Trading hours IBKR

[Michael]

We can either trade during official trading hours (quite limited for US stocks e.g. in NASDAQ) or set an order outside (either in extended or I think even off hours which will be executed later).
When researching, I haven't found any additional "fees" during non-official trading hours, but that the spread can be higher. But lets say I put a limit order (I know Baptiste is often more adventurous with market orders), I don't see a problem here, no? Worst case it doesn't get executed and I can check it on the next day.

Different websites warn about this strategy because you could get a very bad deal, but that should only apply to market orders as far as I understand.
It would be more convenient to just put an order at a given time (lets say for VT), instead of putting an alarm at a given time and then log in and execute.

Any opinions in how we should approach this and whether it is worth doing the orders at the official trading hours?

PS: I'm not talking about day trading, it is only concerning long term (monthly) VT/CHSPI investments.

 

[Baptiste Wicht]

Hi Michael

You can indeed trade during pre-market and post-market sessions. These sessions are called extended hours. As far as I know, IB does not charge any extra fees for trading outside regular hours. This adds quite a few more hours for trading.

I have never tried that but I do not see any risk with a limit order in these cases. A market order outside regular trading hours would indeed seem like a very bad idea.

Now, what is your goal with that? Even if you are outside of trading hours, you can setup an order and IB will execute it the next day during regular trading hours.

 

[Michael]

You're right I can just "not click" the "Trade outside RTH" option and then it executes later (once the exchange opens again). I guess that makes more sense for me. Are you doing it the same way?

Side question not directly related to the title:
I've read your blogpost about fractional trading. For US ETFs like VT I like the option because I can invest the full amount and don't have much leftover change. Do you still do only full shares personally?
Also, in the blogpost you write fractional trading is not available on IBKR for CH, but apparently it is by now. I can create a preview with fractional trading on CHSPI.
But according to IBKR, the fees are 1% for fractional trading in CH (of trade value), therefore it would be possible, but doesn't make sense economically for customers.

 

[Baptiste Wicht]

You're right I can just "not click" the "Trade outside RTH" option and then it executes later (once the exchange opens again). I guess that makes more sense for me. Are you doing it the same way?

Yes. I often do my operations in the morning while the market is closed and they get executed later.

I've read your blogpost about fractional trading. For US ETFs like VT I like the option because I can invest the full amount and don't have much leftover change. Do you still do only full shares personally?

I still do only full shares indeed.

Also, in the blogpost you write fractional trading is not available on IBKR for CH, but apparently it is by now. I can create a preview with fractional trading on CHSPI.

Good point, I think this was added recently, I must updated my article.

But according to IBKR, the fees are 1% for fractional trading in CH (of trade value), therefore it would be possible, but doesn't make sense economically for customers.

The way I understand this fee is different. If you buy 0.5 shares, you will indeed pay 1% of trade value (0.5 * share value).
But if you buy 100.5 shares, you will not pay 1% of total trade value, you will pay the standard fee on 100 shares and then 1% of the 0.5 share value. Otherwise, it would be very penalizing.
But my interpretation may be wrong.

 

[AGZH86]

i trade without issues fractional US etfs (more than 1 though, never below 1 share) and pay always 0.28-0.37 usd