Our review of BMO InvestorLine 3/5

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BMO InvestorLine in brief

Our opinion of BMO InvestorLine

We particularly liked the range of assets available on BMO InvestorLine, including stocks, ETFs, mutual funds, bonds, and GICs, which cater to a variety of investment goals. The integration with BMO's banking services also adds convenience for existing customers, allowing seamless fund transfers. Additionally, the availability of in-depth research tools such as Morningstar reports is a strong feature for investors looking to make informed decisions.

We would have liked to see lower trading fees, as the $9.95 per trade commission is notably higher than many competitors offering similar services. The platform's interface feels outdated and less intuitive compared to modern brokerages, which could hinder the user experience. Furthermore, the absence of features like copy trading, demo accounts, or leverage options makes it less appealing to advanced or experimental traders.

Who is BMO InvestorLine designed for?

BMO InvestorLine is best suited for long-term, self-directed investors who value security, established banking integration, and comprehensive research tools over low fees or advanced trading features.

Before you zero in on BMO InvestorLine, explore other options in the market.

Let's find out more about our test results on BMO InvestorLine.

Security and reliability 3.5/5

BMO InvestorLine is the self-directed online brokerage platform offered by the Bank of Montreal (BMO), one of Canada’s oldest financial institutions. Established in 1988, the platform provides investors with a robust selection of trading options and access to BMO’s established banking and investment expertise.

Despite its long-standing presence, BMO InvestorLine has not received significant awards in recent years, which may reflect its lagging competitiveness in the evolving online brokerage market.

The broker is highly reliable for Canadian traders, being regulated by the Ontario Securities Commission (OSC), British Columbia Securities Commission (BCSC), and Alberta Securities Commission (ASC). Additionally, it is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), ensuring funds are safeguarded up to $1 million.

To help control risk, BMO InvestorLine provides features like:

• Access to high-quality research from Morningstar and Thomson Reuters, which can assist investors in making informed decisions
• Fixed-income options such as bonds and GICs also offer conservative investment choices.

 However, the platform lacks advanced risk management tools, such as stop-loss orders or portfolio rebalancing features, commonly available with other brokers.

Market and asset diversity 3/5

BMO InvestorLine positions itself as a full-service brokerage for Canadian investors seeking a broad range of investment options. The platform offers direct access to essential asset classes, including stocks, ETFs, mutual funds, options, and fixed-income products like bonds and GICs.

While its asset diversity is sufficient for most investors, the platform falls short of the market average in terms of quantity for several asset categories, particularly in stocks, ETFs, and options. This makes it less competitive compared to brokers that offer larger asset pools and access to international markets.

Our opinion on the diversity of BMO InvestorLine offerings

BMO InvestorLine provides a reasonable range of investment options for Canadian traders, but its offerings are smaller in scale compared to other brokers in the industry. This limits its appeal for investors seeking extensive market exposure or global asset diversity.

Platforms and tools 3/5

BMO InvestorLine offers two primary platforms: the web-based InvestorLine platform and a mobile app. Both platforms cater to self-directed investors but lack the sophistication and advanced features found in more modern brokerage platforms. Below is a breakdown of what the platforms offer:

Web-Based Platform

The web platform is the primary interface for BMO InvestorLine users. It provides access to essential trading functionalities, including stock and ETF trading, research tools, and account management features. However, the interface feels outdated compared to competitors, with limited customization options and an unintuitive layout. The absence of advanced tools such as heat maps or enhanced charting options may deter active traders.

Mobile App

The mobile app offers a more streamlined experience, enabling users to trade on the go and monitor portfolios. While convenient for basic tasks, the app lacks many advanced features that competitors' apps provide, such as in-depth analytics or instant alerts for market events.

Analysis Tools and Decision Aids

BMO InvestorLine provides access to well-regarded research tools, including reports from Morningstar and Thomson Reuters. These resources help investors make informed decisions about stocks, mutual funds, and ETFs. However, the platform lacks built-in screeners for identifying investment opportunities, and its charting tools are basic at best.

Specific Order Types

The platform supports basic order types such as market orders, limit orders, and stop orders. Advanced order types like trailing stops or conditional orders are unavailable, which limits flexibility for active or professional traders.

Fees, spreads and commissions 2.5/5

BMO InvestorLine is positioned as a higher-cost broker, particularly in comparison to discount brokers in Canada. Its standard commission of $9.95 per trade for stocks and ETFs is above the market average, which often ranges between $4.95 and $6.95 or offers commission-free options. Options trading incurs additional costs of $1.25 per contract, making it less attractive for frequent traders. Below is a breakdown of fees and spreads:

Other Fees

• Deposits are free, which aligns with many competitors in the market.
• Withdrawals are also free, providing flexibility for users without additional costs.
• Overnight fees do not apply, as BMO InvestorLine does not offer leveraged products.

• Inactivity fees of $25 per quarter are charged for accounts with balances below $15,000, which can be a drawback for smaller investors.

How is BMO InvestorLine's price positioning?

BMO InvestorLine falls behind competitors due to its high trading commissions, additional charges for options, and inactivity fees for lower-balance accounts. While deposit and withdrawal fees are free, the overall cost structure makes it less appealing to cost-conscious traders. Investors looking for more affordable options may find better value with competitors offering lower fees or commission-free trades.

Customer reviews 1.3/5

BMO InvestorLine has a Trustpilot rating of 1.3/5 based on 1,032 reviews, with frequent customer complaints about high fees, outdated platforms, and slow customer support responses.

Here are some recent testimonials from Canadian users:

• Michael T (February 2, 2025): "I opened an InvestorLine account to manage my TFSA, but the high $9.95 trading fees were a huge disappointment. On top of that, the platform feels clunky and outdated, which made placing trades frustrating. I also faced delays when trying to reach customer support to clarify an issue with my account. For the fees they charge, I expected a much better experience."
• Sarah P (November 12, 2024): "I signed up for BMO InvestorLine hoping to leverage their research tools. While the Morningstar reports are great, the overall platform lacks advanced features like detailed screeners or customizable charts, which I needed for my ETF trading. The app also crashed several times while I was reviewing my portfolio. It's usable, but there are better alternatives."
• James L (March 8, 2024): "I wanted a reliable brokerage backed by a major bank, but my experience with BMO InvestorLine hasn’t been ideal. The inactivity fee caught me off guard because I hadn’t been actively trading. While their bond options are decent, the lack of access to international markets beyond Canada and the U.S. was a letdown. Customer support was polite but very slow to resolve my queries."

How is BMO InvestorLine positioned in relation to its competitors?

Conclusion

Conclusion of our review on BMO InvestorLine

BMO InvestorLine provides a range of account types designed to cater to self-directed investors with varying financial goals, from individual traders to those seeking tax-advantaged growth or corporate investment solutions. The availability of TFSAs, RRSPs, and RESPs adds value for Canadian investors prioritizing long-term savings and retirement planning. Corporate and trust accounts are also a strong addition, offering businesses and fiduciaries access to diverse asset classes.However, the platform lacks several features that would enhance its appeal in today’s competitive brokerage market. The absence of a demo account limits the ability of new or inexperienced traders to explore and learn the platform risk-free. Similarly, the lack of Islamic accounts means the platform does not meet the needs of investors seeking Sharia-compliant solutions. Combined with its high trading fees and an outdated interface, these gaps may lead some investors to explore alternative brokers that provide a more comprehensive range of services.For investors seeking basic, self-directed options with strong backing from a major financial institution, BMO InvestorLine is a reliable choice. However, advanced traders, cost-conscious investors, or those requiring specific features like demo or Islamic accounts may find other brokers better suited to their needs.

Before opening a BMO InvestorLine account, take the time to compare the best brokers in Canada.

What types of accounts are available with BMO InvestorLine in Canada?

BMO InvestorLine offers a straightforward account structure that caters to different investment needs. These accounts are tailored for self-directed investors, allowing them to trade various asset classes. However, the platform lacks account options such as demo or Islamic accounts, which are offered by some competitors.

Self-Directed Account

The Self-Directed Account is the core offering of BMO InvestorLine. It allows investors to trade a wide range of assets, including stocks, ETFs, mutual funds, bonds, and options. This account is designed for independent investors who want control over their portfolios. It includes access to basic trading tools and research reports from providers like Morningstar and Thomson Reuters. While the account has no minimum deposit requirement, the $9.95 per trade fee may deter frequent traders.

Registered Accounts (TFSA, RRSP, RESP)

BMO InvestorLine supports tax-advantaged registered accounts, including TFSAs, RRSPs, and RESPs. These accounts allow users to grow investments while benefiting from tax advantages. They are ideal for investors focused on long-term goals such as retirement or education savings. The asset range and trading fees are the same as the Self-Directed Account, but these accounts add the advantage of tax-sheltered growth. However, they lack advanced features like automated portfolio rebalancing or enhanced tax-loss harvesting tools.

Corporate or Trust Accounts

For businesses and trusts, BMO InvestorLine offers corporate or trust accounts. These accounts provide access to the same range of assets and tools as other accounts but are tailored for legal entities rather than individuals. They are suitable for organizations seeking to manage investments for corporate or fiduciary purposes. The fee structure and features remain consistent with individual accounts.

Demo Account

BMO InvestorLine does not currently offer a demo account. This limits the ability of new users to familiarize themselves with the platform before committing funds. Competing brokers often provide demo accounts with fictitious capital and timeframes ranging from 30 days to unlimited usage, which makes this a notable shortcoming.

Islamic Account

BMO InvestorLine does not offer an Islamic account or Sharia-compliant investment options. Investors requiring these features may need to consider other brokers that provide Islamic/halal trading accounts or halal investment portfolios.

Deposits and withdrawals at BMO InvestorLine: How does it work?

BMO InvestorLine provides limited deposit and withdrawal options, with only bank and wire transfers available. While bank transfers are free, wire transfers can incur fees ranging from $10 to $45 depending on the financial institution.

The supported currencies (CAD and USD) meet the needs of most Canadian investors, but the lack of modern payment methods, such as credit card funding or e-wallets like PayPal, places it behind many competitors. Processing times of 1-5 business days are standard, but brokers offering instant funding options have a clear edge for traders who prioritize speed and convenience.

Overall, BMO InvestorLine's simplicity may appeal to existing BMO clients, but it falls short of the flexibility and efficiency offered by competitors.

Does BMO InvestorLine offer copy trading?

BMO InvestorLine does not offer copy trading or social trading features. The platform is designed as a traditional self-directed brokerage, focusing on providing tools for independent investors to make their own decisions rather than enabling collaborative or automated trading strategies.

Unlike brokers that provide dedicated copy trading platforms or social trading networks, BMO InvestorLine lacks features that would allow users to follow or replicate the trades of other investors. There are no options for tracking top-performing traders, interacting with a trading community, or copying portfolios. Additionally, the platform does not include any specific tools or software for social trading activities.

The absence of copy trading may make BMO InvestorLine less appealing for novice investors who could benefit from mirroring experienced traders. Investors seeking such functionality will need to explore other brokers that specialize in providing these advanced trading features.

What is the tax treatment of income generated by BMO InvestorLine?

Income earned through trading on BMO InvestorLine is subject to Canadian tax laws under the Income Tax Act. The way this income is taxed depends on the nature of your trading activities, the type of account you use, and the classification of your earnings. Below is a detailed breakdown of how trading income is taxed and declared in Canada.

Applicable Taxation

• Trading income is categorized as either capital gains or business income, depending on the frequency and nature of the trades:Capital Gains: Only 50% of the profits from capital gains are taxable at your marginal tax rate.Business Income: For active or professional traders, 100% of trading profits are taxable as business income.
• Capital Gains: Only 50% of the profits from capital gains are taxable at your marginal tax rate.
• Business Income: For active or professional traders, 100% of trading profits are taxable as business income.
• Dividends earned from Canadian companies are eligible for a dividend tax credit, reducing the overall tax liability.
• Interest income is taxed at your full marginal tax rate.
• Investments held in registered accounts like TFSAs and RRSPs are tax-sheltered. TFSA gains are not taxable, while RRSP withdrawals are fully taxable as income.

How to Declare Trading Income or Revenues?

• Report your income from trading on your T1 General Income Tax and Benefit Return.
• Use Schedule 3 to report capital gains or losses, including details of the disposition, adjusted cost base (ACB), and the resulting gain or loss.
• For business income from trading, complete the T2125 Statement of Business or Professional Activities form.
• Include dividend and interest income in the respective sections of your tax return.
• Cryptocurrency transactions, if applicable, should be reported with clear records of fair market value at the time of each trade.

Points to remember

• Registered Accounts: Gains within TFSAs are tax-free, while RRSP withdrawals are taxable.
• Keep Accurate Records: Maintain detailed records of all trades, including dates, costs, proceeds, and adjustments.
• Capital Losses: Losses can be used to offset capital gains in the same year or carried forward to reduce future gains.
• Professional Trading: If your trading activity is frequent, the CRA may classify it as a business, leading to higher tax obligations.
• Consult a Professional: For complex portfolios or unclear classifications, consult a tax expert to ensure compliance with CRA rules.

Contact: how do I contact BMO InvestorLine customer service?

FAQ

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.