front-end-load mutual funds it sells in Canada.

Effective Monday, most of the 1,100 funds sold by TD Waterhouse Investor Services, Canada's biggest discount broker, eliminated their 1% to 2.5% sales commissions on investments of up to $16,700, said John See, vice chairman at TD Waterhouse Group. Instead, he said, investors will be charged $30 when they redeem shares, and there will be an additional bonus for customers who invest on-line -- a 25% discount on redemption fees.

"What we're really saying is on-line is becoming a compelling medium," he said.

The funds on which commissions were eliminated include those from companies such as Fidelity Investments and AIM Management Group. In Canada, TD Waterhouse has 670,000 active accounts representing some $21.4 billion of assets. In the United States, TD Waterhouse offers an extensive menu of 1,400 no-transaction-fee funds. -- Niamh Ring

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