CIBC (TSX:CM) has introduced commission-free online trading on 1900 exchange-traded funds (ETF) between February 12 and March 31 for the firm’s Investor’s Edge clients.
The timing is deliberate, according to Marybeth Jordan, managing director and head of CIBC Investor’s Edge, the firm’s discount brokerage source.
“Many investors review and re-balance their investments during [registered retirement savings plan] season,” she explains. “This winter break from ETF trading commissions will help keep their trading costs low.”
ETFs have a greater presence in investors’ portfolios, suggests the results of a CIBC poll. It found that ETFs now comprise 10% of self-directed investors’ portfolios, compared to 3% a decade ago.
“ETFs have expanded investment choices for investors and become one of Canada’s fastest-growing investment vehicles,” says Jordan.
The poll was conducted among approximately 1500 randomly selected Canadian adults who are the decision makers for their discount brokerage or direct investing accounts and are also Angus Reid Forum panelists.
The promotion is limited to online trades for non-leveraged ETFs. There must be a minimum order of $100 in the currency of the trade. For all other online equity trades, CIBC Investor’s Edge clients will continue to pay a flat-rate commission of $6.95.