Canadian banks announce fee eliminations and new tech growth fund

Major Canadian financial institutions are implementing strategic shifts to address competition and domestic growth. BMO has announced that its digital self-directed investing platform, BMO InvestorLine, will eliminate commissions on all stock and exchange-traded fund (ETF) trades starting September 14. The bank is also removing brokerage account administration fees and reducing option trading costs. This move aims to compete with digital platforms like Wealthsimple and Questrade, specifically targeting younger investors who view transaction fees as a barrier to entry.

Separately, the Royal Bank of Canada (RBC) has unveiled the RBCx Growth Fund, a planned $1-billion USD ($1.4-billion CAD) initiative designed to support scaling Canadian technology companies. RBC intends to contribute up to $300 million USD of its own capital, with the remainder sourced from third parties. The fund aims to provide equity investments and strategic support to domestic tech firms to prevent them from relocating to the United States during growth stages, a trend noted by the Canadian Venture Capital & Private Equity Association.