TD Ameritrade 300

Fidelity Extended Hours Trading (Pre Market and After Hours)

Fidelity Investments extended hours trading fees, broker surcharge, time period. How to enter pre market and after market orders in 2018.

What Time Does Fidelity Starts Trading?

Fidelity Investments starts trading from 7:00 am, EST.

Fidelity Extended-Hours Trading Time and Fees

Fidelity customers who would like to trade outside of normal market hours can submit orders during both the pre-market session and the after-hours period. The broker accepts orders from 7:00 am until 9:28 am, EST, two minutes shy of the market’s open, and from 4:00 pm until 8:00 pm. To gain this privilege, the broker requires its clients to sign an Electronic Communications Network agreement. The ECN Fidelity uses is NYSE Archipelago (Arca). Although the pre-market period begins at 7:00, short sale orders are not accepted until 8 o’clock.

How to Enter Extended-Hours Orders at Fidelity

There are a few limitations Fidelity imposes on extended-hours trading. First, OTC and bulletin board stocks aren’t available during these special sessions. Also, there is a maximum of 25,000 shares on both the buy and sell sides. Orders placed during extended hours do not carry over into the regular session. If you want to buy a particular stock and the order isn’t filled during extended hours, you must submit another order. Likewise, an order entered during standard market hours is not valid during the extended-hours session.

Fidelity does not charge any extra fees for extended-hours trades. The broker simply charges its standard $4.95 commission, which is quite low by industry standards. Some brokerage houses do apply surcharges to trades placed outside of normal market hours. E*Trade customers, for example, must pay 0.5¢ per share for any size of trade placed during the pre-market or after-hours session.

Fidelity allows its clients to trade on margin during extended hours. An order can be modified or cancelled during these times as well.

Fidelity's main competitors »

Trading Tools

The broker’s technology will be very useful to investors who are interested in buying and selling securities outside of normal hours. Fidelity’s advanced desktop Fidelity Active Trader Pro includes sophisticated charting and the ability to submit multiple orders simultaneously. The Fidelity mobile app also can submit orders outside of normal market hours. The platform includes a lot of market news and live streaming of Bloomberg in HD.

While there are many advantages of extended-hours trading at Fidelity, there will always be serious risks. For instance, volatility during these sessions tends to be quite high, which will produce substantial price movements during a single session. This can make it difficult to achieve the price you want. Another hazard is the lack of liquidity, which makes it hard to find buyers and sellers. Because there are more traders in the regular session, it might be easier to find a counter party during the weekday.

Disadvantages cannot negate the benefits that are inherent in extended-hours trading. The two sessions exist because they provide opportunities that aren’t available in the normal session. For example, companies oftentimes release earnings immediately after or before the regular session, which prevents traders from buying or selling shares during an earnings announcement. The extended-hours sessions provide a possibility of trading at an opportune time, before the majority of traders have the chance.

Fidelity Review

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Fidelity Overview

In 2001, the broker had a variable commission schedule that started at $20 trades. It took a million dollars in household assets to get the rate down to $8. But in 2010, the broker switched to a simpler flat-rate system for all clients. The new commission was just $7.95, and it was big news.

The most recent move by the broker has changed standards in the industry yet again. Traders are going to expect a lower level of fees for all types of transactions in the future. Firms that were once viewed as cheap now look overpriced.

This is exactly how Schwab felt after Fidelity announced its new commission. The broker immediately responded by lowering its $4.95 equity commission to Fidelity’s level. It also matched Fidelity’s option commission.

Non-Fidelity mutual funds can be purchased at the broker for $49.95 or $75 - the price depends on the fund. Selling mutual funds is free unless a customer sells within 60 days of purchasing - then Short Term Trading Fee of $49.95 applies (does not apply to Fidelity family funds). There is a Low Balance Fee of $12 per year for each noncore Fidelity fund with balance under $2,000.

Fidelity does seem to have the advantage when it comes to its mobile app, because having just one platform makes it easier to know which one to use. TD Ameritrade's offering of three apps is a little cumbersome, although sophisticated traders might prefer the advanced level of trading technology on the thinkorswim platform.

Fidelity recently lowered its commission to $4.95; while TD Ameritrade has lowered its price to $6.95. Frequent traders who qualify for Active Trader Pro would probably be better off with Fidelity, whereas buy-and-hold investors will find a better value with TD Ameritrade.