CIBC Investor’s Edge is a self-directed online brokerage platform from the Canadian Imperial Bank of Commerce (CIBC). It provides Canadian investors with the tools and resources necessary for independent portfolio management while being backed by a major financial institution. As a division of CIBC, CIBC Investor’s Edge is designed for investors who want to take control of their financial portfolios. With competitive pricing, various investment options, and user-friendly tools and resources, CIBC Investor’s Edge is a top choice for Canadians seeking independent investment opportunities, particularly existing CIBC clients.
For Canadian investors who value the convenience of integrated banking and the security of a major financial institution, CIBC Investor’s Edge offers a self-directed trading platform with competitive pricing. As part of CIBC’s commitment to providing comprehensive financial services, Investor’s Edge empowers Canadians to take control of their investments with a user-friendly online trading platform.
What are the pros and cons of using CIBC Investor’s Edge?
Before we dive in to deep details, here’s the pros and cons of using CIBC Investor’s Edge for Canadians:
| Pros | Cons |
|---|---|
| ✔ Backed by a major Canadian Bank (CIBC) | ✘ Higher commissions than some discount brokers |
| ✔ Streamlined banking integration | ✘ Limited educational resources and trading tools |
| ✔ Potential discounts for CIBC banking clients | ✘ Less suitable for advanced technical analysis |
| ✔ Competitive pricing, especially for students and young investors |
CIBC Investor’s Edge is a strong option for Canadians seeking the security of CIBC, convenience of integrated banking, and a platform for basic stock and ETF trading for casual investors.
What is CIBC Investor’s Edge?
CIBC Investor’s Edge, provided by the Canadian Imperial Bank of Commerce, allows independent trading of stocks, ETFs, options, mutual funds, and additional securities through its online brokerage platform.
The company
CIBC is a publicly traded company with a rich history dating back over 150 years. Its mission centers on helping clients, employees, communities, and shareholders achieve their ambitions. This focus on empowerment aligns seamlessly with the goals of CIBC Investor’s Edge, the company’s online brokerage platform.
History & evolution
CIBC has been a pioneer in the online brokerage space for many years. While the exact launch of Investor’s Edge is difficult to pinpoint, the platform has continuously evolved from its earlier forms. It reflects CIBC’s ongoing commitment to providing Canadians with cutting-edge investment tools and resources.
Currently, CIBC’s self-directed online brokerage platform consistently leads among the best brokers in Canada. Committed to innovation, the platform is known to regularly add new features and enhancements to serve the evolving needs of Canadian investors.
Mission & philosophy
At its core, CIBC Investor’s Edge embodies a philosophy of self-directed investing. The company mission seeks to put individuals in control of their financial future by equipping them with the knowledge and tools needed to build and manage their own portfolios. They also advocate sustainability and focus on satisfying client experience. CIBC exists to create enduring value to stakeholders.
At CIBC, the vision is for a world where everyone’s ambitions are made real. This vision is driven by the belief that when people are given the opportunity to succeed, they can make a positive impact on the world.
ESG Strategy for sustainability
CIBC’s environmental, social and governance (ESG) strategy outlines how the bank is working to make visions a reality. In terms of leadership, CIBC has made significant progress in increasing the representation of women and people of color in senior roles.
As of 2022, 39% of Board-approved executive roles are held by women, and 25% are held by people of color. This is a significant increase from just a few years ago and demonstrates CIBC’s commitment to diversity and inclusion.
CIBC also set a target of reducing its greenhouse gas emissions by 26.3% from its 2018 baseline by 2025. CIBC is on track to meet this target and has already achieved a 20% reduction in emissions.
CIBC is committed to creating a positive employee experience. The bank has a high employee engagement score. CIBC also offers a number of programs and initiatives to support employees, such as flexible work arrangements, employee assistance programs, and professional development opportunities.
CIBC is also making a difference in the community. The bank invests $66 million annually in community organizations and initiatives. This investment is focused on supporting education, health, and social services. CIBC also works to promote financial literacy and inclusion.
Company success
CIBC demonstrated remarkable achievements and demonstrated exceptional financial performance. Last year, it cultivated a robust customer base. Here is the 2023 highlights:
Financial Performance:
- Reported Net Income: The net income of $5.0 billion reflects a strong performance in the face of economic challenges. This demonstrates the company’s ability to generate sustainable profits.
- Return on Equity (ROE): achieved a solid return on equity (ROE) of 10.3%. This ratio measures the efficiency with which the company uses shareholders’ equity to generate profits, and it indicates that the company is effectively utilizing its resources to create value for investors.
Customer Base:
- Number of Clients: approximately 14 million clients. This large and loyal customer base is a testament to the company’s reputation for providing high-quality products and services.
Adjusted Financial Performance:
- Adjusted Net Income: achieved an adjusted net income of $6.5 billion. This adjusted figure excludes certain items and it provides a more accurate picture of the company’s ongoing profitability.
- Adjusted Return on Equity (ROE): achieved an adjusted return on equity (ROE) of 13.3%. This improved ROE demonstrates the company’s ability to generate higher returns on its shareholders’ equity.
Capital Strength:
- Common Equity Tier 1 (CET1) Ratio: The company maintains a strong capital position, with a common equity tier 1 (CET1) ratio of 12.4%. This ratio measures the company’s ability to absorb losses and meet regulatory requirements, and it indicates that the company is well-capitalized and able to withstand financial shocks.
What makes CIBC Investor’s Edge unique?
CIBC Investor’s Edge is unique as it distinguishes itself from competitors with advantages tailored to the Canadian audience below:
- Security & trust of a major bank: As part of CIBC, Investor’s Edge inherits a level of stability and reputation that appeals to investors seeking the backing of a well-established institution.
- Integrated Banking Experience: For existing CIBC banking clients, Investor’s Edge offers a seamless experience, allowing you to manage your investments and banking activities within a single platform.
- Focus on User-Friendliness: The platform is known for its intuitive interface and resources, making it a good option for beginner investors seeking a less intimidating entry into the market.
- Dedicated Pricing for Specific Investor Groups: CIBC Investor’s Edge offers competitive fee structures, along with special pricing programs for active traders, young investors (under 25), and students.
- Canadian Depositary Receipts (CDR): offer fractional shares of U.S. companies and global companies in the Canadian currency, with no impact from foreign exchange fluctuations. CDRs have lower investment prices, dividends, and voting rights, and are part of a global market worth $1 trillion.
CIBC Investor’s Edge vs other Canadian Brokers
Let’s take a look at how CIBC Investor’s Edge key features stack up against major competitors in Canada. For this example, we will compare the broker to Questrade, IBKR, and Wealthsimple Trade:
| Feature | CIBC Investor’s Edge | Questrade | Wealthsimple Trade | IBKR |
|---|---|---|---|---|
| Stock trading fees | $6.95 standard, with active/young/student discounts | $4.95 – $9.95 (based on volume) | Commission-free | |
| Options trading fees | $6.95 + $1.25 / contract | $9.95 + $1.25 / contract | $0 commission + $0.25 – $0.5 contract fee | |
| Account types | Broad range (e.g. RRSP, TFSA, FHSA, Margin, non-registered) | Similar range | Focus on TFSA, RRSP, and Personal | |
| Education & research | Less extensive than competitors | Advanced tools, market analysis, extensive educational materials | Beginner-focused learning materials, limited advanced resources | |
| Target clients1 | Broad, existing CIBC clients, beginners, students, clients below 25 years old, active traders | Beginners, long-term investors | New investors, focus on simplicity, beginner investors with zero to less knowledge in trading |
Is CIBC Investor’s Edge a good broker?
Yes, CIBC Investor’s Edge is a good broker, particularly for existing CIBC banking clients because of seamless transition. It can also be a good broker for investors seeking security of a big bank, in this case CIBC. The platform is also intuitive for Canadians who want to start their self-directed investing career, as well as clients with a chequing account with CIBC Smart Start or CIBC Smart for Students.
While CIBC offers discounts for active traders, you might want to consider alternatives if you’re an extremely active trader. Some discount brokers just happened to be more cost effective at a very high frequency that traders can take advantage of.
Seasoned investors who need complex charting tools and extensive market data might find CIBC’s offerings less than specialized platforms like IBKR and Questrade. CIBC Investor’s Edge prioritizes stocks/ETFs in Canada and US. If the majority of your assets are outside of North America, you might consider brokers with wider access.
Is CIBC Investor’s Edge safe & trustworthy?
Yes, CIBC Investor’s Edge is a safe & trustworthy platform for Canadian investors because it is part of CIBC and is a member of IIROC and CIPF. Here’s why you can have confidence in using this brokerage with your money:
Backing of a major bank
As a division of CIBC, Investor’s Edge benefits from its financial strength, stability, and long-lasting reputation as one of the “Big Five” banks in Canada. This recognition provides a sense of security knowing that your investments are supported by a stable, well-regulated institution.
As of 2023, the net income of the company reaches $5.0 billion, a 15% increase year-over-year. Return on equity (ROE) was 10.3%, indicating strong profitability, and the customer base grew to 14 million. The company maintained a solid capital position, with a CET1 ratio of 12.4%. Overall, the company’s performance was strong, demonstrating its focus on delivering value to customers and stable operation.
Is it a member of IIROC?
Yes, CIBC Investor’s Edge is a member of the Investment Industry Regulatory Organization of Canada. As one of its member firms, IIROC oversees and sets standards for Investor’s Edge. The regulations that IIROC sets enforces rules designed to protect Canadian investors and traders, ensure fair trading practices, and maintain market integrity.
Is my money insured?
Yes, your CIBC Investor’s Edge account is protected by the Canadian Investor Protection Fund (CIPF). Being a member of CIPF means that in case the broker becomes insolvent, your account is insured up to $1 million CAD.
Does it have account security & privacy?
Yes, CIBC Investor’s Edge employs industry standard security measures for account security & privacy. The standard security measures include data encryption that protects your passwords, financial details, and more when you log in or execute trades.
CIBC also uses verification methods like in-person verification, voice verification, and Interac verification service. Interac is an app that provides security and convenience to Canadians with participating services that require your personal data. In short, the service lets Canadians use existing login credentials for quicker yet secured digital data verification.
How much are the fees on CIBC Investor’s Edge?
Fees on CIBC Investor’s Edge vary depending on the type of account and the products you want to trade. Active trader’s, for example, have discounts, and CIBC also waive some fees for eligible students or investors below 25 years old.
Here’s a breakdown of the pricing on CIBC Investor’s Edge:
| Fee Type | Standard Rate | Active Trader Discount | Young Investor Discount | Student Investor Discount |
|---|---|---|---|---|
| Stocks/ETFs (per trade) | $6.95 | $4.95 | $0 | $5.95 |
| Options (per trade) | $6.95 + $ 1.25 | $4.95 + $1.25 | $6.95 + $1.25 | $5.95 + $1.25 |
| Mutual funds (per contract) | $6.95 | $6.95 | $6.95 | $6.95 |
| Annual account fee (>$10,000) | $0 | $0 | $0 | $0 |
| Annual account free (<$10,000) | $100 | $100 | waived | waived |
Young investors (under the age of 25) can benefit from the CIBC Smart Start Account. This account is designed to help young people get started with investing and offers several advantages, including no annual fees and access to CIBC’s Investor’s Edge platform. The account also provides discounted commissions on trades and personalized advice from a CIBC financial advisor, helping young investors make informed decisions about their investments.
For full-time students, the CIBC Smart for Students Account is an excellent option. Like the Smart Start Account, it has no annual fees and provides access to the Investor’s Edge platform and discounted commissions on trades. Additionally, student investors can take advantage of exclusive student perks and discounts, making it an attractive choice for those still in school.
How much is the cash and margin rates?
The cash and margin rates on CIBC Investor’s Edge refers to the interest rates on account balances and the rates vary depending on the type of account and balance status. For non-registered CAD accounts, there’s a 0.00% interest on credit balances, while debit balances charge 8.75% interest. Registered CAD accounts have similar rates, with 0.00% on credit balances and 9.75% on debit balances.
How much is the foreign exchange fee?
Foreign exchange fee on CIBC Investor’s Edge depends on various factors, such as tiers, spreads, and percentages. The tier system determines the different transaction amounts and their corresponding fees.
The conversion fee is calculated by multiplying the transaction amount by the spread expressed as a percentage or by dividing the spread (tier/basis point) by 10,000 and multiplying by the amount of the transaction.
Conversion fee = transaction amount x (basis point/10,000)
For example, if you exchange between $0 and $24,999.99, the tier is 225 (basis point), which translates to a spread of 1.7% based on the Bank of Canada exchange rate. As the transaction amount increases, the tier and spread decrease. For instance, if you exchange between $25,000 and $99,999.99, the tier is 130, resulting in a spread of 1.0%.
Other fees
Other fees on CIBC Investor’s Edge beyond commissions are annual account fees and telephone trading fees.
Accounts with a balance under $10,000 are subject to a $100 annual fee (waived for young/student investors). When placing trades over the phone, there are commission fees based on the investment type and price. All Canadian and U.S. orders are subject to a minimum commission of $50.
What are the benefits of Investing at a Young Age at CIBC Investor’s Edge?
Investing at a young age at CIBC Investor’s edge has several significant benefits. Firstly, young investors have more time on their side, allowing their money to grow over a longer period. This is particularly advantageous due to the power of compound interest, where earnings are reinvested to generate even more earnings over time.
Starting to invest early also helps young people develop a habit of saving and investing, which can be beneficial throughout their lives. By establishing good financial habits early on, young investors can potentially achieve financial freedom sooner, giving them more control over their time and lifestyle.
In conclusion, young investors have several options available to them, including the CIBC Smart Start Account, the CIBC Smart for Students Account, and the FHSA. By taking advantage of these opportunities and starting to invest early, young people can benefit from the power of compound interest, develop good financial habits, and potentially achieve financial freedom sooner.
What products can you invest on CIBC Investor’s Edge?
The products that you can invest on CIBC Investor’s edge includes widely used investment options in Canada beyond stocks, ETFs, and Options. The wide array allows investors to build a diversified portfolio thay may align to specific investment goals and risk tolerance.
Here is a breakdown of investment products available on CIBC Investor’s Edge:
- Stocks: investments in individual companies across various sectors and industries in North America. Stocks offer potential gains (price appreciation) and income through dividends.
- Exchange Traded Funds (ETFs): CIBC Investor’s Edge offers a substantial range of ETFs, including index-based funds, sector-specific ETFs, and even thematic ETFs focused on trends like ESG investing. ETFs provides instant diversification, often with lower fees than actively managed funds.
- Options: suitable for experienced investors looking to implement hedging strategies, generate income, or speculate on price movements. Options offer leverage and the potential for higher returns (comes with higher risks) compared to directly owning stocks.
- Mutual funds: access to professionally managed funds covering various asset classes, regions, and investment styles (growth, value, etc.). Offers option for clients who prefer hands-off investment approach.
- Guaranteed Investment Certificates (GICs): offers a secure way to earn interest with minimal risk.
- Fixed income: allows clients to choose from bonds issued by the Canadian government and corporations with differing maturities and risk profiles. Investors benefit from fixed income through a more predictable income stream than other investment options. It can also add stability to your portfolio, minimizing the risk caused by stock market volatility.
- Precious metals: allows you to invest in gold and silver through e-Certificates, adding diversification potential and possibly safeguarding your portfolio against inflation.
- Initial Public Offerings (IPOs): allows investors to participate in IPOs of newly-listed companies, potentially capturing early growth.
- Structured notes: Access to market-linked returns with some downside protection. Structured notes offered a unique risk-reward profile for investors like conservative investors who want more market exposure or investors looking to diversify beyond the traditional approach, willing to accept limited upside for protection against market downsides.
What are the trading platforms on CIBC Investor’s Edge?
CIBC Investor’s Edge offers platforms both on PC/Mac and mobile phones (android/iOS) to cater different preferences and easy accessibility. Here’s a breakdown of CIBC Mobile Wealth and CIBC Investor’s Edge (Web):
What is CIBC Mobile Wealth?
CIBC Mobile Wealth is an app that allows investors to trade monitor their CIBC Imperial Investor Service, CIBC Wood Gundy, CIBC Private Investment Counsel, and CIBC Investor’s Edge accounts on their mobile phones.
The app is ideal for investors prioritizing simple investing at the convenience of their phones. This is great for checking your portfolio anytime and anywhere, as well as placing trades, and basic account management. Beginners can find the app easier to navigate.
Key features:
- Real-time quotes for stocks and ETFs
- Customizable watchlists
- Straightforward order placement
- Account balance and transaction viewing
- CIBC banking integration (for existing CIBC banking clients)
However, the platform’s simplicity limits access to more in-depth, charting, research and analysis tools compared to the web platform.
What is Investor’s Edge?
CIBC Investor’s Edge is the primary web-based platform, featuring full benefits of CIBC’s online brokerage platform, a range of investment tools, and resources. The online platform is best for Canadian investors wanting the full features of CIBC Investor’s Edge.
Key features:
- In-depth research and market news
- Charting tools for technical analysis
- Screeners to filter stocks/ETFs based on criteria
- Access to options trading
- Detailed reporting and portfolio analytics
What are the account types available on CIBC Investor’s Edge?
CIBC Investor’s Edge offers various registered, non-registered, non-personal, and locked-in accounts. This includes popular Canadian accounts like TFSA and RRSP. Here’s an overview of accounts you can open with CIBC Investor’s Edge:
TFSA
Tax-Free Savings Account (TFSA) gains you tax-advantaged investment income. This tax-free account provides flexibility for you to access your funds whenever needed and make tax-free withdrawals. Investors can replenish previously withdrawn amounts in the subsequent calendar year.
Opening a CIBC Investor’s Edge TFSA has zero annual administration fees, regardless of your account balance. Also, setting up a Regular Investment Plan streamlines your TFSA contributions, making it a hassle-free process.
RRSP
Registered Retirement Savings Plan (RRSP) allows you to save for retirement and reduce yearly taxable income. Investors can defer taxes on RRSP investments until withdrawals. Investor’s Edge offers a broad range of investments and tools for just $6.95 per online stock or ETF trade.
RESP
A Registered Education Savings Plan (RESP) allows you to secure your child’s higher education with tax-sheltered savings, allowing your funds to grow without immediate taxation. You also have a chance for potential education grants.
In CIBC Investor’s Edge, you can choose between individual or family RESP plans. Here are some benefits of opening a CIBC Investor’s Edge RESP:
- Tax-sheltered Growth: Save for your child’s education in a tax-advantaged account. Funds grow tax-free until withdrawn.
- Low Trading Fees: Pay just $6.95 per online equity trade, one of the lowest rates available in the market.
- No Annual Administration Fees: Enjoy no annual administration fees, ensuring more of your savings goes towards your child’s education.
- Access to Government Grants: Take advantage of government grants and education savings incentives that can boost your child’s RESP savings.
- Tailored Portfolio Options: Build your investment portfolio tailored to your financial goals and risk tolerance.
Other registered accounts
Other registered accounts on CIBC Investor’s Edge include other retirement and locked-in accounts. Each account has its own set of tax rules and withdrawal options.
Registered Retirement Income Fund (RRIFs) offer regular income from savings and require minimum withdrawals.
On the other hand, Locked-in Retirement Account (LIRA) and Locked-in RSP (LRSP) are locked-in accounts from pension or group plans and employer’s plans, respectively.
Locked-in Retirement Income Fund (LRIF) is also a locked-in account from pension or group plans. Meanwhile, the Prescribed Retirement Income Fund (PRIF) has special tax rules and is associated with life insurance.
FHSA
The First Home Savings Account (FHSA) is a government-registered savings account designed to help first-time homebuyers save for a down payment. FHSA accounts offer several benefits, including tax-deductible contributions, tax-free withdrawals when used for a down payment on a first home, and no annual fees. New Investor’s Edge clients are also exempt from the first year fee, making it an even more attractive option for young investors.
Non-registered accounts & non-personal accounts
Investor’s Edge also offers cash accounts and margin accounts. In a cash account, the investor must have enough cash on hand to cover the purchase of securities. Margin accounts allow the investor to borrow money from the brokerage firm to purchase securities.
There are also non-personal accounts available. These accounts include corporate and partnership accounts, formal trust accounts, investment club accounts, and estate accounts. Non-personal accounts are typically used by businesses and other organizations.
What is Premium Edge?
Premium Edge is a service offered by CIBC Investor’s Edge to clients with over $1 million in assets. The service provides personalized investment advice, enhanced reporting, preferred rates on margin loans, and access to exclusive events. Clients with $2 million or more in assets also qualify for a dedicated relationship manager.
Premium Edge also provides you with exclusive benefits designed to enhance your trading experience and maximize your profits. With Premium Edge, you gain access to industry-leading research, a powerful trading platform, and personalized watchlists and alerts. Each benefit is carefully curated to help you make informed decisions and capitalize on every trading opportunity.
In addition to these exclusive benefits, Premium Edge also offers a limited-time transfer-in bonus. For a limited time, new and existing clients can transfer their assets from outside CIBC and receive cash back. The more you transfer, the more you get, up to $4,500. The bonus tiers are as follows:
- $4,500 cashback when you transfer in $2,000,000 or more
- $3,000 cashback when you transfer in $1,000,000 to $1,999,999
- $1,500 cashback when you transfer in $250,000 to $999,999
Note that conditions apply to the transfer-in bonus, so be sure to review the terms and conditions before you transfer your assets.
How to open an account on CIBC Investor’s Edge?
To open account for both existing banking client and new users on CIBC Investor’s Edge, follow the process below:
- Visit the Investor’s Edge Website: Go to https://investorsedge.cibc.com/
- Locate the “Open an Account” Button: It’s usually prominently displayed.
- Answer the question, “Are you a CIBC Online Banking Client?”.
- Choose “I don’t have CIBC debit card” or “Yes, sign on now” if you’re an existing client.
- Follow the following steps. Before proceeding, check if you meet all the criteria provided on the prompt. Click “Start Application”.
- For existing CIBC online banking clients, prefill the application to seamlessly import your data. Then simply follow the steps required.
- Select Account Types: Choose the account(s) you want to open.
- Provide Personal & Financial Information: This includes your name, address, SIN, employment details, and investment experience.
- Review & Accept Agreements: Carefully read and electronically sign agreements related to terms of service and account disclosures.
- Fund Your Account: Once approved, you can link your bank account or initiate another funding method to deposit money into your Investor’s Edge accounts.
Account approval typically takes a few business days, depending on the complexity of your application. Also, if you want to open a corporate account, you can contact CIBC by calling them using this number: 1-800-567-3343.
How to transfer money with CIBC Investor’s Edge?
In transferring money with CIBC Investor’s Edge, the platform supports several methods to move money:
Online Cash Transfer (CIBC/Simplii): The fastest method if you have a linked CIBC or Simplii
How to:
- Financial bank account.
- Log in to Investor’s Edge
- Navigate to “Transfers & Exchange”
- Initiate the transfer
Transfer from Other Financial Institutions: Move funds or securities from an external brokerage or bank account.
Options:
- Online Form: For simple transfers (TFSA, RRSP, individual accounts, etc.) meeting specific criteria.
- Standard Form: Mail or in-branch submission for complex cases (joint accounts, RESPs, more than 3 items, etc.).
Direct Deposit: Make deposits in person at a CIBC branch.
Important Notes:
- Account Type Matching: Transfers are generally restricted to the same account type (e.g., TFSA to TFSA).
- Transfer Initiation: Check CIBC Investor’s Edge’s FAQ or help section for forms and detailed instructions.
