Ally Invest

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


Wells Fargo and 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.


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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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Wellstrade Extended-Hours Trading Time and Fees


Besides trading securities during normal market hours, WellsTrade offers its customers the ability to buy and sell stocks and ETF’s during both the pre-market and after-hours sessions. The broker provides additional trading from 8:00 am until 9:25 am, EST, and from 4:05 pm until 5:00 pm.

These periods are a little shorter compared to what E*Trade offers: 7 am until market open, and then from market close until 8 pm. One advantage that WellsTrade offers over E*Trade, however, is that the former does not impose any additional commission on extended-hours trades. E*Trade, by comparison, charges 0.5 cents per share for every order that is executed outside of regular trading hours. This surcharge is on top of the firm’s regular $6.95 commission. An order of 100 shares at E*Trade would still be cheaper than the same order at WellsTrade, though.

WellsTrade’s order technology does not have the ability to place trades outside of normal market hours. Customers must call the broker on the phone and submit the order verbally. Normally, the broker charges an additional $25 (on top of the usual $8.95 commission) for an agent-assisted trade. But for extended-hours trades, the surcharge is waived. There is no need to sign any special forms to trade outside of normal market hours.

In extended-hours sessions, WellsTrade accepts limit orders for Nasdaq or other listed securities. Market orders, bulletin board stocks, pink sheet equities, or other OTC securities are not permissible during the pre-market or after-hours period.

The broker warns its clients about the hazards of extended-hours trading, and there are many. First and foremost is the lack of liquidity. Extended-hours periods usually have fewer participants, which means a limited number of buyers if you’re trying to sell, or fewer sellers if you’re trying to buy. This could make it hard to find the counter-party to your desired trade.

There is also increased volatility outside of normal market hours. This means prices can swing more significantly in the pre-market and after-hours periods. Greater price swings can mean that your order is filled further from where you want.

Bid-ask spreads are also wider outside of normal trading hours. This situation makes it more expensive to buy and sell securities.

Despite the risks of extended-hours trading, there are definitely important advantages. For instance, the government frequently releases economic news before the market opens. These releases can affect stock prices. Traders who have access to the pre-market session can buy or sell before everyone else does at 9:30 am when the market opens.
Companies also release quarterly earnings after the bell or during the pre-market session. Sometimes these announcements will cause a major price change in the company’s stock. Having the ability to trade before the market is open can lead to significant profits.

WellsTrade clients who decide to trade in the extended-hours periods have access to 24/7 customer support over the phone, which means orders can be placed around the clock.


Updated on 10/10/2017.



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