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CIBC Investor’s Edge – Review of Pricing
(updated Sept. 24/13)
CIBC Investor’s Edge offers clients a diversity of financial products to invest in including stocks, ETFs, options and mutual funds both “registered” and “non-registered” accounts. For the registered accounts, they offer the tax-free savings account (TFSA), registered-retirement savings plan accounts (RRSPs) and registered education savings plan accounts. It should be noted that they do not have US dollar registered accounts so you will have to factor in currency conversion fees into your costs. Like other discount brokerages, Investor’s Edge also offers cash and margin accounts in which you can short stocks as well as trade options. They also offer a “Premium Edge” account for very active traders.
Like other Canadian discount brokerages, Investor’s Edge offers their best commission rate of $6.95 per trade, to their most active traders – those who trade 150+ trades per quarter. They also have a “loyalty pricing” structure which you qualify for if your household has a balance of $100 000 or more of CIBC products (i.e. deposits, investments, mortgages and loaned funds across any of the CIBC group of companies excluding PC financial) and for which you also get their best commission rate of $6.95.
If you execute between 30 and 149 trades per quarter, OR you have $50 00 – $99 999 in CIBC brokerage assets, your commission rate is $9.95 per equity trade.
The standard pricing for an equity trade applies when a client doesn’t fit any of those above mentioned criteria. Like some other discount brokerages, Investor’s Edge pricing gets tricky for this group of clients. Your commission charge depends on the number of shares you’re buying or selling and, their price. At a minimum, you will pay $28.95 per trade (if your order is less than or equal to 1000 shares of any dollar value). If you’re buying more than 1000 shares of a stock that is up to $2, your commission rate could be 1.5% of the value of the principal of the trade (minimum $28.95 charge) or if the stock is over $2, you pay $0.03 per share.
The Bottom Line
One of the biggest advantages of the Investors Edge is their “Loyalty Pricing” program because if you already have other products (including a mortgage) with CIBC you get quite a break on pricing. On the other hand, there may be other fees that you will want to think about, such as currency fees or inactivity/minimum balance fees – which can all be found in their 11 page fee schedule. If you don’t qualify for the “Loyalty Pricing” you’ll definitely want to understand your trading needs carefully to see if Investor’s Edge is the ideal discount brokerage for you in terms of pricing and fit for your needs.
Discount Brokerage Pricing Review Table
CIBC Investor’s Edge Website Links:
Discount Broker Customer Survey Ratings by J.D. Power:
Link to 2013 online broker ratings by the Globe and Mail:
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