# CIBC to offer lower trading commissions



## FrugalTrader (Oct 13, 2008)

I read in the financial post today that CIBC is also lowering their commissions. $6.95/trade for investors with $100k assets with CIBC or $9.95/trade for $50k-$99.9k assets. However, I can't seem to find a reference to this online, can anyone confirm this deal?


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## FrugalTrader (Oct 13, 2008)

Oops posted this before my daily read of Canadian Capitalist:
http://www.canadiancapitalist.com/price-war-among-discount-brokers/


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## CanadianCapitalist (Mar 31, 2009)

Thanks for the mention FT!

I think CIBC's move is very aggressive. Note that the $9.95 commission applies to any client who has at least $50,000 in CIBC *balances*. Balances include bank accounts, GICs, investments and even loans and mortgages. If your household has $100,000 in balances with CIBC, the trading commission drops to $6.95. Wow!

http://micro.newswire.ca/release.cgi?rkey=1810286884&view=14730-0&Start=0&htm=0


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## FrugalTrader (Oct 13, 2008)

Personally, I'm loving the competition. I was contemplating moving my business to TD Select Service and taking advantage of $9.95 trading fees and now I'll probably stay with CIBC as $6.95 trades is among the lowest cost in Canada.


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## Jungle (Feb 17, 2010)

Questrade started all this.


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## jamiechese (Jul 13, 2010)

I am really excited about CIBC because the fact that my parents use them for all of their business AND personal needs I am hoping I might be able to get the 6.95$ trading commision schedule. Although I will have to find out more about it when they roll out the changes. Uggg...January seems so far away....


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## Four Pillars (Apr 5, 2009)

Not that it really matters, but before this move - CIBC was the only bank-owned brokerage that did not offer lower trading commissions if you had $100k in assets.

Including mortgages as part of the balance is cool - assuming they count them as a positive number.


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## humble_pie (Jun 7, 2009)

joshua at the battle of jericho ...

and the walls came tumbling down.

wouldn't surprise if a price-lowering crossfire breaks out on all sides.

keep an eye on td frugal their services way better than cibc ... you'd have a PA account ... no comparison ... all that remains to know is when will td drop to 6.95 ...


.


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## FrugalTrader (Oct 13, 2008)

You now have me curious about the presidents account... off to do some research!


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## Sampson (Apr 3, 2009)

don't you guys run this place? I smell a hint of collusion


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## slacker (Mar 8, 2010)

Come on TD !!


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## davext (Apr 11, 2010)

Jungle said:


> Questrade started all this.


Investors should be sending Questrade a thank you card for introducing real competition.

I've been using it for more than a year now and there are definitely hiccups. For example, the portfolio viewer didn't work for a few hours on Monday so I couldn't see real time value changes for all my holdings unless I calculated each on myself. 

But these hiccups are very seldom.


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## JDWood (Apr 3, 2009)

I just moved everything over to CIBC in Sept because Tradefreedom (iTrade) just doubled their rate to 19.95...( also 2 cents a share on 1000+) great timing for change...lol


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## jamiechese (Jul 13, 2010)

I just went into my local CIBC branch to check to see if I qualified under my parents (massive) assets. I know I might not be "considered" part of "household" assets for my parents but don't you think they should be allowing discounted commissions for even JUST immediate family members? My parents have all their assets (business ones included) with CIBC. Why the hell would they not allow it? Whats with that? Anyone know anybody that my parents could pull strings with at CIBC to get this to be pushed through? Its quite disgusting that my parents give them so much business yet they wont allow their son to give them (even more) business even if its less profit?

Anyone care to slap me in the face saying im wrong and just being greedy/unreasonable? or right and feel that this is unacceptable? I need some more opinions about this.

I guess it is understandable they dont want everyone getting those low commissions but I don't see anything wrong with passing on cheaper commissions to a person who is in a households immediate family, it brings in business and may even bring in longer term customer?


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## mario 1 (Nov 6, 2009)

jamiechese said:


> I just went into my local CIBC branch to check to see if I qualified under my parents (massive) assets. I know I might not be "considered" part of "household" assets for my parents but don't you think they should be allowing discounted commissions for even JUST immediate family members? My parents have all their assets (business ones included) with CIBC. Why the hell would they not allow it? Whats with that? Anyone know anybody that my parents could pull strings with at CIBC to get this to be pushed through? Its quite disgusting that my parents give them so much business yet they wont allow their son to give them (even more) business even if its less profit?
> 
> Anyone care to slap me in the face saying im wrong and just being greedy/unreasonable? or right and feel that this is unacceptable? I need some more opinions about this.
> 
> I guess it is understandable they dont want everyone getting those low commissions but I don't see anything wrong with passing on cheaper commissions to a person who is in a households immediate family, it brings in business and may even bring in longer term customer?


My cousins cousin has a load of business with CIBC why can't I get the discount.


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## Four Pillars (Apr 5, 2009)

jamiechese said:


> I just went into my local CIBC branch to check to see if I qualified under my parents (massive) assets. I know I might not be "considered" part of "household" assets for my parents but don't you think they should be allowing discounted commissions for even JUST immediate family members? My parents have all their assets (business ones included) with CIBC. Why the hell would they not allow it? Whats with that? Anyone know anybody that my parents could pull strings with at CIBC to get this to be pushed through? Its quite disgusting that my parents give them so much business yet they wont allow their son to give them (even more) business even if its less profit?
> 
> Anyone care to slap me in the face saying im wrong and just being greedy/unreasonable? or right and feel that this is unacceptable? I need some more opinions about this.
> 
> I guess it is understandable they dont want everyone getting those low commissions but I don't see anything wrong with passing on cheaper commissions to a person who is in a households immediate family, it brings in business and may even bring in longer term customer?


Nothing wrong with trying to get a discount. I think the problem is that you are not the one with the massive assets, so your leverage is zero.

It's your parents that need to call/visit CIBC and ask for your discount.


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## Max (Apr 4, 2009)

Just called. This flat fee includes TFSA and RRSP as well. I was thinking of switching on this point because the current trade packages to get the same rate have to be bought separately for each account.


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## andrewf (Mar 1, 2010)

Get your parents to lean on their bank manager.


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## Kidbrosweets (Sep 3, 2010)

why is there a min amount anyways for 9.99? Just curious since Quest has a limit of like 1k for an account.


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## jamiechese (Jul 13, 2010)

Yea good idea, also Mario...notice how I said IMMEDIATE family? As in direct family. Sons, Daughters, Moms, Dads. I dont see how that would harm anything. But if they kept it to that I think it would keep stuff under control...and might bring them more business.

Also yea, Ill get my parents to try to get them to reconsider. It would be so much easier because I always bank with CIBC and if I had an investment account with them it would make things so much smoother with funds etc.

Thanks for the advice.


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## HaroldCrump (Jun 10, 2009)

JDWood said:


> I just moved everything over to CIBC in Sept because Tradefreedom (iTrade) just doubled their rate to 19.95...( also 2 cents a share on 1000+) great timing for change...lol


Really?
I'm surprised....I figured that TradeFreedom was going to be merged with iTrade at some point soon.
It doesn't make sense for BNS to have three brokerages kicking around and confusing the hell out of everybody.
Can you move everything over the iTrade before they can get their s*th together?


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## Assetologist (Apr 19, 2009)

*Cibc*

CIBC has been informally offering the $6.95/trade price for some time.

I found an obscure reference to it on a financial blog several months ago. I called and it was arranged within 1 day.

"Ask and you shall receive"... I guess it's not the Canadian way though.

Competition is good.

PS It is mailing address not relationship that allows for the trading discount, therefore, if you can/do share the same mailing address with someone who has over $100k in investment assets at CIBC your account should qualify.


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## jamiechese (Jul 13, 2010)

That is excellent, I will definitely ask my parents to check it out. I really would like to trade at CIBC because atm I am trying to open up an account at Qtrade and have run into issues since I dont have a credit rating (just got a credit card a month ago) and void cheque issues.

Should I get my dad to phone CIBC or should he talk to someone he deals with regularly? Not sure who I should direct him to talk to.


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## Jungle (Feb 17, 2010)

Investor's Edge broke down today for a lot of people. Second time this year apparently.


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## jamiechese (Jul 13, 2010)

Ouch, Thats not good. Now I really dont know where to go, although if I can pay 7$ a trade at CIBC I think I will stay there... websites always have hiccups once in a while I guess .


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## Assetologist (Apr 19, 2009)

jamiechese said:


> Should I get my dad to phone CIBC or should he talk to someone he deals with regularly? Not sure who I should direct him to talk to.


He should call the number below and have a list of all the account numbers with the same mailing address.

Good Luck

Toll-free: 
1 800 567-3343


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## furgy (Apr 20, 2009)

I emailed RBC and asked them if they were considering the same thing , they sent me this:

*RBC Direct Investing today announced it will offer its lower flat commission pricing to even more clients as of December 22, 2010.

Clients who hold between $50,000 and $100,000 in household1 assets invested through RBC Direct Investing, will pay a flat commission rate of $9.95 per Canadian or U.S. equity trade when placing orders through its online investing site or automated telephone service. Canadian and U.S. option commissions have also been lowered to $9.95, plus $1.25 per contract.*


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## warp (Sep 4, 2010)

I do wonder if the others..eg RBC, BMO, Itrade, etc, will soon follow suit to $6.95.

Its hard not to consider a 30% reduction in fees when thinking of moving accounts, but I do like the service where I am.

If you tade 100 times a year..( thats a lot for me),,the savings are $300.
Nothing to sneeze at...but at this point, is it worth it?

What about if you trade 20 times a year?...save $60 a year.

Anyway......it would be nice if my brokerage followed suit....that way Id have my cake,( lower fees), and eat it too,( great service)

Has anyone here heard about the others following CIBC's lead?

thanks


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## humble_pie (Jun 7, 2009)

2 cents is only worth 2 cents.

but i'm betting that the established discounters will be reluctant to follow cibc's lead down to 6.95 any time soon.

when they lowered portfolio minimums for 9.95 trades from 100k to 50k they had no doubt already analyzed how many future trades would be clocking in at 9.95 or 9.99 that formerly would have been 29.95. And they knew that those trades were few in number, because the 50-100k clients had already fled to scotia itrade or even cheaper onliners.

the next level of discounting - if we qualify this to mean that all 50k portfolios per household are to pay only $7 per trade - will affect the vast majority of their clients & the vast majority of their billable trade executions. We're talking here a 30% cut in revenue. I totally doubt any of the remaining big onliners - td, royal, bmo, bns itrade - are ready for this. So i'd predict that they'll stiff out client demands for a cibc-type reduction and they won't reduce any time soon.

i'd give this an 80% probability. Do we have any bets on this. Expiration dates can be staggered like options. As in no reduction to $7 before dec 2010. No reduction before march 2011, or june 2011, plus even a LEAP option that says no reduction before january 2012.


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## jason26 (Apr 6, 2009)

Is anyone able to compare the TDW and the CIBC web interfaces? I'm at TDW and just had them consolidate my wifes accounts into my profile. So for one login I can trade my unregistered, tfsa, rsp, the wifes tfsa and rsp as well as 2 in trust accounts for my kids which I find pretty nice. But the 6.95/trade sounds nice, and would probably have me consolidate my questrade account into my main account as well.

I use the questrade account for more speculative swing trades due to the lower commission.


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## HaroldCrump (Jun 10, 2009)

warp said:


> I do wonder if the others..eg RBC, BMO, Itrade, etc, will soon follow suit to $6.95.


Scotia iTrade already has $6.95 - for frequent traders (> 150 trades/quarter).
To get $6.95 all year round at iTrade, an investor must make at least 600 trades a year.
The next tier up is $9.99 for clients with > $50K total portfolio, regardless of trading frequency.

I doubt iTrade will drop its rate to $6.95.
If they did, they won't have anything to offer to the so-called frequent traders.
I think they want to appeal to both tiers of clientele.
They are also attempting to add value to the service by leveraging all the underlying might of Scotia Capital.
All the research is now through Scotia Capital / SCMcL.
Bond inventory is through SC - one of the top underwriters of IPOs.

It could of course happen that they drop down to $6.95 but I think soon (if not already) the brokerages of the top 5 banks will stop the price war and decide to call it bottom.


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## CanadianCapitalist (Mar 31, 2009)

humble_pie said:


> 2 cents is only worth 2 cents.
> 
> but i'm betting that the established discounters will be reluctant to follow cibc's lead down to 6.95 any time soon.
> 
> ...


I don't see the biggies dropping commissions to $6.95 either. It seems to me that the brokers are positioning themselves for the upcoming RRSP season and they have already put the good news out. I'd put odds at better than 95% of no reductions this year.

I don't know about next year but the last time the brokers dropped commission was 2007. So, I'd say no more drops for another 3 years!


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## humble_pie (Jun 7, 2009)

CC are you offering march 2013 LEAPs $7 calls on brokers' commish, at least one among tdw, bmo, ry, scotia itrade.

symbol is BKC. Let us say these are to be cash-settled.

i will bid 100 contracts at .60. Still deciding on my offer. But i think it will be higher than yours.


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## warp (Sep 4, 2010)

Maybe I'll just call my brokerage and ask if intend to drop to $6.99

Or maybe I'll ask/request, that as a good client , they offer me that price.

I'm not holding my breath though.......( laughing to myself here)

basically it just seems like a big hassle to move all our accounts, especially as the service I get has always been great.

If I was making hundreds of trades a year , mind you, I sure would be tempted to move.

Right now, Im much, much more a "buyer", and not a "seller", so the extra $3 
is something I can live with.

Can anyone give us an idea of what the CIBC screen is like,,is it easy to use, etc?

thanks


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## Four Pillars (Apr 5, 2009)

humble_pie said:


> CC are you offering march 2013 LEAPs $7 calls on brokers' commish, at least one among tdw, bmo, ry, scotia itrade.
> 
> symbol is BKC. Let us say these are to be cash-settled.
> 
> i will bid 100 contracts at .60. Still deciding on my offer. But i think it will be higher than yours.


+1


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