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one-third of eToro’s stock trades now occur outside conventional trading times, according to the company. This development highlights the rapid adoption of extended trading hours among retail investors. Less than a month after eToro broadened its 24/5 trading access to all stocks within the S&P 500 and Nasdaq 100, the fintech giant has seen substantial growth in trading activity during these off-hours. Initially rolled out in July with access to 100 top U.S. equities, the platform now operates from Sunday 8:05 p.m. to Friday 4:00 p.m. ET, allowing global users—particularly those in Europe and Asia—to actively trade during their daytime.
The proliferation of 24/5 trading aligns with a growing trend across the fintech industry. Platforms like Charles Schwab, Robinhood, and Interactive Brokers have also introduced their versions of near-round-the-clock trading for various equities, responding to demand from retail investors eager to participate in global markets without the constraints of traditional trading hours. Schwab, for example, now offers trading on around 40 stocks from Sunday evening to Friday evening, while Robinhood provides overnight access for select stocks and ETFs.
The increasing popularity of extended trading sessions coincides with heightened market volatility and the rising prevalence of pre-market earnings announcements. This environment has fueled demand from international users who can now engage with U.S. market movements without staying awake into the early hours of their local time. eToro’s platform has noted that stocks like Tesla, Alphabet, and Nvidia frequently experience significant activity outside regular hours, as investors seek to maximize gains reported by other studies.
Interestingly, eToro reports that the stocks dominating these night sessions largely reflect those leading during regular hours, indicating consistency in investor interest. However, the platform noted that earnings season presents exceptions, with spikes in trading for companies releasing quarterly results. In response to the inherent risks of after-hours trading, such as wider spreads and thinner order books, eToro has implemented additional safeguards to protect users from excessive price volatility.
Yossi Brandes, eToro’s VP of Execution Services, emphasized the company’s mission to democratize global market access. “We aim to make trading accessible to anyone, anywhere,” Brandes stated. The company’s commitment includes expanding its 24/5 offerings and integrating additional assets to cater to its diverse user base.
Simultaneously, eToro has rolled out a stock lending program for UK retail investors, developed in collaboration with BNY Mellon and EquiLend. This initiative allows users to earn passive income by lending shares, thus providing an institutional-level service to retail accounts. These moves are part of a broader strategy to equip retail investors with tools and insights comparable to those used by professional investors.
However, the shift towards 24/7 trading is not without its critics. The World Federation of Exchanges has cautioned against the assumption that round-the-clock trading is universally beneficial, highlighting concerns over liquidity and execution quality during off-hours. eToro acknowledges these challenges, urging users to carefully set stop-loss and take-profit orders to mitigate potential risks.
Despite these warnings, the adoption of extended hours shows no signs of slowing. Retail investors appear willing to accept the challenges of overnight trading for the convenience and flexibility it offers. This willingness is reflected in eToro’s growing number of active traders, which the company anticipates will continue to rise as awareness of 24/5 trading expands.
In terms of financial performance, eToro reported a net income of $57 million for the third quarter, marking a 48% increase from the previous year. Revenues climbed by 28%, with funded accounts reaching 3.73 million, up 2.8% from the prior quarter. However, assets under administration slightly declined from $20.8 billion at the end of September to $20.5 billion by October, indicating potential market downturns or outflows.
Amid these developments, eToro’s Global COO and Deputy CEO, Hedva Ber, announced plans to sell 94,000 shares, valued at approximately $4 million, stemming from stock option allocations. This sale coincided with the company’s launch of a $150 million buyback program, highlighting a period of strategic financial maneuvering.
As eToro and its peers continue to innovate and expand their offerings to meet the evolving demands of retail investors, the landscape of stock trading is poised for further transformation. The shift from a market once dominated by institutional actors to one accessible to individual traders at all hours of the day marks a new era in investing. As companies like eToro strive to balance the benefits of increased accessibility with the challenges of maintaining liquidity and execution quality, the future of trading remains both promising and complex.
