AJ Bell has launched a low-fee and commission-free investment app for UK investors called Dodl.
The app offers users access to 30 funds and ETFs and 50 UK shares via General investment Accounts, Individual Savings Accounts (ISA), Lifetime ISAs and pensions.
AJ Bell said this simplified range of investment options means investors are less likely to be overwhelmed, with funds from providers such as Vanguard and BlackRock offering exposure to broad equity and specific themes across technology, healthcare, robotics and property.
Dodl is one of the lowest cost platforms on the market, with an annual charge of 0.15% – equal to Vanguard – and no commission for buying and selling instruments.
On a £20,000 ISA investment
Investment platform
Charges
Annual cost (£)
Commission free trading?
Dodl by AJ Bell
0.15% per annum (£1 per month minimum)
£30
Yes
Vanguard
0.15% per annum (Only Vanguard funds available)
£30
Yes
Freetrade
£3 per month
£36
Yes
AJ Bell Youinvest
0.25% per annum
£50
No
Hargreaves Lansdown
0.45% per annum
£90
No (except funds)
Moneybox
0.45% per annum plus £1 per month
£102
Yes
Interactive Investor
£9.99 per month
£119.88
No
Nutmeg
0.45-0.75% per annum
£120 (average of plans)
Yes
The Financial Conduct Authority (FCA) recently identified more than 8.6 million adults in the UK with more than £10,000 in investable assets, with a recent survey finding 37% are put off of the idea as they do not know where to start and 18% think investing is too complicated.
AJ Bell suggested Dodl is likely to appeal to more long-term investors while AJ Bell Youinvest will continue to serve day traders and hobbyist investors.
Andy Bell, chief executive of AJ Bell, said: “Investing need not be scary. In developing Dodl, we have focused on removing jargon, making it quick and easy to open an account and narrowing the range of investments customers have to choose from.
“The simple investment journey and streamlined investment range will appeal particularly to those that are new to investing and want an easy way to manage their investments.”
The arrival of Dodl for AJ Bell follows Vanguard’s move to expand its offering with an index fund-based platform for German retail investors in February.
