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Schwab to Introduce Broader Overnight Trading, Expand Offering
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Charles Schwab Corp. (SCHW - Free Report) intends to expand its 24-hour trading accessibility to cover all stocks in major U.S. indexes alongside numerous exchange-traded funds (ETFs). These changes are set to begin in roughly two weeks. This was stated by James Kostulias, the company’s head of trading services in a statement.
SCHW’s Rationale Behind This Move
The move aims to cater to the rising interest in extended hours trading among retail investors. "About 90% of the customers we surveyed in our newest Traders Sentiment Survey said they would be interested in participating in 24-hour trading," stated Kostulias.
Per Kostulias, this increasing interest is likely to be tied to the rapidly shifting demographics of SCHW’s client base. Roughly 60% of the households that Schwab acquired as clients during the first half of 2024 are led by individuals under the age of 40 years.
"They seem particularly likely to have an expectation that they will be able to trade anytime, anywhere," Kostulias further stated.
This move aligns with Schwab’s organic growth strategy to boost its trading income and client base.
Details of the Launch of Schwab’s Offering
Schwab is aiming for a gradual rollout of the expanded trading capacity, beginning with its most active traders, and is unlikely to initiate the process until the week after the Nov. 5 U.S. presidential election.
The enhanced trading capabilities will be powered by the platform run by Blue Ocean Technologies LLC, which also enables overnight trading for Robinhood Markets Inc. (HOOD - Free Report) and other U.S. brokerages. HOOD launched overnight trading in May 2023. Likewise, another Schwab peer — Interactive Brokers (IBKR - Free Report) — also allows its clients to trade 24 hours through its platform. IBKR started offering this service last year.
Schwab anticipates the rollout of overnight trading to be completed by the middle of the first quarter of 2025. Hence, its clients will be gaining accessibility to overnight trading in all stocks listed on the Dow Jones Industrial Average, the Standard & Poor’s 500 Index, the Nasdaq 100 Index, and hundreds of ETFs. Currently, Schwab’s overnight trading offerings are limited to about two dozen ETFs.
SCHW’s Zacks Rank & Price Performance
Over the past six months, SCHW shares have lost 3.6%, underperforming the industry’s 16.2% growth.
Image: Bigstock
Schwab to Introduce Broader Overnight Trading, Expand Offering
Charles Schwab Corp. (SCHW - Free Report) intends to expand its 24-hour trading accessibility to cover all stocks in major U.S. indexes alongside numerous exchange-traded funds (ETFs). These changes are set to begin in roughly two weeks. This was stated by James Kostulias, the company’s head of trading services in a statement.
SCHW’s Rationale Behind This Move
The move aims to cater to the rising interest in extended hours trading among retail investors. "About 90% of the customers we surveyed in our newest Traders Sentiment Survey said they would be interested in participating in 24-hour trading," stated Kostulias.
Per Kostulias, this increasing interest is likely to be tied to the rapidly shifting demographics of SCHW’s client base. Roughly 60% of the households that Schwab acquired as clients during the first half of 2024 are led by individuals under the age of 40 years.
"They seem particularly likely to have an expectation that they will be able to trade anytime, anywhere," Kostulias further stated.
This move aligns with Schwab’s organic growth strategy to boost its trading income and client base.
Details of the Launch of Schwab’s Offering
Schwab is aiming for a gradual rollout of the expanded trading capacity, beginning with its most active traders, and is unlikely to initiate the process until the week after the Nov. 5 U.S. presidential election.
The enhanced trading capabilities will be powered by the platform run by Blue Ocean Technologies LLC, which also enables overnight trading for Robinhood Markets Inc. (HOOD - Free Report) and other U.S. brokerages. HOOD launched overnight trading in May 2023. Likewise, another Schwab peer — Interactive Brokers (IBKR - Free Report) — also allows its clients to trade 24 hours through its platform. IBKR started offering this service last year.
Schwab anticipates the rollout of overnight trading to be completed by the middle of the first quarter of 2025. Hence, its clients will be gaining accessibility to overnight trading in all stocks listed on the Dow Jones Industrial Average, the Standard & Poor’s 500 Index, the Nasdaq 100 Index, and hundreds of ETFs. Currently, Schwab’s overnight trading offerings are limited to about two dozen ETFs.
SCHW’s Zacks Rank & Price Performance
Over the past six months, SCHW shares have lost 3.6%, underperforming the industry’s 16.2% growth.
Image Source: Zacks Investment Research
Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.