The Risks and Rewards of 24/7 Stock Trading: Is Perpetual Access a Boon or a Bane for Retail Investors?

The evolution of global capital markets has entered a new era, driven by the rise of 24/7 stock trading. What was once a niche experiment in extended-hours trading has now become a structural shift, reshaping liquidity dynamics, regulatory frameworks, and investor behavior. For retail investors, this perpetual access to markets presents both unprecedented opportunities and significant risks.

The Rewards: Democratization and Real-Time Responsiveness

The proliferation of 24/7 trading has democratized access to capital markets, particularly for younger, tech-savvy investors. According to a Liquidnet analysis, retail investors now account for 20-35% of daily trading volume in the U.S., U.K., and South Korea, with even higher participation in India (40%) and China (80%). This surge is fueled by commission-free platforms, mobile apps, and improved financial literacy, enabling middle-income earners and Gen Z investors to engage in real-time trading.

Extended trading hours also allow retail investors to react swiftly to macroeconomic events or earnings releases. For instance, pre-market trading now constitutes 55% of extended-hours volume on the NYSE, with 11% of daily trading activity occurring outside traditional hours, according to an ARC Group report. This flexibility has empowered retail investors to capitalize on global news cycles, such as geopolitical developments or corporate announcements, without waiting for regular market sessions.

The rise of 24/7 trading has also broadened market participation beyond institutional players. In 2025, retail investors purchased a net $270 billion in U.S. equities in the first half of the year, contributing to the resilience of the bull market, ARC Group found. This trend has even influenced public listings, with companies like Gemini Space Station reserving IPO shares for retail investors, resulting in oversubscribed offerings, ARC Group noted.

The Risks: Liquidity Gaps and Structural Challenges

Despite its benefits, 24/7 trading introduces critical risks, particularly for retail investors. A significant portion of after-hours trading occurs on alternative trading systems (ATS) or dark pools, which lack the transparency of traditional exchanges. Data from Liquidnet highlights that these platforms often exhibit wider bid-ask spreads and reduced liquidity, disadvantaging smaller investors. For example, retail participants trading in ETFs saw their share of volume rise from 5.2% to 6.4% in 2025, but many of these trades occurred in less-efficient venues, according to an SSRN study.

Volatility is another concern. ARC Group observed that concentrated retail flows into popular stocks-often driven by options activity-can create abrupt market reversals. This was evident in 2025, when sudden shifts in retail sentiment caused sharp price swings in high-profile equities. Additionally, the feasibility of staffing 24/7 exchanges and defining daily trading volumes remains a logistical challenge for market infrastructure, a World Economic Forum analysis argues.

Market Structure Evolution: Crypto's Influence and Regulatory Adaptations

The evolution of 24/7 trading is not confined to traditional equities. The cryptocurrency sector has pioneered innovations in market microstructure, offering lessons for broader markets. For instance, Solana developers have introduced Application-Controlled Execution (ACE), a system designed to enhance fairness and efficiency in decentralized trading, as outlined in a Coinotag article. These advancements, while crypto-specific, underscore a broader trend of reimagining market structures to accommodate 24/7 activity.

Regulatory efforts are also adapting. In 2025, the U.S. House passed the CLARITY Act, a crypto-focused market structure bill, signaling a growing consensus on the need for clear rules in digital asset trading, as reported by a Decrypt report. While this legislation targets crypto, its principles-such as transparency and investor protection-could influence traditional equity markets as they expand their hours.

Conclusion: Balancing Access and Accountability

The rise of 24/7 stock trading represents a double-edged sword for retail investors. On one hand, it democratizes access and empowers individuals to engage with markets in real time. On the other, it exposes them to liquidity gaps, volatility, and infrastructure limitations. As market structures continue to evolve, regulators and exchanges must prioritize transparency and education to mitigate risks. For now, the challenge lies in balancing the boons of perpetual access with the need for accountability-a task that will define the future of global capital markets.