Robinhood offers extended trading hours, Eyes 24/7 trading

Robinhood Markets Inc. HOOD 26.27%

said that it extends the hours allowing its users to trade between 7am ET and 8pm ET.

Shares rose 27% on Tuesday afternoon, one of the investment platform’s best trading days since its IPO last summer.

Popular with retail investors, the brokerage firm is expanding its trading hours to counter slower growth tied to trading revenue. The company previously only allowed trading for half an hour before the market opened and two hours after the market closed.

The extended morning and evening trading hours bring Robinhood’s availability more in line with other traditional brokerages. Robinhood said the move was in response to customer demand and was working towards offering 24/7 investing, but didn’t offer a timeframe for when this would be available.

Despite Tuesday’s rally, Robinhood’s stock is still down for the year, having lost about three-quarters of its value since last summer’s all-time high.

“Our clients often tell us that they work or are busy during regular market hours, which limits their ability to invest on their own schedule or to evaluate and act on important market news,” Robinhood said in a blog post. “They juggle a lot, from full-time jobs to school, family and side jobs.”

Trading outside of traditional market hours can present challenges. Prices may be volatile due to the low level of liquidity in the pre-market and post-market trading offered by market operators compared to when the market is open.

Robinhood’s investing app surged in popularity during the Covid-19 pandemic, as millions of new investors tried investments made by meme stocks like GameStop Corp. were attracted.

and cryptocurrencies like Bitcoin and Dogecoin. The company said in January it has 22.7 million customers with prepaid accounts, up from 12.5 million in 2020.

But much of that growth came in the first half of last year. Maintaining this momentum has proven to be a challenge. The company also faces stiff competition from traditional money managers and brokers such as Fidelity Investments and Charles Schwab Corp.

Robinhood’s new trading hours are similar to those of many of its competitors. Fidelity says it will start accepting client orders premarket at 7:00 a.m. ET and will accept after-hours trades from 4:00 p.m. to 8:00 p.m. ET. Charles Schwab offers almost 24/7 trading.

Amateur investors took the stock market by storm a year ago, buying shares of meme stocks like GameStop and AMC Entertainment. Many remember a revolution against Wall Street, but in the end it mostly just lined the pockets of the big financial firms. WSJ’s Dion Rabouin explained. Picture: Sebastian Vega

Write to Will Feuer at Will.Feuer@wsj.com and Allison Prang at allison.prang@wsj.com

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https://www.wsj.com/articles/robinhood-is-offering-extended-trading-hours-eyes-24-7-trading-11648565295?mod=rss_markets_main Robinhood offers extended trading hours, Eyes 24/7 trading

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