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Etrade Extended Hours Trading (Pre Market and After Hours)
2020 Etrade extended hours trading fees, broker surcharge, and time period. How to enter Etrade pre
market and after market buy/sell orders/trades.
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What Time Does Etrade Starts Trading?
E*Trade starts trading at 7:00 am, EST. To compare, $0-commission broker Webull’s pre-market
session opens at 4:00 am, EST.
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Etrade Extended-Hours Trading Time
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.
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How to Enter 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.
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 8:00 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.
E*Trade's main competitors »
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.
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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