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CIBC Offers Low Trading Commissions!

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.

Happy Investing!

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FT About the author: FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

{ 3 comments… add one }
  • Canadian Money Blogs Reviewer February 20, 2007, 7:57 am

    that’s interesting ..personally I still prefer to pay 9.99 only when I want to trade … I’ve also noticed that I historically had better returns when I didn’t trade as much! (Granted though that skilled day traders wold benefit from this type of deal …)

  • Raj May 1, 2010, 3:22 am

    Efficient Market theory would imply that excessive trading does not give a return greater than the market. A more sensible (and sane) strategy is to buy and hold. There is a equal chance for any give stock that good new will raise the price given by this expression Pt+e=Pt+1, where Pt is the current price and Pt+1 is the next period price. No amount of technical analysis gives returns in excess of the market. This is because all investors can copy these so-called smart investors moves, and this would drive the price of that particular stock up.

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