AJ Bell is looking to take the “scary” out of investing by launching an app-only platform called Dodl by AJ Bell for retail investors.
The service aims to make investing more straightforward and accessible, and it will compete with rival low-cost platforms in the market.
Investors won’t have to pay commission for buying or selling holdings or charges for tax wrappers, and they will only need to pay an annual fee of 0.15% per investment account, the firm said.
Dodl will offer Isas, Lifetime Isas, pension and general investment accounts. Customers will be able to set up regular investments as well as consolidate existing Isas and pensions onto the platform.
The app will accept payments from Apple and Google Pay as well as from debit and credit cards.
Investments
At launch, the app will offer a series of UK listed companies, with US ones being added shortly after.
Dodl will also feature a series of themed investments including funds focusing on core areas such as technology, robotics, healthcare and responsible investing.
The range will be made up of AJ Bell’s low-cost multi-asset funds, catering for six different risk levels alongside the firm’s responsible investment proposition.
For those investing in funds, they will need to pay the annual charge of the underlying fund on top of the app’s annual fee.
Dodl will be available in the first half of 2022.
Jargon-free
Andy Bell, chief executive of AJ Bell, said: “Investing doesn’t need to be scary. Dodl by AJ Bell is for anyone looking for a low-cost, easy-to-use investment app to help them meet their investment goals such as saving for a house deposit, holidays or retirement.
“The intuitive investment journey and streamlined investment range will appeal particularly to those that are new to investing and want a simple way to manage their investments. With a low annual charge of 0.15%, no trading commissions and all the main tax efficient products, Dodl will be amongst the cheapest and best value investment platforms in the market.
“Our friendly ‘monsters’ will guide people through the investment process with no jargon and introduce them to an investment range that is easy to choose from and caters for the investment needs of the majority of people”
Holly Mackay, chief executive of Boring Money, added: “Despite its positioning as an app for newer investors, I should think the majority of people Googling this today will be curious, affluent 40 and 50-somethings, with a relatively mainstream buy and hold portfolio.
“50 shares and 25 external funds will satisfy many people’s requirements – for 0.3% less than Hargreaves Lansdown each year. Subject to availability, it will also enable someone to hold a mainstream passive multi-asset fund such as Vanguard’s LifeStrategy, for a total cost of 0.37% a year. That’s half the price of your average robo, which arguably does a similar thing. It sounds like a really positive development to me.”
