Tag Archives: trade

How to Get the $9.95 Trades on CIBC Investor’s Edge Once You Have $50,000

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The regular trading commission at CIBC Investor’s Edge (in October 2013) is $28.95 per trade. If you trade excessively, er, frequently, you can qualify for a lower cost. Most people, however, won’t qualify until they have over $50,000 in their account/s. The $50,000 can be combined across various accounts held by people living in the same household. For example, it could be the total held in a husband’s RRSP and his wife’s TFSA. Once you reach the magic $50,000 at Investor’s Edge what do you do to start getting the cheaper $9.95 trades?
UPDATE: Investor’s Edge now offers $6.95 trades to anyone regardless of their account balance. Be sure to have the minimum account size, though, to avoid any annual fees.

Sorry This Can’t Be Handled Online or Automatically

You’d think that with huge computer programs that can trade stocks down to fractions of a cent in less than a 60 th of a second that they could just automatically reduce the trading commission when your account balance totals over $50,000.

In reality, though, these computer programs were written before they introduced the idea of reduced fees based on the amount of money in the account/s. It’s only through aggressive competition (among banks! imagine!) that these types of reduced fees have appeared. In fact the reduced price for investors with $50,000 is only a few years old. The computer programs have not kept up.

So getting $9.95 trades requires a manual change to the program. And that requires phoning CIBC Investor’s Edge to request the adjustment.

Contacting Investor’s Edge to Reduce Your Commissions

In October 2013, the number to call is 1 800 567 3343 between 8 and 8 ET.

What to Expect When You Call

I had hoped the call would be a simple one minute “Hello. Ok. Done.” Foolish me. Phoning also gives the customer service representative a captive audience for further questions.

First they explained how with $100,000 in accounts with Investor’s Edge and other CIBC divisions, we could qualify for $6.95 trades. Next was a pitch to have my spouse move investments to Investor’s Edge. And a plug to move our mortgage. (We don’t even have a mortgage which is always extremely fun to say!)

However, within 3 minutes, the phone call was finished and the change had been made. Or had it?

Confirming the Trades Now Cost Only $9.95

Not that I don’t trust people but I did check as soon as trading started the next morning what the system said my trading fee would be. (I had phoned my request in at 7:55 ET) To my pleased surprise, it correctly states I am now charged $9.95 not $28.95. Good one Investor’s Edge!

What If I Already Executed a Trade After I Reached the $50,000 Level But Without Phoning

Many people think the $9.95 price will kick in automatically. So they put in an order to buy or sell without really looking. They realize later that they’ve been charged the full $28.95.
If you are one of these unfortunates, just phone Investor’s Edge. They should be willing to credit you back the difference in cost. ($19.) The number is the same: 1 800 567 3343 between 8 and 8 ET.

Enjoy your savings!

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Do you pay $28.95 or $9.95 for your trades at Investor’s Edge? Or are you down to $6.95 because you have more invested or have a large mortgage at CIBC? Please share your experiences with a comment.

Do I Have to Pay a Commission if My Order to Sell Stock or Buy Stock Doesn’t Get Filled?

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When I was new to online investing in my self-directed brokerage account at BMO InvestorLine, one of my first “newbie” questions was: “If I put in an order to buy a stock at a certain price and no one sells it to me, do I still have to pay the fee?” I could see myself spending my entire investment account on fees for unfilled orders.

Written: 2012
Reviewed: 2023
Revised: 2023

So I asked BMO  by email how the fee works.

They reassured me that no, if the sale does not go through, I don’t have to pay the fee.

Phew.

Also, if I put in an order to sell a stock at a certain price, and no one wanted to buy it, I also would not have to pay a fee.

Partial Fills of Trades Can Result in Fees

There is one exception, though. If you put in a request to buy or sell a stock and they buy or sell part, but not all, of it then you will get charged a fee.

For example, say you want to buy 500 shares of BCE at $40. Someone may offer to sell 200 shares of BCE to you at that price. That will result in a “partial fill” of your order.

If no one else sells you the other 300 shares before the close of trade that day, you will get charged the full commission, which is $9.95 for my BMO InvestorLine account in 2023.

You get charged the $9.95 even though you still want 300 more shares. And if you put in another order the next day for the other 300 shares, if it fills you will be charged another $9.95!

I guess that’s why they call this “playing” in the market. You might have to pay a fee or two you don’t expect. Whether you have to or not is a game of chance.

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Have you ever got zinged with a fee you didn’t expect because of a partial fill? Or did they get you some other way? Please share your experiences with a comment.