After-Hours Trading in Australia: Risks, Opportunities & 2025 Trends

The Australian sharemarket’s famous closing bell isn’t the end of the action. With global news breaking 24/7 and US tech giants releasing earnings while we sleep, after-hours trading is gaining momentum among Aussie investors. But what does it actually mean to trade outside the ASX’s standard hours, and how can you use this tool to your advantage in 2025?

What Is After-Hours Trading?

After-hours trading refers to buying or selling financial securities outside of the Australian Securities Exchange’s (ASX) regular hours (10am–4pm AEST). Traditionally, Aussie investors had to wait for the market to open to react to overnight news. Now, select brokers offer access to international markets or extended trading sessions—meaning you can respond to global events in real-time.

• Extended access: Platforms like IG, CMC Markets, and Saxo offer after-hours trading on US and UK equities, indices, and sometimes even on a handful of ASX stocks via contracts for difference (CFDs).

• React to overseas news: Major company earnings, US Federal Reserve announcements, or geopolitical developments can all move markets overnight.

• Liquidity and pricing: Trading outside normal hours often means lower volumes and wider spreads, so prices can move sharply on limited trades.

Who Can Benefit—and What Are the Risks?

After-hours trading isn’t just for insomniac day traders. Here’s who might benefit—and what to watch out for:

• Active traders: Want to capitalise on market volatility triggered by out-of-hours announcements.

• Global investors: Aussies with exposure to US tech or European blue chips can react instantly to news and results.

• Risk-tolerant investors: After-hours moves can be more pronounced, so the potential for outsized gains (and losses) increases.

But tread carefully:

• Lower liquidity: Fewer buyers and sellers means your trades might not execute at your preferred price.

• Wider spreads: The gap between buy and sell prices can widen, making it more expensive to get in or out.

• Volatility: Prices can swing wildly on news, sometimes reversing sharply when the main market reopens.

• Limited availability: Not all stocks or ETFs are available for after-hours trading, and some platforms only offer CFDs rather than direct share trading.

Example: In February 2025, Meta (Facebook) released its earnings after the US close. Australian investors using after-hours platforms saw Meta’s share price jump 8% in minutes—well before the ASX’s next session. For those quick on the trigger, the opportunity (and risk) was real.

2025 Trends: What’s Changing for After-Hours Trading in Australia?

The appetite for after-hours trading has exploded post-pandemic, with several important 2025 developments:

• Broker innovation: Major platforms like Selfwealth and eToro are trialling extended hours access to US and Asian equities, with more seamless mobile interfaces.

• ASX expansion: While the ASX doesn’t offer official after-hours trading, there’s growing speculation about evening sessions for select ETFs or blue chips, mirroring moves by US and European exchanges.

• Tax and reporting: The ATO’s 2025 guidance clarifies that after-hours trades are treated the same as regular trades for CGT and income purposes, but investors must pay close attention to time-zone differences on transaction records.

• Education push: ASIC and MoneySmart have increased resources to help retail investors understand the unique risks of after-hours trading, including the dangers of illiquidity and price gaps.

How to Get Started—And Stay Safe

Ready to try after-hours trading? Here’s a quick checklist for Aussies in 2025:

• Choose your broker: Compare platforms for after-hours access, fees, and available markets. Not all brokers are equal—read the fine print.

• Understand the products: Some platforms only offer CFDs or derivatives after-hours, not physical shares. Know what you’re trading.

• Set strict risk controls: Use stop-loss orders and be wary of trading on margin during volatile sessions.

• Stay informed: Monitor global news, economic calendars, and company announcement schedules to anticipate after-hours volatility.

• Keep records: After-hours trades can complicate your tax paperwork—keep digital records and time stamps for all transactions.

Conclusion

After-hours trading opens up a world of opportunity for Australian investors keen to capitalise on global news and volatility. But it’s not a free-for-all: lower liquidity, bigger spreads, and wild swings mean you need a clear strategy and robust risk management. As brokers and regulators adapt to a 24/7 financial world, after-hours trading is set to become a more mainstream part of the Aussie investing toolkit in 2025.