Under pressure from neobrokers such as Robinhood (NASDAQ:HOOD) and new round-the-clock trading venues like 24X, US online brokerage leader Charles Schwab (NYSE:SCHW) has announced the launch of broad access to an expanded range of securities in the overnight trading session following a series of successful pilots at the end of 2024.

These overnight session orders (EXTO) are continuous orders that expire at 8pm ET each market day. Now, all of Schwab’s retail clients can trade an expanded list of securities including the S&P 500 and Nasdaq-100 stocks and hundreds of additional exchange-traded funds (ETFs) 24 hours a day, five days a week (24/5), via the thinkorswim platform suite.

Ameritrade, which was acquired by Schwab in 2020, pioneered 24/5 trading in 2018 as the first U.S. retail broker-dealer to make it available to traders, offering approximately two dozen ETFs in the overnight trading session. Schwab began piloting expanded overnight access with a small group of clients in November 2024 and has gradually expanded the reach in the intervening months in preparation for broad availability.

James Kostulias, Managing Director and Head of Trading Services at Charles Schwab said,

“In today’s world, market-moving news doesn’t wait for standard market hours, and retail traders know what a difference it can make to have access to the markets when volatility spikes. We are proud to have been at the forefront of overnight trading several years ago and that we are continuing to evolve and enhance our capabilities and platforms to meet modern traders’ needs.

“Each day, Schwab facilitates about twice the trades of any competitor that shares that figure publicly, and we know that expanding access to overnight trading to our millions of clients is a significant milestone not just for Schwab but for our industry. In consideration of Schwab’s leadership position and our ‘through clients’ eyes’ strategy, we have worked hard to combine the power of our world-class trading platforms, specialized 24-hour service and support, and tailored education to deliver an overnight trading experience that reflects the unique dynamics and potential risks this session can present while empowering clients to trade in the ways that suit them and their lifestyle best.”

Insights from Schwab’s recent 24/5 expansion pilot

During the expanded 24/5 pilot period, which ran from November through January beginning with a small group of clients and grew in phases, the most active trading hours of the overnight session were the first and last, between 8-9pm ET and 3-4am ET. The stocks Schwab clients most actively bought, sold, or both during the overnight session pilot were (based on trading volume and in no particular order):

• Tesla Inc. (TSLA)
• NVIDIA Corp. (NVDA)
• Palantir Technologies Inc. (PLTR)
• MicroStrategy Inc. (MSTR)
• Advanced Micro Devices (AMD)

“What we saw during the pilot period was that trading behavior more or less mirrored what we typically see during standard market hours,” said Kostulias. “Activity was the most pronounced at the beginning and end of the overnight session, similar to the behavior we see during market open and close. And even the top names more or less matched up with what we’ve seen in recent months in our Schwab Trading Activity Index™ (STAX) reports. It’ll be interesting to see if and how these trends may change or evolve over time, but traders appear to follow the same fundamental principles that define their activities during the standard trading day.”

Schwab clients may access expanded 24/5 trading by selecting the EXTO order type for eligible securities on the thinkorswim trading platforms.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.