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Charles Schwab Extended Hours Trading (Pre Market and After Hours)

2018 Charles Schwab extended hours trading fees, broker surcharge, and time period. How to enter Schwab pre market and after market orders.

What Time Does Charles Schwab Starts Trading?

Charles Schwab starts trading at 8:00 am, EST. See other brokers Extended hours trading periods.

Charles Schwab Extended-Hours Trading Time and Fees

Besides the regular trading hours of 9:30 am to 4 pm, Schwab has access to both the pre-market session and after-hours period as well. The broker’s clients can place trades in the early morning session starting at 8:00 am, EST. Charles Schwab after-hours trading starts at 4:15 pm and lasts until 8:00 pm.

How to Enter Extended-Hours Orders at Charles Schwab

Orders for the pre-market period can be entered starting at 8:05 pm on the previous day. However, they can’t be filled until the session begins at 8:00 am. Likewise, orders can be entered for the after-hours session starting at 4:05 pm, but they aren’t eligible for execution until the extended-hours period starts at 4:15.

Trading during extended hours takes place on Electronic Communications Networks, also known as ECN’s. Some brokers impose an ECN surcharge. E*Trade customers, for example, must pay half a penny per share for all extended-hours trades. Schwab, however, does not charge anything beyond its normal $4.95 commission.

At Schwab, all orders placed in the pre-market and after-hours sessions must be submitted as limit orders, and conditional orders are not available. Schwab imposes a limit of 5,000 shares for extended-hours orders as well. Other brokers, including Fidelity and TD Ameritrade, do not have any such rule.

An order that does not get filled during extended hours is automatically cancelled. If you want the order to execute during normal market hours, you’ll have to resubmit the order. An extended-hours order that does not execute also does not carry over to the next extended-hours period. Stock alerts are available at Schwab, but they’re only sent during normal market hours.

Compare Charles Schwab After Hours Trading

Schwab’s extended-hours periods are slightly different from the sessions other brokers offer. TD Ameritrade's pre-market session is from 7:00 am until 9:28 am (some securities are 24/5), for example. E*Trade’s pre-market session opens at 7:00 am and closes at market open.

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Trading Tools

Traders who plan to buy and sell stocks during extended-hours periods at Schwab have a range of technical resources to help them make better trades. The broker’s advanced desktop platform StreetSmart Edge has a wide variety of resources, including excellent charting tools. CNBC also streams live. The broker’s handy mobile app can place orders for the extended-hours sessions as well.

Schwab warns its clients that extended-hours trading isn’t for everyone. There are significant risks associated with these periods. For example, there is usually less liquidity during these times. Finding a buyer or seller at the price you want may be difficult or impossible. Also, there is more volatility, which can cause large price swings during just one session.

Charles Schwab Pre Market Trading

Investors continue trading during extended hours in spite of these hazards because of the advantages the periods bring. For instance, economic data are frequently released by the federal government during the mornings before the regular session opens. The ability to trade a stock in the pre-market session allows early traders to buy or sell before everyone else does in the morning session.

Charles Schwab Review

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OptionsXpress by Charles Schwab Review

We will begin OptionsXpress by Charles Schwab review with account fees. OptionsXpress by Charles Schwab does not have regular brokerage or retirement accounts charges: there is no fee for setting up IRA as well as no account maintenance charges (also called annual or custodial fees). There are also no fees for low volume or inactivity - you can completely forget about your account, come back in a few years, and see no charges.

Similar to almost all firms, OptionsXpress by Charles Schwab will impose a fee if you decide to close your IRA or move any brokerage account to another company. But that's a relatively rare event.

With account fees out of the way, let's review company's commissions. One investment retirement account holders care the most is mutual funds. OptionsXpress by Charles Schwab charges extremely low, $9.95 commission on no-load transaction fee mutual funds. There is also a large number of no-transaction fee (NTF) funds available for the clients. Total number of mutual funds available to OptionsXpress by Charles Schwab' customers is around 5,400 - everyone can find a fund that will please them.

Charles Schwab After Hours Trading

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OptionsXpress by Charles Schwab offers free Morningstar Quicktake Reports on mutual funds to all customers. Each Quicktake report includes price quotes, and detailed analysis of balance sheets, performance, and top 10 holdings.

While mutual funds transactions are very cheap with OptionsXpress by Charles Schwab, stock and ETF trades slighly below average. The company is charging $4.95 per trade flat rate. There are no surcharges no large-size orders, penny stocks and extended hours trades.

OptionsXpress by Charles Schwab provides its customers with a number of extremely valuable services for free: intuitive, easy-to-use trading tools, streaming and Level II quotes, instructor-led online classes, DRIPs (dividend reinvestment plan), and virtual trading. Many online brokers charge for some of these services or don't offer them at all.

In summary, we recommend OptionsXpress by Charles Schwab account for mutual funds investors. Anyone investing in stocks, ETFs, options as well as beginners and active traders should take a look at TradeStation or Ally Invest.