Dodl: AJ Bell to launch easy to use, commission-free app

wmb194

Announed this morning, due to launch H1 2022. There's a prize draw if you sign up to its waiting list.

Looks like it's feeling the competition from the likes of Freetrade and Trading212.

"AJ Bell to make investing a Dodl with the launch of an easy to use, commission-free mobile app

· New, app-only investment platform called Dodl by AJ Bell to feature:

o  Annual charge of 0.15%

o  Buy/sell investments with no commission

o  Full range of tax wrappers

o  Range of UK equities and funds available, with overseas shares to follow

o  Designed for anyone looking for a low-cost, easy-to-use investment app

...

The Dodl by AJ Bell mobile app will be a new platform for investors that sits alongside AJ Bell's existing consumer platform AJ Bell Youinvest.   

...

There will be a single, all-in annual charge of just 0.15% of portfolio value for each investment account (ie a pension) a Dodl customer has, with a £1 per month minimum per account.  There will be no commissions for buying or selling investments and no tax wrapper charges.  As an example, for £10,000 invested in an ISA the Dodl charge would be £15 a year.

...

AJ Bell is aiming to launch Dodl during the first half of 2022.  People can register their interest now at dodl.co.uk to be kept up to date with progress. Everyone who signs up to the waitlist will be entered into a prize draw for a chance of winning five lots of £1,000 and can gain an additional chance to win one of the five prizes for each friend they refer to the waitlist. T&Cs apply."

https://www.investegate.co.uk/aj-bell-plc--ajb-/rns/aj-bell-to-launch-easy-to-use--commission-free-app/202111290700097989T/

Thrugelmir

wmb194 said:

Looks like it's feeling the competition from the likes of Freetrade and Trading212.

What's their annual charge?

For larger portfolios 0.15% computes to a sizable sum. Even though trading is free. Not enough to offset. 

wmb194

Thrugelmir said:

wmb194 said:

Looks like it's feeling the competition from the likes of Freetrade and Trading212.

What's their annual charge?

For larger portfolios 0.15% computes to a sizable sum. Even though trading is free. Not enough to offset. 

Trading212 has no account fee and for its basic account there is also no account fee for Freetrade whilst its Isa is £3pm. For £10pm you can upgrade to its 'Plus' account which offers access to some extra main market and AIM small cap companies' shares in GB and the US, the ability to set limit orders, a fee-free Isa and 3% on cash balances up to £4,000.

Apart from this account fee, the key difference here that I see here is that AJ Bell will offer funds whilst T212 and FT currently do not. Of course, AJ Bell is a far better established name, too.

Alexland

wmb194 said:

o  Full range of tax wrappers

If they offer S&S Lifetime ISAs at 0.15% (£1pm min) that would be a game changer.

The waiting list is at https://dodl.co.uk/ and once you enter your details they give a referral code which gets another entry into the prize draw not that we are allowed to share codes on this forum or there is any incentive for the person signing up to use the code.

I signed up to keep updated as I am interested in seeing more of the monster characters but as Thrugelmir rightly says 0.15% gets expensive on larger account valuations - we are paying a weighted average of around 0.03% for our various platform ongoing and trade costs.

The danger is existing YouInvest customers might feel they are being taken for mugs if the same company offers a cheaper but still adequate product for new customers.

DireEmblem

Ok so assuming no costs to trade mutual funds it’s a no brainer surely.

Similarly if they bring their full universe of securities currently on AJB, there will be more stocks than FreeTrade and 212.

For comparison:

FreeTrade ISA is £120 a year so might only be cheaper than this new offering when you have more than 80k in the account.

Trading212 has FX fees, so depends on level of trading.  Difficult to compare like for like as will be different user to user.

Signed up and look forward to see what is available to trade.

george4064

Have signed up and interested to see what the final product looks like. Already a client of YouInvest so also need to compare between the two, will wait and see!

wmb194

DireEmblem said:

FreeTrade ISA is £120 a year so might only be cheaper than this new offering when you have more than 80k in the account.

£3pm, £36pa, with the basic account.

Thrugelmir

george4064 said:

Have signed up and interested to see what the final product looks like. Already a client of YouInvest so also need to compare between the two, will wait and see!

No doubt be targeted at the new generation of investors. Given more of a game feel. Than something dull and boring that in reality is all that's actually needed. 

grumiofoundation

Alexland said:

wmb194 said:

o  Full range of tax wrappers

If they offer S&S Lifetime ISAs at 0.15% (£1pm min) that would be a game changer.

The waiting list is at https://dodl.co.uk/ and once you enter your details they give a referral code which gets another entry into the prize draw not that we are allowed to share codes on this forum or there is any incentive for the person signing up to use the code.

I signed up to keep updated as I am interested in seeing more of the monster characters but as Thrugelmir rightly says 0.15% gets expensive on larger account valuations - we are paying a weighted average of around 0.03% for our various platform ongoing and trade costs.

The danger is existing YouInvest customers might feel they are being taken for mugs if the same company offers a cheaper but still adequate product for new customers.

Article below states will offer lifetime ISA, but as you say charges not capped. 

Also says will only offer 30 funds (7 AJ bell, 30 external) and 50 stocks.


https://www.investorschronicle.co.uk/managing-your-money/2021/11/29/aj-bell-s-new-app-dodl-marks-significant-moment-for-platform-industry/

wmb194

grumiofoundation said:

Alexland said:

wmb194 said:

o  Full range of tax wrappers

If they offer S&S Lifetime ISAs at 0.15% (£1pm min) that would be a game changer.

The waiting list is at https://dodl.co.uk/ and once you enter your details they give a referral code which gets another entry into the prize draw not that we are allowed to share codes on this forum or there is any incentive for the person signing up to use the code.

I signed up to keep updated as I am interested in seeing more of the monster characters but as Thrugelmir rightly says 0.15% gets expensive on larger account valuations - we are paying a weighted average of around 0.03% for our various platform ongoing and trade costs.

The danger is existing YouInvest customers might feel they are being taken for mugs if the same company offers a cheaper but still adequate product for new customers.

Article below states will offer lifetime ISA, but as you say charges not capped. 

Also says will only offer 30 funds (7 AJ bell, 30 external) and 50 stocks.


https://www.investorschronicle.co.uk/managing-your-money/2021/11/29/aj-bell-s-new-app-dodl-marks-significant-moment-for-platform-industry/

Oh, dear, that's embarrassing! So that's how it will try to keep its main platform relevant, by hobbling the new one. Amusing.

"AJ Bell said they [sic] will add US stocks to the platform after launch, and monitor demand for adding other stocks and funds post launch."

george4064

I wonder if transferring from Dodl to YouInvest (or vice versa) will be like any other transfer or if it will be faster?

Personally, I suspect it’ll be the former.