Tag Archives: commissions

How To Add a RESP Account to Your BMO InvestorLine User ID

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You can sign in to each of your InvestorLine accounts separately but you don’t have to. You can group all of your accounts, such as a TFSA, RRSP, LIRA and RESP, under a single User ID. Then you can sign in to all of your accounts using one id and one password. When you go to execute trades for the accounts, you use the account specific trading password. I recently opened a RESP account at BMO InvestorLine. Here’s how I added the RESP account to my BMO InvestorLine User ID.

Grouping accounts under a single User ID can also help an account qualify for lower trading costs and other benefits more quickly. In February 2014, InvestorLine removed the requirement to have a minimum account balance to qualify for $9.95 trades but there are still some other benefits to grouping account balances.

Adding an InvestorLine Account to your User ID

  1. Sign in to your InvestorLine accounts using your User ID.
  2. From the Account Services tab, select User ID Profile.
  3. Click on the Add Accounts to User ID link.
  4. Next
    1. In the Account Number field, type the number for the InvestorLine RESP account.
    2. In the Account Password field, type the login password for the RESP account.
    3. In the Account Nickname field, add an optional name for the account, if desired.
      For example I used: Queens vs McGill
    4. Under the 5 Star Program benefits’ column, ensure the Yes box is selected if you want to qualify to reduce the trading fees and commissions on this new account.
  5. Click on the Submit button.
  6. If you are finished with the account, click on the Sign out link.
  7. For increased security, clear your browser cache and close your browser session.

What Will I Pay for a Trade for my New BMO InvestorLine RESP Account?

When you first look at the cost on the Equity and Option Order Entry screen, trades will now cost $9.95 each as of February 2014. Before this they cost $29.

If you will qualify for a reduced rate due to a large balance or by combining your account with other accounts at InvestorLine, make sure you see the reduced rate on screen before placing an order. It may be difficult or impossible to get a refund if you over-pay for a trade before you qualify for the reduced cost.

Does Adding a New RESP InvestorLine Account to a User ID Automatically Update the Account to Flat Fee Pricing and Other Perks?

I have enough $$ in my RRSP and TFSA account to qualify for Flat Fee Pricing. That’s the name InvestorLine uses for $9.95 trades.

When I added my RESP account to my User ID, I checked whether it immediately updated the account to receive the lower trading price. (This was before InvestorLine began offering lower trading prices to all customers.)

Nope.

Time to check into how this works with InvestorLine. I’ll send them a message via their MyLink secure email system.

OK, I’ve got it sorted out now. Please see: How Do I Get My Account Evaluated for the 5 Star Program and $9.95 Trades at BMO InvestorLine for the details.

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Does your brokerage allow you to easily group accounts to qualify for trading discounts and to make checking on your portfolios easy? Or do you bank with RBC Direct Investing which has just started offering low cost trades to all accounts regardless of their balance? Please share your experiences with a comment.

How Do I Start Getting $9.95 Trades at RBC Direct Investing Now I Have $50 000?

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UPDATE: This article is historical, from 2013. I no longer invest with RBC Direct Investing.

While on the phone asking where my money is, since it left ING Direct on November 7 and it still isn’t in my RBC DI account on November 14, I asked a more important question: “How do I start getting the $9.95 trading commission fee given that I will have $50,000 in my account.”

I remember several years ago when we set up accounts at BMO InvestorLine that we had to wait till month-end after reaching the minimum qualifying balance to get the reduced trading fee. (I suspect you can now phone them and ask to get the fee applied immediately once you qualify, but I’m not sure.) I wasn’t sure if we would have to wait with RBC DI as well or not.

When Will You Usually Get the Reduced Trading Commission Fee Rate at RBC Direct Investing?

The support person told me that generally the computer system will spot new qualifiers. The check is made once a month on the 22 nd day. It checks what the lowest balance was during the previous month. [Which is not what the website says. The website says it will check the asset balance on the last day of the previous month.] If the lowest balance was $50,000 then the account will be upgraded to $9.95 trade status.

Can You Get the $9.95 Rate Immediately at RBC Direct Investing?

Yes. Once you have the $50,000 minimum in your account you can phone RBC Direct Investing support and request a change. They should be able to update your account quickly. (They didn’t tell me *how* quickly, but the implication was it would happen overnight.)

I guess if my money ever arrives in my account I can test this!
UPDATE: It did; I can; and I did. The update was made over night. So the day after I phoned in, when I placed a test trade, the trading commission correctly reported as $9.95.

What Happens If the Market Value of my Portfolio Drops Below $50,000?

While I’m sure your stocks, ETFs and Mutual Funds will always go up in value, mine don’t. In fact, I tend to buy things right before they plummet in value.

So I sent a Secure Message to RBC DI to ask whether the $50,000 qualification applies to the Book Value (when I bought my stocks) or the Market Value (what they’re worth today). I waited with bated breath for their reply.

To my surprise and dismay, they replied “In order to qualify for preferred pricing of $9.95 you must hold $50,000 in market value on the last day of every month.”

That’s right: the *Market* Value of the account must be $50,000 or higher on the last day of every month to qualify for the $9.95 trading fee! So if your stocks take even a temporary dip on the last day of the month you will be back to $28.95 trading fees. It appears that changes in the fees, up or down, occur on the 22 nd of the month after the month-end balance went below or above $50,000.

Frankly, I’m not impressed.

Can I Get the $50,000 Discount by Adding Up My Accounts with my Spouse’s?

Yes. You can ask RBC DI to add up the assets in various accounts held by members of the same household such as you and your spouse. You have to phone them to ask them to do this. It is not automatic.

Where Do I Get $50,000 to Qualify

Of course the hardest part is coming up with the $50,000 to invest in the first place. That’s a lot of packed lunches and skipped designer coffees. With time and patience, though, you may get there sooner than you think.

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Did you get caught paying an excessive brokerage fee because you thought you’d get the better rate immediately once you qualified? Please share your experiences with a comment.