- Out-of-hours trading means you can invest when the stock market is closed
- CFD traders get an extra three hours to trade
- Applies to ten of the most popular US stocks
eToro now lets you buy and sell more stocks when the markets are closed
Extended hours trading has extended the amount of stocks you can trade out of hours with a list that started with 10 stocks but now covers 45 leading US equities, the service will initially be available in the Pre-market period ahead of the formal opening of US equity trading, at 9.30 am Eastern Time (14.30 London Time ).
Out of hours dealing is being offered to CFD traders, who will get an extra three hours per day to trade in the US names.
However those additional trading hours will extend further with the introduction of post-market trading which eToro hopes to offer shortly.
To avoid any confusion clients will trade the pre-market equity CFDs under a different stock ID, The extended hours’ contracts will trade with a .EXT suffix attached to the ticker.
However, both lines will trade at the same prices during regular hours.
Spreads on the out-of-hours contracts may vary based on the available liquidity and volumes traded in these names, during the pre and post-market periods.
Market on open orders (MOO)
eToro clients can already place out-of-hours orders to buy or sell a stock, when the market opens, these orders will be executed at the first available price.
Other brokers such as Lightyear also offer a market order type that clients can submit ahead of the opening of the market, and which will be filled as part of that process.
Alternatively, investors can use limit orders to achieve an execution at a set price though of course if you limit the price that you are prepared to buy or sell stock particularly if your limit price is away from or outside the prevailing bid-offer spread.
These orders are treated as pending orders by the broker and are usually subject to a “good for” condition often set to good for the day by default.
However, some brokers will allow you to place a limit order over a longer period, or even on a GTC or Good Till Cancelled basis.
A trader might use a GTC limit order to achieve a specific entry price into, or exit price out of, a position.
Which stocks will be available for out-of-hours trading on eToro?
Out-of-hours CFDs is now available on the following stocks:
TSLA.EXT
AMZN.EXT
AAPL.EXT
NIO.EXT
META.EXT
MSFT.EXT
GOOG.EXT
NVDA.EXT
GME.EXT
NFLX.EXT
SNAP.EXT
BABA.EXT
MMM.EXT
AMD.EXT
INTC.EXT
T.EXT
IBM.EXT
KO.EXT
BA.EXT
CSCO.EXT
GM.EXT
VZ.EXT
PYPL.EXT
BRK.EXT
QCOM.EXT
DIS.EXT
MCD.EXT
JNJ.EXT
BIDU.EXT
BAC.EXT
MU.EXT
WFC.EXT
JD.EXT
GS.EXT
HD.EXT
WMT.EXT
PFE.EXT
NKE.EXT
PG.EXT
F.EXT
C.EXT
MRK.EXT
UNH.EXT
AXP.EXT
EBAY.EXT
eToro believes that there are many benefits for clients arising from access to out-of-hours equity trading not least because US companies report their earnings outside of regular market hours.
The new service will also provide additional flexibility to clients trying to trade around their schedules and allow them to react to news flow from markets elsewhere on the globe.
Speaking about the launch of the new service Dan Moczulski managing director at Etoro UK said:
“Being able to offer pre-market trading is an exciting development for eToro clients, and we will be rolling it out carefully so people see how it works and are comfortable with it”
He added that:
“The ambition, depending on liquidity and availability, is to eventually offer hundreds of stocks around the clock”
Which other brokers offer out-of-hours trading?
eToro is not alone in offering out-of-hours trading the ability to trade outside of the regular market was popularised by spread betting and margin trading brokers such as IG Group and City Index, who made out-of-hours prices in leading markets such as equity indices, gold and oil.
IG offers both pre and post-market trading in 70 US equities and even offers weekend trading in larger names such as Apple, Alphabet and Amazon.
City Index which is now part of the US-listed StoneX Group Inc. (SNEX) also offers 70 leading US stocks for both pre and post-market trading, stocks that can be traded as both CFDs and Spread Bets.
Pre-market trading is available from 8.00 am GMT whilst the post-market session runs from the US close until midnight GMT.
St Albans-based Spreadex offers out-of-hours trading on US equities during earnings season, thats four times per year as US stocks report every quarter.
Clients can identify which stocks are available for out-of-hours trading and when by looking for the identifier All Sessions against a stock, on the trading platform.
Interactive Brokers is a US multi-asset broker with operations in Europe and Asia, and it offers access to pre and post-market trading in US equities, though clients of the broker have to request access to the extended trading hours.
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