10 per trade. Next, we can narrow down our list by only including brokers that have at least 1 hour of pre-market trading and 2 hours of after hours trading. When we also take into account the quality of the stock trading platform (only including those brokers receiving a grade of B or better - see our stock trading overview) we can narrow down our list even further.
When we consider all of the above criteria we recommend the following brokers for extended hours trading:
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