Skip to main content

The Bank of Montreal headquarters in Toronto.

Fernando Morales/The Globe and Mail

Bank of Montreal's roboadviser SmartFolio is looking to draw in more millennial investors by lowering its minimum account size to $1,000 from $5,000.

"We heard from people who were new to investing that the $5,000 threshold was quite high for them to start off with," said Silvio Stroescu, head of digital investing for BMO. "We noticed that we don't have a lot of clients who are new to investing, and we want to shift down a path for those Canadians who haven't started to invest yet to begin to invest with Smartfolio."

Robo-advisers – also referred to as online portfolio managers or digital advisers – offer clients an online risk-assessment tool which quickly calculates an appropriate asset allocation based on age, financial goals and risk tolerance. The online tools have been quickly expanding in Canada with more than 15 providers in the market.

Story continues below advertisement

While at first it was thought millennials would be the largest age group to use roboadvisers, Mr. Stroescu noted that the adoption has been "age agonistic."

There are no changes to account fees, which will remain at 0.7 per cent for the first $100,000 invested. Fees gradually drop as the account size increases – to 0.4 per cent on assets over $500,000. As a result of the new lower minimum account balance, the current minimum fee of $60 per year has been eliminated.

BMO was the first bank to launch a robo-adviser platform in 2016. Last month, RBC was the second bank to launch a pilot roboadviser platform, RBC InvestEase.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter