Charles Schwab has substantially increased the number of securities available for 24-hour, five-day-a-week (24/5) trading, enabling retail clients to trade over 1,100 securities via the thinkorswim platform suite. These Extended + Overnight Session Orders (EXTO) are continuous orders that expire daily at 8 p.m. ET.
The newly added securities, primarily exchange-traded funds (ETFs), are among the most frequently traded and were incorporated in response to client demand, aligning with Schwab’s criteria for overnight trading. The company’s acquisition, Ameritrade, first introduced 24/5 trading in 2018, becoming the first U.S. retail broker-dealer to offer such an option with approximately two dozen ETFs. Schwab previously expanded its overnight session offerings in February 2025, adding S&P 500 and Nasdaq-100 stocks, along with hundreds of additional ETFs, following a successful pilot in Fall 2024.
James Kostulias, Managing Director and Head of Trading Services at Charles Schwab, noted the significant client engagement and positive feedback since the broad availability of expanded overnight trading began earlier this year. He stated that this further expansion is directly influenced by client preferences. Mr. Kostulias emphasized that as global market activity accelerates and market-moving news often occurs outside standard U.S. market hours, 24-hour trading provides investors with flexibility and access crucial for capitalizing on opportunities and managing risk. He indicated that Schwab views the expansion of overnight trading as an important innovation, with the company aiming to continue its developments in this area.
Since launching broad access to expanded overnight trading in February, Schwab has observed growing client engagement, with thousands of clients engaging in overnight trading for the first time each week. This trend is particularly evident among Schwab’s international clients. Engagement in overnight trading appears to correlate directly with major news cycles. For instance, in April, trading volume reached a then-record on April 7, possibly in response to announcements regarding tariff policy changes. This record was surpassed on June 12, when trading volume more than doubled the average nightly volume, coinciding with reports of escalating tensions in the Middle East.
The three most traded symbols by Schwab clients in the overnight session since February have been Tesla Inc. (TSLA), NVIDIA Corp. (NVDA), and Nio Inc. (NIO). Other highly traded symbols, such as Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and AMD (AMD), have often become more active following earnings reports. Additionally, symbols like UnitedHealth Group (UNH) saw increased activity after significant news stories, while Nio Inc. (NIO) and Revance Therapeutics (RXRX) reflected interest in themes like Electric Vehicles and the impact of artificial intelligence on pharmaceutical discovery. While these trends apply to both domestic and international clients, international clients have shown a comparatively higher trading activity in NIO and RXRX.
Mr. Kostulias also observed that trading behavior in the overnight session largely mirrors activity during standard market hours. He commented that the same catalysts that drive retail investors to place trades during the day also appear to influence their behavior at night, offering a considerable advantage in some cases where they can respond in real-time, which was not previously possible, or simply at a time more convenient for their geography or lifestyle.
Clients can access 24/5 trading by selecting the EXTO order type for eligible securities on the thinkorswim trading platforms. The company notes that extended-hours trading carries specific risks, including lower liquidity, higher volatility, potential price changes between regular and extended sessions, unlinked markets, and wider spreads. There are no assurances that an investor’s stock order will be executed due to limited liquidity. Extended-hours trading does not occur on official exchange holidays or when exchanges close early. Schwab reserves the right to change or modify extended-hours trading hours or temporarily or permanently suspend sessions or securities at its discretion. Commissions for trades executed across multiple sessions are not aggregated, and extended-hours trades typically settle one business day from the execution date. Orders placed after 8:05 p.m. ET are eligible for execution starting at 7:00 a.m. ET in the next pre-market session.
