What do ya know, a big bank has finally gotten competitive with their trading fees. CIBC now offers the Edge Advantage trading package that gives you 50 trades for $395/year. This works out to be around $7.90/trade with no limit to the number of shares you can buy. After the 50 trades are up, it gets even cheaper, $6.95/trade.
What I REALLY like about this structure is that you can purchase the same stock as MANY times as you like during the day, and you’ll only be charged for 1 trade. The same applies for selling, you can sell the same stock as many times as you want during the day and be charged for only 1 trade. This still may not be the lowest cost solution for the small time investor, but once you start making bigger trades, CIBC has the lowest trading fee of all brokerages in Canada.
This package is mainly for fairly active investors who trade at LEAST 50 times per year otherwise it won’t be worth it. I commend CIBC for taking the initiative that the other big banks have not taken, that is to reduce trading fees for Canadians.
As a side note, I’ve updated my review of discount brokerages in Canada to reflect this update.
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