Trading
- How do I deposit money into my account?
- What is deposit acceleration? When will I need to use it?
- When can I make my first trade?
- What types of orders can I place?
- Who should I speak to if I have problems entering a trade?
- What does it cost to trade stocks through CIBC Investor's Edge?
- If an order is filled at different prices throughout the day, will I pay a commission for each lot bought/sold?
- What is the cut-off time for placing mutual funds orders?
- Can I trade options?
- Can I trade Canadian equity options?
- Can I place an options order after 4:00 p.m. ET?
- What is the minimum trade value for fixed income trading?
- Are all fixed income products offered by CIBC Investor Services Inc. available for purchase through the website?
- What is CIBC Investor Services Inc. Credit Policy?
How do I deposit money into my account?
You have several options.
Online: You can transfer money from your CIBC branch account to your CIBC Investor's Edge account (and vice versa) online. This is the most convenient way to transfer funds.
Deposit Acceleration: You can also have your local branch deposit money into your CIBC Investor's Edge account if you need access to the money in your brokerage account immediately. This would be necessary in cases where you want to place a trade and do not have sufficient funds and/or securities in your account to pay for the trade.
For Deposit Acceleration, you will need to visit a CIBC branch and ask a branch representative for a "Deposit Acceleration." Money will be debited from your bank account and sent to your CIBC Investor Services account. The representative will provide you a reference number that can be used by one of our Investment Representatives to verify that the money is coming to CIBC Investor Services.- By cheque: You can also send us a cheque. Cheques should be payable to CIBC Investor Services Inc. For registered accounts, please indicate "Attention: Plan Accounts Dept." and for non-registered accounts please indicate "Attention: CIBC World Markets Banking Dept."
Mail cheques to:
CIBC World Markets
Sales Office Control
BCE Place, 10th Floor
161 Bay Street
Toronto, ON
M5J 2S8
Be sure that your account number is clearly marked on the front of the cheque and please note that the cheque must clear before you can place a trade.
What is deposit acceleration? When will I need to use it?
When can I make my first trade?
Before you can make your first trade, you must open an account with CIBC Investor Services. Also, full payment for your first trade must be deposited to your CIBC Investor's Edge account before placing the trade. For details, see First Trade Rule in the Credit Policy.
What types of orders can I place?
You can place market, limit, stop, and stop limit orders through CIBC Investor's Edge:
- Market – A market order is executed at the best available price when the order reaches the market. Please remember that the price at which your order is finally executed could well be different from the quoted price you received before you placed your order. Market orders guarantee an execution but they do not guarantee an execution at a specific price.
- Limit orders – Guarantee a price but not an execution. Limit orders are so named because you place a limit on the price at which you are willing to buy or sell a stock. There is risk involved in limit orders, namely failure of execution. Even if your stock reaches or passes through the limit price, your limit order may not be executed if there are orders ahead of yours at the same limit price. The orders in line ahead of you must be filled first and there may not be enough stock available to fill your order when its turn comes.
- Stop orders – These types of orders resemble limit buy and sell orders. However, they have one feature that sets them apart. Unlike limit orders – which can be filled only at a specific limit price – when a stop order reaches its stop price, it becomes a market order to be executed at the best available price. As a result, there are trading situations when the stop order could end up being executed at a price that is significantly higher or lower than the stop price. Stop orders are not guaranteed to be honoured by an exchange.
- Stop limit orders – These types of orders are similar to stop orders, but when the stop limit order reaches its stop limit price, the stop limit order becomes a limit order rather than a market order.
You can also set the following parameters on your orders:
- Day order – This type of order simply expires if it hasn't been executed by the close of trading on the day it was entered. Day orders entered after market close are valid for the following trading day only.
- Good Through orders – There may be occasions when you would like your order to remain open for several days or weeks. In such cases, you can enter a "good through" order that allows you to leave an order open for up to 30 days; during that period, it will remain in force until it is executed or you choose to cancel it. Keep in mind, however, that a "good through" order can be partially executed over several days if there is not enough stock available to fill the order all at once. In this case, separate commissions are charged based on each day's transactions.
Who should I speak to if I have problems entering a trade?
If you experience a problem with a trade or any other service issue, call us. Click Contact Us at the top of our website for our contact information and hours of operation. An Investment Representative will be happy to assist you or answer any questions you may have.
What does it cost to trade stocks through CIBC Investor's Edge?
Commissions vary according to how you place your trades with CIBC Investor's Edge: by phone through an Investment Representative, through our automated telephone service, or online through our Internet-based brokerage service. You can trade stocks online or through our automated telephone service for a flat-fee of $28.95 per trade for up to 1,000 shares. There is a separate commission schedule for trades made through an Investment Representative over the phone. Please refer to our Fees & Commission Schedule for details.
If an order is filled at different prices throughout the day, will I pay a commission for each lot purchased/sold?
Only one commission is charged if an order is executed in multiple lots on the same day. If it is filled over a number of days, you will be charged one commission each day a fill is completed.
What is the cut off time for placing mutual funds orders?
The cutoff time to buy or sell mutual funds through CIBC Investor Services is 3:00 p.m. ET. All orders placed after this time are handled on a best efforts basis and may be processed the following business day. Note: some mutual funds have an earlier cutoff time and some are priced weekly or monthly.
Can I trade options?
Yes, you can trade equity, index and bond options through CIBC Investor's Edge. The following options are not available: currency option, gold and silver options, futures and commodities. For registered accounts, only buys of calls and puts and covered options are available.
Can I trade Canadian equity options?
Yes, however there are some restrictions:
- Your order will not qualify for a Minimum Guaranteed Fill. The stated quote size reflects only what is available in the order book of the Canadian Derivatives Exchange or Bourse de Montreal Inc.
- All or None (AON) orders will not be honoured. The trade request may be rejected or processed without the AON restriction.
- Market orders are now converted to limit orders at the price of the opposite side of the market.
Example: An order is entered to buy 20 contracts of CLS Jan 20 at market. Since five contracts are offered at $1.50 they will be filled. Under the new rules, the market order then becomes a limit order at $1.50 for the remaining 15 contracts and will sit on the bid while the offer moves to the next price.
Can I place an option order after 4:00 p.m. ET?
This is the schedule for different types of options:
- Canadian equity options cease trading at 4:00 p.m. ET
- Canadian index options cease trading at 4:15 p.m. ET
- U.S. equity options cease trading at 4:02 p.m. ET
- U.S. index options cease trading at 4:15 p.m. ET
To place an order for the same day for any of these options after 4:00 p.m. ET and until that market closes, you must call us and place your order through an Investment Representatives. Any option order placed online after 4:00 p.m. ET will be queued for the next trading session.
What is the minimum trade value for fixed income trading?
CIBC Investors Edge Inc. has set minimum face values for fixed-income trading.
| Minimum | Increments | |
| Bankers' Acceptance Papers | $25,000 | $1,000 |
| Bankers' Acceptance Papers (U.S. Currency) | $100,000 | $1,000 |
| Bonds | $5,000 | $1,000 |
| Bonds (U.S. Currency) | $10,000 | $1,000 |
| Commercial Papers | $50,000 | $1,000 |
| Commercial Papers (U.S. Currency) | $100,000 | $1,000 |
| Guarantee Investment Certificates (GICs) - Investment Accounts | $10,000 | $1 |
| Guarantee Investment Certificates (GICs) - Registered Accounts | $5,000 | $1 |
| Mortgage Backed Securities (MBSs) | $10,000 | $1,000 |
| Strip Bonds | $5,000 | $1 |
| Strip Bonds (U.S. Currency) | $10,000 | $1 |
| Treasury Bills | $25,000 | $1,000 |
| Treasury Bills (U.S. Currency) | $100,000 | $1,000 |
Are all fixed income products offered by CIBC Investor Services Inc. available for purchase through the website?
CIBC Investor's Edge offers a full range of fixed income products; however, not all products are available for purchase online. For more information please contact a CIBC Investor's Edge Investment Representative. Click Contact Us at the top of our website for our contact information and hours of operation.
What is the CIBC Investor Services Inc. Credit Policy?
CIBC Investor Services Inc. (Investor Services) Trading Policy
First Trade or No "Total Market Value" within the account. For your trade to be accepted electronically, there must be sufficient cash in your CIBC Investor's Edge account to cover the entire purchase price (including commissions). If there is sufficient cash, please select the "Use Cash/Margin" settlement option.
If there is insufficient cash in your CIBC Investor's Edge account, you must arrange for a "Deposit Acceleration" to cover the entire purchase price. Simply contact your CIBC bank branch representative and request that your bank account be debited for the appropriate amount and that these funds be forwarded via "Deposit Acceleration" to your CIBC Investor's Edge account. The branch representative will provide you with an Electronic Journal (EJ) number corresponding to the transaction.
Once this has been arranged, please contact CIBC Investor's Edge at 1 800 567-3343 (Option 3) who will place a note on your account with the details of the Electronic Journal (EJ). At this point you can return to the on-line system to place your trade.
The First Trade Rule applies for both Canadian and U.S. sides of your account.
Penny Stock Rule
The Penny Stock Rules states that penny stock (i.e., stock trading under $3.00) orders cannot exceed 50 per cent of the "Total Market Value" in the cash account. For your trade to be approved on-line, the market value of an identical penny stock should be excluded from the "Total Market Value" in your portfolio.
Combined "Total Market Value" of both the Canadian and U.S. accounts will be considered, and positions for the same security will be excluded in calculating the Penny Stock Rule equity requirement. If there is insufficient "Total Market Value" in the account, additional funds or securities will need to be deposited prior to placing the trade.
Cash Account Settlement Rule
Cash accounts require that payment for trades must be made in full by the settlement date (i.e., T+3 for equities or such earlier date as CIBC Investor Services may require). Clients can place trades for up to the "Total Market Value" of their account. Clients who fail to pay in a timely manner may have a "Cash Up Front" restriction placed on their account. Debit balances are charged interest based on the rates outlined in the Commission, Fees and Interest Schedule.
For your trade to be accepted electronically, when selecting the "Use Cash/Margin" settlement option, there must be sufficient cash or cash equivalents in your CIBC Investor Services account to cover the entire purchase (including commissions). "Cash equivalents" are defined as a pending mutual fund sale, a pending security sale "at market" or a previously filled security sale.
When selecting the "Debit Bank – Full Amount" settlement option, you must satisfy the Cash Account Equity Rule. THE CASH ACCOUNT EQUITY RULE STATES THAT THE VALUE OF YOUR PURCHASE INCLUDING COMMISSIONS MUST NOT EXCEED THE CURRENT "TOTAL MARKET VALUE" OF YOUR INVESTOR SERVICES ACCOUNT. When using the "Debit Bank – Full Amount" settlement option, your bank account will be debited for the entire purchase price including commissions within three business days.
If the value of your purchase including commissions does not satisfy the Cash Account Equity Rule, you must initiate a same day Cash Transfer from your bank account on-line prior to placing the trade. Before placing your trade, simply go to the "Trading" tab and select "Cash Transfer." Remember to check "Open Orders" to verify the status of your request.
When selecting the "Sell Money Market Fund" settlement option, you must hold a sufficient amount of money market fund or T-Bill fund (CIBC or other fund companies) in your CIBC Investor Services Account to cover the net amount owing after the trade. When selecting the "Sell Money Market Fund" settlement option, sufficient money market fund or T-Bill fund will be automatically sold to cover the net amount owing after your trade is filled. The settlement date on the sale of your money market fund or T-Bill fund will coincide with the settlement date of your purchase. Please note that you are subject to any redemption or DSC fees charged on the sale of non-CIBC money market funds and T-Bill funds.
If cash in your Investor Services account is available only when all currencies are pooled, the buy order will be accepted. If after settlement the currency account shows a negative value, funds will be automatically converted and interest charges may apply. To place instructions for the conversion of funds, speak to a CIBC Investor Services representative. Note: You can always choose to have a trade settle in either Canadian or U.S. funds.
Free-riding / Flipping Rule
Free-riding / flipping occurs when an investor does not pay for a security he/she has purchased before selling the same security. When investors free-ride, they are trading on the firm's capital, a practice that is strictly prohibited by the Investment Industry Regulatory Organization of Canada.
Our credit department monitors free-riding and notes the practice on a client's account. If this is identified, trading privileges may be limited to cash upfront for every trade on the account or may be suspended.
In a Margin account, excess margin must be available to cover the margin requirement of an order.
When selecting the "Use Cash/Margin" settlement option, you must have sufficient Margin Excess to cover the margin required for your purchase at the time of trade. Margin Excess is defined as the difference between the loan value granted on securities held in your account and the total amount currently being borrowed.
If a CIBC Investor Services account has insufficient Margin Excess available at the time of trade, you can generate the necessary Margin by one of two methods.
First, you may sell a security in order to create sufficient Margin Excess. Note that the sale of the security will increase the Margin Excess only by the amount of Margin required to hold that security position and ONLY WHEN THE SALE HAS BEEN FILLED. As an alternate method of generating the necessary Margin Excess, you may initiate a same day "Cash Transfer" from your bank account on-line. Note that the same day "Cash Transfer" will increase the Margin Excess in your account by the full amount of the "Cash Transfer". Before placing your trade, simply go to the "Trading" tab and select "Cash Transfer". Remember to check "Open Orders" to verify the status of your request.
When selecting the "Sell Money Market Fund" settlement option, sufficient money market fund or T-Bill fund will be automatically sold to cover the net amount owing after your trade is filled. The settlement date on the sale of your money market fund or T-Bill fund will coincide with the settlement date of your purchase. Please note that you are subject to any redemption or DSC fees charged on the sale of non-CIBC money market funds and T-Bill funds.
When selecting the "Debit Bank – Full Amount" settlement option, you must have sufficient Margin Excess to cover the margin required for your purchase at the time of trade. Furthermore, your bank account will be debited for the entire purchase including commissions within three business days.
The risks of margin buying are further managed by policies, which restrict margin purchases to maximum borrowing limits for concentrated accounts.
Concentration in Margin Accounts
Concentrated accounts are those, which contain a very large margined holding in one security with little or no diversification into other holdings or types of securities. Loan value on a per security basis may be reduced if the account is deemed to be "concentrated".
Restrictions may be set on individual issues, by security type and/or exchange. Limits are generally linked to the historical volatility of the various security types and exchanges. Generally, a margin account is defined as "concentrated" when one security or sector represents a significant percentage (approximately 25 per cent or more) of the total market value of the account. In general, loan value on concentrated accounts will be reduced only if the outstanding loan on the margin account exceeds $25,000.
CIBC Investor Services retains absolute discretion to require an increase in your Margin Excess from time to time.
Retirement Account (Cash Requirement Rules)
RRSP and RRIF accounts are subject to Canada Revenue Agency regulations. For a retirement plan account, cash or near cash securities must be available in your CIBC Investor's Edge account.
RRSP/RRIF QUALIFIED INVESTMENTS
In order to be considered as a Qualified Investment in a CIBC self-directed RRSP/RRIF, the following criteria must be met:
- The investment must fall within the "Qualified Investment Guidelines" set by the Income Tax Act.
- The investment must also fall within the guidelines of CIBC Trust Corp. (the trustee for CIBC Investor Services RRSP/RRIF accounts).
When selecting the "Use Cash/Margin" settlement option, sufficient cash or cash equivalents, must be available in your CIBC Investor Services account to cover the entire purchase (including commissions) for your trade to be accepted electronically. "Cash equivalents" are defined as a pending mutual fund sale, a pending equity sale at "market" or a previously filled security sale.
For Non-Locked-In RRSPs with insufficient cash positions, you may initiate a contribution in the form of a same day "Cash Transfer" from your bank account on-line. Before placing your trade, simply go to the "Trading" tab and select "Cash Transfer." Remember to check "Open Orders" to verify the status of your request.
When selecting the "Sell Money Market Fund" settlement option, you must hold a sufficient amount of money market fund or T-Bill fund (CIBC or other fund companies) in your CIBC Investor's Edge account to cover the net amount owing after the trade. When selecting the "Sell Money Market Fund" settlement option, sufficient money market fund or T-Bill fund will be automatically sold to cover the net amount owing after your trade is filled. The settlement date on the sale of your money market fund or T-Bill fund will coincide with the settlement date of your purchase. Please note that you are subject to any redemption or DSC fees charged on the sale of non-CIBC money market funds and T-Bill funds.
Note: the "Debit Bank – Full Amount" and the "Debit Bank – Difference" settlement options will not be accepted on any Retirement Account and the order will be rejected. Confirmation of a contribution through Deposit Acceleration or instructions given to an Investment Representative to make a contribution by debiting the bank is acceptable.
Securities on Deposit Rule
For all account types, sell orders may not be accepted unless securities are showing in the account or a confirmation of delivery to CIBC World Markets can be made by the Investment Representative.
Settlement periods are short and all securities must be received and booked into the account by CIBC World Markets in Toronto. This does not leave sufficient time for delivery, either by mail or through the Bank's internal mail system. Therefore, sell orders cannot be accepted for securities deposited at a CIBC bank branch until the securities show in the CIBC Investor Services account.
Uncleared Funds Policy
CIBC Investor Services will apply the following holds on recent deposits made to a CIBC Investor's Edge account:
- 10 business days for Canadian funds (drawn on non-CIBC accounts)
- 10 business days for U.S. funds drawn on a Canadian institution
- 20 business days for U.S. funds drawn on U.S. institutions
CIBC Investor's Edge Investment Representatives will not remove funds from an account until the funds have both settled and cleared.
In order to prevent holds on recent deposits, clients can arrange to have funds sent to their CIBC Investor's Edge account via "Deposit Acceleration" from their CIBC bank branch.
The information contained herein is considered accurate at the time of posting. CIBC, CIBC World Markets Inc. and CIBC Investor Services Inc. reserve the right to change any of it without prior notice. It is for general information purposes only. Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.
CIBC Investor's Edge is the discount brokerage division of CIBC Investor Services Inc., member CIPF. CIBC Investor Services Inc. does not provide you with any legal, tax, or accounting advice or advice regarding the suitability or profitability of a security or investment in a CIBC Investor's Edge account. You assume full responsibility for transactions in your CIBC Investor's Edge account and for your investment decisions.
The information on this Web site is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual, and you should not rely on it as such.
Copyright® 2008 Canadian Imperial Bank of Commerce. All rights reserved.