Stop using BMO InvestorLine and switch to Wealthsimple
If you’re still trading with BMO InvestorLine, you’re probably paying more than you need to and getting less in return. Traditional bank-owned brokerages like BMO InvestorLine rely on outdated fee structures, aggressive product promotion, and the reputation of a big bank to keep people from switching. Meanwhile, modern platforms such as Wealthsimple offer a cheaper, simpler, and more transparent alternative for the average investor.
The problem with BMO InvestorLine’s fee structure
BMO InvestorLine typically charges a flat commission of around $9.99 per trade, plus additional commissions or fees depending on what you do in your account. That means every time you buy or sell stocks or ETFs, a chunk of your money goes straight to the bank.
For an active investor, those costs add up fast:
– Place 5 trades a month? That’s close to $600 a year in trading commissions alone.
– Long‑term investors who rebalance a few times a year still pay unnecessary fees every single time they interact with their portfolio.
You’re essentially paying a penalty for taking control of your own investments. In an era where $0‑commission trading exists and is reliable, paying almost ten dollars per trade is hard to justify.
Influencer marketing and ETF promotion
Another concern is how large institutions like BMO promote their own financial products, especially ETFs. They don’t just rely on traditional advertising; they also work with influencers and public personalities to push their funds.
You should always ask yourself:
– Why are they paying people to promote these ETFs so aggressively?
– Is this product truly the best choice for you, or is it simply the one that’s most profitable for the bank?
– Are you choosing an investment based on solid fundamentals or because it’s being hyped?
There’s nothing inherently wrong with ETFs offered by big banks, but the way they are marketed should make you cautious. When a company is paying for promotion, that cost is ultimately built into the business somewhere-often in the form of higher management fees or less competitive products.
Wealthsimple’s core advantage: zero‑commission trading
Wealthsimple’s model is very different. Its main selling point for self-directed investors is zero-commission trading:
– No fee per trade when you buy or sell stocks or ETFs.
– You can dollar-cost average, rebalance, or invest small amounts regularly without worrying about commissions eating your returns.
– Beginner investors can make occasional mistakes while learning without being punished by high transaction fees.
Even if there are still underlying costs in the financial system (like ETF management fees or currency conversion in some cases), removing that $9.99 per trade barrier is a massive step forward for retail investors.
Safety and protection: same rules, different wrapper
A common misconception is that your money is “safer” at a big bank-owned brokerage than at a modern fintech platform. In reality, both operate under the same regulatory environment for investor protection.
Your investments are typically:
– Held in trust in your name.
– Protected by national investor protection schemes and regulatory oversight.
– Segregated from the institution’s own corporate assets.
From a security and protection standpoint, your stocks and ETFs at Wealthsimple are safeguarded under similar frameworks as they are at a traditional bank brokerage. The difference lies in user experience, pricing, and incentives-not in whether your money suddenly becomes “less safe” just because the brand is newer or more tech‑driven.
Old‑school service vs. modern tools
Legacy platforms like BMO InvestorLine often feel like they were built decades ago and never truly modernized. Interfaces can be clunky, confusing, or slow, and they tend to prioritize complex tools for experienced traders over clarity for everyday investors.
Wealthsimple, on the other hand, is designed with simplicity and accessibility in mind:
– Clean, intuitive interface on both mobile and desktop.
– Straightforward order entry for stocks and ETFs.
– Easy-to-understand portfolio views and performance tracking.
For most people who just want to buy a few ETFs, invest in some stocks, and stay on top of their long-term goals, a simple interface is a major advantage. You shouldn’t need a training course just to place a trade or check your positions.
The real cost of “big bank intelligence”
Many investors assume that because BMO is a large, established bank, the staff and platform must be more sophisticated and therefore better. In reality:
– Frontline staff often follow scripts and may not have deep investing expertise.
– The advice you receive can be conflicted: they are motivated to keep your assets in the bank’s ecosystem and steer you toward in‑house products.
– Complex jargon and “expert” branding can obscure the fact that you’re paying steep fees for something you could do more cheaply and just as safely elsewhere.
Big brand recognition doesn’t automatically translate into better investment outcomes. Often it just means you’re subsidizing a large corporate structure with your fees.
Long‑term impact of fees on your returns
The difference between paying almost ten dollars per trade and paying zero is not just a minor detail; it compounds over time:
– If you invest small amounts regularly, a $9.99 commission can represent a huge percentage of each contribution.
– Frequent rebalancing with commissions can erode the benefits of your strategy.
– Over 10-20 years, unnecessary fees can easily cost you thousands-or even tens of thousands-of dollars in lost growth.
Switching to a platform that minimizes transaction costs is one of the simplest ways to improve your long-term investment outcomes without taking on any extra risk.
Who benefits most from using Wealthsimple?
Wealthsimple tends to be especially attractive for:
– New investors who want to start with small amounts and learn by doing, without being punished by per-trade fees.
– Long-term, buy-and-hold investors who focus on low-cost ETFs and don’t need complex trading tools.
– People who value a clean, modern interface and easy access from their phone.
– Anyone frustrated with the bureaucracy, outdated design, or opaque pricing of traditional bank brokerages.
That doesn’t mean Wealthsimple is perfect for every single person. Very advanced traders who need options, complex order types, or deep integration with pro-level tools may still look at specialized platforms. But for the majority of individual investors, the combination of zero commissions and simplicity is a major edge.
What to consider before switching
If you’re thinking about leaving BMO InvestorLine for Wealthsimple, keep a few practical points in mind:
– Account transfer: You can usually transfer your existing investments directly, though there may be transfer-out fees from your old brokerage. Wealthsimple often covers some or all of that, depending on your situation and promotions.
– Taxable vs. registered accounts: Consider how and where your assets are held (for example, in taxable accounts vs. retirement or tax-advantaged accounts) to avoid unintended tax consequences when selling or moving investments.
– Product availability: Check that the stocks and ETFs you currently own are available on Wealthsimple’s platform and that you’re comfortable with any differences in features or order types.
Planning the transition thoughtfully helps you avoid unnecessary selling, fees, and taxes.
Why clinging to BMO InvestorLine no longer makes sense
Staying with a platform like BMO InvestorLine mainly benefits one party: the bank. You pay:
– High per-trade commissions.
– Potentially higher product costs if you buy their promoted ETFs instead of low-cost alternatives.
– The intangible cost of using a less efficient, less user-friendly system.
In return, you get:
– A big brand name.
– A legacy platform that often feels like an afterthought in the bank’s overall business.
– Marketing that nudges you toward products that may not truly serve your best interests.
Meanwhile, modern zero‑commission platforms like Wealthsimple are built from the ground up around the needs of everyday investors: lower costs, simpler tools, and transparent structures.
The bottom line
If you’re still paying $9.99 plus commissions every time you take action in your portfolio, you are effectively taxing your own financial future. Wealthsimple offers zero‑commission trading, a streamlined interface, and the same level of protection for your assets that you’d get with a traditional bank-owned brokerage.
The key differences aren’t in safety-they’re in cost, usability, and incentives. BMO earns more when you pay more and hold their products. Wealthsimple earns your business by making it cheaper and easier for you to invest.
Switching away from BMO InvestorLine and embracing a modern platform is not just a matter of convenience. It’s a strategic decision to stop overpaying, avoid questionable product promotion, and take fuller control over your investing journey.