<?xml version="1.0"?>
<ownershipDocument>

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    <periodOfReport>2004-07-26</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000715096</issuerCik>
        <issuerName>COMMERCE BANCORP INC /NJ/</issuerName>
        <issuerTradingSymbol>CBH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001107010</rptOwnerCik>
            <rptOwnerName>DIFLORIO DENNIS M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>COMMERCE BANCORP INC</rptOwnerStreet1>
            <rptOwnerStreet2>1701 ROUTE 70 EAST</rptOwnerStreet2>
            <rptOwnerCity>CHERRY HILL</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>08034</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Executive Vice President</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

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            <transactionAmounts>
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                </transactionShares>
                <transactionPricePerShare>
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                </transactionPricePerShare>
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                </transactionAcquiredDisposedCode>
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            </securityTitle>
            <transactionDate>
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                <transactionPricePerShare>
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            <transactionDate>
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                </transactionShares>
                <transactionPricePerShare>
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                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
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                </transactionAcquiredDisposedCode>
            </transactionAmounts>
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                </sharesOwnedFollowingTransaction>
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                </directOrIndirectOwnership>
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            </securityTitle>
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                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
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                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Wife</value>
                </natureOfOwnership>
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            <securityTitle>
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        <nonDerivativeHolding>
            <securityTitle>
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            <ownershipNature>
                <directOrIndirectOwnership>
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                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>ESOP Allocation</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
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                <footnoteId id="F1"/>
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            <transactionDate>
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            <transactionAmounts>
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                <transactionPricePerShare>
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            <exerciseDate>
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            <expirationDate>
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            <underlyingSecurity>
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                <underlyingSecurityShares>
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            <ownershipNature>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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            <transactionDate>
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                <transactionFormType>4</transactionFormType>
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            <transactionAmounts>
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                </transactionShares>
                <transactionPricePerShare>
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                <transactionAcquiredDisposedCode>
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            <exerciseDate>
                <value>1997-12-18</value>
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            <expirationDate>
                <value>2006-12-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>75964</value>
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        </derivativeTransaction>
        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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            <exerciseDate>
                <value>1998-12-16</value>
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            <expirationDate>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
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                <underlyingSecurityShares>
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            <ownershipNature>
                <directOrIndirectOwnership>
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        <derivativeHolding>
            <securityTitle>
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                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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            <exerciseDate>
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            <expirationDate>
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            <underlyingSecurity>
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        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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            </conversionOrExercisePrice>
            <exerciseDate>
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            </exerciseDate>
            <expirationDate>
                <value>2009-12-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                <underlyingSecurityShares>
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            <ownershipNature>
                <directOrIndirectOwnership>
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        <derivativeHolding>
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                <footnoteId id="F1"/>
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            <exerciseDate>
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            <expirationDate>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
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                <underlyingSecurityShares>
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                </underlyingSecurityShares>
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                <sharesOwnedFollowingTransaction>
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            <ownershipNature>
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                    <value>D</value>
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        <derivativeHolding>
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                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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            <exerciseDate>
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            <expirationDate>
                <value>2012-02-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                </underlyingSecurityTitle>
                <underlyingSecurityShares>
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                </underlyingSecurityShares>
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                <directOrIndirectOwnership>
                    <value>D</value>
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        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
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            <conversionOrExercisePrice>
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            <exerciseDate>
                <footnoteId id="F2"/>
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            <expirationDate>
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                <footnoteId id="F2"/>
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            <underlyingSecurity>
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                <underlyingSecurityShares>
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                </underlyingSecurityShares>
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            <postTransactionAmounts>
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                </sharesOwnedFollowingTransaction>
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                <directOrIndirectOwnership>
                    <value>D</value>
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        <derivativeHolding>
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                <footnoteId id="F1"/>
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            <exerciseDate>
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            <expirationDate>
                <value>2013-02-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                <underlyingSecurityShares>
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        <derivativeHolding>
            <securityTitle>
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                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
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                <value>2005-02-18</value>
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            <expirationDate>
                <value>2013-02-18</value>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
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                <underlyingSecurityShares>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
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        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <exerciseDate>
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            <expirationDate>
                <value>2013-02-18</value>
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            <underlyingSecurity>
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                <underlyingSecurityShares>
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                <sharesOwnedFollowingTransaction>
                    <value>18750</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
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        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
                <value>42.80</value>
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            <exerciseDate>
                <value>2007-02-18</value>
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            <expirationDate>
                <value>2013-02-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
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                <underlyingSecurityShares>
                    <value>18750</value>
                </underlyingSecurityShares>
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            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>18750</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
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        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <exerciseDate>
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            <expirationDate>
                <value>2014-02-03</value>
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                    <value>Common Stock</value>
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        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
                <value>58.90</value>
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            <exerciseDate>
                <value>2006-02-03</value>
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            <expirationDate>
                <value>2014-02-03</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
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                <underlyingSecurityShares>
                    <value>18750</value>
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                <sharesOwnedFollowingTransaction>
                    <value>18750</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
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        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>58.90</value>
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                <value>2007-02-03</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-02-03</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
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                <underlyingSecurityShares>
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                <sharesOwnedFollowingTransaction>
                    <value>18750</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
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        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Right to Buy</value>
                <footnoteId id="F1"/>
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            <conversionOrExercisePrice>
                <value>58.90</value>
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            <exerciseDate>
                <value>2008-02-03</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-02-03</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>18750</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
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                <sharesOwnedFollowingTransaction>
                    <value>18750</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Granted under the Company's 1994 and 1997 Employee Stock Option Plans, which are 16b-3 plans.</footnote>
        <footnote id="F2">Each 5.95% Convertible Trust Preferred Security is convertible at any time on or after the occurrence of certain events
described below and prior to 5:00 p.m., New York City time, on the business day immediately preceding the date of repayment
of such preferred security, whether at stated maturity (i.e. March 11, 2032) or upon redemption, at the option of the holder
thereof, into shares of Commerce Bancorp, Inc.'s common stock at an initial conversion ratio of 0.9478 shares of Commerce
Bancorp, Inc. common stock for each preferred security, subject to adjustment under certain circumstances.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Dennis M. DiFlorio</signatureName>
        <signatureDate>2004-07-26</signatureDate>
    </ownerSignature>
</ownershipDocument>

