Brokers With Pre-Market Trading
One of the important aspects to consider is the time of day that you invest and there is a compelling case for pre-market trading. Many like to trade when the market is open and at its most volatile. However, with stocks being more accessible and active than ever before, there is a viable option for some investors looking for returns outside of these hours.
This review of brokers offering pre-market trading serves as a guide for anyone wanting to explore the opportunities and advantages of trading in the pre-market period. This includes an explanation of how it works, an evaluation of the good and bad of trading at this time, and finally tips and strategies to assist you. We have also compiled a list of the best brokers with pre-market trading in 2024.
Brokers With Extended Hours Trading
#1 - Deriv.com
Why We Chose Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
- Regulator: MFSA, LFSA, VFSC, BFSC
- Platforms: Deriv Trader, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- The low $5 minimum initial deposit suits those on a lower budget
- The free demo account is ideal for practicing short-term trading strategies and no registration is required
- Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
Cons
- There's no loyalty program or rebate scheme for high volume traders
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
#2 - eToro
Why We Chose eToro
eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds
- Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
- Platforms: eToro Web, CopyTrader, TradingCentral
- Minimum Deposit: $50
- Minimum Trade: $10
Pros
- The broker's services are great for beginners, with commission-free stock trading, a low minimum deposit and an unlimited demo
- The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat
- There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
Cons
- There are limited contact methods aside from the in-platform live chat
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
- There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
#3 - Skilling
Why We Chose Skilling
Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers hundreds of day trading instruments with competitive spreads from 0.1 pips and beginner-friendly platforms. Skilling are also regulated in Europe and beyond with a transparent pricing structure. You can sign up and start trading in three easy steps.
"Skilling maintains its position as a top pick for beginners looking for a competitive zero commission account with direct access to a copy trading feature. It will also serve experienced strategy providers looking to earn commissions, or anyone looking to trade forex during extended hours."
- DayTrading Review Team
- Instruments: Forex, CFDs, Stocks, Indices, Commodities and Cryptos
- Regulator: CySEC, FSA
- Platforms: Skilling Trader, MT4, cTrader, TradingView
- Minimum Trade: 0.01 Lots
Pros
- The broker offers smooth account funding with a good range of payment methods with zero deposit fees
- The €100 deposit and zero commissions in the Standard account are accessible for beginners
- The Skilling Copy solution is accessible directly from the cTrader web terminal, making it easy for strategy providers to manage their portfolios
Cons
- You can only access shares in the Skilling Trader platform and fewer instruments are available overall in the MT4 accounts
- Skilling trails alternatives like IG when it comes to research tools that can help day traders make informed decisions
#4 - BlackBull Markets
Why We Chose BlackBull Markets
BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.
"BlackBull Markets will suit traders of all experience levels with thousands of tradable instruments, tight spreads and the familiar MetaTrader platforms."
- DayTrading Review Team
- Instruments: Forex, CFDs, stocks, indices, energies, metals, commodities, cryptos
- Regulator: FMA, FSA
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:500
Pros
- Excellent educational content for beginners
- Autochartist plugin
- $0 minimum deposit and 0.01 lot trades
Cons
- US traders not accepted
- Withdrawal fees with some methods
#5 - CMC Markets
Why We Chose CMC Markets
Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.
"With advanced charting tools and an extensive range of tradable CFDs, including an almost unrivalled selection of currencies and custom indices, CMC Markets provides a fantastic online platform for traders of all levels. "
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting
- Regulator: FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA
- Platforms: Web, MT4
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro)
Pros
- The web platform delivers a fantastic user experience with advanced charting tools for day trading and customizable features, catering to both beginners and experienced traders. MT4 (but not MT5) is also supported.
- The brokerage continues to stand out with its wide range of value-add resources, including pattern recognition scanners, webinars, tutorials, news feeds, and research from respected sources like Morningstar.
- CMC offers excellent pricing, including tight spreads and low trading fees for all but stock CFDs. The Alpha and Price+ schemes also offer perks for active traders with up to 40% discounts on spreads.
Cons
- Trading stock CFDs incurs a relatively high commission, especially compared to the cheapest brokers like IC Markets.
- The CMC Markets app offers the complete trading package but the design and user experience trails category leaders like eToro.
- Despite improvements, the web platform still requires enhancements to make it as intuitive to trade on as software from rivals like IG.
How Does Pre-Market Trading Work?
Trading markets are traditionally open between the hours of 9:30 am and 4:00 pm EST. In the case of pre-market trading, however, early risers can trade as early as 4:00 am, depending on their broker.
Previously, access to the pre-market period was difficult for retail traders, but nowadays it is offered by multiple online brokers and trading platforms.
The actual process involved in trading on the pre-market is similar to investing during open hours. You simply start by choosing what it is you want to trade, next specify any trade conditions, and then finalize the trade with the broker. The nuances are in the strategy you adopt, as the pre-market trading period has distinct characteristics.
Pros And Cons Of Brokers With Pre-Market Trading
Positives
- Quick reaction to overnight news – Investing during the pre-market period gives you a head start on anyone who trades on the open market. This means that any developments which could have major implications for stocks and other assets can be taken advantage of earlier by making use of the pre-market window.
- Access – The extra hours of the pre-market period give you more opportunities to make trades and generate gains. For anyone that has a busy schedule, it might not always be ideal to be limited to the open market hours so having the alternative of trading during the pre-market session can be a big perk.
- Early Start – The pre-market gives a great indication of what trends may occur during regular trading hours. Any stocks and currency pairs which are trading high during the pre-market will often continue similar trends going into the open market and, similarly, stocks trading lower tend to remain so too.
Negatives
- Competition with experienced traders – The pre-market period can be a risky environment for less experienced traders. Many professional traders like to take advantage of this session and will often have better access to information, more capital, and ultra-fast trade executions and tools.
- Price uncertainty – Prices during the pre-market period can be more difficult to predict in comparison to the open market. The values of assets can differ significantly from what they are during regular hours. Slippage can also impact prices.
- Liquidity shortage – With reduced activity during the pre-market session it can be difficult to find available buyers or sellers, making it difficult to convert your assets into cash at short notice. This shortage can also lead to the prices of securities becoming more volatile.
Strategies Explained
Due to the risks involved with the pre-market, it’s important to go into this trading window with an effective trading strategy and reliable data. Daily investments need to be carefully planned and should be executed with thorough research beforehand.
Firstly, it is important to pay attention to big news announcements. One of the key advantages of the pre-market is the early jump you can get on major price moves which trend exponentially after the extra activity during regular hours. Investments made shortly after news which causes big price moves can be an effective way to generate profits.
Economic indicators also provide valuable information to which you should pay attention when setting your trading strategy. These will give a forecast for the expected values of assets and usually set a precedence for how the price will move. The best interactive brokers with pre-market trading offer a range of technical indicators and drawing tools to help traders forecast upcoming price trends.
Brokers With Pre-Market Trading
- WeBull – A broker offering pre-market trading from as early as 4:00 am, a WeBull account gives you plenty of time to trade before the market traditionally generally. The online app has great tools for assisting with research before investing, however the amount of content it provides may be overwhelming for anyone new to investing.
- TD Ameritrade – Offering pre-market trading 24/5 for certain securities, TD Ameritrade only closes at weekends. Any securities not included in its regular 24/5 window, are available in a pre-market window, from 7:00 am to 9:28 am, providing a good amount of time to make trades. Trading fees are also low.
- Fidelity – One of the world’s largest brokers, Fidelity offers its traders to access the pre-market session. The period for this is shorter than some alternatives with hours being between 7:00 am and 8:00 am. Fidelity also offers around-the-clock customer service and is a suitable platform for all levels of investors.
- Charles Schwab – A sensible broker for any kind of investor, Charles Schwab has pre-market hours of 7:00 am to 8:00 am and provides a 24/7 customer support service which is accessible via phone, email and online chat. The brand also complies with all trading regulations in the regions it operates.
- Robinhood – Robinhood is well known for low costs and has an app that allows for standard retail trading and further investing options. The biggest downside is its pre-market period opening at 9:00 am, therefore giving you a very short window before the open market gets underway. In addition, there are multiple negative user reviews of the brand and questionable brokerage practices and trading limits which mean we do not recommend investing with Robinhood. Consider one of the alternative brands listed here instead.
Final Word On Brokers With Pre-Market Trading
The pre-market session is a volatile period of the day which can make it more difficult to predict for beginners. When explored to its fullest advantage, it can be an opportunity to make trades early and get ahead of the competition. These early hours are an important period of the trading day, have an effect on opening prices and setting the stage for what is likely to happen during the traditional market. For new and experienced traders alike it is worth being clued into the pre-market trading environment.
Use our list of the top brokers with pre-market trading to get started today.
FAQ
What Hours Count As Pre-Market Trading?
Generally, pre-market hours are between 4:00 am and 9:30 am EST. But depending on your broker, the pre-market hours available for trading will vary, so check to ensure you know the specific hours you can trade with their service.
How Do You Choose Suitable Assets During Pre-Market Trading?
There is not as much activity during the pre-market period so, as you would expect, it is worth choosing assets likely to gain traction with other investors. Paying attention to any news or economic indicators can act as a good guide for choosing suitable investments. Open your brokerage platform and conduct technical and fundamental analysis. The top brokers provide tools to identify upcoming price patterns, alongside the biggest gainers.
What Is The Best Broker With Pre-Market Trading?
There is no one online broker that is best for everyone so it is worth exploring the different options. Pick the right platform for you based on your level of experience and the hours you would like to have access to the market. Also consider which markets you want access to, from New York-listed exchanges to futures listed in London. Check out our comparison of the best brokers for pre-market trading in 2024 here.