What Platforms Let You Trade Premarket

Are you an early bird investor looking to get a head start on the markets? If so, you may be wondering what platforms let you trade premarket. Premarket trading refers to the buying and selling of stocks before the official market open, giving investors the opportunity to react to overnight news and events that may impact stock prices. In this article, we will explore some of the top platforms that offer premarket trading and how you can take advantage of this unique trading window.

What is Premarket Trading?

Before we dive into the platforms that offer premarket trading, let's first understand what premarket trading actually is. Premarket trading takes place before the official opening of the stock market, allowing investors to trade securities with limited liquidity. This means that prices can be more volatile during this time, as there are fewer buyers and sellers in the market.

Platforms That Offer Premarket Trading

1. Robinhood: Robinhood is a popular commission-free trading platform that allows users to trade premarket starting at 9:00 am EST. This platform is known for its user-friendly interface and accessibility for beginner traders.

2. Tradestation: Tradestation is another platform that offers premarket trading starting at 8:00 am EST. This platform is more geared towards advanced traders and offers a wide range of tools for technical analysis.

3. E*Trade: E*Trade opens its premarket trading session at 7:00 am EST, giving traders an early start to the day. This platform is well-known for its research and educational resources to help traders make informed decisions.

Tips for Trading Premarket

• Do your homework: Research any overnight news or events that may impact the stock prices you are interested in trading.
• Use limit orders: Since prices can be more volatile during premarket trading, consider using limit orders to set specific buy or sell prices.
• Be aware of the risks: Keep in mind that premarket trading can be riskier due to the lower liquidity and higher volatility compared to regular trading hours.

In conclusion, trading premarket can be a valuable tool for investors looking to take advantage of early market movements. By using the right platforms and following best practices, you can make the most of this unique trading opportunity.