Fidelity Extended Hours Trading (Pre Market and After Hours)

2021 Fidelity Investments extended hours (EH, AH) trading fees, broker surcharge, and time period. How to enter pre market and after market buy/sell orders/trades at Fidelity.

What Time Does Fidelity Starts Trading?

Fidelity Investments starts trading from 7:00 am, EST. To compare, $0-commission broker Webull’s pre-market session opens at 4:00 am, EST. Learn more in WeBull review.

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Fidelity Extended-Hours Trading Time

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 $0 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 after hours trading

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

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Fidelity App after hours trading

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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.

Active Trader Pro after hours trading

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.