* Alpha cuts fees for securities between C$1 and C$5
* Some traders could see 30 percent cost savings
TORONTO, May 26 (Reuters) - Alpha Group, a key rival of Canada's main exchange operator, TMX Group Inc (X.TO), said on Wednesday it is slicing trading fees for certain stocks, reducing costs of buying and selling shares by 30 percent for some traders.
For securities between C$1 and C$5, so-called "active fees" will be reduced from 0.35 of a Canadian cent per share to 0.25 of a Canadian cent. "Passive fee rebates" will drop from 0.31 of a Canadian cent per share to 0.21 of a Canadian cent.
Active fees are essentially the costs traders must pay to execute a buy or sell, or take liquidity away, while passive fees are paid for providing liquidity or posting a trade.
Alpha estimates stocks in that price range account for about 20 percent of total volume on all Canadian marketplaces.
"We continue to execute upon our commitment of reducing the cost of trading in Canada" Jos Schmitt, chief executive of Alpha, said in a statement.
The new fee structure, which is seen as a bid to reduce fees for broker dealers, is expected to take effect June 1.
Alpha, which is owned in part by the dealer units of Canada's biggest banks and comprises about a quarter of total stock trading market share, is aggressively chipping away at TMX's market share. TMX runs the Toronto Stock Exchange and the junior TSX Venture Exchange.
In April, the alternative trading system announced it was seeking full stock exchange status in a bid to expand into new areas such as the listings business. (Reporting by Jennifer Kwan; editing by Rob Wilson)