InvestorLine is launching unlimited commission-free trading on all stocks, ETFs and options.Spencer Colby/The Canadian Press
Bank of Montreal BMO-T is eliminating commission fees on stocks, exchange-traded funds and options on its direct investing platform in a bid to attract younger customers as competition mounts in online trading.
The bank said BMO InvestorLine will be the first direct investing brokerage owned by one of Canada’s five largest lenders to implement zero-commission trading on stock and ETF trades. Digital competitors have been growing alongside interest in no-fee trading products, and BMO is looking to attract younger clients, who are demanding lower costs.
“Someone opening their first account with us as of this month now pays nothing to trade, nothing to hold the account, and nothing to leave if they’re not happy with the service,” BMO InvestorLine chief executive officer Silvio Stroescu said in an interview.
“It also increases the level of accountability for us to ensure that the capabilities that we build are not just something that we talk about, but they are truly adding value to our clients.”
InvestorLine is launching unlimited commission-free trading on all stocks, ETFs and options. It is also eliminating all brokerage account administration fees and reducing options contract fees.
InvestorLine clients will automatically receive the new pricing when the changes take effect on Sept. 14.
Growth in the business has been driven by younger clients – a demographic that heavily factors the cost of trading when choosing a platform.
“They’ve come to us for the tools and the intelligence and the empowerment that we provide, but we could also drive even more by removing this pricing friction,” Mr. Stroescu said.
“Even for the more active traders, removing this pricing friction is still a positive for them. I think it will resonate even more with the younger investors, but it will land as a positive for everybody.”
No-fee discount brokerages, including Wealthsimple Financial Corp. and Questrade Financial Group Inc., have seen their assets under administration jump as Canadian investors seek out more cost-effective options to earn more on their savings. Wealthsimple has also waded into banking by providing services, including chequing accounts.
Canada’s sixth largest lender, National Bank of Canada, already offers zero-commission trading through its direct brokerage.
Mr. Stroescu – who previously worked at digital bank Tangerine Bank, formerly known as ING Direct Canada – said challenger banks tend to build strategies based on pricing incentives. However, he said, what keeps clients in the long run is the opportunity to access a broader set of capabilities and services at a financial institution.
“The competition’s always been there,” Mr. Stroescu said. “Typically, the attacker mechanisms are always led by price and incentives to garner attention. Our strength is the fact that we also can do that and have the ability to also broaden the relationship with the deeper capabilities we have.”
BMO InvestorLine is a critical component of the bank’s strategy to grow its wealth management division as it focuses on improving profitability across the bank.
At InvestorLine, the bank’s fastest growing segment is clients under the age of 35, BMO group head of wealth management Deland Kamanga said during an investor day in March. He said it’s a “powerful front door” for clients to join BMO’s wealth management unit.
With increased competition among digital trading platforms, Mr. Kamanga said the bank has been investing heavily in improving its InvestorLine mobile platform and growing its client base by referring customers from its personal banking unit.
Recently, BMO has bolstered InvestorLine with new tools for active traders and long-term investors, including advanced options screeners, enhanced educational resources and real-time market data and research.
It also launched paper-trading capabilities, which allow clients to use a practice account to learn how the bank’s active trader platform works without making risky bets with their money.
Total assets under administration grew at a compound annual growth rate of 14 per cent from 2020 to 2025, according to the investor presentation. In the third quarter, BMO InvestorLine accounted for 9 per cent of revenue in wealth management.
“InvestorLine is really set up as the bridge between those that start off with retail and progress over to broader wealth management services,” Mr. Stroescu said.
“We also see clients progress and open accounts with our private banking offering and private wealth, and also engage with the more traditional advisers as their needs become more complex.”