AJ Bell is a major investment platform that’s won numerous industry awards.
Since its inception in 1995, this UK-based broker has gained considerable recognition for its user-friendly interface, competitive fees, and comprehensive investment options. Over the years, AJ Bell has received numerous accolades, including the “Best Share Dealing Platform” and “Best SIPP Provider” at the Shares Awards 2021.
My review will delve into the platform’s costs, features, and performance to help you determine whether this award-winning broker is the right choice for your investment needs.
Our Verdict: Is AJ Bell Worth It?
AJ Bell is an excellent choice for investors who value user-friendliness and are content with a relatively limited selection of traditional investment products.
If a diverse product range is essential to your investment strategy, you may want to consider other platforms that offer a wider array of options.
Reasons to choose – The AJ Bell app and website feature a clean, uncluttered interface that allows investors to seamlessly manage their accounts, access market news, and track their investments.
Reasons to Avoid – AJ Bell’s limited range of investment products may be particularly concerning for investors seeking to diversify their portfolios across various asset classes. The platform does not provide access to less conventional options such as commodities, cryptocurrencies, or peer-to-peer lending.
Is AJ Bell Good for Beginners?
I conclude AJ Bell is an excellent choice for beginners due to its user-friendly platform and diverse investment options, which can help novice investors learn and grow their portfolios.
The platform’s clean and simple interface is easy to navigate, with clear instructions to guide users. AJ Bell offers various investment types, including stocks, funds, investment trusts, and ETFs, enabling beginners to diversify their holdings.
AJ Bell strongly emphasises investor education, providing resources such as articles, videos, and webinars to help users progress.
Their competitive fees and transparent pricing structure make the platform more accessible to those starting their investment journey.
AJ Bell’s regular investment option allows beginners to set up automatic monthly investments, helping them build a long-term portfolio with minimal effort.
With a user-friendly mobile app and excellent customer support, AJ Bell stands out as a solid investment choice for beginners.
What Products Does AJ Bell Offer?
| Service | Description |
|---|---|
| Stocks and shares ISAs | Invest up to £20,000 tax-free, per the 2022/2023 tax year allowances. Get started from as little as £500 or £25 monthly. |
| Lifetime ISA | A type of ISA that allows UK residents under 40 to save up to £4,000 per year towards a first home or retirement, with a government bonus of 25% on contributions. |
| Junior ISA | A tax-free savings account that parents or guardians can open for children under 18 to help them save for their future. |
| SIPP | A pension scheme that allows UK residents to choose their own investments, giving them greater control over their retirement savings (ideal if you’re saving for your pension pot). |
| Junior SIPP | A SIPP designed for children under 18 that allow parents or guardians to invest on their behalf (£3 600 each year), helping them save for their retirement. |
| Dealing Account | A low-cost way of investing online from £25 per month. |
| Cash Savings Hub | A simple way of earning interest on cash. |
AJ Bell Fees and Charges
| Service | ISA Charges | SIPP Charges |
|---|---|---|
| Annual Shares Custody Charge(Trusts, ETFS, Gilts, Bonds) | 0.25% of the value of your shares£3.50 per month Maximum | 0.25% of the value of your shares£10 per month Maximum |
| Annual Shares Custody Charge(Trusts, OEIC, Structured Products) | 0.25% on the first £250 0000.10% on the value between £250 000 and £500 0000% on the value over £500 000 | 0.25% on the first £250 0000.10% on the value between £250 000 and £500 0000% on the value over £500 000 |
| Cash | No Charge | No Charge |
| Dealing Fees | £1.50 for Funds (Unit trusts and OEIC) £9.95 for Shares (Trusts, ETFs, Gilts and Bonds)$4.95 for Shares (Where there were 10 or more online share deals in the previous month) | £1.50 for Funds (Unit trusts and OEIC) £9.95 for Shares (Trusts, ETFs, Gilts and Bonds)$4.95 for Shares (Where there were 10 or more online share deals in the previous month) |
| Regular Investments | £1.50 | £1.50 |
| Dividend Reinvestment | £1.50 | £1.50 |
| Foreign Exchange Charge | < £10 000 – 0.75%£10 000 – £20 000 – 0.50%>£20 000 – 0.25% | < £10 000 – 0.75%£10 000 – £20 000 – 0.50%>£20 000 – 0.25% |
Pros and Cons of AJ Bell
Pros
- Quick and Easy Account Opening
- Targetted at Smaller Portfolios
- User-Friendly Platform
- Earn Interest on Cash Balances
Cons
- Limited Product Range
- Research and Educational Resources Could be Improved
- Percentage Fees Become More Expensive for Larger Portfolios
Investment Options
Stocks and Shares – AJ Bell allows you to invest in individual stocks and shares listed on the London Stock Exchange (LSE), Alternative Investment Market (AIM), as well as major international stock exchanges such as the New York Stock Exchange (NYSE) and NASDAQ.
This flexibility enables you to diversify your portfolio by investing in a wide range of sectors and geographical locations.
Funds – AJ Bell offers access to over 2,000 funds, including unit trusts, open-ended investment companies (OEICs), and investment trusts. Professional fund managers manage these funds and allow you to invest in a diversified portfolio with a single transaction.
Also, AJ Bell provides access to their AJ Bell Funds, a range of low-cost, multi-asset funds designed to cater to different risk profiles and investment objectives.
The annual charge is 0.31% for the Growth funds, 0.45% for the Responsible Growth fund and 0.65% for the Income funds. The custody charge is 0.25%.
Exchange-Traded Funds (ETFs) and Exchange-Traded Commodities (ETCs) – ETFs and ETCs are investment vehicles that can be bought and sold on stock exchanges like individual shares.
AJ Bell offers a wide selection of ETFs and ETCs, allowing you to invest in various asset classes, including equities, bonds, commodities, currencies, and specific sectors and themes.
Investment Trusts – Investment trusts are publicly listed companies that invest in a diversified portfolio of assets managed by professional fund managers.
AJ Bell provides access to a wide range of investment trusts covering various sectors, regions, and investment strategies, enabling you to diversify your investments and potentially benefit from capital growth and income.
Ready-made Portfolios – For investors who prefer a hands-off approach, AJ Bell offers a range of ready-made portfolios designed to cater to different risk profiles and investment objectives.
AJ Bell’s expert investment team builds and manages these portfolios and provides a diversified and cost-effective solution for those looking to simplify their investment process.
AJ Bell App Review
The AJ Bell app has a 3.2-star rating on Google Play based on 900 reviews. It has been downloaded more than 50 000 times. 44
On the app store, the score is way better, with a rating of 4.7 over 7.1k votes.
We’ve tested the app on both OS, and the iOS version is indeed more polished, with the account info displayed clearly.
What we particularly like is that the app is regularly updated, preventing bugs and compatibility defaults.
AJ Bell Customer Support
The AJ Bell customer support team is available through multiple channels, making it convenient for clients to reach out and receive the help they need.
You can speak directly with a customer service representative on the phone from 8 am to 5 pm on weekdays (Monday to Friday), excluding bank holidays.
For queries that do not require immediate assistance, you can email customerservices@ajbell.co.uk. The customer support team aims to respond to all email inquiries within 2 working days.
AJ Bell has an extensive online help centre where you can find answers to frequently asked questions, guides, and informative articles.
What are the Customer Reviews like for AJ Bell?
AJ Bell receives excellent reviews on Trustpilot, with a current score of 4.7 stars over 3.911 reviews.
74% of users award the platform 5 stars, citing efficient and helpful customer service.
8% of users give negative reviews of only 1 star, citing withdrawal issues.
Which Magazine scores it 72%, placing it 2nd out of the 15 investment platforms they looked at?
Is AJ Bell Safe?
AJ Bell is a London Stock Exchange member authorised and regulated by the Financial Conduct Authority (FCA), the UK’s primary financial regulatory body. This ensures that AJ Bell adheres to strict rules and regulations set forth by the FCA to protect the interests of investors.
The broker is also a member of the Investment Association, a trade organisation representing UK investment managers, and the Pensions and Lifetime Savings Association, which focuses on the retirement industry. These affiliations further demonstrate AJ Bell’s commitment to maintaining high standards of conduct and governance within the industry.
AJ Bell is a member of the Financial Services Compensation Scheme (FSCS), which serves as a safety net for customers of UK-regulated financial firms. In the unlikely event, AJ Bell becomes insolvent or ceases trading, the FSCS can compensate eligible customers.
The FSCS covers up to £85,000 per person for investments, ensuring that your assets are protected in case of company failure.
AJ Bell holds customer funds in segregated accounts separate from its own operating accounts to protect client assets further. This practice ensures client money remains secure and inaccessible for the company’s use, even in financial difficulties or insolvency.
AJ Bell has implemented several security measures to protect user information and assets.
- Secure Sockets Layer (SSL) encryption: SSL encryption protects data transmitted between your computer and AJ Bell’s servers, ensuring that your personal and financial information remains secure.
- Two-Factor Authentication (2FA): AJ Bell offers 2FA as an additional layer of security to prevent unauthorised access to your account. This requires verifying your identity through a secondary device or method before accessing your account.
(Capital Risk Applies)
