Buy Stocks After Hours – How To Buy Stocks After Hours in 2021

Fact Checked by Gary McFarlane

Investing in stocks is a phenomenal way to build wealth. For many, the first investment you’ll make is on the stock market, likely due to its accessibility and popularity. While stocks offer an excellent investment opportunity, they’re only traded during specific hours of the day (usually 9:30 – 16:30). Meaning that anyone with an unusual schedule may find it difficult to partake in stock trading. However, this doesn’t have to be the case. Many modern brokers understand this issue and as such have implemented after-hours trading, allowing users to place trades while the market is closed. This can be huge, as it allows people to partake in the stock market that otherwise wouldn’t be able to.

Throughout this guide, we’ll be discussing the best after-hours stockbrokers, some different kinds of stocks you can invest in, and we’ll even run you through exactly how you can make your very first investment! 

#1 Broker to Buy After Hours Stock – eToro

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How to Invest in Stocks After-Hours – Step by Step Guide 2021

It’s no secret that investing in stocks isn’t the easiest task. Outside of the technical side of things, many brokerages are unnecessarily complicated. This means that a large portion of first-time investors can be overwhelmed when faced with all the jargon brokerages throw at you. So, to ensure our readers get started on the right foot, we’ve included this quick guide explaining exactly how you can make your first investment with eToro. If you’d prefer a more detailed version of this guide, you can find it toward the bottom of the page. 

  • Step 1: Open an eToro account: The first thing you’ll have to do is create an account with a reputable broker. We recommend eToro because they offer an excellent blend of security and features. Simply navigate to “eToro.com”, click “Join Now” and fill in the required information. 
  • Step 2: Verify your Identity: Because eToro is a regulated broker they require new users to verify their identity. To do this all you’ll need to provide is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your Account: Now that your account has been verified, you’re only one step away from investing. The last thing you’ll have to do is fund your account. Just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 
  • Step 4: Invest in Stocks: Once the funds have arrived in your account it’s time to make your first investment. Simply type the name of the asset you want to purchase into the eToro search bar, press “Trade”, enter the amount you’d like to buy, and press “Open Trade”. You’ll be able to monitor your investment from the portfolio section of your account. 

Where to Invest in Stocks After Hours – Choose a Broker

One of the most commonly overlooked aspects of investing is selecting a top-quality broker. Without one, you’ll likely find yourself stuck with subpar features and paying exorbitant fees, not ideal right? So to prevent that from happening to our readers, we’ve included in-depth reviews on each of the best after-hours stockbrokers. 

1. eToro – All-Around Best after-hours Stock Broker USA

If you’ve spent much time researching the best after-hours stockbrokers, then the chances are that you would’ve heard of eToro. They are one the largest brokers in the world, with a user base of over 20 million strong. They’ve been operating since 2007 and have managed to carve out a place as one of the foremost stockbrokers in the USA. 

Security

eToro looks after the funds of more than 20 million people, this means that they need to have some pretty heavy-duty security. eToro uses a few different techniques to keep investors safe, the most standard of which is adhering to strict regulations laid out by the SEC. Outside of this, eToro uses SSL encryption to protect customer data from attackers attempting to intercept it while on its way to the central server. Additionally, eToro users have the option of enabling 2-factor authentication; a method of requiring users to input a code sent to their mobile device before they’re able to complete sensitive account actions. 

Features

In order to cater to the needs of all of their users, eToro comes equipped with a plethora of useful trading features. They allow users to place trades after-hours that will then be automatically filled at the best possible price, as soon as the market is open. Investors without much experience may find eToro’s CopyTrading useful. It’s an automated trading system that allows users to mirror the trades of more experienced users, allowing beginners to learn about different trading strategies while earning a passive income. And for the more experienced traders, eToro offers advanced charting tools, created to facilitate even the most complex trading strategies. All in all, eToro is an excellent trading platform for users of all experience levels. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • SEC Regulation
  • after-hours Trading
  • CopyTrading
  • SSL Encryption
  • 2FA

Cons

  • Lacking MetaTrader support

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Best After-Hours Stock Broker for Beginners USA

If you’re looking for a beginner-friendly after-hours trading platform then it’s hard to beat Robinhood. They’re tailor-made their platform to be as easy as possible to use, perfect for anyone without previous trading experience. If you want to trade with Robinhood, you’ll need a mobile device as they currently do not support web-based trading.  

Security 

As one of the best-known exchanges in the USA, Robinhood has to make sure its security is up to scratch. They’ve achieved this in several ways, firstly by adhering to guidelines from the SEC, ensuring the proper handling of customer data. Any transactions that take place on Robinhood also require a confirmation from multiple sources, greatly reducing the chance of a bad actor attempting to take advantage of the system. Additionally, they also offer investors SIPC insurance on balances up to $500,000, with “excess of SIPC” coverage on balances up to $10 million. 

Features

Robinhood is a beginner-centric investment platform, and as such, the majority of the features they’ve included are aimed toward beginners. When you first use Robinhood, this becomes immediately apparent from the app’s interface, it’s very simple to wrap your head around, making it difficult to get lost in menus. If access to higher margins and better market research sounds appealing, then you might be interested in Robinhood gold, their premium subscription service. That being said, it still leaves a lot to be desired for experienced traders and therefore is best used by beginners wanting an easy way to learn to trade. 

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated by the SEC
  • SIPC insurance up to 500k
  • Transactions Require Authentication From Multiple Sources 
  • Excess of SIPC Coverage up to $10 Million
  • Simple Interface

Cons

  • Too Basic for Experienced Traders
  • Could Benefit From More Technical Indicators

67% of retail investor accounts lose money when trading CFDs with this provider.

3. Fidelity – Longest Standing After-Hours Stock Broker USA

Founded way back in 1969, Fidelity is by far the oldest broker on our list. They’ve positioned themselves as the go-to platform for anyone looking for a comprehensive investment platform that comes equipped with heaps of financial products. If you’ve spent much time researching ETFs, it’s likely you would’ve come across one created by Fidelity. 

Security 

To survive in the finance space for over 50 years, a brokerage needs some serious security. Fidelity have their security systems down to a T, they’ve made sure to protect investors from all types of attack. They’ve managed this by using voice biometrics to confirm customers’ identities. Because Fidelity uses advanced algorithms to carefully analyze voice patterns it’s incredibly hard to fake. Additionally, when you’re speaking to a Fidelity employee you can do so through an encrypted messaging service, meaning that nobody other than verified Fidelity employees can read your messages. On top of all this, Fidelity also follows rules and regulations set out by the SEC. 

Features

With a track record spanning more than 50 years, it’s safe to say, Fidelity is well trusted by investors. They’re well known for providing users with a professional and top-quality trading experience. The interface can be somewhat confusing, to begin with, however, that can be attributed primarily to the sheer amount of investment types and features Fidelity offers. For example, Fidelity offers retirement accounts, college savings accounts, and health savings accounts, along with tonnes of other account types. They also offer a plethora of well-researched market research, spanning pretty much every industry and investment type; excellent for fundamental investors. Securing its spot as one of the best after-hours stockbrokers, Fidelity offers extended-hours trading from 7:00am to 9:28am and from 4:00pm to 8:00pm.  On top of all this, Fidelity offers a personal finance advisor for high-value clients to ensure their funds are allocated in the most efficient manner possible. 

Fidelity Fees

Fee Type Fee Amount 
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Regulated
  • Voice Biometrics
  • Encrypted Messaging System 
  • 50+ Year Track Record
  • Huge Amount of Market Research
  • Range of Markets & Investment Products 
  • Personal Financial Advisor 

Cons

  • Interface a Little Confusing
  • No Access to Cryptocurrency 

67% of retail investor accounts lose money when trading CFDs with this provider.

Invest in Stocks USA – Broker Price Comparison

If you’re still unsure as to which broker is right for then, then hopefully this will help! We’ve included this table comparing the fee structure of each broker we’ve discussed to better highlight the differences between them. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0
Fidelity 0% $0 $0 $0

What are the Different Kinds of Stocks? 

When you’re trying to decide which stock you’d like to invest in, you might find yourself faced with new terms like ETF and CFD; both of which can be confusing concepts for new investors. So, to help make sure our readers are well-informed, we’ve provided an explanation of the most popular investment types. 

Stocks 

The most commonly traded type of investment is stocks. When you purchase a stock, you’re purchasing fractional ownership of the underlying company. For instance, if you buy Microsoft stock, you’re technically a part-owner of the company. This comes with several benefits, including, voting rights and dividend payments. As the name would imply, voting rights enable you to vote on the future of the company you’re invested in, the more shares you own the more votes you can cast. On the other hand, dividend payments are a company’s way of paying forward a portion of their profits to investors, typically this will occur either quarterly or yearly. 

ETFs (Exchange Traded Funds)

If you’re looking for a lower-risk alternative, then it’s hard to beat investing in an ETF. A fund manager or brokerage will bundle related assets into one fund to allow for easy investment. This means that in contrast to stocks, rather than investing in a single company, you’ll be investing in multiple related businesses. This has the distinct benefit of being far less risky than investing in a single company because if a particular company has a poor year, your other investments will shield you from catastrophic losses. 

CFDs (Contract For Difference)

Perhaps you’d prefer a higher-risk investment that has the potential to yield greater returns? If so, then you might be interested in a contract for difference. A CFD is a speculative instrument, this means that instead of investing in an asset, you’re simply taking an educated guess on whether the price will rise or fall. As such, CFDs are much better suited to short-term investments and day trading. You should be aware that when trading CFDs you’ll be taking advantage of small price swings. Meaning that to see worthwhile profits, you’ll likely need to use leverage. While this isn’t inherently negative it does mean that you’ll be taking on more risk and as such, CFD trading is only recommended for those with some degree of trading experience.

Are Stocks a Good Investment USA? 

Stocks present an incredible way of building wealth. Rather than having inflation slowly eat away at your savings, you can instead put your money to work and earn interest on top of it. While banks also offer that’s usually paid at below 1%, whereas you can earn 10x that from a single stock trade. 

Financial Freedom

The dream for many investors is to be financially free and stocks are an excellent way to help achieve this goal. If you invest $250 each month in an index fund like the S&P 500 after 30 years (1991-2021) you’d have $519,564.05 from an investment of just $90,000. When compared to holding your money in a bank the better option becomes clear, as a 0.5% interest rate would only yield $97,119.

Inflation

The majority of people try and save money in their bank account and while there’s nothing wrong with this, your money will be decreasing in value by around 2-3% each year due to inflation. This means that with $100,000 saved, you’ll be losing $3000 a year just for holding your money. Therefore, it’s clear to see that your money could be put to better use on the stock market. 

Investing in Stocks – What are the Risks

There isn’t a single investment in the world that is completely risk-free, no matter how unlikely you believe something to be, their potential is always there. In the stock market, these risks typically come in the form of volatility, bankruptcy, and unfavorable market conditions. 

Volatility

The stock market is inherently volatile. This is because although long-term performance is driven by statistics and fundamentals, over the short-term, market sentiment drives the price. Meaning that if a negative news article was released about a company, even if the claims were baseless, their share price would decrease.

Unforeseen Events

Nobody can predict the future and as such nobody knows how a certain event will influence a company’s share price. Because of this, even the most seasoned of investors can be caught out by an unexpected market swing. For example, take the 2008 housing crisis, banks were giving out loans like there was no tomorrow, leading to an unsustainable amount of debt. When homeowners couldn’t pay off their debt, the housing market collapsed, leaving real-estate investors severely out of pocket.  

How to Invest in Stocks with eToro

Investing in the stock market can be a difficult task, however, it doesn’t have to be! We’ve created this comprehensive guide detailing exactly how you can make your first investment in the stock market. It’ll walk you through all the steps of investing, so if you’re unsure of which steps you need to take next, just give it a read! 

Step 1: Open an account with eToro

A commonly overlooked aspect of investing is ensuring you’re registered with a trusted, high-quality brokerage. Without one, it’s easy to find yourself tied to a lackluster platform and paying unreasonable fees. To prevent this, we recommend eToro, their platform is simple to use and incredibly powerful. Just type “eToro.com” into your browser, press “Join Now” and fill in the required fields. 

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

Once you’ve registered with eToro you’ll need to verify your identity. This is because eToro is a regulated brokerage and has to comply with strict rules surrounding the protection of customers and their data. Luckily, all you’ll need in order to get verified is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).

Step 3: Fund your account

After your account has been verified, you’re only one step away from making your first investment. But before you can do that, you’ll need to fund your account. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Invest in Stocks!

Now that you’ve funded your eToro account, it’s time to make your first investment! Doing so couldn’t be easier, just type the name of the asset you like to purchase into the eToro search bar, press “Trade”, enter the amount you’d like to invest, and press “Open Trade”. You’ll be able to monitor your investment from the “Portfolio” section of your eToro account. 

Conclusion

To summarize, for many the stock market represents financial freedom, however, if your schedule isn’t aligned with the market it can be very hard to take advantage of price swings. This is where after-hours stockbrokers come into play, they allow investors to place trades after the usual market hours. For people working night shifts, or away from home, this is massive as it allows them to invest when they otherwise wouldn’t be able to. after-hours is subject to the same rules and fees as trading during market hours, this means that you’ll need to make sure you’re trading with a reputable broker because you could otherwise have a poor trading experience. eToro is our top-rated after-hours stockbroker and investors of all experience levels could definitely make good use of the features they offer. All in all, investing in stocks is a near-unbeatable way of building wealth, and trading with eToro makes the experience even better. 

eToro – Best Broker to Buy After Hours Stock

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.