In the dynamic world of stock trading, every minute can count. For many investors, the traditional market hours (9:30 a.m. to 4:00 p.m. ET) simply aren't enough to react to breaking news, global events, or their own busy schedules. That's where extended hours trading comes in, and Charles Schwab, a leading brokerage, offers robust options for those looking to get a head start or stay in the game after the closing bell.
So, you're wondering, "How early can I trade on Charles Schwab?" Let's dive in and explore the various avenues Charles Schwab provides for trading outside of standard market hours, along with a step-by-step guide to help you navigate these opportunities.
Understanding Extended Hours Trading on Charles Schwab
Before we get into the specifics, it's crucial to understand what "extended hours trading" entails. It refers to the periods before the regular market opens (pre-market) and after it closes (after-hours). Charles Schwab facilitates these sessions across its platforms, with some notable differences depending on the platform you use.
Regular Market Hours: 9:30 a.m. to 4:00 p.m. ET (Eastern Time)
Charles Schwab offers the following extended trading sessions:
- Pre-Market Session: 7:00 a.m. to 9:25 a.m. ET
- After-Hours Session: 4:05 p.m. to 8:00 p.m. ET
- Extended + Overnight Sessions (primarily on thinkorswim®): These can range from 13-hour continuous sessions (7:00 a.m. to 8:00 p.m. ET) to 24-hour continuous trading for specific securities (Monday through Friday, with orders placed at any time).
The earliest you can trade a security on Charles Schwab will depend on the platform and the type of security. For most pre-market trading, the execution window opens at 7:00 a.m. ET. However, orders can often be placed much earlier for these sessions.
Step 1: Are You Ready for Extended Hours? (Engage!)
Hey there, aspiring early bird trader! Before you jump into placing your first pre-market order, let's take a moment. Have you considered why you want to trade outside regular hours? Are you reacting to a sudden news event, trying to catch a pre-market surge, or simply finding it more convenient for your schedule? Understanding your motivation is key, as extended hours trading comes with its own unique set of risks and opportunities.
Think about it:
- Do you have a specific stock in mind?
- Are you aware of the potential for lower liquidity and wider spreads?
- Do you have a clear strategy for this type of trading?
If you've considered these points and are still eager, let's proceed!
Step 2: Choose Your Platform Wisely
Charles Schwab offers several trading platforms, and the extended hours capabilities can vary slightly.
Sub-heading: Schwab.com & Schwab Mobile
These platforms offer the standard pre-market and after-hours sessions. They are user-friendly for most investors.
- Pre-market session eligibility: Orders placed between 8:05 p.m. (previous trading day) and 9:25 a.m. ET are eligible for execution between 7:00 a.m. and 9:25 a.m. ET.
- After-hours session eligibility: Orders placed between 4:05 p.m. and 8:00 p.m. ET are eligible for execution during that time period.
Sub-heading: thinkorswim® Platforms
For more advanced traders and those seeking the earliest and longest trading windows, thinkorswim (including desktop, web, and mobile versions) is the platform of choice. This is where you can access the most extensive extended hours trading.
- Pre-market session: 7:00 a.m. to 9:25 a.m. ET
- After-hours session: 4:05 p.m. to 8:00 p.m. ET
- Extended + Overnight sessions:
- 13-hour continuous: Orders placed at any time are eligible for execution between 7:00 a.m. and 8:00 p.m. ET.
- 24-hour continuous (for over 800 popular stocks and ETFs): Orders placed at any time are eligible for execution 24 hours a day, 5 days a week (Monday to Friday). This includes all S&P 500, Nasdaq 100, and Dow 30 stocks, plus over 200 ETFs. This means you can effectively trade as early as Sunday evening (8:00 p.m. ET) and continuously throughout the week until Friday's market close.
Key takeaway: If 24/5 trading is your goal, thinkorswim is your platform.
Step 3: Understand Order Types and Their Nuances
Not all order types are created equal in extended hours trading. This is a critical difference from regular market hours.
Sub-heading: Limit Orders Only
For the most part, only limit orders are accepted during extended hours trading. This is a protective measure by brokerages and regulators to shield investors from unexpected price fluctuations due to lower liquidity.
- What's a limit order? A limit order allows you to set a maximum price you are willing to pay for a buy order, or a minimum price
you are willing to accept for a sell order. Your order will only execute at your specified limit price or better. This is crucial in extended hours where prices can be more volatile.
Sub-heading: Time-in-Force Options
When placing an extended hours order, you'll need to specify its "Time in Force." This tells the brokerage how long your order should remain active.
- Extended-hours a.m. (Pre-market Day Order): Valid only for the pre-market session (7:00 a.m. to 9:25 a.m. ET) on that day.
- Extended-hours p.m. (After-hours Day Order): Valid only for the after-hours session (4:05 p.m. to 8:00 p.m. ET) on that day.
- Day + Extended Hours: If placed during regular hours, the order carries over into that day's extended hours sessions.
- GTC (Good-Til-Canceled) + Extended Hours: This order remains active for up to 180 calendar days and is active during all eligible equity trading sessions (regular and extended).
- EXT / EXTO (thinkorswim specific):
- EXT (Extended): Used for pre-market and after-market trading on thinkorswim.
- EXTO (Extended Hours + Overnight): This is for the 24-hour continuous trading sessions on thinkorswim. Unless GTC is selected, EXTO orders expire at 8:00 p.m. ET each day.
Important Note on Stop Orders: Stop orders are generally NOT eligible for execution during extended hours sessions. This means your protective stop-loss orders will only be active during regular market hours, adding another layer of risk to extended hours trading.
Step 4: Placing an Extended Hours Trade (Step-by-Step)
Let's walk through the general process for placing an extended hours trade on Charles Schwab platforms. While the exact interface might vary slightly between Schwab.com, Schwab Mobile, and thinkorswim, the core principles remain the same.
Sub-heading: Via Schwab.com or Schwab Mobile
- Log in to your Charles Schwab account.
- Navigate to the "Trade" section. This is typically found in the main menu or dashboard.
- Select "Stocks & ETFs" or "All-In-One Trade Ticket."
- Enter the symbol of the stock or ETF you wish to trade (e.g., AAPL for Apple).
- Choose your "Action" (Buy or Sell).
- Enter the "Quantity" of shares you want to trade.
- Select "Limit" as your Order Type. Remember, this is crucial for extended hours.
- Enter your desired "Limit Price." This is the maximum you'll pay (buy) or minimum you'll accept (sell).
- Under "Timing" or "Time in Force," select the appropriate extended hours option:
- Extended-hours a.m. (for pre-market only)
- Extended-hours p.m. (for after-hours only)
- Day + Extended Hours (if placing during regular hours and want it to carry over)
- GTC + Extended Hours (for longer-term orders across sessions)
- Review your order details carefully. Double-check the symbol, quantity, price, and time-in-force.
- Place Order. You will likely receive a disclosure or warning about the risks of extended hours trading. Read and acknowledge this before proceeding.
Sub-heading: Via thinkorswim Platforms
The thinkorswim platforms offer more granular control and features for active traders.
- Log in to your thinkorswim platform (desktop, web, or mobile).
- Navigate to the "Trade" tab or section.
- Enter the symbol of the stock or ETF.
- Click "Buy" or "Sell."
- Set your order type to "LMT" (Limit).
- Enter your "Quantity" and "Limit Price."
- Crucially, select the correct "Time in Force" (TIF) option for extended hours:
- EXT: For standard pre-market and after-hours sessions.
- EXTO: For the 24-hour continuous trading (if the security is eligible).
- Review your order. Pay close attention to the details and the implications of your chosen TIF.
- Confirm and Send Order.
Step 5: Be Aware of the Risks and Opportunities
Trading outside of regular market hours presents both unique advantages and disadvantages that every trader should be aware of.
Sub-heading: Opportunities
- React to News Quickly: Major company announcements (earnings reports, product launches, mergers) often occur after market close or before market open. Extended hours trading allows you to react immediately to this information, potentially capitalizing on price movements before the broader market.
- Flexibility: If your daily schedule conflicts with regular market hours, extended hours offer a window to manage your portfolio.
- Global Events: You can react to economic data releases or geopolitical events happening overnight that might impact U.S. markets.
Sub-heading: Risks
- Lower Liquidity: Fewer participants typically trade during extended hours. This means there are fewer buyers and sellers, which can lead to larger bid-ask spreads (the difference between the
highest price a buyer is willing to pay and the lowest price a seller is willing to accept). - Increased Volatility: Due to lower liquidity, prices can move more dramatically and unpredictably on smaller trade volumes. A single large order can significantly impact the price of a stock.
- Uncertain Prices: The quotes you see during extended hours may not reflect the full market picture, as trading can be fragmented across different venues. The price you get might be significantly different from what you expected.
- Limited Order Types: The restriction to primarily limit orders means you cannot use market orders, which guarantee execution (though not price), or stop orders for automatic risk management.
- No Last Sale Information: You may not have access to consolidated last sale information across all venues, meaning the displayed price might not reflect the absolute best available price.
- Competition from Institutional Investors: A significant portion of extended hours trading is done by large institutional investors, who have access to more sophisticated tools and information.
Conclusion: Trade Smart, Trade Informed
Charles Schwab provides excellent opportunities for traders to participate in extended hours, with the thinkorswim platform offering particularly extensive 24/5 trading for a wide range of securities. While the ability to trade early can offer significant advantages, it's paramount to approach these sessions with a clear understanding of the heightened risks involved. Always use limit orders, be mindful of liquidity, and have a well-defined trading strategy. Happy trading!
10 Related FAQ Questions
How to trade during pre-market hours on Charles Schwab?
To trade during pre-market hours on Charles Schwab, you'll need to place a limit order with a "Time in Force" option that specifies pre-market eligibility (e.g., "Extended-hours a.m." on
How to trade after-hours on Charles Schwab?
Trading after-hours on Charles Schwab involves placing a limit order with a "Time in Force" option for the after-hours session (e.g., "Extended-hours p.m." on
How to access 24/5 trading on Charles Schwab?
24/5 trading for over 800 popular stocks and ETFs is exclusively available on Charles Schwab's thinkorswim platforms. You must select the "EXTO" (Extended Hours + Overnight) time-in-force option when placing your limit order.
How to set a limit order for extended hours trading on Schwab?
When placing a trade on any Schwab platform, after entering the symbol and quantity, select "Limit" as your order type and then specify your desired limit price. Crucially, in the "Timing" or "Time in Force" dropdown, choose an extended hours option (e.g., "Extended-hours a.m.", "Extended-hours p.m.", "Day + Extended Hours", "GTC + Extended Hours", "EXT", or "EXTO").
How to check if a stock is eligible for 24/5 trading on thinkorswim?
While Schwab states that over 800 stocks and ETFs, including all S&P 500, Nasdaq 100, and Dow 30 components, are eligible for 24/5 trading on thinkorswim, you can usually confirm eligibility within the thinkorswim platform itself when placing an order. If the "EXTO" time-in-force option is available for the specific security, it's eligible.
How to view extended hours quotes on Charles Schwab?
On Schwab.com and Schwab Mobile, extended hours quotes are generally displayed. On thinkorswim, you can configure your watchlists and charts to show extended hours data. Be aware that extended hours quotes may not be consolidated from all trading venues.
How to understand the risks of extended hours trading on Schwab?
Charles Schwab provides disclosures and information about the risks of extended hours trading, which typically include lower liquidity, wider bid-ask spreads, increased volatility, and the limited availability of order types (primarily limit orders). It's crucial to read and understand these risks before engaging in extended hours trading.
How to place an order that carries over from regular to extended hours on Schwab?
On Schwab.com or Schwab Mobile, you can select "Day + Extended Hours" as your time-in-force option for an equity order placed during regular market hours. This order will then carry over and remain active during the day's extended hours sessions if not executed during regular hours.
How to ensure my extended hours order executes?
There is no guarantee that an extended hours order will execute, even if it's a limit order. Execution depends on finding a matching buy or sell order at your specified price or better during the active extended hours session. Due to lower liquidity, execution can be less likely than during regular market hours.
How to get help with extended hours trading on Charles Schwab?
Charles Schwab offers 24/7 client support. You can contact their trading specialists via phone or chat on Schwab.com or through the thinkorswim platforms if you have questions or need assistance with extended hours trading.
