Bridging the Gap for International Partners and Retail Investors
Capital markets are evolving—and fast. Global retail investors have more access to US markets than ever before. From June 2020 to June 2024, foreign investment in US equities grew 84%, and 23% from June of 2023 to June of 20241. And according to US Federal Reserve data as of Q4 2024, overseas investors owned $16.5 trillion, or 18%, of US equities—the highest share on record2.
As foreign investment grows, international traders may no longer be satisfied with the constraints of the Monday-to-Friday, 9:30 AM to 4:00 PM EST trading window. Today’s investors are trading from primetime overnight and extended hour regions across APAC, EMEA, and Oceania and prefer not to be limited on when they can engage with US markets. They prefer access during hours that work for them.
For brokerages and fintech platforms looking to stay competitive, enabling 24/5 trading—24 hours a day, five days a week—isn’t just a forward-looking feature, it can be a strategic feature.
The Rise of 24/5 Trading
With the lines between traditional finance and digital-first investing somewhat blurred, 24/5 trading represents an inflection point in brokerage infrastructure. Markets are being influenced by decentralized finance, and investors seem to be growing accustomed to having constant access.
Crypto trades 24/7. News breaks around the clock. Yet many equity trading platforms only have access to traditional market hours with just a few brokers providing extended hours.
However, with the SEC's approval of 24/5 trading in November, 2024, the landscape is shifting. Several exchanges, including the NYSE, Cboe Global Markets, Nasdaq, and OTC Markets, are actively working to provide continuous access to US markets. Additionally, the Securities Information Processors (SIPs) recently announced their intent to submit a proposal to the SEC for extending official operating hours.
This can be impactful for brokers building or expanding into markets where local trading hours are misaligned with US equities sessions. Rather than having some traders operate during the middle of their night, you can now meet them where they are, better positioning yourself to help grow your platform.
The Benefits of 24/5 Trading for Brokers
Integrating a 24/5 trading solution isn't just about access—it's about adding value across your platform. There are several potential benefits to building a robust 24/5 trading infrastructure.*
Higher Order Flow and Trading Activity
Extending market hours can help increase engagement and give users more opportunities to trade. That means more flow, more data, and more monetization potential.
Asset Growth and Stickier AUC
Investors who can access markets on their terms may be more likely to fund accounts and maintain balances, potentially improving your AUC profile and downstream revenue opportunities.
Differentiation in a Crowded Market
With many brokers offering commoditized experiences, 24/5 trading can serve as a premium differentiator for high-value users and regions with limited market access.
Increased Conversion from Emerging Markets
As demand surges across LATAM, MENA, and APAC regions, providing local-time access to US markets may help to position you as the preferred platform in these growth markets. Rather than traders having to operate during the middle of their night, you can design a user experience that is customized to their needs.
Alpaca’s 24/5 Infrastructure is Engineered for Speed, Scale, and Simplicity
Alpaca’s 24/5 trading infrastructure was built from the ground up, serving broker-dealers, neobanks, and global fintechs that demand reliable performance. Whether you’re already offering equities and looking to extend your trading hours, or building a multi-asset experience from scratch, our infrastructure gives your team the flexibility to launch quickly and scale confidently.
- Enterprise-Grade Uptime: Built for reliability in always-on environments, our systems are built for low-latency and fast trade execution.
- Modern API Architecture: REST and FIX support for seamless integration with your OMS or backend.
- Order Routing: Alpaca handles all of the order routing for different sessions, requiring no extra lift for you.
- Market Data: Power your platform with trusted, real-time overnight data. Expand global access, help boost engagement during non-traditional hours, and give traders the flexibility they expect.
- Robust Documentation and SDKs: Get to market faster with battle-tested tools, developer resources, and clear documentation.
- Global Support: Work directly with our success managers and engineers to customize implementation and go-to-market planning.
“We recognized that today's investors expect market access that fits their lives, not the other way around,” says Hakan Bayraksan, Senior Director of Product at Alpaca. “Our 24/5 trading solution is engineered to provide that flexibility, offering enterprise-grade performance and simplifying the complexities of round-the-clock trading so our partners can focus on delivering value to their customers.”
Unlock Global Market Access with 24/5 Trading
The move to 24/5 trading is already underway. Brokerages who adopt early may help shape user behavior, capture untapped demand, and expand their global footprint. The question is no longer if 24/5 becomes the norm—it’s when.
Get Started
If you’re ready to modernize your brokerage and unlock the next phase of global retail growth, we’re here to help.
For prospective partners, please reach out to Alpaca’s Sales team at [email protected] or fill out the form below.
For existing partners, please contact your Customer Success Manager (CSM) or email the Success team at [email protected].
Still have questions? Learn more in our FAQs about 24/5 trading with Alpaca’s Broker API.
24/5 trading will be available to Trading API users soon.
About Alpaca
Alpaca is a US-headquartered self-clearing broker-dealer and brokerage infrastructure for stocks, ETFs, options, crypto, fixed income, and 24/5 trading – raising over USD170 million in funding. Alpaca is backed by top-tier investors globally, including Portage Ventures, Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, Unbound, SBI Group, Derayah Financial, Elefund, and Y Combinator.
References:
- Data is from Foreign Portfolio Holdings of the U.S. Securities Pg 6. and reflects data as of June 28, 2024. Calculations are as follows: 16,878 (Equities, 2024) - 9,168 (Equities 2020)/ 9,168 *100 = 84% and 16,878 (Equities, 2024) - 13,719 (Equities 2023)/ 13,719 *100 = 23% https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/shl2024r.pdf
- The US stock market has become the global market over the last 60 years. Will that continue? https://sherwood.news/markethttps://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/shl2024r.pdfs/us-stock-market-has-become-the-global-market-over-the-last-sixty-years/
Orders placed outside regular trading hours (9:30 a.m. – 4:00 p.m. ET) may experience price fluctuations, partial executions, or delays due to lower liquidity and higher volatility.
Orders not designated for extended hours execution will be queued for the next trading session.
Additionally, fractional trading may be limited during extended hours. For more details, please review Alpaca’s Extended Hours Trading Risk Disclosure.
Please note that this article is for general informational purposes only and is believed to be accurate as of the posting date but may be subject to change. The examples above are for illustrative purposes only.
All investments involve risk, and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not ensure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Cryptocurrency is highly speculative in nature, involves a high degree of risks, such as volatile market price swings, market manipulation, flash crashes, and cybersecurity risks. Cryptocurrency regulations are continuously evolving, and it is your responsibility to understand and abide by them. Cryptocurrency trading can lead to large, immediate and permanent loss of financial value. You should have appropriate knowledge and experience before engaging in cryptocurrency trading. For additional information, please click here.
The testimonials, statements, and opinions presented on the website are applicable to the specific individuals. It is important to note that individual circumstances may vary, and may not be representative of the experience of others. There are no guarantees of future performance or success. The testimonials are voluntarily provided and are not paid, nor were they provided with free products, services or any other benefit in exchange for said statements.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
Cryptocurrency services are made available by Alpaca Crypto LLC ("Alpaca Crypto"), a FinCEN registered money services business (NMLS # 2160858), and a wholly-owned subsidiary of AlpacaDB, Inc. Alpaca Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Please see the Disclosure Library for more information.
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