Moneybase customers can now buy and sell on US exchanges for an extra 9.5 hours. This means you can now access markets during earning calls or take advantage of international market activity.
The Pre-Market Session is from 4.00 a.m. ET (10:00 hrs CET) to 9.30 a.m. ET (15:30 hrs CET).
The Post-Market Session is from 4.00 p.m. ET (22:00 hrs CET) to 8.00 p.m. ET (02:00 hrs CET).
Trading on extended hours is intended for the more experienced investors and can be accessed by using the advanced mode on the order section of the platform. For investment beginners, we have recently also added functionalities like simple mode and the discover section, which, in addition to the option of trading in fractional shares, help make investing easier and more accessible.
Our continuous investment in the platform would not be possible without your support. On behalf of all the team at Moneybase, we wish to take this opportunity to thank all our customers for their support throughout the past 11 years of growth and achievements.
Some practical information:
- Please note that all orders are to be submitted using a limit price.
- During the very early and late hours of the market, a price feed might not be available on our platform. Whilst we are working to obtain additional data feeds, we recommend using websites such as Yahoo Finance in the meantime.
- Pricing for extended hours is 1c per share capped at a maximum of $5 above the regular trading rate.
What is extended hours trading?
The United States market is open between 9.30 a.m. ET (“Eastern Time” or local New York City time) and 4.00 p.m. ET, Monday through Friday (excluding Exchange holidays), for its core trading session. Extended hours trading refers to the periods of time that you are able to trade after the market closes and before the market officially opens. The rules for trading during extended hours trading sessions may differ from the rules during the core trading session.
Extended hours trading may not be suitable for all investors. You should consider the following points before engaging in extended hours trading.
Extended Hours Trading Sessions
Moneybase’s Extended Hours Trading offering has two components: the Pre-Market Session and Post-Market Session (collectively, the “Extended Hours Trading Sessions”). You must designate a trade for Extended Hours Trading for it to be eligible for execution during these Sessions (by enabling the pre/post market toggle on the Moneybase Invest platform.
- Pre-Market Session
The Pre-Market Session is from 4.00 a.m. ET to 9.30 a.m. ET. Orders will begin to queue for the Pre-Market Session starting after 8.00 p.m. ET on the previous trading day, and will be eligible for execution (along with newly placed orders) during the Pre-Market Session. Any unexecuted or partially filled orders from the Pre-Market Session will automatically roll over into the Core Trading Session and, if still not fully executed, the Post-Market Session.
- Post-Market Session
The Post-Market Session is from 4.00 p.m. ET to 8.00 p.m. ET, during which new orders may be entered. Additionally, any unexecuted or partially filled orders from the Core Trading Session will automatically roll over into the Post-Market Session. All unexecuted and partially filled orders will be cancelled at 8.00 p.m. ET.
How does it work?
Moneybase may route trades to nationally recognized exchanges, lit venues, market makers, and automated trading systems to facilitate Extended Hours Trading. Any trades designated for Extended Hours Trading will be available for execution during that trading day (4.00 a.m. ET through 8.00 p.m. ET, counting Core and Extended Hours Trading); any order placed outside of that time will be eligible for execution starting at 4.00 a.m. ET the next trading day. Once an order is placed, Moneybase will attempt to execute it during the current Trading Session (or during the next Pre-Market Trading Session if the order is placed when trading is not occurring). A trade that is not fully executed during Pre-Market or Core Market Sessions will roll over to the next Session. If the trade is still not fully executed by the end of the Post-Market Session at 8.00 p.m. ET, it will be cancelled.
Terms of Extended Hours Trading Sessions
All trades designated for Extended Hours Trading will be subject to these Extended Hours Trading terms.
- Limit orders only
Only limit orders are accepted. The maximum individual trade size accepted by Moneybase is 10,000 shares.
- Whole shares only
Only whole share orders are accepted.
- Eligible securities
Not all securities may be available for Extended Hours Trading. The availability of a particular security may vary based on a number of factors, including the interest in that security during a given Extended Hours Trading Session. Moneybase does not guarantee that Extended Hours Trading will be available in all securities or exchanges.
If you designate a trade for Extended Hours Trading, then the default time-in-force instruction is for one trading day. This means that if your order is unexecuted (or partially executed) at the end of one of the day’s trading sessions, your order will automatically roll over to the next trading session that same day; any unexecuted trades, or portions thereof, will automatically be cancelled at 8.00 p.m. ET. For example: an order designated for Extended Hours Trading that is unexecuted (or partially executed) at the close of the Pre-Market Session will automatically roll over to the Core Trading Session; in addition, an order designated for Extended Hours Trading that is entered during the Core Trading Session and is unexecuted (or partially executed) at the close of the Core Trading Session will automatically roll over to the Post-Market Session (and if still unexecuted or partially executed at 8.00 p.m. ET will be cancelled).
- Extended Hours Trading Sessions will not take place on official Exchange holidays and Moneybase reserves the right to change or modify hours of operation for Extended Hours Trading at any time without prior notice. A Moneybase Extended Hours Trading Session, or any security traded therein, may be temporarily or permanently suspended without prior notice at any time at Moneybase’s discretion.
Important considerations for extended hours trading
Extended Hours Trading may not be suitable or appropriate for all investors and poses certain risks including, but not limited to: lower liquidity, price changes, news announcements, higher volatility, and wider spreads. Moneybase does not guarantee that there will be a market for trades entered during or designated for Extended Hours Trading; there may be limited trading activity compared to the trading activity during Core Trading Sessions. This may make it more difficult to obtain order executions and may entail other risks such as those listed below:
- Risk of lower liquidity
During Post-Market Trading sessions there may be less trading volume for certain stocks, making it more difficult to execute trades. In addition, there may be a number of orders ahead of yours that will be filled by incoming matching orders before your order can be filled. It is possible that your order will not be executed at all or only partially executed. Unexecuted orders or portions thereof will be cancelled at 8.00 p.m. ET.
- Risk of higher volatility and wider spreads
Stocks may experience greater price fluctuation and wider spreads during Extended Hours Trading than during Core Trading Sessions. News stories announced during the Post-Market Session may have greater impact on stock prices, as discussed in greater detail below. Prices may not be calculated or widely disseminated during Extended Hours Trading for certain securities products whose value is derived from an underlying index or calculated at other predetermined intervals.
- Risk of changing prices
The prices of securities traded in Extended Hours Trading may not reflect the prices either at the end of the Core Trading Session or upon the market opening the next trading day. As a result, you may receive an inferior price when engaging in Extended Hours Trading than you would during the Core Trading Session.
- Not Reg-NMS eligible
Moneybase endeavors on a best-efforts basis to obtain the best available price in the market for trades executed during Extended Hours Trading Sessions.
- Risk of unlinked markets
During the Core Trading Session, quotes and last-sales reports are consolidated and indicative, this is why limit orders are enforced. Extended Hours Trading quotes and last-sales reports are not consolidated across all Electronic Markets (“EM”). Extended Hours Trading quotes and prices will represent the best prices available at that time only through EMs that may be participating in Extended Hours Trading. Quotes and last-sale prices may vary widely from one EM to another.
- Risk of news announcements
Issuers often make news announcements that may affect the price of their securities after the Core Trading Session. Similarly, important financial information is frequently announced outside the Core Trading Session. These announcements may occur during trading in Extended Hours Trading Sessions and if combined with lower liquidity and higher volatility may cause an exaggerated and unsustainable effect on the price of a security.
Many post-market-hours traders are professionals who are associated with large institutions and may have access to more information than individual investors.
Additional information about the risks associated with Extended Hours Trading is available from the SEC at: Post Market Trading: Understanding the Risks.