Roughly
one-third of stock trading on eToro (NASDAQ: ETOR) now occurs outside
traditional market hours, the fintech told FinanceMagnates.com, underscoring
how quickly retail investors have embraced extended trading windows.
eToro 24/5 Trading Drives
33% Volume Share in Extended Hours
The figure
comes less than a month after eToro expanded 24/5
access to all S&P 500 and Nasdaq 100 stocks, building on an initial rollout in July that covered
100 top US equities. Trading on the platform runs from Sunday 8:05 p.m. to
Friday 4:00 p.m. ET, letting users in Europe and Asia buy Apple, Tesla or
Nvidia during their own daytime hours.
eToro’s
data shows the number of traders using after-hours sessions climbed since the
July launch and continues to grow as more people discover the feature. The
platform expects that trend to accelerate now that every constituent of the two
major indices can be traded around the clock.
“Our
mission has always been to open the global markets and make trading accessible
to everyone, everywhere,” Yossi Brandes, VP of Execution Services at eToro,
commented during the November’s launch. “We will continue to add more assets
and to expand our 24/5 offering to meet the evolving needs of our global
community.”
A study
conducted nearly a year ago by Pepperstone showed how important after-hours
trading is for retail investors. Tesla, Alphabet, and Nvidia generated
80 to 90 percent of their gains outside regular market hours. And investors
want to capitalize on those moves.
Top Stocks Dominate Night
Sessions
Stocks with
the highest volumes during standard hours also lead activity in extended
sessions, according to eToro. The company pointed out that the overnight market
largely mirrors regular trading patterns, with no major divergence in which
names get the most attention.
“The top
stocks trading after hours mirror the top stocks traded in the main session,”
eToro representatives told FinanceMagnates.com. “We do not see any strong
divergence here.”
One
exception shows up around earnings announcements. eToro noted elevated activity
in stocks reporting quarterly results, as traders react to numbers released
after the closing bell or before the opening.
The company
uses the same metrics to measure liquidity and execution quality in both
regular and extended hours, but adds extra safeguards outside the main session
to limit price swings that could harm users.
Wider
spreads and thinner order books remain a reality during off-hours trading,
factors eToro has flagged since launching the service.
Extended Hours Gain
Traction Across Retail Brokers
eToro’s
move puts it alongside Charles Schwab, Robinhood and Interactive Brokers, all
of which rolled out 24-hour or
near-24-hour trading in
recent quarters. Schwab now offers trading on about 40 stocks from 8 p.m.
Sunday to 8 p.m. Friday, while Robinhood provides overnight access on select
equities and ETFs.
Retail
interest in after-hours sessions has climbed alongside market volatility and
the popularity of pre-market earnings calls. For international users on
platforms like eToro, extended trading solves a time-zone problem, letting them
respond to US market developments without staying awake until 2 a.m. local
time.
eToro CEO Yoni
Assia recently said the
platform aims to give retail investors tools that approach institutional-level
insights, including AI-driven portfolio analysis. He suggested future features
could let users get feedback on their holdings from models trained on famous
investors’ strategies.
Recent Moves and Executive
Activity
In early
December, eToro launched a stock lending
program for UK retail investors, partnering with BNY and EquiLend to let users earn passive income by
loaning out shares. The offering brings an institutional practice to retail
accounts, adding another revenue stream for active traders.
Around the
same time, eToro’s Global
COO and Deputy CEO Hedva Ber filed notice to sell 94,000 shares, worth about $4 million at the time
of filing. The shares came from stock option plans, and the sale follows
eToro’s announcement of a $150 million buyback program.
The company
reported net income of $57 million in the third quarter, up 48% year-over-year,
with revenue climbing 28%. Funded accounts reached 3.73 million, a modest gain
of 2.8% from the previous quarter. Assets under administration stood at $20.8
billion at the end of September but slipped to $20.5 billion by October,
suggesting some outflows or market declines.
Liquidity Concerns Persist
The World
Federation of Exchanges has warned that
24/7 trading is
“not inevitable nor universally desirable,” pointing to risks around
thinner liquidity and execution quality outside standard hours. eToro
acknowledged those challenges, advising users to review stop-loss and
take-profit orders before relying on overnight sessions.
Despite the
caution, the platform’s one-third figure suggests retail investors are willing
to accept wider spreads and greater volatility in exchange for trading
flexibility. At the same time, eToro is confident that the product will boost –
and is already boosting – the number of active traders.
„The number
of traders has increased since launch and we expect this to increase as more
users become aware of 24/5 trading and more stocks are available 24/5,” eToro
concluded.
That
appetite has pushed brokerages to compete on extended hours, turning what was
once an institutional perk into a standard retail offering.
This article was written by Damian Chmiel at www.financemagnates.com.
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