BMO InvestorLine is the discount brokerage arm of the Bank of Montreal (BMO), where self-directed investors can take charge of their investment portfolios using stocks, mutual funds, and ETFs. This online brokerage platform offers robust tools and a wide range of investment accounts to simplify investments for Canadian investors.
If you’re experienced in managing your own investments or self-directed trading, BMO InvestorLine Self-Directed could be the perfect option for you. It provides advanced tools for experienced traders and offers extra perks and benefits for individuals with significant investment funds.
In this BMO InvestorLine review, we will discuss everything you need to know about the brokerage, including account and investment types, fees, tools, pros, cons, and more, helping you to determine whether BMO InvestorLine aligns with your investment goals.
What is BMO InvestorLine?
BMO InvestorLine is the Bank of Montreal (BMO) Financial Group’s online brokerage. It is an online brokerage that offers a wide range of investment accounts for self-directed investors.
BMO InvestorLine offers a robust trading platform with market research tools and performance tracking to help Canadians invest confidently. It’s best suited for Canadian investors who prefer to self-manage their investments.
The online brokerage offers a wide range of research, trading, and tracking tools that make self-directed trading hassle-free. It is considered one of Canada’s top discount brokers, especially after its recent redesign.
Canadian investors who want to take charge of their portfolio can open every account type imaginable at BMO InvestorLine, including registered accounts, non-registered accounts, corporate accounts, LIRAs, and more.
With these accounts, you can easily trade stocks and ETFs on all major Canadian exchanges, purchase mutual funds and bonds, trade options, and buy GICs.
BMO collects information about your investment goals, risk tolerance, trading experience, time horizon, and current financial situation, like other online brokerages.
It will automatically assign you an investor profile that suits your situation. Once you fund your portfolio, the BMO InvestorLine will help you build it with the right type of account and investment.
Quick Facts About BMO InvestorLine
- Trading Fees: $9.95 flat-fee pricing per trade; buy and sell 80+ ETFs for free
- Minimum investment: None
- Transfer fees: $150 transfer out fee. BMO InvestorLine may reimburse transfer fees up to $200
- Customer service: Good
- Access: Desktop and mobile app
- Automatic Deposits: Yes
- Inactivity fees: None
- Automatic Portfolio Rebalancing: No
- Types of accounts: RRSP, TFSA, RESP, RRIF, LIRA, LIF, Individual, Joint, Cash, Margin, and Corporate
Key Features of BMO InvestorLine
BMO InvestorLine is not the only online brokerage in Canada, nor the only online brokerage among the big banks. However, BMO InvestorLine distinguishes itself with the following competitive features.
1. Wide range of account types
BMO InvestorLine allows you to open any account type, from RRSP/RRIF, TFSA, non-registered, LIRA/LIF, corporate, and trusts.
2. Select Commission-free ETF
With BMO investorLine, Canadians can buy and sell a selection of Canada’s most popular ETFs without worrying about commissions.
3. Research and performance tools
BMO InvestorLine offers real-time data, research, and alerts and allows you to easily view your accounts, quotes, holdings, and dividend information.
4. USD registered accounts
BMO InvestorLine lets you hold USD inside registered accounts to access U.S. listed stocks and ETFs without worrying about foreign transaction fees. With BMO InvestorLine, you can hold CAD and USD cash and investments in the same account.
5. Mobile Trading App
BMO InvestorLine offers a mobile app that gives Canadians the flexibility to trade stocks, ETFs, mutual funds, and even options on the go. BMO protects your trades with the latest encryption software and automatically syncs them with your web trading account so you have nothing to worry about.
6. Low transfer and annual fees
With BMO InvestorLine, you will only pay $50 per year for registered accounts under $25,000 and $25 per quarter for non-registered accounts under $15,000.
7. BMO 5-Star Program
The BMO 5-Star Program is a trading platform exclusively for experienced investors who make 15 trades quarterly or invest a minimum of $250,000. This program doesn’t require an application.
Once you meet the above requirements, you will automatically enrol in the program. It offers exclusive rates and pricing, pro trading and research tools, and 5-star support from professionals.
8. BMO InvestorLine adviceDirect
This trading platform offers customized trading advice. However, you must have a minimum balance of $10,000 to start investing on this platform. The BMO InvestorLine adviceDirect charges an extra fee by offering 24/7 portfolio monitoring service and dedicated advisor support. It also offers real-time recommendations on trading based on your risk tolerance and profile.
9. BMO SmartFolio
The BMO SmartFolio is a Robo-advisor offering hands-off investment solutions on ETF trading. Unlike a regular Robo-advisor, BMO SmartFolio offers a combination of human and automated investment solutions. This helps you minimize risks and maximize returns. With the BMO SmartFolio, you only need to fund your portfolio, and the robot and human advisor will do the hard job for you.
Pros
- It simplifies investment with research, trading, and tracking tools helping you make informed decisions on your investment
- If you make 15 trades quarterly or invest a minimum of $250,000, you will be automatically enrolled in the BMO 5 Star Program
- It offers different options for trading, you can use a mobile application, desktop, and phone web version.
- You can invest yourself through a financial advisor or the BMO’s Robo-advisor.
Cons
- BMO InvestorLine charges high fees, a flat fee of $9.95 per trade and a $25 maintenance fee every quarter for those that invest less than $15,000 or less than two commission trades every six months.
- Its trading tools are more suitable for intermediate and advanced investors, not beginner investors.
- Most accounts require a $5,000 minimum balance for trading, which makes it obvious that the platform is not for the less wealthy investor.
- The platform has poor customer service, making it less reliable, as many users complain about how phone calls are not answered, and emails are not responded to.
BMO InvestorLine Accounts Types
BMO InvestorLine has a wide range of accounts that make it suitable for investors looking to diversify their investments. From registered to non-registered accounts, BMO InvestorLine has something for everyone.
Here are the current accounts available on BMO InvestorLine:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Income Fund (RRIF)
- Registered Retirement Savings Plan (RRSP)
- Margin
- Cash (non-registered)
- Non-personal accounts
- Registered Education Savings Program
BMO InvestorLine Investment Types
If you’re looking to diversify your portfolio across different securities, InvestorLine got you covered.
The following are the investment securities of the online brokerage:
- Stocks
- Options
- Guaranteed Investment Certificates (GICs)
- Exchange Traded Funds (ETFs)
- Bonds
- Mutual Funds
While there’s no risk-free investment, diversifying your portfolio with different securities will help you minimize risk and maximize profits.
BMO InvestorLine Trading Fees
BMO InvestorLine charges fees for most of its services. The table highlights the major fees of the brokerage in different categories.
Product Fees Stocks & ETFs $9.95 flat-fee pricing Gold & Silver $35 + $1 per ounce Mutual Funds $0 RESP $0 for accounts greater than $25,000 Options $9.95 + $1.25 per contract Transfer out $150 Non-registered $0 for accounts greater than $15,000 RRSP, LIRA, RRIF, LRIF $0 for accounts greater than $25,000
You can see that the BMO InvestorLine online brokerage is not for the less wealthy investor. However, the brokerage offers competitive services and tools that complement some of its fees. But it charges more than most online brokerages.
Other general account fees may include the following:
- Security registration: $50.00
- Transfer out: $150.00
- Cheque requests: $10.00/request
- Statement search, trade investigation: $40.00per hour/hr
- Internal transfers (non-registered accounts): $25.00
- Estate account certificate – handling fee: $50.00
- Statement and confirmation replacement: $5.00/item
- Paper statement mailed: $2.00/monthly
- Safekeeping securities (excluding Canada Savings Bonds and Guaranteed Investment Certificates): $50.00/certificate/month
Is BMO InvestorLine Legit and Safe?
Absolutely. BMO InvestorLine is legit and safe because it’s owned and managed by one of Canada’s big banks, the Bank of Montreal (BMO).
BMO is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). As a result, your deposit of up to $1,000,000 is insured by the CIPF.
Furthermore, it protects your personal banking data with a 100% electronic banking guarantee. Consequently, you will be reimbursed for any authorized transactions on your bank account through BMO.
BMO has more than 12 million trusted customers across Canada, Germany, England, Mexico, Brazil, and Australia, among others.
BMO InvestorLine vs Other Trading Platforms
Let’s look at how BMO InvestorLine compares to other big online trading platforms in Canada, such as Questrade and Wealthsimple Trade.
Features BMO InvestorLine QuesTrade WealthSimple Trade Stock and ETF trading fee $9.95/trade $4.95 – $9.95/trade $0 Options/contract $9.95 + $1.25 $9.95 + $1 N/A Minimum Investment None $1,000 No minimum balance Commission-free ETFs Yes (limited) Yes ( purchases only) Yes Maintenance fee $25/quarter if balance less than $15,000 (non-registered) or $100/year if balance less than $25,000 (registered) None None Types of accounts TFSA, RRSP, RRIF, RESP, LIRA, margin, corporate, non-profit, formal trust TFSA, RRSP, RESP, LRSP, LIRA, RRIF, LIF, margin, corporate, partnership TFSA, RRSP, personal non-registered Promotion N/A Get $50 in free trades with a minimum $1,000 deposit; or invest $10,000 free for one year (with Questwealth) Get a $25 cash bonus with Wealthsimple Trade when you deposit $150+
BMO InvestorLine vs Questrade
While BMO InvestorLine is a great trading platform, Questrade outshines BMO InvestorLine with its low-cost pricing, free ETF purchases, and $4.95-$9.95 fees for buying and selling stocks.
Big bank brokerages in Canada, like BMO InvestorLine, cannot compete on that pricing,, making Questrade a clear-cut winner in this comparison.
However, like BMO InvestorLine, Questrade offers every account type and trading activity. But if you’re a BMO banking client or a Canadian investor looking to keep all your investments and accounts under one big bank umbrella. In that case, BMO InvestorLine will certainly meet your investing needs.
BMO InvestorLine vs Wealthsimple Trade
Wealthsimple Trade is Canada’s first and only zero-commission trading platform. Unfortunately, new trading platforms in Canada, like Wealthsimple Trade, don’t have a comprehensive line-up of account types or research and performance data compared to big bank brokerages like BMO InvestorLine.
Investors using Wealthsimple Trade can only open TFSAs, RRSPs, and non-registered accounts. Investors looking to avoid the account fees imposed on small balances and the $9.95 per trade fees will find no-frills platforms like Wealthsimple Trade a viable option.
RECOMMENDED READINGS
Final Thoughts on BMO InvestorLine Review
If you’re a self-directed investor looking for a brokerage with a wide range of research, trading, and tracking tools, BMO InvestorLine is worthy of consideration. The BMO InvestorLine is a leader in big bank brokerages in Canada due to its zero-fee on ETF trading and robust trading tools.
The BMO InvestorLine is no doubt a competitive online brokerage in Canada. This is due to its robust tools and multiple investment accounts. However, InvestorLine is far behind other online brokers – such as Wealthsimple Trade – in terms of fees, commissions, minimum investment, and bonuses.
But if you’re looking for a cost-effective brokerage in Canada, consider Wealthsimple Trade, Questwealth Portfolios, or other best Robo-advisors.
As you can see from the foregoing comparison, you will save and achieve more with Wealthsimple Trade than with BMO InvestorLine. This is more applicable if you’re a less wealthy investor with little knowledge about the investment world.
But if you’re looking for more cost-saving investment solutions, read the recommended articles below.
FAQs on BMO InvestorLine Review
Why is BMO InvestorLine Better than Others?
The major difference between BMO InvestorLine and other online brokerages is the combination of robot and human advisors in one platform. This minimizes risks and maximizes returns on self-directed trading.
Can You Day Trade on BMO InvestorLine?
Sure. The BMO InvestorLine offers a wide range of tools for effective day trading. You can trade stocks, ETFs, mutual funds, bonds, etc.
However, if you’re a beginner in day trading and want to get your feet wet, here’s a comprehensive guide on day trading in Canada.
Does BMO InvestorLine Cost Money?
Yes. BMO charges $9.95 per stock and ETF trade and a $25 maintenance fee every quarter for those that invest less than $15,000 or less than two commission trades every six months
Can You Buy US Stocks on BMO InvestorLine?
Yes. Unlike other brokerages, you can buy and sell US stocks on BMO InvestorLine.
Does BMO InvestorLine Have Options?
Yes. You can trade options on BMO InvestorLine. However, there’s a $1.25 per extra per option contract. You will be charged the $9.95 flat fee on trading stocks and ETFs plus $1.25.
If you have more questions on this BMO InvestorLine review, drop them in the comment section.
