Best Broker For Pre Market Trading

Category: Broker Guides | Author: Trading Brokers | Date: August 28, 2023

The stock market is a dynamic and competitive arena, where investors are constantly looking for ways to beat the market and maximize their returns. One of the ways that some investors try to achieve this is by trading in the pre-market. Trading in the pre-market can offer some advantages, such as the ability to act on breaking news, access to more trading hours, and potentially lower commissions. However, trading in the pre-market also has some challenges, such as lower liquidity, higher volatility, and limited order types.

In this article, we will review some of the best brokers for pre-market trading, based on their features, performance, and user feedback. We will also provide some factors to consider when choosing a broker for pre-market trading. Let’s get started!

What is Pre-Market Trading?

Pre-market trading is a type of extended-hours trading that allows investors to buy and sell stocks before the regular trading session begins. It can offer some advantages, such as the ability to react early to overnight news, access to more trading hours, and potentially lower commissions. However, it also has some drawbacks, such as lower liquidity, higher volatility, and limited order types.

In the U.S., the regular trading session runs from 9:30 a.m. to 4 p.m. EST for major exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq. However, some brokers offer pre-market trading as early as 4 a.m. or as late as 8 p.m. EST, depending on the platform and the market.

Pre-market trading is facilitated by electronic communication networks (ECNs), which are platforms that match buyers and sellers without intermediaries, such as market makers or specialists. ECNs allow investors to trade directly with each other, bypassing the traditional market structure and rules.

Pre-market trading is not for everyone, as it involves higher risks and lower liquidity than regular trading hours. Investors who want to trade in the pre-market should be aware of the challenges and limitations of this type of trading, and have a clear strategy and risk management plan.

Factors to Consider When Choosing a Broker For Pre Market Trading

There are many factors to consider when choosing a broker for pre-market trading, such as:

  • Trading hours: Different brokers have different trading hours for the pre-market. Some brokers offer pre-market trading as early as 4 a.m. EST, while others start at 7 a.m. or 8 a.m. EST. You should check the trading hours of the broker you are considering and see if they match your trading schedule and strategy.
  • Fees and commissions: Some brokers charge regular commissions for pre-market trades, while others charge extra fees or higher commissions. You should compare the fees and commissions of different brokers and see which one offers the best value for your money.
  • Platforms and tools: Some brokers offer advanced platforms and tools for pre-market trading, such as direct access routing, hot-key support, advanced charting, market news and insights, stock screener, watchlist support, and more. These platforms and tools can help you execute your orders faster and more efficiently, as well as analyze market trends and opportunities.
  • Customer service and support: Pre-market trading can be challenging and risky, especially for beginners. You may encounter technical issues, order errors, or other problems that require assistance from the broker. You should check the customer service and support of the broker you are considering and see how responsive, helpful, and knowledgeable they are.
  • Reputation and reliability: Pre-market trading involves dealing with electronic communication networks (ECNs), which are platforms that match buyers and sellers without intermediaries. ECNs can have glitches, delays, or outages that can affect your trading performance. You should check the reviews and feedback of other pre-market traders who have used the broker before and see what they say about their experience.

List of Top Brokers For Pre Market Trading

Here are some of the best brokers for pre-market trading, based on their features, performance, and user feedback:

IC Markets

This broker offers pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with low spreads, fast execution, and no commission account options on forex and CFDs. IC Markets is one of the largest and most reputable brokers in the world, with over 230,000 clients and a daily trading volume of over $15 billion. IC Markets is regulated by the top-tier ASIC in Australia and the CySEC in Cyprus, providing a high level of trust and security for traders. IC Markets also offers a variety of platforms and tools, such as MetaTrader 4, MetaTrader 5, cTrader, and more. These platforms and tools allow traders to access advanced features, such as direct market access (DMA), one-click trading, automated trading, social trading, market analysis, and more. IC Markets has a great customer service team that is available 24/7 via live chat, phone, or email. IC Markets is suitable for traders of all levels and styles, especially those who are looking for low-cost and reliable pre-market trading.

IC Markets Logo

IC Markets is the world’s largest true ECN trading broker offering over 2,000 trading instruments across multiple markets on the most popular trading platforms. They are a multi-regulated broker with deep liquidity pools that can provide you with rapid trade execution speeds, low spreads, low commission fees, various funding options and 24/7 support.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Pepperstone

This broker offers pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with competitive pricing, advanced platforms, and excellent customer service. Pepperstone is a leading online broker that has been in the industry since 2010. Pepperstone is regulated by the FCA in the UK, the ASIC in Australia, the DFSA in Dubai, the CySEC in Cyprus, the SCB in the Bahamas, and the CMA in Kenya, ensuring a high standard of oversight and protection for traders. Pepperstone also provides a range of platforms and tools, such as MetaTrader 4, MetaTrader 5, Autochartist, and more. These platforms and tools enable traders to access various features, such as market depth (Level II pricing), scalping support (no restrictions on stop loss or take profit levels), automated trading (Expert Advisors), and more. Pepperstone has a friendly and professional customer support team that is available 24/5 via live chat, phone, or email. Pepperstone is ideal for traders who want to access pre-market trading with a reputable and award-winning broker.

Pepperstone Logo

Pepperstone are one of the largest brokers providing traders worldwide access to trade across all of the major global markets with cutting edge technology, modern platforms, low costs, high speed execution, convenient funding options and award-winning customer service.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

XM Group

This broker offers pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with zero fees, flexible leverage, and multiple account types. XM Group is a well-established broker that has been serving clients since 2009. XM Group is regulated by the ASIC in Australia, the FCA in the UK, the CySEC in Cyprus, the IFSC in Belize, the DFSA in Dubai, and the FSA in Seychelles, providing a diverse and secure regulatory environment for traders. XM Group also offers a variety of platforms and tools, such as MetaTrader 4, MetaTrader 5, XM WebTrader, and more. These platforms and tools allow traders to access various features, such as multi-asset trading, customizable leverage, multiple account types, social trading, and more. XM Group has a responsive and helpful customer service team that is available 24/5 via live chat, phone, or email. XM Group is suitable for traders who want to enjoy pre-market trading with no hidden costs and a wide choice of platforms.

XM Logo

XM Group is a multi-award winning globally established and regulated broker that offers tight spreads, fast execution speeds and low commission fees, for trading over 1,000 instruments on user-friendly platforms. They also provide education, market analysis tools and convenient funding options.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

FP Markets

This broker offers pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with tight spreads, high-speed order processing, and a range of trading instruments. FP Markets is a leading broker that has been operating since 2005. FP Markets is regulated by the ASIC in Australia and the CySEC in Cyprus, providing a trustworthy and transparent trading environment for traders. FP Markets also offers a variety of platforms and tools, such as MetaTrader 4, MetaTrader 5, Autochartist, and a lot more. These trading platforms and tools enable traders to access various features, such as ECN pricing (raw spreads from 0.0 pips), fast execution, diverse trading instruments (over 10,000 instruments across forex, CFDs, stocks, indices, commodities, cryptocurrencies), market analysis, trading education, trading automation, and more. FP Markets has a dedicated and knowledgeable customer support team that is available 24/5 via live chat, phone, or email. FP Markets is ideal for traders who want to access pre-market trading with a comprehensive and customizable platform offering.

FP Markets Logo

FP Markets is an established and regulated broker that offers 10,000+ trading products across multiple global markets. They have award winning platforms with transparent pricing, fast execution speeds and competitive trading costs.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Axi

This broker offers pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with low costs, reliable execution, and award-winning support. Axi is a global broker that has been providing services since 2007. Axi is regulated by the FCA in the UK, the ASIC in Australia, and the DFSA in Dubai. Axi also holds licenses from the St. Vincent & The Grenadines Financial Services Authority (SVGFSA) as well as the Financial Services Authority of Seychelles (FSA SC), providing a level of safety and security for traders. Axi also offers a variety of platforms and tools, such as MetaTrader 4, MT4 NexGen, and more. These platforms and tools allow traders to access various features, such as low spreads (from 0.0 pips), fast execution, diverse trading instruments (over 80 currency pairs, gold, silver, oil, indices, cryptocurrencies), market analysis, trading education, trading automation, and more. Axi has an excellent customer service team that is available 24/5 via live chat, phone, or email. Axi is suitable for traders who want to trade pre-market with a low-cost and award-winning broker.

Axi Logo

Axi is an award winning, regulated online broker created by traders for traders. They offer tight spreads, low commissions, rapid trade execution speeds and a range of different markets. Advanced platforms and trading tools ensure an excellent trading experience.

70% of retail investor accounts lose money when trading CFDs with this provider.

Conclusion

Pre-market trading is a type of extended-hours trading that allows investors to buy and sell stocks before the regular trading session begins. It can offer some advantages, such as the ability to react early to overnight news, access to more trading hours, and potentially lower commissions. However, it also has some drawbacks, such as lower liquidity, higher volatility, and limited order types.

To trade in the pre-market, you need a broker that offers this service and meets your needs. IC Markets, Pepperstone, XM Group, FP Markets, and Axi offer pre-market trading from 4:00 a.m. to 9:30 a.m. EST, with low costs, reliable execution, and award-winning support. They also provide a variety of platforms and tools to help you trade effectively and efficiently in the pre-market.


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