Best Broker for Pre Market Trading

During regular trading hours, the stock market is crowded with people, so some investors prefer pre-market trading because during this time market is less crowded.

Look for a broker for pre-market trading that charge the same commission and still provide a wide range of trading services. Interactive Broker and TD Ameritrade are the best brokers for pre-market trading because they charge regular commissions. Some other traders like E*Trade charge an extra $0.005 a share for pre-market trades. 

Read up on E*Trade fee -

Brokers provide their policies for pre-market trading on their website so you can get ideas from their websites. Therefore, do not assume commissions and fees of brokers during market hours and outside market hours are the same.
Interactive Broker also shared the risks of outside regular hour trading are
  • reduced liquidity,
  • increased volatility,
  • and expanded error trade guidelines that traders should be aware of and willing to assume prior to transmitting active orders into the market during these time
Pre-market trading usually happens between 8:00 a.m. and 9:30 a.m. EST. 

We will discuss more on pre-market trading. It is said that you can find the best opportunities during pre-market trading. It can help in certain situations but not all the time. Some important moves take place before the opening of the stock market so that these moves can go in your favor.

Who Can Trade Pre-Market?

Pre-market trading is much riskier than regular trading because it is more volatile. However, some big moves that happen before market opening can create compelling opportunities. Ideally, pre-market trading is for bigger investors, but you and I can also do that. However, it wouldn’t be as effective as it is during market hours.

Benefits of Pre-Market Trading

Pre-market trading can be beneficial for you in many ways.

When you notice lots of movement in stocks offered by a particular industry, it can be an excellent catalyst for you once regular trading begins.

Company news, mergers, and earning reports can affect the overall market, and if the news is positive, you can make massive profits.

The pre-market can offer you information about the hot sectors, industries, and the direction of the economy.

So, even you don’t have intentions to trade pre-market, you can still observe what premarket movers are doing.


Pre-Market Activity

How can you move a step ahead in the pre-market? Follow the below-given actions and steps to stay ahead of the game.

Keep yourself updated with news

Always keep an eye on the news that can affect open stock positions. Some market upgrades, downgrades, and other stories can help you discover opportunities when the stock market opens again.

Look at index futures.

Make sure that you are keeping an eye on highs and lows of previous night sessions. You can get this information from different websites like the NASDAQ 100, etc. It is important to do so because it can create support during regular market hours.

Keep track of other traders.

Platforms like StockToTrade allow you to check the volume of securities and see what other traders are doing? You can keep track of where other traders are putting their money. It can help you during pre-market and market trading hours.

Consider the timing

Take time into consideration because holidays and release of earning reports can make a significant difference. So, be aware of the season earning and cash the moment.

Look and project

Look for closing and anticipated numbers for a given stock. It can help you to get an idea of who is getting benefits.

Tips for Pre-Market Trading

If you are thinking of trying your skills in pre-market trading, make sure that you have learned a lot about it. These tips can help you in pre-market trading but do your research work before making trades. All trading is risky, but pre-market trading is a bit riskier than regular market trading.

Understand the mood of the market.

Listen to the market and try to understand it and then trade accordingly. Professionals mostly do pre-market and after-hours trade, so it’s not a welcoming place for beginners. It’s not an easy task to find out entry and exit points because of high volatility and low volume. One big buy can change the market price and leave you regretting your decision to trading during extended hours. It is important to understand the market’s mood and trade accordingly.

Wait for regular market hours unless there is news.

During pre-market and after-hours trading, you might see a few people because it’s not that easy. During pre-market trading, there are bigger spreads and liquidity issues. Many people say that there is not too much to get from trading in the pre-market. Don’t trade in a rush. Wait for the news or events; otherwise, wait for the market to open. Don’t trade in an uncertain environment. When you see volume is gaining momentum, you can place your trade. Yes, pre-market trading exists for a reason, but there is no reason to jump in early unless there is no solid reason.

Use direct access brokers.

After-hours and pre-market trades take place under ECN networks. ECN is a type of alternative trading system. It is useful in the absence of traditional stock exchange. These platforms are advanced and can give you quick access, speed, and execution. So, if you are interested in frequent pre-market trades, then you can check these platforms.

Trading challenge

The best way to avoid mistakes in trading is to prepare you for it. The best way of training is to educate yourself as it will help to make smart decisions. Education is a must for everyone who wants to achieve their goals.


People who are interested in pre-market trading want to know the best broker for pre-market trading. Interactive Broker and TD Ameritrade are the best brokers for pre-market trading.

Some brokers charge a fixed commission per share as they do during regular market hours. Some traders charge extra for trading during the pre-market. Before jumping into pre-market trading, educate and prepare yourself. Understand the risk and benefits of pre-market trading. No doubt, it offers you opportunities to make a profit, but it is risky as well.

Sky Hoon. Read Full Bio
Website Owner, Twitter-er
He has been trading since 2008. He started this blog to share the journey about option trading. He dabbled in stocks, bitcoin, ethereum (in Celsius Network), ETF (lazy Dollar Cost Averaging) and also built websites for fun. He used this as a platform to share my experiences and mistakes in trading, especially options which I just picked up.