Charles Schwab Corp. SCHW intends to expand its 24-hour trading accessibility to cover all stocks in major U.S. indexes alongside numerous exchange-traded funds (ETFs). These changes are set to begin in roughly two weeks. This was stated by James Kostulias, the company’s head of trading services in a statement.
SCHW’s Rationale Behind This Move
The move aims to cater to the rising interest in extended hours trading among retail investors. "About 90% of the customers we surveyed in our newest Traders Sentiment Survey said they would be interested in participating in 24-hour trading," stated Kostulias.
Per Kostulias, this increasing interest is likely to be tied to the rapidly shifting demographics of SCHW’s client base. Roughly 60% of the households that Schwab acquired as clients during the first half of 2024 are led by individuals under the age of 40 years.
"They seem particularly likely to have an expectation that they will be able to trade anytime, anywhere," Kostulias further stated.
This move aligns with Schwab’s organic growth strategy to boost its trading income and client base.
Details of the Launch of Schwab’s Offering
Schwab is aiming for a gradual rollout of the expanded trading capacity, beginning with its most active traders, and is unlikely to initiate the process until the week after the Nov. 5 U.S. presidential election.
The enhanced trading capabilities will be powered by the platform run by Blue Ocean Technologies LLC, which also enables overnight trading for Robinhood Markets Inc. HOOD and other U.S. brokerages. HOOD launched overnight trading in May 2023. Likewise, another Schwab peer — Interactive Brokers IBKR — also allows its clients to trade 24 hours through its platform. IBKR started offering this service last year.
Schwab anticipates the rollout of overnight trading to be completed by the middle of the first quarter of 2025. Hence, its clients will be gaining accessibility to overnight trading in all stocks listed on the Dow Jones Industrial Average, the Standard & Poor’s 500 Index, the Nasdaq 100 Index, and hundreds of ETFs. Currently, Schwab’s overnight trading offerings are limited to about two dozen ETFs.
SCHW’s Zacks Rank & Price Performance
Over the past six months, SCHW shares have lost 3.6%, underperforming the industry’s 16.2% growth.
Image Source: Zacks Investment Research
Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
