Schwab to roll out broader overnight trading platform

rforno

Not sure how we missed this relatively big news item this week....which I have very mixed feelings about.


US broker Schwab to roll out broader overnight trading platform

Oct 30 (Reuters) - Charles Schwab Corp plans to expand the availability of 24-hour trading to include all stocks in major U.S. indexes as well as hundreds of ETFs beginning in about two weeks, the brokerage said in a statement on Wednesday.

The move comes amid burgeoning interest in extended hours trading from retail investors that is driving some brokers and exchanges to expand their offerings.

Last Friday, the New York Stock Exchange, a division of Intercontinental Exchange said it would file for permission to extend its trading hours to 22 hours each business day.

"About 90% of the customers we surveyed in our newest Traders Sentiment Survey said they would be interested in participating in 24-hour trading," said James Kostulias, head of trading services at Schwab.

Kostulias said that the high level of interest seems to be linked to the changing demographics of Schwab's client base. Nearly 60% of the households that Schwab added as clients in the first half of 2024 are headed by individuals under 40 years of age.

"They seem particularly likely to have an expectation that they will be able to trade any time, anywhere," Kostulias said.

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Schwab said it plans a slow rollout of the expanded trading capacity, starting with its most active traders, and won't begin the process until the week after the Nov. 5 U.S. presidential election.

The expanded trading capabilities will be powered by the platform operated by Blue Ocean Technologies LLC, which also underpins overnight trading for Robinhood Markets Inc.and other U.S. brokerages.

The rollout is expected to be completed midway through the first quarter of 2025, by which time Schwab said clients will have access to overnight trading in all stocks listed on the Dow Jones Industrial Average, the Standard & Poor's 500 Index and the Nasdaq 100 Index
and hundreds of ETFs. Currently, Schwab offers overnight trading in only about two dozen ETFs.

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https://www.reuters.com/business/finance/us-broker-schwab-roll-out-broader-overnight-trading-platform-2024-10-30/

Crash

Open wide the doors, so that more people can shoot themselves in the foot? If I'm not already a day-trader, how is this of benefit to me? After hours. Or before the next morning's opening. Playing with Futures prices. I am "long" with all my stuff. Wanna keep it simple. Do I even want to go there?

Old_Joe

Aw, cummon, Crash- now you can be a night-trader! How cool!

yugo

rforno said:

Currently, Schwab offers overnight trading in only about two dozen ETFs.

Does anyone know where I can look up a list of these ETFs currently available for overnight trading? Can't seem to find it on Schwab's website.

hank

Schwab might provide a link to Gamblers Anonymous
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@yugo - I resorted to Bing’s AI search engine for help. If it can’t pull up that list, I’d say nobody can. Here’s what their search turned up: ”Currently, Charles Schwab's overnight trading session includes access to approximately two dozen ETFs through their thinkorswim trading platforms. While the exact list of these ETFs hasn't been publicly disclosed, it's part of their pilot program that will expand significantly by mid-2025.”

If they’re currently running a “pilot program”, that list should be publicly available. Wouldn’t you think?

FD1000

Crash said:

Open wide the doors, so that more people can shoot themselves in the foot? If I'm not already a day-trader, how is this of benefit to me? After hours. Or before the next morning's opening. Playing with Futures prices. I am "long" with all my stuff. Wanna keep it simple. Do I even want to go there?

+++
I have tried on a small scale many options and realized that daily (or quick) trading is busy work and you make less money.
My SIL used to do it too until I showed him all that I have done and he stopped too. Since then he started to make so much money.
Schwab is doing it to make money, it's a business after all.

rforno

Back when I was trading futures, they were the only way to act on things during the overnight sessions. There's a chance I might dabble with this 'feature' on stocks a few times just for kicks and to see how it works if there's something I want to do or respond to (I do well in the pre/post-markets when I use them) -- but I have no desire to become a 24x5 trader or investor that's glued to their screens.

I fear this will further turn investing into a Robin-Hood/Sports-Betting type of gamification for the masses that induces them to gamble with their savings in ways that provide a dopamine hit in the here-and-now while drawing down their retirement assets for the future.

Bartleby

I don't see the problem. There are times I'm busy all day and would like to be able to get something done overnight, when I've had time to think about it.

hank

I see nothing wrong with it. There have been a few times when pre-market or after-market trades have been helpful to me. I do agree with FD that day trading is a lot of work (and maybe added stress). Not for this dude.

billr

Bartleby said:

I don't see the problem. There are times I'm busy all day and would like to be able to get something done overnight, when I've had time to think about it.

You can already place orders for the next day. Is the overnight trading going to be real-time where you're buying and selling vs other overnight traders?

yugo

hank said:

If they’re currently running a “pilot program”, that list should be publicly available. Wouldn’t you think?

Yeah. And, seemingly, it's not just publicly unavailable but it is so 'private' that a Schwab rep I spoke with had to go back three times to get it...

For anyone interested, here is the list - which I have not tested - available only through ThinkOrSwim according to the rep:

AGG DOG EFA EWJ IJH VTI XLE XLF XLK SH RWM EWA SPY GLD SLV DIA UNG TLT IWM QQQ USO PSQ FXI VNQ

+ Nasdaq 100

Apparently, the next stage of Schwab's program rolls out 11/12/24 when they might get more 'public' about it, though the program will still officially remain a pilot. They are then planning to add more securities in the months to come afterwards.

rforno

I think Schwab/TOS has allowed 24x5 ETF trading for a while now, haven't they? The new pilot is for all NYSE/NDQ symbols, right?

yugo

@rforno according to the rep - these are the only ones currently available for 24x5 (which matches what was in the original article, "Currently, Schwab offers overnight trading in only about two dozen ETFs.") - but I have not tried it out myself. Nasdaq 100 should also be available. The rest coming in stages after 11/12 but still in pilot, so there could be limitations/allowances based on individual profiles, as I understood it.

yugo

p.s. @rforno if you are referencing these twelve not all ETFs, then - yes, the ETFs listed above have been available for several months, but they are calling the entire program pilot for now so they can limit individual access or shut it down more easily if they choose - as I understood it.