Robinhood, the online brokerage firm, launched its 24-hour trading platform called the “Robinhood 24 Hour Market” last year, enabling retail investors to trade stocks and ETFs around the clock, five days a week. Now, the platform has recorded a total overnight trading volume exceeding $10 billion since its launch.
According to Robinhood’s recent report, the platform has experienced a significant shift in trading patterns, with a notable increase in trading activity outside traditional market hours. On the busiest days, as much as 25% of the total daily trading volume has occurred during the overnight session, highlighting the growing demand for extended trading hours.
The Robinhood 24 Hour Market service was first introduced in May 2023 and made available to US clients. After a trial period, it was made available to all Robinhood customers in July.
“We believe the future of investing is here, and it’s around the clock,” the company commented in the official press release. “Over the past several weeks and months, we’ve seen a significant shift in 24 Hour Market trading activity and a notable increase in adoption by Robinhood customers outside of traditional market hours.”
Since we launched Robinhood 24 Hour Market last year, we’ve executed $10B in trading volume during overnight hours. On our busiest days, we’ve seen as much as 25% of the total daily trading volume come from outside of regular market hours.
— Vlad Tenev (@vladtenev) March 6, 2024
The report further revealed that the average daily trading volume for the overnight session has grown consistently every month since September 2023. February marked the highest average daily trading volume for the overnight session since the platform’s inception, with volume levels 1.6 times higher than January, twice as high as December, and 2.6 times higher than November.
The single biggest trading day in terms of overnight volume was recorded on the evening of 3 March into the morning of 4 March, underscoring the platform’s popularity and the increasing appetite for 24/7 trading among retail investors.
More Companies Offer Extended Trading Hours
Robinhood has expanded the number of symbols available for overnight trading in the US to 922, including some of the most traded ETFs and individual stocks. This move has further democratized the investment landscape, allowing investors to trade on their own schedules, regardless of traditional market hours.
Since we launched Robinhood 24 Hour Market last year, we’ve executed $10B in trading volume during overnight hours. On our busiest days, we’ve seen as much as 25% of the total daily trading volume come from outside of regular market hours.
— Vlad Tenev (@vladtenev) March 6, 2024
The Robinhood 24 Hour Market operates from 8:00 pm ET on Sunday to 8:00 pm ET on Friday, allowing investors to execute trades at their convenience. Customers can place limit orders, set trading hours, and choose the number of shares they wish to buy or sell, all within the user-friendly Robinhood app.
However, the company is not alone in its efforts. Previously, a similar offering was presented by eToro, as well as Moomoo, the trading app of the brokerage firm Futu. The latest report from European Spectrum Markets revealed that as of early 2024, every third transaction took place outside traditional market hours.
