Brokers With the Best Trading Tools
Several things help brokers stand out when it comes to extended-hours trading. Trading tools and services are among them.
Depending on your reasons for trading in the pre-market or after-hours sessions, you will need tools that complement your trading.
If you are actively trading fast markets, and looking to take advantage of volatility, some of the tools you might need are hot-key support, direct access routing, and advanced charting.
If you are looking for ‘stocks on the move,’ tools you may need include screeners, social sentiment hubs, and watchlist support.
If all you want is to have the peace of mind that comes with being able to adjust your portfolio at any time, finding a broker with a good mobile application might be a good solution for you.
Why Trade in the Extended Hours?
If you are wondering what the benefits are of trading in the extended-hours sessions, there are several reasons to consider it.
For one thing, being able to respond to global events as they unfold can be very useful. Many investors look at foreign markets as an indicator of how U.S. securities might respond.
Another reason is that some economic releases (like Non-Farm Payroll) come out before the regular trading session begins. Some releases have the power to change the state of the market significantly, and being able to respond to those changes can be very helpful.
Earnings releases are another source of volatility. Companies report in the morning or afternoon, just outside of market hours. Without extended hours access, it is not possible to take advantage of the opportunities presented by earning reports.
Some traders like the pre-market and after-hours trading sessions for the reduced volume and its effects on price action. Thinner markets can move further and faster than markets that have more participation. The reduced volume also makes it easier to see when securities are experiencing higher-than-normal volume.
What are the Risks and Limitations of Extended Hours Trading?
Despite the various benefits that come with extended hours trading, there are a few risks that traders should know about.
Many of the risks are related to the low volume that occurs in pre-market and after-hours sessions. Just as thin markets provide outsized opportunities, the risk of loss is also elevated.
With fewer traders in the market to take the other side of your trade, several complications can arise. One is that orders can fill at unpredictable prices. Another is that prices can move so quickly that orders may not get filled at all.
There are also some functional limitations to trading in the extended hours sessions. Because of the inherent risk involved with trading in the pre- and post-market hours, many brokers impose rules specific to those times.
Some of these limitations include mandatory stop-loss orders on every trade, no OCO functionality, limited shorting possibilities, and no market orders. You’ll also notice that many brokers limit the number of stocks you can trade outside regular trading hours.
Broker rules differ from one to the other, so it’s always good to check the specifics before participating in the extended trading hours.
Pre-Market and After-Hours Trading Brokers Summary
In summary, finding the optimal broker for pre-market and after-hours trading comes down to a few important considerations. The broker you choose should offer market access during the hours you want to be involved in the markets. The tools and services should also align with your needs and expectations. Finally, the commissions, margin rates, and account minimums should also make sense.
Updated on 3/25/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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