CIBC Investor’s Edge Broker Review 2021
CIBC Investor's Edge Review
- Fees and Commissions
- Account Options
- ETF Trading Fees
- Customer Service
- User-Friendly Platform and Mobile App
- Overall Banking Convenience
CIBC Investor's Edge Review Summary:
CIBC Investors Edge has underwent bit of a facelift, and as 2021 moves along it has emerged as a solid overall discount broker. If you happen to do the rest of your banking with CIBC, then for the safety and convenience factors alone, I would likely consider Investor’s Edge.
While Investors Edge trading fees are slightly lower than those of the other big banks, they still lag behind the low-cost leaders in the space such as Questrade, Virtual Brokers, and our #1 overall Canadian discount broker: Qtrade.
For that reason I would recommend that after you finish reading our CIBC Investors Edge Review, take a look at our top-rated alternatives on Canada’s best stock brokers list.
- Backed by a large Canadian bank with a long history
- All account options available
- Lower trading fees than other big banks
- More expensive than the best non bank brokers
- No commission free ETFs
- Mediocre user interface for main platform and app
- Most negatively mentioned customer service of all MDJ brokerage reviews
While CIBC is a decent option, it’s far from being the best. High fees, no free ETFs and no promo all mean there are much better brokers.Visit Qtrade - Our #1 Canadian Broker
The CIBC Investors Edge online broker has been a bright spot for CIBC over the years and it offers a credible way for CIBC clients to conduct basic DIY investing activities.
With a history that stretches back to the original Canadian Bank of Commerce in 1867 (and subsequently merging with the Imperial Bank of Canada in 1961) there is no doubt that CIBC is one of the most trusted names in Canadian finance.
That said, in many areas they have fallen behind their more well-known peers at BMO, TD, RBC, and Scotiabank over the years. Their Investors Edge trading platform is definitely not one of those areas, and indeed, when it comes to trading commissions, it rises to the top of the big bank pack.
CIBC Investors Edge Trading Fees and Commissions
CIBC Investors Edge is not only competitive with the other big bank brokerages in Canada, they are significantly cheaper when it comes to daily trading fees, clocking in at a flat $6.95 per online equity and ETF transaction. That gets lowered to $5.95 if you’re still under a student account (if you’re a student and already investing – good on you!) and $4.95 if you meet the active trader threshold of 150 trades per quarter.
While not quite matching low-cost leaders (non-brank brokerage firms) like Questrade , Qtrade and Wealthsimple Trade, CIBC’s online discount brokerage beats up all the other big bank brokerages when it comes to trading fees.
Account and Transaction Fees
Like the other major banks CIBC Investors Edge has no account minimum in place; however, they will not hesitate to charge a fairly substantial fee if you do not meet their account minimum threshold.
If your RRSP account has a balance under $25,000, you’ll pay $100 annually. However, you won’t pay any fees if the market balance of your account is greater than $25,000.
If your basic non-registered account is below $10,000, then you’ll owe an annual $100 fee as well. Again, this fee is waived if your balance is greater than $10,000 or if you also have a retirement account with CIBC.
The good news is that the TFSA and RESP are completely free to open and trade in, no matter what your balance is. Additionally, the CIBC Smart™ Account for students is free, and might be the best deal out there for students who want to get started with investing.
Below is a quick chart of the more common CIBC Investor’s Edge account fees that you might run into.
|Home Buyers Plan & Life Long Plan Withdrawals||$50|
|Copies of Statements, Confirms, Cheques and Tax Receipts||$5|
|Wire fee (out)||$40|
|Wire fee (in)||Free|
|Estate Account Processing||$100 per account|
CIBC Investors Edge ETF Fees
One of the major reasons that Qtrade is our #1 most recommended brokerage is that they combine the elite level information and platforms that the big bank brokerages like Investors Edge bring to the table – but combine it with free ETF trading (as well as some other unique features).
These free ETF transactions can keep a substantial amount of your money in your account – ready to compound – instead of getting siphoned away. When you think that you might be using your discount brokerage account for 50 years, if you make 4 ETF trades every three months – and that takes away from your nest egg that is growing at 8% per year – then you will be sacrificing close to $55,000 in ETF trading fees over the course of your portfolio’s lifetime!
|Online Discount Broker||Per Transaction Cost to Buy ETFs||Per Transaction Cost to Sell ETFs|
|CIBC Investors Edge||$6.95||$6.95|
|RBC Direct Investing||$9.95||$9.95|
|TD Direct Investing||$9.95||$9.95|
Options Trading Fees
The CIBC Investors Edge’s… um… edge… when it comes to trading commission continues on when we look at options trading. Their $6.95 rate continues to shine vs leading competitors at TD and RBC. There is also the standard $1.25 per contract fee added on. The rate goes down to $4.95 (matching the Scotia iTrade rate) if you hit active trader status.
CIBC Investors Edge Account Types: TFSA, RRSP, Non-Registered
The wide variety of both registered and non-registered accounts available with Investors Edge, stacks up well against what any other discount broker brings to the table. You should expect no less from such a large-scale Canadian corporation!
- Non-registered accounts
- Margin Accounts
- Informal Trust
- Investment Club
- Trust or Estate
CIBC Investors Edge Mobile App Review
I’ve seen the rumour that Investors Edge is getting a refreshing new look commented on in both the Globe and Mail and Moneysense magazine, so I’d assume that extends to the app interface as well.
The interesting thing is that the Investors Edge Mobile app (often referred to as the CIBC Mobile Wealth App) already has a pretty solid reputation amongst users. The 2,000+ reviews on Google Play are mostly solid with a 3.5-star average, and the 1,100+ reviews from the Apple App Store following right behind with a 3.4-star average.
For my purposes, all I need my brokerage mobile app to do is login and let me purchase my same ETF(s) over and over again – so every app should be able to meet that low standard! Now that I think about it, I rarely even use my phone to do that (preferring my desktop instead).
CIBC Investors Edge Review Frequently Asked Questions
CIBC Creates First Depositary Receipts: Access to American Stocks
If you’ve ever wanted to toss a few hundred bucks into an expensive American stock like Amazon or Tesla – but didn’t want to deal with the headache of currency conversion, or didn’t have quite enough cash to purchase a full share – then CIBC might just have an answer.
With the launch of Canada’s first depository receipts (CDRs), CIBC gives investors the option to buy a fraction of a share, but still keep their dollars of the Canadian variety. The CDRs will be trading on the Neo exchange, and include an automated currency hedge to mitigate the currency exchange risks.
While you don’t need to be a CIBC Investor’s Edge customer to access the Neo exchange, the platform does have some excellent education materials on the topic.
Amazon, Alphabet, Apple, Netflix, and Tesla will be the first CDRs launched. (As of early October, you may not want exposure to these stocks at the current time anyway!)
Who Is CIBC’s Self Directed Discount Broker Best for?
If you currently bank with CIBC and safety + convenience are at the top of your wishlist when it comes to choosing a discount broker, then CIBC is a really solid option.
There is nothing to really dislike or any serious drawbacks when it comes to Investors Edge, it’s simply that you can get a trading platform with very similar strengths – but with lower fees and commissions – over at Qtrade.
Our MDJ editorial team has to give the broker platform some credit for low fees and continually trying to innovate. As we continue to see more and more clients sign up with Canada’s discount brokers in 2021 (and shift away from poor investment options such as high-priced mutual funds) CIBC is continuing to focus on the online space.
With Simplii Financial and Investors Edge now paired up as part of their brand new “Direct Financial Services” strategic business unit, we believe that continued evolution of the platform and customer services is quite likely.