Do I Have to Pay a Commission if My Order to Sell Stock or Buy Stock Doesn’t Get Filled?

When I was new to online investing in my self-directed brokerage account at BMO InvestorLine, one of my first “newbie” questions was: “If I put in an order to buy a stock at a certain price and no one sells it to me, do I still have to pay the fee?” I could see myself spending my entire investment account on fees for unfilled orders.

Written: 2012
Reviewed: 2023
Revised: 2023

So I asked BMO  by email how the fee works.

They reassured me that no, if the sale does not go through, I don’t have to pay the fee.

Phew.

Also, if I put in an order to sell a stock at a certain price, and no one wanted to buy it, I also would not have to pay a fee.

Partial Fills of Trades Can Result in Fees

There is one exception, though. If you put in a request to buy or sell a stock and they buy or sell part, but not all, of it then you will get charged a fee.

For example, say you want to buy 500 shares of BCE at $40. Someone may offer to sell 200 shares of BCE to you at that price. That will result in a “partial fill” of your order.

If no one else sells you the other 300 shares before the close of trade that day, you will get charged the full commission, which is $9.95 for my BMO InvestorLine account in 2023.

You get charged the $9.95 even though you still want 300 more shares. And if you put in another order the next day for the other 300 shares, if it fills you will be charged another $9.95!

I guess that’s why they call this “playing” in the market. You might have to pay a fee or two you don’t expect. Whether you have to or not is a game of chance.

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Have you ever got zinged with a fee you didn’t expect because of a partial fill? Or did they get you some other way? Please share your experiences with a comment.

How Can BMO InvestorLine and CIBC Investor’s Edge Offer GIC Purchases and Sales with No Commission Fees?

In 2012, I was surprised to see the annual interest rates for GICs offered for sale on InvestorLine and Investor’s Edge were the same or higher than the posted rates for GICs purchased directly from the respective financial institutions. Since BMO and CIBC didn’t directly or noticeably charge a fee or commission for the purchase of GICs, in 2012, how could they make any money by offering this service?

UPDATE: As of January 2019 (and probably before then) I can NOT buy a GIC inside my brokerage accounts with the same rate as one bought directly from the financial institution. Big BAD change!

Written: 2012
Reviewed: 2023
Revised: 2023

A Hidden Fee When Buying a GIC

Whether you buy a GIC from a bank or trust company directly or whether you buy it through a broker like InvestorLine, you are paying a hidden cost.

You are agreeing to an interest rate that is less than the value of your money to the financial institution. Part of the profit they are making selling you the GIC at that rate is used to pay a commission to the seller. The commission might be paid to a local branch office, to a broker, or to InvestorLine or Investor’s Edge. So although it looks like you are not paying a commission or fee to purchase a GIC through a self-directed online account, you still are.

Under new rules, in 2023 if you start to buy a GIC at BMO InvestorLine, you will be shown a message telling you that a ‘hidden’ fee or commission is being paid to InvestorLine which is included in the interest rate you are receiving.

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Do you manage your GICs through an online brokerage? Or do you use a fiscal agent as your broker? Please share your experiences with a comment.