- 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
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, and stop-limit orders through CIBC Investor's Edge:
- Market – A market order is executed at the best available price at the time the order reaches the market. It is important to note that the price at which a market order is executed is not guaranteed. The last-traded price or the quoted price received before placing an order could be different than the price at which your trade is executed.
A market order increases the likelihood that your trade will be executed but does not guarantee the execution of your trade at a specific price. As there may be no trading activity or insufficient trading activity to execute the trade there is no guarantee it will be filled.
- Limit orders – When you place a limit order, you are placing a limit on the price at which you are willing to buy or sell a security. There is a risk that your limit order will not be executed. Even if your security reaches or passes the limit price, your limit order may not be executed if there are orders ahead of yours at the same limit price. Those orders must be filled first and there may not be enough security available to fill your order.
A limit order guarantees a price at which your trade is executed, but does not guarantee that your trade will be executed.
- Stop-limit orders – A stop-limit order is similar to a limit order, with one major difference. Unlike limit orders – which can be filled only at a specific price – when a stop-limit order reaches its stop price, the order becomes a limit order to be executed at the specific limit price or better.
When entering a stop-limit buy or stop-limit sell order, you should be aware of the following risks:
- The placement of contingent orders, such as a stop-limit order, will not necessarily limit your losses to the intended amount, since market conditions may make it impossible to execute your orders.
- A stop-limit order will only capture fills at the limit price with the possibility of no fill (or a partial fill) if a security trades through that price.
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 or online through our electronic brokerage service. Equity trades can be placed online for a flat-rate fee of $6.95 per trade. There is a separate commission schedule for trades made through an Investment Representative over the phone. For full details, please visit the CIBC Investor’s Edge Fees and Commissions page.
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 4:00 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 Representative. Any option order placed online after 4:00 p.m., ET, will be automatically be submitted for processing on the next trading day.
What is the minimum trade value for fixed income trading?
CIBC Investors Edge Inc. has set minimum face values for fixed-income trading.
|Bankers' Acceptance Papers||$25,000||$1,000|
|Bankers' Acceptance Papers (U.S. Currency)||$100,000||$1,000|
|Bonds (U.S. Currency)||$10,000||$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 (U.S. Currency)||$10,000||$1|
|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 Services Inc. account to cover the entire purchase price (including commissions). If there is sufficient cash, select the "Pay From: Investment Account" or "Pay From: Registered Account" settlement option.
If there is insufficient cash in your CIBC Investor Services account, you must arrange for, at minimum, an amount equal to the purchase price to be transferred from your bank account to your Investor Services account. The cash transfer must increase your Investor Services account balance sufficiently to meet or exceed the purchase price of your order.
If you do not have a bank account linked to your Investor Services account, you may alternatively make a ''Deposit Acceleration'' to cover the entire purchase price. Contact your CIBC branch representative to debit your bank account for the applicable amount, and request that the debited funds be forwarded via Deposit Acceleration to your CIBC Investor Services account. The CIBC branch representative will provide you with an Electronic Journal (EJ) Number corresponding to the transaction.
Once this has been arranged, contact a CIBC Investor Services Investment Representative to place a note with the details of the Electronic Journal (EJ) in your account. Once completed, you can return to the online system to place your trade.
The First Trade Rule applies for both Canadian and U.S. sides of 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. In order for your trade to be approved online, 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 US 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 "Pay From: Investment Account" or "Pay From: Registered Account" settlement option, there must be sufficient cash or cash equivalents in your 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 "Pay From: Bank Account" 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 CIBC INVESTOR SERVICES ACCOUNT. When using the "Pay From: Bank Account" 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 main menu and select "Cash Transfers." Remember to check "Order Status" to verify the status of your request.
Note: You are subject to any redemption or DSC fees charged on the sell 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 but NO FUNDS WILL BE CONVERTED UNTIL WE RECEIVE YOUR VERBAL INSTRUCTIONS. 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 a client does not pay for a security he/she has purchased before selling the same security. When a client free-rides they are trading on the firm's capital, a practice that is strictly prohibited by the IIROC.
Our credit department monitors free-riding and notes the practice on the client's account. If this is identified, trading privileges may be suspended or limited to cash up front for every trade on the account.
In a Margin account, excess margin must be available to cover the margin requirement of an order.
When selecting the "Pay From: Investment Account" 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.
Note: Minimum equity in a margin account is $2,000.00. Any accounts with less than this amount will be converted to a cash account. Opening long option positions in margin accounts requires a minimum of $2,000 total equity. Short option positions require minimum equity of $25,000.
If the CIBC Investor Services account has insufficient Margin Excess available at the time of trade, you can generate the necessary Margin by one of the following two methods:
- 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.
- You may initiate a same day "Cash Transfer" from your bank account online. 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 main menu and select "Cash Transfers." Remember to check "Order Status" to verify the status of your request.
When selecting the "Pay From: Bank Account" settlement option, sufficient Money Market funds or T-Bill funds 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. Note: 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 without prior notice 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.
Registered Account (Cash Requirement Rules)
RSP and RIF accounts are subject to Revenue Canada regulations. For a registered plan account, cash or near-cash securities must be available for regular RIF payments and/or fees/redemptions charged in your CIBC Investor Services account.
RRSP/RRIF/TFSA QUALIFIED INVESTMENTS
You are responsible to ensure that the investments in registered plans are, and remain eligible investments .In order to be considered as a Qualified Investment in a CIBC self-directed RRSP/RRIF/TFSA, the following criteria have to be met:
- The investment has to fall within the "Qualified Investment Guidelines," set by the Income Tax Act.
- The investment also has to fall within the guidelines of CIBC Trust Corp (the trustee for CIBC Investor Services RRSP/RRIF/TFSA accounts).
When selecting the "Pay From: Registered Account" 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 main menu and select "Cash Transfers." Remember to check "Order Status" to verify the status of your request.
Uncleared Funds Policy
CIBC Investor Services will apply the following holds on recent cheque deposits made to a CIBC Investor Services account:
- 10 business days for Canadian funds (drawn on non-CIBC accounts)
- 10 business days for US funds drawn on a Canadian institution
- 20 business days for US funds drawn on US institutions
CIBC Investor Services will apply the following holds on recent Electronic Fund Transfers (EFT) made to a CIBC Investor Services account:
- 3 business days for EFTs from CIBC bank accounts
- 5 business days for EFTs from a bank account at an external financial institution*.
CIBC Investor Services Investment Representatives and Customer Service Representatives will not remove funds from the CIBC Investor Services 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 Services account via "Deposit Acceleration" from their CIBC Branch.
- There is a 5 business day hold prior to accepting trade orders using these funds as settlement unless the equity in the account is equal to or greater than the amount of the cash transfer.
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 of the Canadian Investor Protection Fund. 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.