How mobile-app-happy investors are driving the 24-hour trading cycle

The growing possibility of being able to trade outside of the time-honored 9:30 a.m. to 4 p.m. cycle — most recently attempted by Robinhood in May when the company introduced 24-hour trading in 43 of the most active U.S. exchange-traded funds — is being fueled by a changing demographic of investors and advancing mobile technology. 

About 16% (by dollar volume) of all stock trades occurred after hours in December 2022, according to the FINRA Industry Snapshot report. That's up about 2% from the same time the year prior and about 4% up from 2020, according to the report. The number of registered reps increased to 620,882 in 2022, from 612,435 in that same time period

In an internal analysis, we've noticed that international brokers are taking an increasingly mobile-first approach to trading — versus web- or desktop-based — as global brokers look to provide investors access to the U.S. market in addition to their local exchanges. Traditionally, this practice has been aimed at millennials, the first generation to grow up with the internet. Now with midlife on the horizon — and against the backdrop of market volatility, high inflation and a banking crisis — younger investors are taking their longer-term savings goals much more seriously. 

That said, web-based investing is not likely to be phased out by mobile applications. Dual functionality in a web app offers tools to complement mobile apps. It helps bridge the gap for brokers who want to capture a wider demographic audience, allowing older users to utilize traditional applications to place trades while the younger generations use mobile.

Information, fast
In the past, retail traders and investors often have used a variety of resources to stay abreast of the news and access educational content that may impact the market. Now, however, brokers can push market news, order updates and research to users directly through the mobile app — with the added benefit of keeping users in the app longer.

In the retail sector, mobile trading's main benefit is real-time access to information, which allows investors to take advantage of sudden changes in the market, regardless of their physical location. Mobile trading applications facilitate live market data, including stock indices, share pricing, etc. Traders'  existing portfolio can be reviewed on mobile itself in no time. A user can take a brief look at the performance of their positions and adjust their investments on the fly.

Currently, investors can trade as early as 4 a.m. ET and as late as 8 p.m. ET, thanks to premarket and post-market trading sessions offered by the New York Stock Exchange. Other market operators have registered to extend hours with the SEC. 

And while longer trading periods may not happen overnight, younger retail investors, armed with a different attitude to using technology, are reshaping the way the world invests right now.