Oct 13, 2026
Some Canadian online brokerages let investors buy and sell stocks before the markets open or after the regular trading day ends, but that extra flexibility can come at a cost. With fewer buyers and sellers trading after hours, investors may end up paying more for shares or receive less when selling them.
The Canadian Investment Regulatory Organization (CIRO) is urging investors to understand those risks before trading during extended hours. In an October 8 release, the regulator announced new educational material explaining how extended-hours trading differs from regular trading.
How trading outside regular hours works
Regular trading hours on North American markets, such as the TSX, NYSE and NASDAQ, run from 9:30 a.m. to 4 p.m. ET. Some Canadian brokerages, including TD Direct Investing, Questrade, and RBC Direct Investing, also let you trade eligible stocks and ETFs before the markets open or after the regular session ends.
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Options on Canadian exchanges are fairly limited. The TSX and TSX Venture offer an extended session from 4:15 to 5 p.m. ET, but trades generally occur at the last sale price, and your access depends on the brokerage you use.
U.S. markets offer longer extended-hours sessions, including trading before the regular market opens and for several hours after it closes. If you’re an investor trading U.S.-listed shares, the longer hours can offer more flexibility. For example, if a company releases its earnings after the market closes, you may be able to buy or sell in response instead of waiting until the next morning.
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The drawback is that far fewer people usually trade during these sessions. In its educational guide, CIRO explains that this can make it harder to find a buyer or seller. With less trading activity, prices can also swing more sharply.
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A wider spread can affect what you pay
CIRO also warns about wider bid-ask spreads. The bid is the price a buyer is offering, while the ask is the price a seller is seeking. The difference between them is the spread.
For example, during regular hours, a stock might have a bid of $49.95 and an ask of $50.05, a spread of 10 cents. After hours, suppose the bid falls to $49.50, and the ask rises to $50.50.
Assuming enough shares are available at those prices, buying 100 shares at the later ask would cost $5,050, compared with $5,005 at the earlier ask. Selling 100 shares at the after-hours bid would bring in $4,950, compared with $4,995.
That’s a $45 difference in either case, before commissions or other charges. While this is just an illustration, it shows how a wider spread can mean paying more for shares or receiving less when you sell.
Use a limit order to set your price
When you buy or sell shares through your brokerage, you choose an order type. Two common options are market orders and limit orders, though your broker may restrict which ones you can use during extended hours.
A market order tells your broker to buy or sell at the best available price. You don’t specify how much you’re willing to pay or accept. With fewer buyers and sellers after hours, CIRO warns that the price could differ significantly from what you expected.
A limit order lets you set that boundary. You choose the maximum you’ll pay when buying or the minimum you’ll accept when selling.
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Using the example above, you could set a buy limit of $50.05 instead of paying the after-hours ask of $50.50. This means that your order can only be filled at $50.05 or less.
However, with less after-hours trading activity, there’s no guarantee that your order will be filled. If no seller is willing to sell at your price while the order is active, you may not get the shares. In other words, a limit order protects your price, but it can mean missing a trade.
Check what your broker allows after hours
Before you trade outside regular hours, check your brokerage’s policies. Access can vary, including trading hours, the stocks and ETFs available, and the order types you can use. CIRO recommends understanding these restrictions before placing an order.
You should also know what happens if your order isn’t filled. Does it expire when the extended-hours session ends, or stay active for the next regular session? Check with your broker so you aren’t left guessing whether you still have an open order.
Finally, consider whether you need to trade right away. If you’re investing for a goal that’s years away, ask yourself whether reacting to tonight’s earnings announcement makes sense. After-hours trading gives you more flexibility, but you can still choose to wait.
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Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
