I would stay with styrofoam. Using fiberglass in the basement would be ok if the basement was completely and totally dry. But that is not usually the case. I would go with a maximum of 2 inches for the walls and 1 inch under the floor. THATS RIGHT! The biggest single thing you can do to increase the comfort in the basement is to insulate under the floor before the slab is poured.
Remember, the ground temperature (even in Alberta) is in the 50 degree range, so adding excessive insulation in the basement walls has diminishing returns. Unless of course, your basement walls are exposed. Spend the extra money on the wall and ceiling insulation upstairs.