Are you an early riser looking to get a head start on the stock market? Do you want to take advantage of news and events happening before the opening bell? If so you might be interested in 4:00 AM pre-market trading. This unique trading session allows you to buy and sell stocks before the regular market opens giving you the opportunity to react to overnight news and potentially gain an edge.
But who can actually trade stocks at 4:00 AM? The answer depends on the broker you choose.
Webull: The Only Broker Offering 4:00 AM Pre-Market Trading
As of October 26 2023, Webull is the only major broker that allows you to trade stocks and ETFs before the 4:00 AM EST opening bell. This extended pre-market session gives you a significant advantage, allowing you to react to news and events that occur overnight, such as earnings releases, economic data, or global market movements.
Benefits of 4:00 AM Pre-Market Trading with Webull:
- Get a head start on the market: React to overnight news and events before the regular market opens.
- Potentially gain an edge: Take advantage of price movements that occur before the opening bell.
- No additional fees: Webull does not charge any extra fees for pre-market trading.
- Multiple platforms: Trade on Webull’s mobile app, desktop platform, or web browser.
How to Start 4:00 AM Pre-Market Trading with Webull:
- Open a Webull account: It’s free and easy to open an account with Webull.
- Deposit funds: You’ll need to deposit funds into your account before you can start trading.
- Place your orders: During the pre-market session (4:00 AM – 9:30 AM EST), you can place orders just like you would during regular trading hours.
Important Considerations for 4:00 AM Pre-Market Trading:
- Lower liquidity: There is typically lower liquidity in the pre-market session, meaning there may be fewer buyers and sellers available. This can lead to wider bid-ask spreads and potentially less favorable prices.
- Increased volatility: The pre-market can be more volatile than the regular market, as there are fewer participants and news can have a larger impact on prices.
- Limited order types: Only limit orders are available during the pre-market session. Market orders are not allowed.
Is 4:00 AM Pre-Market Trading Right for You?
If you’re an active trader who wants to take advantage of every opportunity, then 4:00 AM pre-market trading with Webull could be a good option for you. However, it’s important to be aware of the risks involved and to have a solid trading plan in place before you start trading.
Additional Resources:
- Webull 4:00 AM Pre-Market Trading: https://www.webull.com/hc/en-us/articles/360037240974-Extended-Hours-Trading
- Investopedia Pre-Market and After-Hours Trading: https://www.investopedia.com/ask/answers/06/preaftermarket.asp
If you’re looking to trade stocks at 4:00 AM, Webull is currently the only broker that offers this unique opportunity. However, it’s important to carefully consider the risks and benefits before you start trading. By understanding the pre-market session and developing a solid trading plan, you can potentially gain an edge in the market and achieve your financial goals.
How Pre-Market and After-Hours Trading Affects Stock Prices
One problem with trading before market or after hours is that there is less trade volume and liquidity due to the smaller number of traders. On the other hand, stock prices typically behave in the same way as they do on trading days.
Furthermore, because pre-market and after-hours traders might have access to information that regular-hour traders do not, stock prices can fluctuate from their closing price. Extended hours trading may cause prices to rise or fall, and these changes may be reflected in the next regular trading session.
Brokerages That Offer Pre-Market and After-Hours Trading
Several brokers allow pre-market and after-hours trading. Some of the most used are:
How to Trade Pre-Market & After Hours — Extended Hours Trading Explained
Which stocks are eligible for 24/5 trading?
The securities eligible for 24/5 trading are largely major ETFs that cover different sectors or stock indices. For example, investors can trade shares in SPY, and S&P 500 index fund, 24/5 through TD Ameritrade. What Are Normal Market Hours?
What time can I trade the Nasdaq pre-market?
Investors can trade the Nasdaq pre-market using their current stockbroker; however, some brokers may have their own pre-market trading hours. For example, Charles Schwab allows pre-market orders after 8:05 p.m. of the previous trading day, but those orders will only be filled between 7:00 a.m. and 9:25 a.m. ET.
Does TD Ameritrade offer pre-market trading?
TD Ameritrade offers pre-market trading from 7 AM to 9:28 AM on the days that the market opens. The company also offers 24 hour a day trading for certain securities. The broker closes for weekends, so trading for these securities happens on a 24/5 basis rather than a 24/7 basis.
Which brokers offer pre-market trading?
Many brokers offer pre-market trading to their customers. Each has pros and cons, so take the time to consider the options before settling on a company to work with. Robinhood is a well-known, low-cost broker that lets people open an account with no minimums and charges no commissions for trades.