After-hours trading in Canada

It’s possible to trade after the market closes — if your platform supports it. But before you engage in after-hours trading, weigh the benefits against the risks.

What is after-hours trading?

After-hours trading means placing a trade after the market closes, which you can do long as your broker allows it. Market hours differ based on the stock exchange. Not all trading platforms offer pre- and post-market trading, and those that do limit extended trading to set time windows that vary by broker.

What brokerages allow you to trade after-hours?

How does after-hours trading work?

Extended trading hours vary by platform and trades are facilitated by electronic communication networks (ECNs) instead of stock exchanges. Trades run through the platform’s partnered ECN and buy and sell orders are matched by price.

Typically, there aren’t as many traders after hours. Not all platforms offer pre- or post-market trading and most active traders restrict their activity to regular market hours. Plus, there may be more competition from institutional investors after-hours. There are perks to after-hours trading, including the ability to quickly respond to changes in the market, regardless of time of day. However, for many investors, the risks — primarily low liquidity — outweigh the benefits.

What happens if I place a trade after my broker is closed?

It depends on your broker. If your trading platform allows after-hours trading, your order is submitted. If your platform doesn’t offer extended hours, your order will be executed at market open the following trading day.

Some orders are riskier than others when executing an after-hours trade. A market order instructs your broker to buy or sell stock at the prevailing market price: While you have no control over the price, trades are executed quickly. Market orders placed after the market closes are executed the following morning.

The risk of placing a market order after the market closes is that if anything happens overnight to affect the stock price, you could face a drastic loss.

To mitigate this risk, you could opt for a limit order: You tell your broker what price you’re willing to buy or sell and your order is only executed if those conditions are met. The trouble with limit orders is that the trade isn’t guaranteed — if the stock never hits the price you specify, the order won’t be executed.

Can you buy stocks on the weekend?

Thanks to the time difference, it’s possible for Canadian investors to trade in Australian and Asian markets on Sunday evenings.

Traders can also use electronic communication networks (ECNs) to trade on the weekend in the same way after-hours trades are conducted during the week. The network attempts to match potential buyers and sellers based on the trades they want to execute, but fills aren’t always possible — or profitable.

What’s considered after-hours?

Any trade that takes place before the market opens or after it closes is considered an after-hours trade. Standard hours and after-hours vary by market:

TSX/TSXV

CSE

NASDAQ

NYSE

AMEX

International exchanges

While hours for international stock exchanges vary, most open between 8:00 a.m. to 9:30 a.m. and close between 3:00 p.m to 5:30 p.m. in their local time.

Compare stock trading platforms that allow after-hours trading

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Name	Product	Available Asset Types	Stock Fee	Option Fee	Account Fee	ETF Transaction Cost	Feature	Table description
Interactive Brokers Interactive Brokers		Stocks, Bonds, Options, ETFs, Currencies, Futures	Min. $1.00, Max. 0.5% of trade value	$1.50 min. per order	$0	Min. $1.00, Max. 0.5% of trade value	Extensive trading capabilities and global investment tracking.	Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.	Go to site More Info	Compare	loading Fetching your data...
Scotia iTRADE Scotia iTRADE		Bonds, Options, Mutual Funds, ETFs, GICs, International Equities	$4.99-$9.99	$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)	$0	$9.99 ($4.99 if completed 150 trades or more a quarter)	Pay no annual account fees.	Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.	Go to site More Info	Compare	loading Fetching your data...
CIBC Investor's Edge CIBC Investor's Edge		Stocks, Bonds, Options, Mutual Funds, ETFs	$4.95 - $6.95	$4.95 - $6.95 (+$1.25 per contract)	$0 if conditions met, otherwise $100/year	$6.95	$4.95 - $6.95 is applicable for online stock, ETF and option trades only. Pay $4.95 when you qualify as an Active Trader (trade 150+ times per quarter).	An intuitive and easy-to-use platform with access to a variety of tools that help you make smart decisions and trade with confidence.	Go to site More Info	Compare	loading Fetching your data...
OFFER Questrade Questrade	OFFER	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals	$4.95-$9.95	$9.95 + $1 per contract	$0	Free	Get $50 in free trades when you fund your account with a minimum of $1,000.	Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.	Go to site More Info	Compare	loading Fetching your data...
OFFER Qtrade Direct Investing Qtrade Direct Investing	OFFER	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs	$6.95 - $8.75	$6.95 - $8.75 + $1.25 per contract	$0 if conditions met, otherwise $25/quarter	$0 - $8.75	Get up to 50 free trades. Be one of the first 100 new Qtrade clients to use the promo code 50FREETRADES and deposit a minimum of $10,000 (or top up to $15,000 to get $150 transfer fees waived). Valid until December 31, 2021.	Qtrade Direct Investing offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.	Go to site More Info	Compare	loading Fetching your data...

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Pros and cons of after-hours trading

Bottom line

After-hours trading comes with unique benefits and risks. Investors have the opportunity to react to news events and trade at a time that’s potentially more convenient — but reduced trading volume means more volatility, wider spreads and ultimately, greater risk.

If you’re interested in after-hours trading, find a brokerage account that offers extended hours alongside the features best suited to your investment goals.

Frequently asked questions

• Does after-hours trading affect the opening price of a stock?

  Yes, after-hours trading can influence stock prices when the market opens.

• When does pre-market trading start?

  Pre-market trading starts as early as 7:00 a.m. on the TSX and 8:00 a.m. for the NSADAQ and NYSE, although it can be as early as 4:00 a.m. for some NYSE equities.

• When does post-market trading start?

  Post-market trading typically starts when the New York markets close at 4:00 p.m. ET. On the TSX, post-market trading starts at 4:15 p.m.

• When does post-market trading stop?

  Post-market trading typically stops at 8 p.m., but after-hours trading windows vary by brokerage. On the TSX, post-market trading ends at 5:00 p.m.

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