How to Buy Premarket Stocks – Top 3 Premarket Stock Brokers

Fact Checked by Gary McFarlane

Trading stocks can be incredibly lucrative when done correctly. The ability to make money while you’re sleeping from just an hour or two’s work is a phenomenal tool to build wealth. The only downside to the stock market is that it’s only open for a few hours each day, typically, between the hours of 9:30am and 4pm. Because of this, trading can be difficult if you’re not free during these hours as you’re likely to miss out on opportunities. This is where buying premarket stock comes into play. If you’re trading with a broker that supports premarket trading you can buy stocks outside of the regular trading hours, meaning you can better react to news released by companies. 

To take advantage of premarket stocks, you’ll need to trade with a broker that supports them. Throughout this guide, we’ll be providing you with detailed reviews on the top 4 premarket stock trading platforms, as well as, an in-depth guide on exactly how you can buy your first premarket stock. 

#1 Broker to Buy Premarket Stock – eToro

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

How to Buy Premarket Stocks – Step by Step Guide 2021

Learning how to use a new trading platform can be a confusing task, so to make life a little easier for our readers we created this quick and easy guide. You should be able to quickly learn how to buy premarket stocks, however, if you’d prefer a more comprehensive guide, you can find that toward the bottom of the page.

  • Step 1: Open an eToro Account: The first thing you’ll need to do when buying premarket stocks is register with a trusted broker. eToro is our top choice. Just type “eToro.com” into your browser, press “Join Now”, and fill in the form. 
  • Step 2: Verify your Identity: Once you’ve created an eToro account, you’ll need to verify your identity. This is because eToro is a regulated platform. All you’ll need at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your Account: Now that your identity has been verified, you’ll need to fund your account. To do this simply 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: Buy Premarket Stocks: After the funds have arrived in your eToro account, you’re ready to buy your first premarket stock. Click on the eToro search bar, enter the name of the asset you’d like to purchase, press “Trade”, type in the number of shares you’d like to buy, and press “Set Order”. You can view and manage your investment from the portfolio section of your account. 

Where to Buy Premarket Stocks – Choose a Broker

There are hundreds of different brokers out there, but unfortunately, not all of them are that great. It’s easy to get suckered into a subpar platform because of a slick marketing campaign, so to ensure nothing like that happens to any Economy Watch readers, we’ve provided in-depth reviews on the four best premarket stock trading platforms. 

1. eToro – All-Around Best Premarket Stock Trading Platform 

eToro is a titan of the investment space. Originally founded in 2007, eToro has grown to serve more than 20 million active users, making it one the largest investment platforms in the world. Regardless of your skill level, you’ll be right at home on eToro as they’ve made sure to include features relevant to everyone.

Security

Security is one of the most important aspects of any trading platform, if the security is lackluster, client funds are simply not safe. So, to keep the funds of more than 20 million users safe, it makes sense eToro has some pretty beefy security. They’re regulated by the SEC, meaning it would be extremely difficult for them to engage in illicit activities behind the scenes. Client data is protected using SSL encryption while it travels from a user’s device to the eToro central server, rendering it useless if it were to be intercepted by a hacker. And on top of all this, eToro allows every user to enable 2-factor authentication (something we wholeheartedly recommend) which acts as a last line of defense in case a client account was compromised. 

Features

For a platform to accumulate more than 20 million users in such a short timeframe, it’s got to have some pretty great features. eToro has created a platform called eToro Academy, that helps to educate new traders and teach them the basics of investing and the stock market. Another feature beloved by beginners is eToro’s CopyTrading. It’s an automated social trading system that allows users to automatically mirror the trades of more experienced users, meaning you’re able to learn trading strategies while earning profit. eToro does of course support premarket trading, however, only on popular stocks, so while this shouldn’t cause an issue for the majority of people, it is the one noteworthy downside to an otherwise excellent trading platform. When buying a premarket stock with eToro, your trade will be placed and then automatically executed at the first available rate. 

eToro Fees

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

 

Pros

  • Regulated
  • SSL encryption
  • eToro academy 
  • Premarket trading 
  • CopyPortfolio
  • 2FA

Cons

  • Premarket trading only available on popular stocks

68% of retail investor accounts lose money when trading CFDs with this provider.

2. Fidelity – International Premarket Stock Trading Platform

Fidelity is one of the best-known brokers in the world, even if you haven’t used them to trade with before, the chances are that you would’ve seen one of their ETFs on another platform. They were founded in 1969 and have managed to amass more than 37 million users (2.5 million on Fidelity international). 

Security 

It makes sense that a platform with a 50+ year track record has watertight security, without it it’s unlikely Fidelity would’ve lasted as long as they have. To ensure client data is handled correctly, they follow strict regulations outlined by the SEC, along with several other authoritative bodies. While many platforms use some form of biometrics (fingerprint scanner, face detection, etc) to make accessing your account easier, none do it quite like Fidelity. They use a voice biometrics system that can be used on any device equipped with a microphone, making it far more accessible than some alternatives that require specialist components. On top of this, Fidelity has an encrypted messaging system that clients can use to speak to a genuine Fidelity representative, greatly reducing the chance of a successful phishing attack. 

Features

Fidelity has something for every kind of investor. They allow users to invest in just about every market you could imagine, from stocks to forex. Having the ability to invest in a range of markets can be crucial for investors looking to migrate multiple positions or diversify their portfolios. Fidelity has a dedicated team of researchers and analysts that create top-quality market research for Fidelity’s clients. This research is some of the most comprehensive in the industry and can be a big help for anyone wanting to make better-informed decisions. Anyone wanting to get ahead of the market by buying premarket stocks can do so between the hours of 7am and 9:28am, with aftermarket trading taking place between 4pm and 8pm. On top of all this, Fidelity users also have access to a personal financial advisor, however, it should be noted that you will incur some charges for consulting unless you’re a “high-value” client. 

Fidelity Fees

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

 

Pros

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

Cons

  • Could be too complex for beginners
  • No support for crypto
  • A financial advisor isn’t free unless you’re a high-value client

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Webull – Fastest Growing Premarket Stock Trading Platform 

One of the fastest-growing trading platforms out there, Webull has managed to accumulate over 11 million users in just four short years of operation, a seriously impressive feat if you ask us. You might be asking yourself, “how has Webull achieved this level of success” well it can be predominantly chalked up to a migration of Robinhood users and the phenomenal trading experience Webull offers. 

Security & Privacy

If you’re concerned about Security one Webull, don’t be. They offer top-of-the-line security and cover their users in all aspects. Firstly, Webull, like any reputable broker these days, is regulated by the SEC, massively reducing the chance of them attempting a rug-pull. Even if Webull went into insolvency, its users are covered by SIPC insurance on securities balances up to $500k and cash balances of up to $250k. Another way Webull protects its users is by implementing a piece of technology called “Plaid” that allows users to securely log into the bank. Combine this with Webull’s use of AES-256 encryption used to prevent client data from falling into the wrong hands and it becomes clear just how serious they take security. 

Features

Webull has done well to create a trading platform that’ll be useful to just about everyone. One of the ways they’ve achieved this is by allowing users to trade using a practice account, this allows people to sharpen their skills and perfect trading strategies without the need for risking real money. Anyone using Webull to buy premarket stocks can also take advantage of their rewards system. Webull gives users one free stock (valued between $3 – $1600) for completing certain account actions, although the promotion changes each month it typically involves things like referring friends and depositing a certain amount. Webull’s premarket trading hours are between 4am and 9:30am, giving you plenty of time to buy premarket stocks. The only thing somewhat letting Webull down is their lack of real-time support, users will instead have to try their luck with the email support system. While this isn’t necessarily a dealbreaker by itself, it’s certainly an inconvenience.

Webull Fees

Fee Type Fee Amount 
Commision Fee 0%
Transaction Fee (Sells Only) 0.00051% (Min US$0.01)
Deposit Fee $0
Withdrawal Fee $0

 

Pros

  • SIPC insurance
  • AES-256 encryption
  • Practice account
  • Premarket & aftermarket trading 
  • Earn a random stock
  • Plaid

Cons

  • Lack of real-time support 

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Premarket Stocks – Broker Price Comparison

To help you gain a better understanding of how each broker stacks up against one another, we’ve included this handy table. You should always consider the fees a platform charges before trading with them.

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Fidelity 0% $0 $0 $0
Webull Commission 0% / 0.00051% (Min US$0.01) Transaction fee $0 $0 $0

 

What are the Different Kinds of Stocks? 

If you plan on investing, it’s advisable to familiarize yourself with the different investment types most commonly used. Just about every broker worth their salt will allow you to trade all of these types of investment (except specialist brokers). So without further ado, here’s the rundown of the most common investment types. 

Stocks 

By far the most common and easy-to-understand type of investment is a stock (Sometimes referred to as a share). When you buy a stock, you’re buying a fraction of a company. This means that by purchasing a share you’re technically a part-owner of the business. This comes with several benefits like voting rights and dividend payments, the amount of each you’ll receive is based on the number of shares you own. 

ETFs (Exchange Traded Funds)

An ETF otherwise referred to as an exchange-traded fund is a type of financial instrument created by a brokerage or fund manager with the goal of mirroring the performance of a certain index (e.g the S&P 500). ETFs contain a variety of assets, making them great for anyone wanting to minimize risk. While ETFs are an excellent way of accumulating wealth with minimal risk, the returns you receive are often overshadowed by investing directly in a company’s stock. You should bear in mind that when investing in an ETF, you’re not buying any of the underlying assets. 

CFDs (Contract For Difference)

A CFD sometimes called a contract for difference, is a speculative investment that works slightly differently from the other investment types we’ve discussed. With a CFD you don’t have to own any assets to earn a profit, instead, you speculate on whether the price of a certain asset will increase or decrease in value, earning money on the difference between your entry and exit price. Typically CFDs are leveraged and are better suited to short-term investments. As with any leveraged instrument, it’s advisable to only use a CFD if you have a solid understanding of the market and the risks associated with trading using leverage.

What Are Some Advantages to Premarket Trading? 

If done correctly, premarket trading can be hugely beneficial. It allows investors to attain stock for a cheaper price than would otherwise be possible, as you’re able to better react to news released after the usual trading hours. Because of this, buying premarket stock can result in greater earnings than if you were to buy during regular market hours, something I’m sure nobody will shake their head at. 

Better Prices

Sometimes news can be released after normal trading hours that is set to have a massive impact on the price of a certain stock. In the past, the only people able to take advantage of situations like this were institutional investors. However, in recent years this has changed. Now, most high-quality brokers support some form of premarket trading, meaning retail investors are now able to get in on the action. Buying premarket stocks is an excellent way of increasing your positions on the cheap, as you’re typically able to buy premarket stocks for a better price than if you were to wait for the market to open (due to increased trading volume).

Simplicity

While some traders are forced to stay up late or wake up early if you use a platform that supports premarket trading you can simply set your orders and let the platform do the rest. This gives you more time to focus on important aspects of trading like finding gems to invest in and performing technical analysis. As a result, you’re able to earn more with a platform that supports premarket trading than you otherwise would. 

How to Buy Premarket Stocks with eToro

If you’re wondering how you can use premarket stocks to your advantage, then we’ve got you covered! This guide will detail exactly how to buy premarket stocks with top-rated broker eToro. After you’ve finished this section, you’ll have all the knowledge required to pull the trigger and buy some premarket stocks.

Step 1: Open an account with eToro

If you want to buy premarket stocks to increase your earnings, you’ll first need to register with a reputable broker. eToro is our top pick for the best premarket stock broker because it’s easy-to-use and powerful. To sign-up 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

eToro is a regulated broker, while this has security advantages for investors, it also means that you’ll need to verify your identity. Luckily, this process is quick and easy, it should only take a few minutes to complete. The only documents you’ll need to have at hand are a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 

Step 3: Fund your account

Once your account has been verified, you’re only one step away from buying premarket stock. The last thing you’ll need to do is 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: Buy Premarket Stocks!

Now that you’ve funded your eToro account, you’re ready to buy premarket stocks. Just type the name of the asset you’d like to buy into eToro’s search bar, press “Trade”, enter the number of shares you want to buy, and press “Set Order”. You can monitor and manage your position from the portfolio section of your account. 

Conclusion

Oftentimes, a company will wait until the market closes to release important news, typically resulting in a large price by the time the market is open and can react. However, if you trade with a premarket broker you’re able to place orders prior to the market opening, meaning you can open positions at a better price than would be otherwise possible. This, of course, means you can earn more profit trading with a premarket broker. I’m sure there are very few investors that would turn their nose up at the opportunity of earning more profits, so the question becomes “Which brokers support premarket trading?” Throughout this article we’ve discussed the top 4 premarket brokers but if you’re still unsure on who to go with, let us offer you a recommendation. Investment titan, eToro, offers the best blend of ease-of-use, security, and features out of any of the brokers we’ve explored in this article. All in all, buying premarket stocks can be a great way of increasing your overall profits and there’s no better broker to do so than eToro. 

eToro – Best Broker to Buy Premarket 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

What is a Premarket Stock?

What are the Usual Market Hours?

Are Stocks Safe?

What is a Regulated Broker?

Which Premarket Stock Broker is the Best?

 

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.