Fidelity's Extended Trading Hours: What Investors Need To Know

After-hours trading is a feature offered by many brokerage firms that allows investors to place orders outside of standard market hours. This extended trading period provides investors with the opportunity to react to news and market events that occur outside of regular trading hours. Fidelity offers after-hours trading capabilities to its customers, with the pre-market session running from 7:00 a.m. to 9:28 a.m. ET and the after-hours session from 4:00 p.m. to 8:00 p.m. ET.

To enable after-hours trading with Fidelity, investors need to have a brokerage account and can access the feature through the trading platform on their Fidelity account. Once enabled, investors can place various types of orders, including market orders, limit orders, and stop orders. It is important to note that after-hours trading comes with increased risks, such as lower liquidity and higher market volatility, so investors should carefully consider these risks before participating in after-hours trading.

Extended hours trading is available on the Fidelity Mobile app, website, and Active Trader Pro

Once enrolled, you can select "Extended Hours" on the trade ticket under the "Trading Session" option on Fidelity.com, or select "On" on the Fidelity Mobile app during the extended hours session only. To place an extended hours trade on Active Trader Pro, you must first click on "Trade and Orders," then select "Directed Trade & Extended Hours."

Extended hours trading at Fidelity is available from 7:00 a.m. to 9:28 a.m. ET (premarket) and 4:00 p.m. to 8:00 p.m. ET (after-hours). During these times, you can access the trade ticket on Fidelity.com and click the toggle for "Extended Hours" or "After Hours." On the mobile app, you will be prompted to choose whether your order is for the next market day or the extended hours session.

It's important to note that only limit orders are accepted during extended hours trading, and they are only good for the particular pre-market or after-hours session in which the order is placed. Additionally, trading during extended hours may involve additional risks, such as lower liquidity, wider spreads, and potentially higher market volatility.

By participating in extended hours trading, investors can react to news and events that occur outside of regular trading hours, allowing them to manage their portfolios and adjust their positions accordingly. This provides investors with the flexibility to make trades at more convenient times and react promptly to unfolding developments in the financial markets.

After-hours trading occurs between 4:00 p.m. and 8:00 p.m. ET

During after-hours trading, investors can place orders to buy or sell stocks or exchange-traded funds (ETFs). After-hours trading is made possible by electronic communication networks (ECNs) that match potential buyers and sellers without using a traditional stock exchange.

After-hours trading on Fidelity is available from 4:00 p.m. to 8:00 p.m. ET, Monday through Friday, excluding market holidays. To place an order during this session, you must have a Fidelity brokerage account. All orders must be limit orders, and there is a maximum quantity of 5000 shares.

After-hours trading is riskier than regular trading hours due to lower liquidity, wider bid-ask spreads, increased volatility, and stronger competition from institutional investors. Orders placed during after-hours may be executed at less favourable prices than during regular trading hours.

Pre-market trading occurs between 7:00 a.m. and 9:28 a.m. ET

Fidelity offers extended hours trading, which includes pre-market trading. However, there are specific rules that apply to trading during non-market hours. For example, with a Fidelity brokerage account, only certain types of orders are permitted during extended-hours trading, including buy, buy to cover, sell, or short-sale orders. Additionally, all orders must be limit orders, and short sale orders are only available from 8:00 a.m. to 9:28 a.m. ET.

It is crucial to understand the risks associated with pre-market trading. The reduced liquidity during pre-market hours can impact the size of bid-ask spreads, potentially affecting profitability. There may also be higher price volatility and stronger competition from professional traders during this period. Therefore, investors should carefully consider their investing style, objectives, and risk tolerance before engaging in pre-market trading.

Only limit orders are accepted during extended hours trading

Extended-hours trading allows investors to place orders when the market is closed. This means that investors can react to news events before many other investors. However, the risks are substantial and should be carefully considered.

Fidelity offers extended-hours trading, which allows Fidelity brokerage customers to trade certain stocks before and after the standard market hours. The rules for extended-hours trading differ from the rules during normal trading hours. Each brokerage firm may have different rules pertaining to trading during non-market hours.

Fidelity accepts limit orders in the extended-hours trading sessions; all other order types are ineligible for trading during extended hours. Good ‘til canceled (GTC) orders are not available for extended-hours trading sessions.

Limit orders must have a time-in-force designation of Day, or Immediate or Cancel. During a portion of Fidelity's After Hours session, the ECN will have the opportunity to route orders to other ECNs and market makers for execution via Nasdaq's SelectNet system while SelectNet remains open (currently, until 6:30 p.m.). After Nasdaq's systems close, only those ECNs with links to the ECN will be accessible for order display and execution.

The After Hours session and the After Hours Trade Stock Orders screen are only available from 4 to 8 p.m. Eastern Time, Monday through Friday, excluding market holidays.

In the After Hours session, buy and sell limit orders can only be placed and executed from 4-8 p.m. Eastern Time, unless trading is halted. All unfilled orders placed during the After Hours Session expire and are canceled at the end of the session.

To place an After Hours session order, you must have a Fidelity brokerage account. To place an order, select the Accounts & Trade tab and then select Trade. You can then select an account for the trade order and select and enter the order information.

Extended hours trading is not available for Youth Accounts, 529 College Savings Plans, ABLE Accounts, and Managed Accounts

Youth Accounts are brokerage accounts specifically designed for minors, and they are typically opened by parents or guardians who want to start investing on their child's behalf. 529 College Savings Plans and ABLE Accounts, on the other hand, are tax-advantaged investment accounts that are used to save for education expenses. Managed Accounts are accounts where investment decisions are made by a professional money manager on behalf of the account owner.

By excluding these types of accounts from extended hours trading, Fidelity is ensuring that investors in these accounts maintain a long-term perspective and do not engage in short-term trading strategies that may be riskier or may not align with their investment goals. It's important for investors to carefully consider their investment objectives and risk tolerance before engaging in any type of trading, including extended hours trading.

While extended hours trading provides the opportunity to react to news and events outside of regular market hours, it also comes with increased risks. These risks include lower liquidity, wider spreads between bid and ask prices, and potentially higher market volatility. Therefore, it's crucial for investors to understand the risks involved and determine if extended hours trading aligns with their investment strategy.

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