BMO AdviceDirect review 2025: Is it worth the cost?
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What is BMO AdviceDirect?
BMO AdviceDirect is a hybrid investing platform from one of Canada’s largest banks. It combines the flexibility of an online brokerage with access to licensed financial advisors who can help you make investment decisions.
AdviceDirect is geared to investors who want to control their trades with some guidance. It fits between two other BMO investing platforms: InvestorLine Self-Directed and SmartFolio, BMO’s robo-advisor.
BMO AdviceDirect fees: What does it cost?
AdviceDirect charges a 0.75% annual advisory fee on all assets between $10,000 and $500,000. The cost is capped at $3,750, so there are essentially no fees above $500,000.
It's more than than a the best robo-advisors (that charge between (0.20% to 0.50%), but less than many high-end financial advisors who might charge as much as 3%.
To get started, the minimum investment amount is $10,000.
Yearly trade allowance
While there is an advisory fee, AdviceDirect customers can enjoy free trades, up to a specific limit depending on the size of your account. If you exceed your yearly allowance, trades are $7.95 each:
Total assets
Number of free trades (annual)
$10,000 to $50,000
15
$50,000 to $150,000
30
$150,000 to $200,000
45
$200,000 to $250,000
55
$250,000 to $300,000
65
$300,000 to $400,000
80
$400,000 to $500,000
100
$500,000 to $750,000
130
$750,000 to $1,000,000
160
Over $1,000,000
185
AdviceDirect’s pricing is favourable to a traditional mutual fund portfolio or dealing with a full-service financial advisor. Many actively managed mutual funds charge MERs above 2%, and while financial advisors' fees vary, 1.00% is typical. AdviceDirect’s 0.75% annual advisory fee is a bargain by comparison.
How BMO AdviceDirect works
BMO AdviceDirect walks you through a Know Your Client (KYC) assessment and risk profile during account opening. They use this information to match you with an investor profile, and make trading recommendations that suit you.
As you invest, you can access market research tools provided by BMO and third-parties like MarketGrader. For example, BMO's recommendation engine, MyAdvice, will send alerts and offer buy/sell recommendations based on market changes impacting your portfolio. MarketGrader provides third-party analyst ratings for Canadian and US stocks, including target prices.
At any time, you can call a licensed investment advisor if you have questions. But ultimately, you control the strategy and trading on your account.
BMO AdviceDirect available account types
BMO AdviceDirect supports the following account types:
- Non-registered (Cash and Margin)
- Registered Retirement Savings Plan (RRSP)
- Tax Free Savings Account (TFSA)
- Registered Education Savings Plan (RESP)
- Registered Retirement Income Fund (RRIF)
- Locked-In Retirement Account (LIRA)
- Locked-in Retirement Savings Plan (LRSP)
- Restricted Locked-in Savings Plan (RLSP)
- Locked-In Retirement Income Fund (LRIF)
- Life Income Fund (LIF)
- Prescribed Registered Income Fund (PRIF)
- Restricted Life Income Fund (RLIF)
You can also open corporate and non-personal accounts for a business or non-profit.
Unfortunately, you cannot open a First-Time Homebuyers Account (FHSA), but this may be added in the future.
BMO AdviceDirect asset availability
BMO AdviceDirect investors have access to the following investment types:
- Stocks
- Exchange-traded funds (ETFs)
- Mutual funds
- Fixed-Income investments
- GICs
BMO AdviceDirect vs. other investing platforms
BMO AdviceDirect vs. BMO SmartFolio
BMO SmartFolio is BMO’s robo-advisory platform. Investors looking for a passive, hands-off investing solution can invest in a low-cost managed portfolio comprised of low-cost BMO ETFs. Portfolios are professionally managed and automatically rebalanced, but there is no human advice component, like what BMO AdviceDirect offers.
AdviceDirect is the best choice between the two platforms if advisor support is important to you. If you want a low-effort, passive investing solution, consider BMO SmartFolio.
BMO AdviceDirect vs. BMO InvestorLine
BMO InvestorLine is BMO's self-directed trading platform. As an entirely DIY solution, it lacks the advice component of AdviceDirect. Still, you don’t pay any advisory fees, so it can be a lower-cost option depending on your trading activity. You will pay $9.95 for every stock or ETF trade, though BMO does offer a selection of commission-free ETFs.
BMO AdviceDirect is the better choice for investors who are comfortable placing their own trades, but want access to professional advice when needed. Just remember that you pay a premium in the form of an annual management fee for this extra service. If you just want the lowest pricing and don’t feel that you need the advice, you’ll save money with InvestorLine.
BMO AdviceDirect vs. Wealthsimple Invest
Wealthsimple Invest is one of Canada’s leading robo-advisors. It doesn’t offer self-directed investing like BMOAdviceDirect. Instead, customers are matched with low-cost, fully managed ETF portfolios aligned to their investment objectives and risk tolerance. These portfolios are automatically rebalanced and offer investors a hands-off solution.
With BMO AdviceDirect, the investor is responsible for making investment decisions and placing trades. Unlike an entirely self-directed platform, however, you can seek advice regarding your investment strategy from a licensed advisor. If you’re a new investor and prefer to be hands-off, a robo-advisor is your best bet. If you’re ready to have more control over the decision making while being able to get advice when needed, AdviceDirect might be just what you’re looking for.
BMO AdviceDirect vs. Moka.ai
Moka.ai is an automated round-up investing app that makes it easy for you to save. Simply sync your debit or credit card to the Moka app, and any time you make a purchase, Moka rounds up to the nearest dollar and transfers the spare change into one of five low-cost ETF portfolios. You can also set up an automated transfer or make one-time deposits into your investment account.
Unlike BMO AdviceDirect, Moka does not charge an annual advisory fee. Instead, customers pay a flat monthly fee of $7, or $15 for Moka360. Moka is fully automated so you can’t access financial advice. AdviceDirect is a much more robust investing platform, but if you’re just getting started and are looking for a micro-savings app, Moka should fit the bill. Just be wary of the monthly fee, which could seem steep for small accounts.
AdviceDirect vs. full-service financial advisors: What to consider
By providing access to a team of financial advisors, AdviceDirect is offering something unique in the investment industry. But how does this model compare to hiring a full-service financial advisor? Here are some key considerations:
Feature
BMO AdviceDirect
Full-Service Advisors
Cost
0.75% annual advisory fee; capped at $3,750 for portfolios $500,000 and above
Pricing varies by advisor, but 1.00% (or more) is typical. Some advisors charge a flat-fee rather than a percentage of AUM
Investment options
Access to a wide range of investments through BMO's self-directed platform. Includes stocks, ETFs, mutual funds, fixed-income, and GICs
Depends on the advisor. Some advisors have a full range of investment options, others may be limited to mutual funds and/or ETFs
Advice
Quickly connects you to a team of BMO financial advisors via telephone
Hiring a full-service financial advisor allows you to form a deeper relationship that can last for many years
Convenience
AdviceDirect gives you complete control over your portfolio, allowing you to place trades online at the click of a button. Advisors are readily available for added support
Depending on the arrangement, you may have to travel to meet with your advisor in-person, and have them place trades on your behalf
Who should use BMO AdviceDirect?
BMO AdviceDirect is best for investors with $50,000 or more who want guidance without hiring a full-service advisor. The minimum investment amount is $10,000, but up to $50,000, you likely won’t get enough value for the fees. If you’re a DIY investor who could use some reassurance via recommendations, AdviceDirect could be a good stepping stone before you go entirely self-directed (InvestorLine).
Passive ETF investors are better off using a robo-advisor platform like BMO SmartFolio or Wealthsimple Invest. Active traders will quickly blow past the annual free trades, so InvestorLine is more suitable.
BMO AdviceDirect features and benefits
- Straightforward 0.75% annual advisory fee with a $3,750 cap
- Trade stocks, ETFs, mutual funds and more, on a self-directed investing platform
- Free trades are included in the annual fee
- Access to licensed investment advisors for strategic advice
- Third-party market research tools from Morningstar and MarketGrader
- Watchlist to monitor up to 50 stocks and options at a time
BMO AdviceDirect drawbacks and limitations
- High minimum investment of $10,000
- 0.75% annual fee is expensive for smaller portfolios
- No dedicated advisor until your portfolio exceeds $500,000
- More costly than a true self-directed brokerage like InvestorLine
How to open and fund a BMO AdviceDirect account
You can open a BMO AdviceDirect account by completing an online application, by telephone, at a BMO bank branch or by mailing in a paper application.
The online application takes about 15 minutes to complete. If you can’t finish it in one sitting, you can save your progress and return later if needed.
Once you provide your personal details, you will be asked to complete a short questionnaire that gathers information about your financial goals, investment experience and risk tolerance.
AdviceDirect will use this information to match you with an investor profile and recommend various investment types, though ultimately, the choice is yours.
You will need the following information:
- Social Insurance Number (SIN)
- Employment information and bank account details
- $10,000 minimum is required to fund the account
Customer support
You can contact BMO DirectAdvice for advice via telephone, email, or online chat.
Telephone: 1-844-274-3762 in North America (toll-free) or 1-416-355-8366 (international collect)
Telephone hours: Monday to Friday, 8 AM ET to 6 PM ET
Live chat hours: Monday to Friday, 8 AM to 8 PM ET
Investor Tools
BMO Capital Markets, Morningstar and MarketGrader provide the following investor tools:
- North American-listed company research
- Analyst ratings
- Personalized insights tailored to the stocks in your portfolio and watchlist
- Personalized trade ideas based on third-party data
- Watchlists for up to 50 stocks and options
- ESG Insights
Is BMO AdviceDirect right for you?
A few types of customers stand to benefit from BMO AdviceDirect. High-net-worth investors tired of paying high fees to a full-service financial advisor could save big due to AdviceDirect’s $3,750 annual fee cap on portfolios over $500,000. If you have a $1 million portfolio, that $3,750 fee equates to 0.38% annually. If your portfolio grows to $1.5 million, the fee drops to 0.25%.
The platform could also work well for an investor with a medium-sized portfolio who feels that they’re ready to manage their own investments, while still having access to professional advice. They may eventually graduate to an entirely self-directed platform.
For these customers, BMO AdviceDirect might be worth the fees. Just remember, you are paying a premium for advisor access and that there are cheaper options out there, namely robo-advisors and self-directed online brokers.
Colin Graves
Freelance Writer
Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
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