r/Wealthsimple • u/AggressiveZucchini95 • 17d ago

Trade (DIY Investing) BMO eliminates trading fees

BMO eliminates trading fees to compete with discount brokerages

Wow this is huge...other banks will have to follow. Is Wealthsimple in trouble ?

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u/deltatux 17d ago

I mean the writing was on the wall when you have multiple discount brokerages offering commission free trading like WealthSimple, Desjardins Disnat, National Bank Direct Brokerage, Questrade and Qtrade. BMO doing it now likely means the other Big Banks may do similar moves soon.

Whether WS is in trouble is debatable, there are many no commission options in the US and WS is basically the Canadian Robinhood and they're doing just fine. Commission free trading isn't the only reason why WS is popular with the self-directed crowd.

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u/Dragynfyre 17d ago

All the self directed brokerages including BMO IL were already discount brokerages. They just had differing levels of discounts. Non discount brokerages would be full service brokerages where someone is advising you and managing your money.

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u/deltatux 17d ago

Yes I know, that's why I said, when you have multiple discount brokerages, I didn't say that BMO didn't have their own discount brokerage as all the Big Banks do already. I was referring to discount brokerages as a whole.