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CIBC Blinks

“A good plan violently executed right now is far better than a perfect plan executed next week.” – Patton.

You’re going to love this …

If you’ve been following the CIBC saga CIBC’s Revenge Redux, October 28, 2010, and CIBC’s Revenge, October 16, 2010, you will be delighted to learn that effective January 1, 2011, CIBC’s Investors Edge Self Directed Discount Brokerage service will reduce per trade fees from $28.95 to $6.95.

CIBC’s Investors Edge will no longer offer the Edge Advantage service. (Individual Investors can still access the Advantage program for the rest of 2010 … 10 trades for $79).

As always, when dealing with a Bank, there are provisos. All accounts included in the ‘Household’ of accounts must have the same address, the ‘household’ of accounts  must have a minimum of $100,000 (together, not each account) AND an Individual Investor has to phone to ‘apply’ to add their accounts to the same ‘household’ asset package (or whatever CIBC intends to call it). 

This is a huge win for Individual Investors.

(And another CIBC blunder. To implement this new pricing, CIBC will be ‘manning the phones’ to accept verbal applications for the ‘household assets package’ from their millions of customers as of January 1, 2011 … instead of simply automatically applying a ‘blanket’ approach to all customers who qualify. Just think of the personnel and time required to service unhappy customers who weren’t aware of the $6.95 service and want their trade commissions reversed or credited back – assuming they are inadvertently charged at the previous commission of $28.95. Duh.).

You can have it cheap, or you can have customer service. But not both.


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