Ally Invest

Ally Invest Extended Hours Trading (Pre Market and After Hours)


Ally Invest extended hours trading fees, surcharge, time period. Entering broker pre market and after market orders in 2017.



Ally Invest Extended-Hours Trading Time and Fees


Investors who want to buy and sell stocks outside of normal market hours will find resources to do so at Ally Invest. The broker offers both pre-market and after-hours periods. The ability to trade during these extended-hours sessions is necessary to capture major price swings, which can occur outside of normal market hours.

For example, companies release earnings reports and hold conference calls outside of the traditional daytime session. If there is an unexpected earnings result, either positive or negative, the stock’s price could change significantly, before the market is open for business. Also, the government frequently releases economic data, such as jobs reports, before the market opens or after it closes.

Ally’s premarket session is from 8 am until 9:30 am, EST. And its after-hours period is from 4 pm until 5 pm. The after-hours session is a little shorter than some of Ally’s rivals. For example, TD Ameritrade’s after-hours period lasts until 8 pm. Merrill Edge’s premarket period opens for business at 7:30 am, EST, thirty minutes before Ally’s does.

On the other hand, Ally’s extended-hours periods are longer than some other brokers’ sessions. Schwab, for instance, starts after-hours trading at 4:15 and closes at the same time as Ally. WellsTrade’s pre-market session closes at 9:25, five minutes before Ally’s.


Ally Invest Extended-Hours Trading Fees


Ally Invest does not impose any surcharges on extended-hours trades. Some brokers do have extended-hours trading fees. E*Trade clients, for example, must pay 0.5¢ for each share that is traded during these special periods.


Entering Extended-Hours Orders at Ally Invest


An order that is submitted during the pre-market or after-hours period at Ally must be submitted as a limit order. If the order isn’t filled, it automatically cancels. It does not carry over to the next extended-hours period or to the regular session. Extended-hours orders can be cancelled during the special sessions, just as they can be cancelled during the normal period. Settlement times for orders executed during extended hours are the same as the normal trading session.

Ally Invest cautions its customers that trading during both the pre-market session and the after-hours period carries substantial risks that may not be present during the daytime. Specifically, the broker mentions that there is lower liquidity in the special sessions. This creates an environment where finding a counter party for a trade is more difficult. An order is also more likely to be partially filled when there is less liquidity in the market.

There also tends to be higher volatility during extended hours. This means that orders that get filled may be far from an quoted price just a few minutes later. Significant price swings must be expected during these times. News announcements can come in during both the pre-market and after-hours sessions, which can cause even greater price swings.

Bid-ask spreads also are wider during extended trading. This means that buying and selling will both be more expensive during these special sessions.


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Updated on 7/28/2017.




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