Introduction
Fidelity is one of the largest online brokerage firms in the United States, offering a wide range of investment products to its clients. One of the questions that investors often ask is whether Fidelity offers after-hours trading. After-hours trading refers to the buying and selling of securities outside of regular trading hours, which typically run from 9:30 a.m. to 4:00 p.m. Eastern Time. In this article, we will explore whether Fidelity offers after-hours trading and what you need to know about it.
What is After-Hours Trading?
After-hours trading, also known as extended-hours trading, allows investors to trade securities outside of the regular trading hours. This includes trading before the market opens and after it closes. After-hours trading is conducted through electronic communication networks (ECNs) and is available to both retail and institutional investors.
Benefits of After-Hours Trading
There are several benefits to after-hours trading. First, it allows investors to react to news and events that occur outside of regular trading hours. For example, if a company reports earnings after the market closes, investors can react to the news by buying or selling shares in after-hours trading. Second, after-hours trading can provide greater flexibility for investors who may not be able to trade during regular trading hours due to work or other commitments.
Drawbacks of After-Hours Trading
There are also some drawbacks to after-hours trading. One of the main drawbacks is that the market is less liquid during after-hours trading, which can result in wider bid-ask spreads and lower trading volumes. This can make it more difficult for investors to execute trades at the prices they want. Additionally, after-hours trading can be more volatile than regular trading, which can increase the risk of losses.
Does Fidelity Offer After-Hours Trading?
Yes, Fidelity does offer after-hours trading. Fidelity allows investors to place trades during the pre-market hours of 7:00 a.m. to 9:28 a.m. Eastern Time and the after-hours hours of 4:00 p.m. to 8:00 p.m. Eastern Time. However, it is important to note that not all securities are available for after-hours trading. Fidelity provides a list of securities that are eligible for after-hours trading on its website.
How to Place After-Hours Trades on Fidelity
To place an after-hours trade on Fidelity, you need to have a Fidelity brokerage account and be approved for after-hours trading. Once you have been approved, you can place after-hours trades through Fidelity’s website or mobile app. Fidelity charges an additional fee for after-hours trading, which varies depending on the type of security being traded.
Conclusion
In conclusion, Fidelity does offer after-hours trading for eligible securities. After-hours trading can provide investors with greater flexibility and the ability to react to news and events outside of regular trading hours. However, it is important to be aware of the risks associated with after-hours trading, including lower liquidity and higher volatility. If you are interested in after-hours trading, make sure to do your research and understand the potential benefits and drawbacks.
