An active trader is simply a stock trader who makes many trades in a relatively short time and consequently benefits from a special (cheaper) pricing on the commission rate when trading equities and options. An active trader also has some other benefits, such as access to Level II quotes, and (more) real time data.

Here’s a comparison of Active Trader programs between the different Canadian Banks.

Bank of Montreal (BMO)

Non-Active Trader Pricing

• Equities: $29/trade + $0.03/share for over 1,000 shares
• Options: $29/trade + variable commission based on the option price (ranging from $1.5 to $3.5)

Active Trader Eligibility Criteria

BMO has only one active trader program, the eligibility criteria is that you must have made at least 30 traders within the last quarter OR have $50,000 in assets with BMO.

Active Trader Pricing

• Equities: $9.95/trade flat
• Options: $9.95/trade + $1.25/contract

Canadian Imperial Bank of Commerce (CIBC)

Non-Active Trader Pricing

• Equities: $28.95/trade + $0.03/share for over 1,000 shares
• Options: $28/trade + variable commission based on the option price (ranging from $1.2 to $2.80)

Active Trader Eligibility Criteria

CIBC has 2 Active Trader Programs:

• Program 1 Eligibility Criteria: At least 150 trades every quarter.
• Program 2 Eligibility Criteria: At least 30 trades every quarter OR at least $50,000 of household assets registered with CIBC.

Active Trader Pricing

Program 1

• Equities: $6.95/trade flat
• Options: $6.95/trade + $1.25/contract

Program 2

• Equities: $9.95/trade flat
• Options: $9.95/trade + $1.25/contract

Royal Bank of Canada

Non-Active Trader Pricing

• Equities: $28.95/trade + $0.03/share for over 1,000 shares
• Options: ($35/trade + an average of 0.03/share) x 20% (yes – it’s a complicated formula)

Active Trader Eligibility Criteria

RBC has 2 Active Trader Programs:

• Program 1 Eligibility Criteria: At least 150 trades every quarter.
• Program 2 Eligibility Criteria: At least 30 trades every quarter OR at least $50,000 of household assets registered with RBC.

Active Trader Pricing

Program 1

• Equities: $6.95/trade flat
• Options: $6.95/trade + $1.25/contract

Program 2

• Equities: $9.95/trade flat
• Options: $9.95/trade + $1.25/contract

Scotia Bank

Non-Active Trader Pricing

• Equities: $28.95/trade + $0.03/share for over 1,000 shares
• Options: $25.95 + variable commission based on the option price (ranging from $0.80 to $2.80)

Active Trader Eligibility Criteria

Scotia Bank has 2 Active Trader Programs:

• Program 1 Eligibility Criteria: At least 90 trades every quarter.
• Program 2 Eligibility Criteria: At least 30 trades every quarter.

Active Trader Pricing

Program 1

• Equities: $8.95/trade flat
• Options: $8.95/trade + $1.25/contract

Program 2

• Equities: $14.95/trade flat
• Options: $14.95/trade + $1.25/contract

TD Canada Trust

Non-Active Trader Pricing

• Equities: $29/trade + $0.03/share for over 1,000 shares
• Options: $29/trade + $1.75/contract

Active Trader Eligibility Criteria

TD Canada Trust has 2 Active Trader Programs:

• Program 1 Eligibility Criteria: At least 150 trades every quarter.
• Program 2 Eligibility Criteria: At least 30 trades every quarter OR at least $50,000 of household assets registered with TD.

Active Trader Pricing

Program 1

• Equities: $7/trade flat (there is no limit on the number of shares one can buy)
• Options: $7/trade + $1.25/contract

Program 2

• Equities: $9.99/trade flat
• Options: $9.99/trade + $1.25/contract

What Is the Canadian Bank with the Best Active Trader Program?

By looking at the numbers above, we can easily say that both RBC and CIBC have the best pricing, but that doesn’t make them the best banks to trade stocks with. I personally despise both banks (RBC from personal experience, CIBC because of some of my friends’ horror stories). I personally trade with BMO, but I think both TD and Scotia are also worth looking at. I don’t think I came up with a decent conclusion, I literally stated that all 5 banks are worth trading with, which is not saying much, and no, you can’t have the 30 seconds or so you spent reading this section back.

Notes

• For equities/options traded in CAD, the currency in the above is in CAD. For equities/options traded in USD, the currency in the above is USD.
• The prices above reflect the Internet pricing only (e.g. trades that you make by using your PC). Phone pricing (trades made by calling the bank) is higher.

References

• BMO Pricing: https://www.bmoinvestorline.com/Commissions/Default.html.
• CIBC Pricing: http://www.investorsedge.cibc.com/ie/benefits/fees-and-commission/commission-rates.html.
• RBC Pricing: http://www.rbcdirectinvesting.com/RBC:TdQ-tawWAA8AGMEadj8/pdf/commission-fees.pdf.
• Scotia Bank Pricing: http://www.scotiabank.com/images/en/filespersonal/22621.pdf.
• TD Pricing: http://www.tdwaterhouse.ca/apply/forms/521778.pdf.