TD Ameritrade 300

Etrade Extended Hours Trading (Pre Market and After Hours)

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

Etrade Extended-Hours Trading Time and Fees

Investors at E*Trade have access not just to the regular session (from 9:30 am until 4 pm, EST) but to extended hours as well. These are from 7 am until the market opens, and then from market close until 8 pm.

Entering Extended-Hours Orders at Etrade

Orders at E*Trade can be specific for the day session only or the day session plus both extended-hours periods. For all orders at E*Trade, you can specify either good for the day or immediate or cancel. The immediate or cancel term will ensure the order is filled entirely or partially, or cancelled immediately if there is no execution.

There are some caveats you should be aware of before diving into these trading sessions. First, E*Trade imposes an extended-hours surcharge for any order that is completed during these times. It is $0.005 per share. This is on top of the broker’s normal $6.95 commission for regular traders and $4.95 for active traders.

Also, the broker only accepts limit orders during these special periods. All-or-none cannot be requested. Any extended-hour order that is not filled by 8 pm is automatically cancelled. If a pre-market order is not executed, and you want to change it to a market order during regular hours, you must first cancel the original order because it can’t be changed into a market order. E*Trade does allow short selling during the pre-market and after-hours sessions. However, stock alerts are not sent during these times.

Compare Etrade After Hours Trading

Compared to other brokerage houses, E*Trade offers a decent package for extended-hours traders. Schwab, for example, limits its customers to just 5,000 shares in extended-hours trading. Some brokers do not have any surcharges for extended-hours trades. TD Ameritrade is one example. Nevertheless, E*Trade’s fee is only half a penny per share. Small traders won’t see much of a surcharge. TD Ameritrade’s pre-market session ends 15 minutes before the regular session opens, and its after-hours period starts 15 minutes after the normal trading period. E*Trade does not have these buffers.

Trading Tools

There is some good trading technology available to E*Trade clients who want to buy and sell securities during the pre-market or after-hours session. The broker’s website is easy to navigate, and orders for stocks can easily be placed using a user-friendly web page. The company also provides a sophisticated desktop platform called Etrade Pro for frequent traders. The E*Trade mobile app can be used to place orders for regular and extended-hours sessions.

The firm wisely places a warning to its customers on its website about the hazards of pre-market and after-hours trading. These include wide bid-ask spreads, which cause buy prices to be higher than normal and sell prices to be lower. Reduced liquidity can make finding buyers and sellers more difficult.

Despite the disadvantages, extended-hours trading has several benefits. These include the ability to trade a stock after major news is released in the after-market session, or when economic reports are released during pre-market trading.

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Updated on 5/8/2017.

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