Capital at risk. Pension and ISA rules apply.
With its research and customer support, low percentage-based platform fees and choice of more than 19,000 investments, AJ Bell is an excellent all-rounder. However, it’s not possible to trade in fractional shares.
Pros
- Percentage-based platform fee may suit lower-value portfolios
- Extensive range of investments
- Excellent research offering
- Lifetime ISA offering
- Pays interest on cash balances
Cons
- Platform fee more expensive for higher-value portfolios
- High trading fee for funds and shares
- One of higher foreign exchange fees on non-UK shares
- No cryptocurrency trading
![AJ Bell](https://thumbor.forbes.com/thumbor/fit-in/x/https://www.forbes.com/uk/advisor/wp-content/uploads/2023/02/AJ-Bell-Lifetime-ISA.png)
AJ Bell: a round up
AJ Bell charges one of the lower percentage-based platform fees among the larger providers, although it has one of the higher share trading fees and charges a fee for buying and selling funds.
Alternatively, investors looking for a simple, low-cost option might wish to consider AJ Bell’s Dodl account, which charges a lower platform fee but has a more limited range of investments.
Investors benefit from a wide choice of over 20,000 investments including shares, funds, exchange-traded funds (ETFs) and investment trusts. AJ Bell also offers a good choice of ready-made portfolios.
AJ Bell provides a high level of customer support, with phone support available six days a week, in addition to live chat and email. It also excels in terms of the quality and scope of its research together with extensive educational tools, including live webinars.
AJ Bell pays interest on uninvested cash balances in dealing accounts, individual savings accounts (ISAs) and Self-Invested Personal Pensions (SIPPs). However, it does not currently provide a community or social trading forum for investors.
What plans are available?
AJ Bell offers one main plan for customers across its range of accounts, including a dealing account, ISA, Lifetime ISA and SIPP.
In addition, AJ Bell offers an app-only, lower-fee account called Dodl, which also includes a general dealing account, ISA, Lifetime ISA and SIPP.
What products are available?
- dealing account
- ISA
- Lifetime ISA
- SIPP
- Junior ISA
- cash savings account
What are the investment choices?
AJ Bell offers the choice of more 20,000 investments, including:
- Over 15,000 shares from North America, Europe and Asia-Pacific
- Over 2,100 funds
- Over 3,500+ exchange-traded funds (ETFs)
- Over 400 investment trusts
Dodl customers have a more limited range of investments, comprising the seven AJ Bell funds, 80 UK and US shares and over 20 funds and ETFs categorised by investing themes.
What else does AJ Bell offer?
- Ready-made portfolios: the choice of four ready-made portfolios, selected and managed by its in-house team. Investors can choose from three growth-focused portfolios (cautious, balanced and adventurous) and one income-focused portfolio. Each of the portfolios contains six or seven funds from the Favourite Funds list and investors have the option to adjust the proportion of funds invested in the portfolio.
- AJ Bell funds: a selection of nine funds split into growth-focused (six funds from cautious to adventurous), responsible (one fund) and income-focused (two funds).
- Favourite funds: a selection of over 70 active and passive funds for investors, chosen using criteria such as performance, cost and investment strategy.
- Education: AJ Bell offers one of the most extensive educational offerings amongst the platforms, both in terms of market commentary and investing guides. Investors have access to a number of videos and podcasts on investing topics, together with live, interactive webinars with investing experts. It also produces in-depth market analysis, covering shares and funds, as well as market and sector trends.
- Apps: AJ Bell’s investing app is available on both Android and iOS devices.
- Security: AJ Bell is regulated by the Financial Conduct Authority (FCA) in the UK. The company uses third party banks and custodians to hold customers’ funds, which provides protection for customers in the event that the company went into liquidation.
What about fees and charges?
AJ Bell charges the following fees for its three main accounts:
Other fees include £1.50 for dividend reinvestment and monthly investing and a foreign exchange fee on non-sterling trades of 0.75% (for transactions up to £10,000). The above trading fees are online only and a fee of £25 is charged for dealing over the phone.
It charges an annual platform fee of 0.15% for its Dodl account, with a minimum of £1 per month. There is no trading fee but customers have to pay a foreign exchange fee (as detailed above) on non-UK shares.
Who should choose AJ Bell?
AJ Bell’s platform fee may attract investors with smaller-value portfolios where a percentage-based (rather than fixed) fee may be a lower-cost option.
With more than 19,000 investments to choose from, it’s also likely to suit those with a wide investment scope. It also has an extensive research and educational offering for both beginners to investing, as well as more experienced investors.
Alternatively, investors wanting a simple, low-fee platform with a more limited range of investments might want to consider Dodl.
How does AJ Bell rank on customer service?
Research firm Fairer Finance gives AJ Bell an overall customer experience rating of 68%, split as follows: customer happiness (71%), customer trust (68%), complaints performance (66%) and transparency rating (66%).
Frequently asked questions (FAQs)
How do I open an AJ Bell account?
According to AJ Bell, it should take around 10 minutes to open an account online. Customers will need to provide their personal details and national insurance number.
How do I transfer investments into an AJ Bell account?
Customers can transfer shares, funds, investment trusts and ETFs held in general trading accounts, ISAs and SIPPs into an appropriate AJ Bell account.
In the first instance, customers should check whether their existing provider charges an exit fee for transferring investments. For pensions, it’s also important to check whether any important benefits or guarantees may be lost.
AJ Bell will manage the transfer process and liaise with the existing provider. Many investments can be transferred ‘in specie’ whereby the investment moves across to the new provider, without having to be sold. This depends on whether the new platform offers the same investments.
How do I withdraw money from my AJ Bell account?
In order to withdraw money, customers need to add a registered bank account and the transfer should be processed within 1-3 working days.
Is AJ Bell safe?
AJ Bell is regulated by the Financial Conduct Authority (FCA) meaning that its systems and practices meet industry requirements.
Customers’ money and investments are placed in separate third party accounts under trust and customers are protected under the Financial Services Compensation Scheme (FSCS) up to £85,000 per investor.
However, there is no protection in terms of the underlying investments and the risk that they may fall in value.
What happens if AJ Bell goes bust?
Investments have ‘trust status’ which means that client investments, including cash, are ring-fenced from the firm’s creditors if AJ Bell becomes insolvent.
Client money is held in third party banks with FSCS protection up to £85,000 per person per account.