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Capital One Investing Extended Hours Trading (Pre Market and After Hours)


Capital One Investing extended hours trading fees, surcharge, time period. Entering brokerage pre market and after market orders in 2017.



Capital One Investing Extended-Hours Trading Time and Fees


The major U.S. stock exchanges, including the Nasdaq and the New York Stock Exchange, are open for business from 9:30 am, EST, until 4:00 pm, Monday through Friday. These periods are when most investors execute trades. But sometimes a significant event will occur before the market opens in the morning or in the evening after it closes. When this happens, professional traders and other experienced investors will try to make a trade while the major exchanges are closed. Not only is it possible for them to do so, it is also possible for amateur traders as well.

Many brokers offer extended-hours trading where orders can be submitted outside of normal market hours. Unfortunately, Capital One Investing is not one of them. The brokerage arm of Capital One fails in various areas compared to its rivals. Extended-hours trading is another letdown from the financial conglomerate. Hopefully in the future, the company will provide better brokerage services for its clients.


Other Brokers Extended-Hours Trading Time and Fees


Although Capital One Investing doesn’t provide access to the extended-hours sessions, many other brokers in the same cost category do. Capital One’s equity commission is $6.95, and so is E*Trade’s. Unlike Capital One, E*Trade offers extended-hours trading services. The broker gives its clients access to the pre-market session, which lasts from 7 am, EST, until market open. The after-hours period is also available. It lasts from market close until 8 pm.

E*Trade also provides its clients with a $2 discount on trades if they submit at least 10 equity orders per month. So if you plan to trade often, it would be more cost effective to be at E*Trade than Capital One Investing.

One huge disadvantage of E*Trade’s extended-hours trading service is that the broker charges an additional half penny per share on orders executed during these special sessions making them too expensive. Not all brokerage houses do this. TD Ameritrade, for example, imposes no surcharge on pre-market or after-hours trades; and its stock commission is also $6.95 for all customers.

TD Ameritrade’s pre-market session ends 15 minutes earlier than E*Trade’s period, however. TD Ameritrade’s after-hours period also starts a quarter of an hour later than E*Trade’s. It ends at the same time.

Both TD Ameritrade and E*Trade warn their customers that extended-hours trading carries significant risks. These include wider bid-ask spreads, which increase the cost of trading. Both the pre-market and after-hours sessions also come with lower liquidity, which can make finding a counter-party to a trade more difficult than the regular period.

Despite these inherent dangers, there are important advantages to extended-hours trading. Companies always release earnings reports before or after the regular session. Any major announcement can cause the share price to move significantly. If you only have access to the regular trading session, it may be too late to trade the stock when the market opens. Investors who can trade in the other two periods can capitalize on important price movements before the general public.


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Updated on 7/28/2017.




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