If you’re looking for a self-directed trading platform among Canada’s big banks, a BMO InvestorLine brokerage is worth considering.
Online brokerages are cost-effective for trading due to their low fee, flexibility, and automation. This explains the need to use the best online brokerage out there.
BMO InvestorLine is one of the top online brokerages offered by the big banks in Canada. With robust tools and wide investment accounts, it’s obvious why so many investors are interested in this online brokerage.
However, there’s a lot you need to consider when opting for the BMO InvestorLine online brokerage.
This BMO InvestorLine review discusses everything you need to know about the brokerage, such as account and investing types, fees, tools and more.
What is BMO InvestorLine?
BMO InvestorLine is the Bank of Montreal (BMO) Financial Group’s online brokerage.
This online brokerage offers a wide range of investment accounts for self-directed investors. You can decide to do your investment yourself or have a robo-advisor handle it for you.
What I like about the BMO InvestorLine is its wide range of research, trading, and tracking tools that make self-directed trading hassle-free.
However, $5,000 is the average minimum investment of most BMO InvestorLine accounts. This makes it more suitable for wealthy investors.
Continue reading to learn more about the BMO InvestorLine online brokerage.
How BMO InvestorLine Works?
BMO collects information about your investment goals, risk tolerance, trading experience, time horizon, and a current financial situation like other online brokerages. After that, BMO InvestorLine 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.
Is BMO InvestorLine Legit and Safe?
Absolutely. The 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.
Currently, BMO has more than 12 million trusted customers across Canada, Germany, England, Mexico, Brazil, Australia, among others.
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. BMO InvestorLine Self-Directed
The BMO InvestorLine Self-Directed is a trading platform that allows you to invest in ETFs, stocks, bonds, mutual funds, among others.
This platform has trading, research, tracking tools to help ease your investment. The following are the accounts available for trading under this platform.
- 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
2. BMO 5 Star Program
The BMO 5 Star Program is a trading platform exclusively for investors that make a minimum of 15 trades quarterly or invest a minimum of $250,000.
This program doesn’t require an application. Once you reach any of the above requirements, you will be automatically enrolled in the program.
That said, the following are the key features of the BMO 5 Star Program:
- Exclusive rates and pricing
- Pro trading and research tools
- 5-Star support from professionals
3. BMO InvestorLine adviceDirect
This is a trading platform that 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.
Furthermore, this platform offers real-time recommendations on trading based on your risk tolerance and profile.
4. BMO SmartFolio
The BMO SmartFolio is a Robo-advisor offering hands-off investment solutions on ETFs 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, all you need is to fund your portfolio, and the robot and human advisor will do the hard job for you.
Pros and Cons of BMO InvestorLine
Like any other online brokerage, the BMO InvestorLine has its pros and cons. L
Pros
- Robust Tools: The BMO online brokerage simplifies your investment with research, trading and tracking tools. These tools help you make informed decisions on your investment. Even more, you can get advanced trading tools by trading more than 75 per quarter.
- Exclusive “5 Star” Membership: If you make a minimum of 15 trades quarterly or invest a minimum of $250,000, you will be automatically enrolled in the BMO 5 Star Program. This program offers exclusive rates and pricing, pro trading and research tools
- Multiple Trading Platforms: The BMO InvestorLine offers different options for trading. You can choose to invest yourself through a financial advisor or the BMO’s Robo-advisor.
Cons
- Higher Fees: Unlike other online brokerages, BMO InvestorLine charges high fees. It charges 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 2 commission trades every 6 months.
- Not Beginner-Friendly: The trading tools provided by BMO InvestorLine are more suitable for intermediate and advanced investors, not beginner investors.
- High Minimum Investment: Most BMO InvestorLine accounts require a $5,000 minimum balance for trading. This makes it obvious that the platform is not for the less wealthy investor.
- Customer Services: BMO InvestorLine has poor customer service, making it less reliable. Many users complain how phone calls are not answered, and emails are not responded to.
BMO InvestorLine Accounts
As mentioned previously, the 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, 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 as of the time of writing this BMO InvestorLine review:
- 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 following table highlights the major fees of the brokerage in different categories.
| Trading Fees | Self-Directed Fees | adviceDirect Fees |
| $9.95 flat fee for trading stocks and ETFs.
$1.25 + the flat-fee ($9.95) for each option trading contract. |
$9.95 flat fee for each trade you make online
+ $1.25 per options contract |
0.75% for investing between $100, and $500,000 assets
Maximum of $3,750 for investing $500,000 and above |
It’s obvious from the foregoing table that the BMO InvestorLine 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.
BMO Investorline Account Fees
The following table highlights the account fees of BMO InvestorLine:
| Service | Fee |
| Monthly fees | $23.33 |
| Maintenance fee for less than $15,000 non-registered account balance | $25/quarter |
| Annual fee for less than $25,000 in a registered account | $100 (waivable) |
| External account transfer | $150 |
| RRSP/RRIF deregulation | $50 |
| Non-registered account internal transfers | $25 |
| One security registration fee | $50 |
| Monthly mailed paper statement | $2 |
How I Rated the BMO InvestorLine
Rating BMO InvestorLine 3.8 was not a mistake. Here at Money Reverie, we use several factors in rating any product or service.
Here are the factors that determine the 3.8/5 star rating of this BMO InvestorLine review.
| Feature | Rating |
| Account and Investment Types | ***** |
| Fees | *** |
| Investment Tools | **** |
| Minimum Investment | ** |
| Customer Service | * |
- Account and Investment Types: From registered to non-registered accounts, InvestorLine has something for everyone. Also, you can easily diversify your portfolio with stocks, mutual funds, ETFs, bonds, among other securities on the InvestorLine.
- Fees: The BMO InvestorLine charges way higher fees compared to other online brokerages in Canada. This makes it more suitable for wealthy investors ready to pay account fees, trading fees, and other fees.
- Investment Tools: This brokerage simplifies investment with robust tools on research, trading and tracking.
- Minimum Balance: $5,000 is the minimum investment for most BMO InvestorLine accounts. Besides depriving the less wealthy investors of opportunity, the minimum balance is higher compared to other online brokerages.
- Customer Services: As mentioned previously, BMO InvestorLine has poor customer service, making it less reliable. Most users complain how phone calls are not answered, and emails are not responded to.
Is BMO InvestorLine for You?
If you’re a self-directed investor and are looking for a brokerage with a wide range of research, trading, and tracking tools, a BMO InvestorLine is worthy of consideration.The BMO InvestorLine is a leader when it comes to big bank brokerages in Canada due to its zero-fee on ETF trading and robust trading tools.However, the $5,000 average minimum investment and high fees make the BMO InvestorLine more suitable for wealthy investors.So if this means nothing to you, the brokerage will not disappoint you with an innovative and excellent user experience. But if you’re looking for a cost-effective brokerage in Canada, consider Wealthsimple Trade, Questwealth Portfolios or other best Robo-advisors.
How Do I Open an InvestorLine Account?
It takes just a few minutes to open an InvestorLine account. However, you must meet the following requirements before opening a BMO InvestorLine account:
- Be a Canadian resident
- Reach the age of majority in your province or territory
- Have a valid Social Insurance Number (SIN)
Once you meet the above requirements, you’re qualified to apply for an InvestorLine in any of the following options:
- Online: Visit the BMO InvestorLine page.
- By phone: Speak with a BMO representative by calling 18887766886.
- In-person: Visit any nearest BMO branch to you. (Note, some branches are temporarily closed due to COVID-19)
You can use BMO InvestorLine online or on the mobile app available on Google Playstore and App Store.
Verdict on BMO InvestorLine Review
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.
As you can see from the foregoing comparison, you will save and achieve more with Wealthsimple Trade than 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.
RECOMMENDED READINGS
BMO InvestorLine FAQs
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 are looking 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 2 commission trades per every 6 months
Can You Buy US Stocks on BMO InvestorLine?
Yes. You can buy and sell US stocks on BMO InvestorLine, unlike other brokerages.
Does BMO InvestorLine Have Options?
Yes. You can trade options on BMO InvestorLine. However, there’s a $1.25 per extra per option contract. That’s, 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.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.
