The Rise of 24-Hour Stock Trading: What It Means for Retail Traders, Institutions, and the Future of the Market

The Market Never Sleeps: 24-Hour Trading Is Here

In a historic shift, Robinhood recently introduced 24-hour trading for select stocks and ETFs—allowing users to trade around the clock, five days a week. This move, once considered a pipe dream in traditional equity markets, has now triggered a broader transformation across the brokerage industry.

Other platforms, including Interactive Brokers, TD Ameritrade, and Fidelity, are following suit, piloting their own extended-hour or 24/5 trading offerings. What was once limited to cryptocurrency and futures markets is now entering the mainstream for equities.

What Is 24-Hour Trading?

24-hour trading allows investors to buy and sell certain securities outside the traditional 9:30 AM – 4:00 PM ET window. These extended sessions are typically broken down into:

• Pre-market: 4:00 AM – 9:30 AM ET

• Regular hours: 9:30 AM – 4:00 PM ET

• After-hours: 4:00 PM – 8:00 PM ET

• Overnight sessions: 8:00 PM – 4:00 AM ET (now active on Robinhood and others)

Robinhood’s version of 24-hour trading currently includes 43 of the most popular large-cap stocks and ETFs, like Apple, Tesla, and SPY.

Why This Matters: Pros and Cons

Pros for Retail Traders

• More flexibility: No need to wait for the bell; you can react to global news in real time.

• Access to earnings reports: Trade during or immediately after after-hours earnings announcements.

• Better alignment with crypto traders: Retail traders who are used to 24/7 crypto markets now have similar access for stocks.

Risks and Challenges

• Lower liquidity: Fewer participants means wider bid/ask spreads and higher slippage.

• Higher volatility: Prices can swing wildly on thin volume or sudden news events.

• No full market depth: Order books are shallower, and institutional players may stay out.

What This Means for Institutional Players

While the initial push is aimed at retail, hedge funds and high-frequency trading (HFT) firms are watching closely. Around-the-clock access could:

• Unlock new arbitrage opportunities between international markets and U.S. equities

• Change how firms model risk and exposure on a 24-hour basis

• Encourage more algorithmic trading to take advantage of overnight price inefficiencies

That said, many large institutions will wait for more volume and regulatory clarity before diving in fully.

Global Market Integration

One major driver of 24-hour trading is globalization. Events in Asia or Europe often move U.S. stocks, but traders historically had to wait until the U.S. market opened to react.

With 24-hour access:

• Asian and European traders can now participate in U.S. stocks during their business hours

• U.S. traders can respond to breaking geopolitical or economic news in real time

It’s a step toward harmonizing global financial markets, similar to how crypto operates.

Early Results and Adoption Stats

• Robinhood reported that over 1 million trades were placed during overnight hours in its first month of 24-hour access.

• Interactive Brokers now offers trading on over 10,000 U.S. stocks and ETFs from 8:00 PM to 8:00 AM ET.

• Volume in pre- and post-market trading has grown over 25% YoY across all major brokerages.

These stats show real demand, especially from younger and international investors.

The Future: Will 24/7 Trading Become Standard?

The rise of 24-hour trading echoes the early days of commission-free trades. First adopted by disruptors, it eventually became industry standard.

We may be looking at a similar trajectory for round-the-clock trading access. If liquidity improves and risk management tools mature, expect wider adoption in:

• Options markets

• Smaller-cap stocks

• International equities via ADRs

It’s not inconceivable that in 2–5 years, we’ll see true 24/7 trading, just like crypto.

Key Takeaways

• 24-hour trading is no longer theoretical—it’s live, and it’s growing fast.

• Retail traders get flexibility, but should be cautious of lower liquidity and volatility.

• Institutions are watching closely and will likely participate as volume improves.

• This move brings U.S. stock trading closer to crypto markets and global norms.