The 24/5 Trading Revolution: How Schwab Clients Are Trading Around the Clock

When Charles Schwab expanded overnight trading access earlier this year, something unexpected happened – traders started showing up at 2 AM to trade TSLA. The numbers tell the story: since February, thousands of retail investors are now active in Schwab’s extended after hours trading sessions every single week, and the platform now supports over 1,100 securities available 24 hours a day, five days a week through the thinkorswim suite.

From Niche Feature to Mass Participation

Charles Schwab’s after hours trading capability, built on EXTO (extended + overnight session orders) technology, wasn’t always this accessible. When Ameritrade pioneered 24/5 trading back in 2018, they started with just two dozen ETFs. Fast forward to today: Schwab’s expansion has made hundreds of ETFs, major index stocks like S&P 500 and Nasdaq-100 constituents, and individual equities tradeable around the clock for all retail clients.

The uptake? Substantial. International clients have been particularly active, flooding the overnight sessions. The shift represents a fundamental change in how retail traders think about market access – no longer bound by the 9:30 AM to 4:00 PM ET window.

When News Breaks, Traders Wake Up

The real insight emerges when you look at Schwab’s trading volume patterns. In April, as tariff policy announcements hit the headlines, overnight trading volume spiked dramatically. But that record didn’t last long – June 12 saw overnight trading volume more than double when Middle East tensions escalated, suggesting traders are actively using the 24/5 window to respond to geopolitical events in real time.

The three most-traded names overnight tell you exactly what’s on traders’ minds: TSLA (Tesla), NVDA (NVIDIA), and NIO (Nio). These aren’t random picks – they cluster around major themes: AI sentiment swings, electric vehicle positioning, and earnings reactions. When biotech stocks like RXRX made headlines, they lit up the overnight feed too. MSFT, AAPL, and AMZN see after hours trading spikes around earnings, as expected.

A Geography Play, Not Just a Time Zone Play

International traders have become disproportionately active in this space, particularly trading NIO and RXRX during Schwab’s overnight windows. Why? Simple: a trader in Hong Kong or London can now execute on U.S. market-moving events without waiting for their local markets to open the next day. That’s a meaningful advantage for anyone trading globally.

According to James Kostulias, who heads trading services at Charles Schwab, “The trading behavior we’re seeing overnight looks almost identical to daytime behavior – same catalysts, same emotional triggers, just happening at different times.” The difference: traders can now respond immediately where they previously had to wait.

The Scale Behind the Scenes

Consider the raw metrics: Charles Schwab facilitated 7.6 million average daily trades in Q2 2025 across $10.76 trillion in client assets. Even if overnight trading represents a fraction of that volume, the growth trajectory is notable. Thousands of new users trying overnight trading for the first time each week, with engagement directly correlated to headline news – that’s a sticky feature gaining real adoption.

The Practical Reality

Access is straightforward: select the EXTO order type on thinkorswim for eligible securities, and you’re trading. Orders placed after 8:05 PM ET execute when the pre-market opens at 7:00 AM. Settlement works like regular hours – one business day out.

The risks are transparent too – lower liquidity, wider spreads, and potential gaps between sessions are the tradeoffs for round-the-clock access. Not suitable for casual traders, but for those positioned around geopolitical events or earnings with size, the flexibility to trade 24/5 through Charles Schwab’s after hours infrastructure has become a genuine competitive advantage in the retail trading landscape.