eToro Trading Anytime, Anywhere with Extended Hours
eToro has taken a new approach to attract the interest of younger investors by embracing extended trading hours into its social trading platform. This strategic move aims to provide greater flexibility when trading in popular US companies, mirroring the practices of the forex and cryptocurrency markets. Initially, individual investors will benefit from an additional three hours of trading, with the possibility of further extensions in the future.
The introduction of extended trading hours focuses on pre-market trading, enabling investors to engage with the market at their preferred times. This feature grants them the opportunity to capitalize on off-hours events such as earnings reports or significant macroeconomic developments.
To access this feature, users will utilize a distinct contract for difference (CFD) designated for extended-hours trading, separate from regular-hours investing. The stocks available for extended trading can be identified under the specific stock’s “.EXT” ticker. It is important to note that extended-hours instruments are CFDs, and there will be no fee differential between after-hours and regular-hours traded instruments. However, the spreads may fluctuate due to changes in trading liquidity.
During the initial launch, eToro will offer extended trading on ten stocks, including Tesla, Amazon, Apple, Nio, Meta, Microsoft, Alphabet, Nvidia, GameStop, and Netflix. Furthermore, the company has plans to introduce post-market functionality in the near future.
According to Dan Moczulski, the UK Managing Director of eToro, the decision to introduce this new feature stems from the fact that many US companies release crucial news and financial results outside regular market hours. Such events often trigger significant price movements even before the opening bell. By engaging in pre-market trading, retail investors can gain a competitive edge by either taking early positions or protecting themselves from market gaps through hedging strategies.
Moczulski emphasizes that this new feature is a response to the US market’s significance for many investors and aims to make it accessible during more convenient hours.
24/7 Trading
The expansion of trading hours on eToro’s platform offers several benefits for its users. It provides real-time responses to news events and data, flexibility for trades that align with individual schedules, and the ability to mitigate risks by staying ahead of market reactions.
Moreover, this move is expected to boost user engagement, marking the 24/7 crypto markets, where Bitcoin (BTC) remains the most popular instrument among eToro customers in the second quarter of 2023.
Moczulski concludes by stating that the launch of extended trading hours exemplifies eToro’s commitment to providing clients with the necessary tools to meet their diverse investing needs. By expanding market access, eToro is democratizing its offering, which was previously accessible to only a select few.
This strategic move by eToro aligns with a growing trend among CFD brokers, who are eager to cater to investors’ demands for trading in extended hours. Traditionally available 24/5, these markets are now venturing into weekends, driven in part by the popularity of cryptocurrencies. As younger investors seek the freedom to invest any time and anywhere, brokers are striving to meet these evolving expectations.
