Accounts

Accounts


Who is eligible for adviceDirect?

 

adviceDirect is designed for clients with a minimum of $50,000 deposit and who prefer a portfolio management approach to investing with their registered or non-registered accounts. It is not suitable for active traders, day traders and those who use other frequent trading strategies.


What types of accounts can I open with adviceDirect?

 

You can open the following types of accounts with adviceDirect: Cash, Margin, RSP, RESP, TFSA, RRIF, PRIF, RLSP, LRIF, LIF, RLIF and LIRA.


How can I open an adviceDirect account?

 

You can get started any of the following ways:

  • Complete an online application.
  • Call us at 1 888 776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.
  • Drop in to any BMO Bank of Montreal branch.
  • Download and print an application, fill it in and drop it off at a BMO Bank of Montreal branch or mail it to:

    BMO InvestorLine adviceDirect
    Transit #3973
    First Canadian Place
    100 King St. W., Floor B1
    Toronto, ON M5X 1H

What is the minimum amount I need to open an adviceDirect account?

 

To open an adviceDirect account, you must deposit a minimum of $50,000. Your initial balance can be a deposit, transfer, or a combination of both. Several accounts can be linked to form a billing group, but one of these accounts must have a minimum of $50,000 in total billable assets.


What happens when my account size drops below the $50,000 minimum requirement?

 

You must maintain the minimum of $50,000 in assets in at least one of their adviceDirect accounts. Our adviceDirect team monitors accounts to ensure they meet this minimum requirement.

 

Should the account size drop because of market fluctuations, you will not be penalized. However, the account will be reviewed and you may be asked to close your adviceDirect account if the account drops below the minimum for other reasons such as, withdrawals or transfers.


Is my adviceDirect account protected under the Canadian Investor Protection Fund (CIPF)?

 

BMO InvestorLine is a member of the Canadian Investor Protection Fund (CIPF). As such, your adviceDirect account will be covered by CIPF up to $1,000,000. However, the CIPF do not cover clients' losses caused by changing market values. For more information, visit the Canadian Investor Protection Fund site.


How do I transfer securities to my adviceDirect account?

 

You can transfer securities in-kind to your adviceDirect account or from another account or financial institution. To learn more, give us a call at 1 888 776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.

 

You can also deposit equity or bond certificates to your adviceDirect account. Just follow these three steps:

 

  1. Complete the Power of Attorney to Transfer Equities or Bonds (128 KB - PDF)
  2. Attach this form to the equity or bond certificates.
  3. Send them via courier, Priority Post (two to three business days) or registered mail (up to two weeks) to:

    BMO InvestorLine adviceDirect
    Transit #3973
    First Canadian Place
    100 King St. W., Floor B1
    Toronto, ON M5X 1H3

 


How do I transfer accounts or investments from another financial institution to my adviceDirect account?

 

Just follow these three steps:

 

  1. Obtain the Authorization to Transfer Account Form
    • To transfer to an existing adviceDirect account, just sign in to your account, choose the Account Services tab, and click Forms. Under Other Forms, click on option 2, the Authorization to Transfer Account form. On this form, your adviceDirect Account and Applicant Information sections will already be filled to save you time.
    • To transfer to a new account, click Transfer an Account under the Fund Your Account section on the adviceDirect online application.
    Or you can access the form here: Authorization to Transfer Account form.
    Note that for registered account transfers, the Authorization to Transfer Account form replaces the required T2033 form.
  2. Complete the Authorization to Transfer Account Form
    The transfer form consists of three main sections:
    1. Account information section
      • Enter your account information from the transferring institution and your AdviceXchange account number and account type (i.e. Cash, Margin, RSP, RIF, PRIF, RLSP, LRIF, LIF, RLIF).
      • Once you've chosen an account type, we'll give you a list of compatible account types. If your account type is not an exact match, the entire transfer, or a portion of it, may not be accepted.
    2. Transfer details section
      • Choose a full or partial transfer.
      • For a full transfer, you can transfer:
        • The entire account in cash. All investments will be liquidated by the transferring institution at market price on a best-efforts basis, once they receive your transfer form. This transaction will be subject to regular commission charges. To avoid delays, you may place the trades yourself with the transferring institution.
        • The entire account in kind. All investments will be transferred in their existing form.
        • The entire account, but in a mixed form. With this approach, you must list the investments and quantities you want transferred in kind (in their existing form), those to be liquidated, and the cash balance you wish to transfer. The transferring institution will process the liquidation of investments at market price on a best-efforts basis, once they receive the transfer form. This transaction will be subject to regular commission charges. To avoid delays, you may place the trades yourself with the transferring institution.
      • For a partial transfer, you must list the investments and quantities you want transferred in kind (in their existing form), those to be liquidated, and the cash balance you wish to have transferred. The transferring institution will process the liquidation of investments at market price on a best-efforts basis, once they receive the transfer form. This transaction will be subject to regular commission charges. To avoid delays, you may place the trades yourself with the transferring institution.
      • If you are transferring investments in kind:
        • For mutual fund(s) in- kind, please refer to the list of funds approved for transfer to an adviceDirect account. If the mutual fund(s) you wish to transfer is not on this list, there may be delays in the process, and we may not be able to complete your transfer.
        • Guaranteed Investment Certificates (GICs) from banks or trust companies other than BMO Financial Group usually cannot be transferred in kind. These investments may have to be redeemed and transferred in cash. Please verify with your transferring institution.
        • If you are transferring investment products exclusive to BMO Bank of Montreal branches or BMO Mutual Funds in- kind, you may give up related special product features such as the option to redeem early without penalty and step-up interest rates. These products include:
          • Rate riser retirement GICs
          • Rate optimizer GICs
          • Matchmaker portfolios
            We advise you to contact your BMO Bank of Montreal branch before you transfer these products.
    3. Applicant information section
      • Enter your name, SIN, address and phone number, and the name of any applicable co-applicant.
  3. Print and Submit the Authorization to Transfer Account Form
    • Print the form by clicking on the button at the bottom of the page.
    • Sign and date the transfer form.
    • Submit the form with a copy of your most recent statement from the transferring institution by:
      • Fax:
        Toronto (416) 359-5607
        Montreal (514) 877-8191
        Note that some institutions may require original transfer forms. Credit unions, trust companies, foreign institutions and pension plans will not accept faxed copies.
      • Mail:
        BMO InvestorLine adviceDirect
        Transit #3973
        First Canadian Place
        100 King St. W., Floor B1
        Toronto, ON M5X 1H3

How long will it take to complete the transfer?

 

Here are approximate transfer times once we receive your documentation:

 

  • BMO Nesbitt Burns:
    one to two weeks
  • BMO Bank of Montreal:
    Cash or mutual funds: two to three weeks
    Guaranteed Investment Certificates (GICs): four to six weeks
  • Brokers using ATON (Account Transfer Online Notification):
    up to 10 business days, transfers of mutual funds may take longer. ATON-Eligible Institutions
  • Non-ATON brokers:
    four to six weeks
  • Mutual fund companies:
    three to four weeks
  • Pensions, trust companies and insurance companies:
    four to eight weeks

 

Note that missing or incomplete documentation may result in delays. During times of heavy volume, transfers may take longer than expected.


How do I deposit funds into my account?

 

You can deposit or transfer cash to your investment account in four ways:

 

  • Make a deposit in person
    Simply visit any BMO Bank of Montreal branch or ABM location.
  • Use your online or telephone banking service
    • To move cash from your existing BMO Bank of Montreal account to your investment account, just use your online account transfer option.
    • To transfer cash from another financial institution to your investment account, simply add BMO --InvestorLine to your list of payees.
    • You can also call us to request that we transfer cash from one of your existing BMO Bank of Montreal accounts to your investment account. To arrange a transfer, call 1-888-776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.
  • Set up pre-authorized debits
    You can arrange pre-authorized debits to withdraw a recurring amount from your bank account for deposit into your investment account. This option makes it easy to maintain your deposits to your investment account – plus it could entitle you to tax benefits.
    Follow these three steps to set up pre-authorized debits:
    1. Complete the Pre-authorized Non-Registered Deposit Enrolment form (90 KB - PDF).
    2. Attach a void cheque.
    3. Submit the form at any BMO Bank of Montreal branch, or mail it to:
      BMO InvestorLine adviceDirect
      Transit #3973
      First Canadian Place
      100 King St. W., Floor B1
      Toronto, ON M5X 1H3
  • Make a wire transfer
    You can make wire transfers to or from your investment account, whether you're in Canada or outside the country.
    To learn more, give us a call at 1-888-776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.

How do I contribute funds into a registered account?

 

You can contribute cash to your registered account in three ways:

 

  1. Contribute in person
    Simply visit any BMO Bank of Montreal branch.
  2. Use your online or telephone banking service
    You can contribute online to your registered account from one or both of these accounts:
    • BMO Bank of Montreal account
    • Cash or margin account
    To contribute cash from another financial institution to a registered account, simply add BMO InvestorLine to your list of payees.
    You can also request we contribute to your registered account from one of your existing BMO accounts. To arrange this, call 1-888-776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.
    You can also transfer securities in kind to your personal or spousal RSP from your registered account online. To learn more, give us a call at 1-888-776-6886 between 8 a.m. and 8 p.m. ET, Monday to Friday.
  3. Set up pre-authorized debits
    You can arrange pre-authorized debits to withdraw a recurring amount from your bank account for contribution to your RSP. This option makes it easy to maintain your RSP contributions.
    Follow these three steps to set up pre-authorized debits:
    • Complete the Pre-authorized Registered Contribution Enrolment Form (90 KB - PDF).
    • Attach a void cheque.
    • Submit the form at any BMO Bank of Montreal branch, or mail it to:
      BMO InvestorLine adviceDirect
      Transit #3973
      First Canadian Place
      100 King St. W., Floor B1
      Toronto, ON M5X 1H3

Fees, Billing and Trading

Fees and Billing


What is an advisory fee?

 

This is an annual fee based on your total billable assets rather than a commission fee charged per transaction. It is charged to your account quarterly.


What is adviceDirect's fee schedule?

 

Please refer to our fee schedule (277 KB - PDF).


What is adviceDirect's billing schedule?

 

Clients are billed in arrears every quarter.


How are adviceDirect fees calculated?

 

Fees are assigned as a percentage of your total billable assets. They are calculated on the average amount of assets in your account(s) on the last business day of all three previous months.


What are excess trade charges?

 

These charges apply if you exceed your annual trade guide for the year. They are not subject to GST and are treated as commissions for income tax purposes. Typically they are $7.95 per trade, based on the currency of your account. We recommend you refer to our fee schedule (277 KB - PDF) for more details.


What is a trade guide?

 

The trade guide is the upper limit of trades you're entitled to on an annual basis. You may be subject to excess trade charges if you exceed this trade guide in the anniversary year.


Are there administrative fees for registered accounts?

 

No, all adviceDirect registered accounts are automatically exempt from administrative fees.


What is an SEC fee?

 

It is a fee charged by the Securities and Exchange Commission when selling a US exchange-listed equity or option. This fee is usually listed separately from the regular brokerage commission. It is charged only on U.S. equity sell orders and on the following option transactions: call sale, put sale, put exercise, call assignments.


How are ETFs billed?

 

ETFs can be classified either Fixed Income or Equity and are considered a billable holding.



Trading


What securities are not allowed to be purchased or held in my adviceDirect account?

 

The following products are not allowed to be purchased in adviceDirect:

 

  • Options (puts/calls)
  • Gold/Silver Bullion/Jewellery
  • Worthless Securities
  • Bonds in default
  • NHA Mortgages
  • Foreign Currencies
  • Segregated Funds
  • Pooled funds
  • Private/Small Business
  • Restricted securities
  • CNSX listed securities
  • Non-approved mutual funds
  • Certain 30-day Cashable GICs
  • Non-approved GICs (i.e issuer not found on the Investment Industry Regulatory Organization of Canada's website)
  • RSP Mortgages

Product & Services

Product & Services


Who is Morningstar?

 

Morningstar Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. Morningstar's benchmarking and classifications are widely recognized as the industry standard by asset managers, fund companies and financial intermediaries

 

Morningstar's ranking system analyzes individual exchange traded and mutual funds using a measurement of risk adjusted return of the past 3 years.

 

adviceDirect then assigns one of the following recommendations for a fund based on Morningstar's ranking system:

 

  • Buy - score between 60 and 100 displayed in green
  • Hold - score between 50 and 59 in yellow
  • Sell - score between 0 and 49 in red

Who is MarketGrader?

 

MarketGrader.com is an independent research provider who analyzes four key aspects of a public company's finances: growth, value, profitability and cash flow – for up to the past five years.

 

It assigns a daily score to these areas, based on 24 fundamental indicators, and combines them into an overall score for that company's security. The security is then assigned one of three ratings:

 

  • Buy – percentile between 60 and 100 displayed in green
  • Hold – percentile between 50 and 59 in yellow; and
  • Sell – percentile between 0 and 49 in red.

Is the adviceDirect fee tax-deductible?

 

The fee for a non-registered fee-based account may be tax-deductible, provided one of the following:

 

  • It is not based on commissions.
  • It was charged for advice on buying or selling investments.
  • It was charged for administrative or management services of shares or securities.

 

We strongly advise you consult with a tax professional to assess what percentage of this fee is tax-deductible.

 

Note that from a tax perspective, excess trade charges are treated as commissions and are not tax-deductible in the way an annual advisory fee may be.


Is the annual advisory fee treated differently for tax purposes?

 

Fees for non-registered accounts may be tax-deductible if they have been paid for advice related to buying or selling specific investments, and are not a commission. It is recommended that you seek professional tax advice for more information.



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