Charles Schwab to Launch 24/5 Stock Trading for S&P 500, Nasdaq-100, and ETFs
October 30, 2024Recent enhancements to Schwab's trading platforms include new features aimed at providing a comprehensive trading experience, further solidifying its leadership in the retail investing space.
This announcement comes during a week of market volatility, with U.S. GDP growth slowing to 2.8% in the third quarter of 2024, while private payroll data suggests a robust labor market.
The trend towards extended trading hours is gaining traction across the industry, with firms like Interactive Brokers and Robinhood also expanding their trading offerings.
Charles Schwab is set to pilot expanded overnight trading access for stocks in the S&P 500, Nasdaq-100, and a wide range of ETFs, offering this service 24 hours a day, five days a week.
The rollout will begin with a pilot group of clients in November 2024, with plans for a full launch by mid-Q1 2025, allowing all clients to access overnight trading.
Investors are reminded of the risks associated with trading and the importance of understanding the terms and conditions of trading products.
Charles Schwab manages approximately $9.92 trillion in client assets and facilitates around six million trades daily, reinforcing its position as a leader in retail investing.
This initiative responds to a growing demand for extended trading hours, particularly from younger and international clients eager for access to U.S. markets beyond traditional hours.
James Kostulias, Schwab's head of trading services, emphasized that younger investors expect the ability to trade anytime and from anywhere.
This expansion builds on Schwab's acquisition of Ameritrade, which pioneered 24/5 trading in 2018, and reflects the firm's commitment to enhancing trading flexibility.
Schwab's decision to extend trading hours is expected to significantly enhance investor flexibility and access to real-time trading data, especially amidst a volatile market influenced by tech earnings.
Securities and Exchange Commission Chair Gary Gensler has highlighted the importance of market transparency and investor protection in light of these changes.
Summary based on 7 sources
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Sources
Investopedia • Oct 30, 2024
Charles Schwab To Expand 24-Hour TradingInvesting.com • Oct 30, 2024
US broker Schwab to roll out broader overnight trading platformBarrons • Oct 30, 2024
Schwab to Vastly Expand 24-Hour Trading for Investors