AJ Bell Dodl*
, the app-only investment platform from AJ Bell, has attracted attention because of its low fees and user-friendly style, which is targeted at people with little prior experience. It has immediately drawn comparisons with Vanguard Investor, which up until the launch was known as the cheapest platform in the UK. In this article, we compare the two offerings, summarising their key features and helping guide you to which may be better for you.
AJ Bell Dodl vs Vanguard - which is better?
| AJ Bell Dodl* | Vanguard | |
| Services | Investing app
Choice of 37 funds and 80 UK & US stocks |
LifeStrategy funds
Target Retirement funds Personal financial advice for retirement planning |
| Products | ISA, GIA (General Investment Account), Lifetime ISA, SIPP | ISA, GIA (General Investment Account), Junior ISA, SIPP |
| Minimum investment | £100 or £25 monthly investment | £500 or £100 monthly investment |
| Platform fees | 0.15% annually (minimum £1 per month, per account)
Additional underlying fund charges |
0.15% (capped at £375 for accounts over £250,000)
0.45% annual account fee for its Managed ISA (capped at £1,125) - this fee will be reduced to 0.35% on 31/01/25 Additional underlying fund charges A minimum monthly fee of £4 per month (£48 per year) will apply to self-managed ISAs, SIPPs & GIAs from 31/01/25 |
| Customer reviews (Trustpilot) | 4.6/5.0 | 3.8/5.0 |
AJ Bell Dodl vs Vanguard - services
AJ Bell Dodl is quite different from Vanguard Investor as it is an app-only investment platform with a pared-back range of options, with just 37 funds - 8 risk-rated AJ Bell portfolios and a selection of themed funds - as well as 80 UK & US shares. Vanguard, meanwhile, has around 86 funds that UK investors can access, including its popular LifeStrategy range. It also has Target Retirement funds, which are paired with advice on retirement planning.
It is worth bearing in mind that you can only access Vanguard funds through Vanguard Investor, while AJ Bell Dodl has funds from across a range of different investment houses, as well as offering shares in 80 UK & US companies.
AJ Bell Dodl vs Vanguard - products
While both AJ Bell Dodl and Vanguard offer stocks and shares ISAs, General Investment Accounts and pensions, there is a difference in the additional wrappers they have in their ranges. Vanguard has a Junior ISA, while AJ Bell Dodl has a Lifetime ISA. If you are particularly interested in those products, check out our article on the best Junior ISAs and guide on Lifetime ISAs.
AJ Bell Dodl vs Vanguard - minimum investment
If you want to open an account with Vanguard, it will require a larger initial outlay than with AJ Bell Dodl. The minimum investment if you want to put in a lump sum is £500 with Vanguard, while it is only £100 with AJ Bell Dodl. For regular investments, Vanguard requires at least £100 per month, while AJ Bell Dodl asks for a minimum of £25 per month. However, neither Vanguard nor AJ Bell Dodl charges for withdrawing funds from your account.
AJ Bell Dodl vs Vanguard - customer reviews
In 2024, AJ Bell Dodl has a Trustpilot score of 4.6 out of 5 based on more than 250 reviews. Approximately 78% of reviewers rated it "Excellent", while 7% rated it as "Bad". Customers who rated it "Excellent" talked about the excellent customer service and ease of use and those who rated it "Bad" said they struggled with the complaints process and weren't happy about the fact that AJ Bell Dodl is only available to UK citizens rather than residents as well.
Vanguard has a Trustpilot score of 3.8 out of 5.0 based on more than 3,000 reviews. Approximately 62% of reviewers rated it "Excellent", while 15% said it was "Bad". Customers who rated it "Excellent" talked about its high level of customer service, while those who rated it "Bad" talked about a slow process when it comes to transferring accounts.
AJ Bell Dodl vs Vanguard - platform fees
AJ Bell Dodl and Vanguard are currently among the cheapest investment platforms in the UK, with a low platform fee of just 0.15% annually and no additional subscription fee or commission for buying or selling. AJ Bell Dodl requires a minimum payment of £1 per month per account, meaning you only secure the 0.15% rate if you invest more than £8,000. However, from January 2025, Vanguard will apply a minimum monthly fee of £4 per month (£48 per year), meaning AJ Bell Dodl would be cheaper for those investing less than £32,000. Vanguard then works out cheaper once you reach the point of paying more than £375 per annum in fees. This is because it caps its charges at this level, while AJ Bell Dodl doesn't.
Summary: AJ Bell Dodl vs Vanguard
Investors need to weigh up whether they are looking for a more traditional platform or if they prefer the quirkier, jargon-free, app-only offering from AJ Bell Dodl*. It is also a question of whether you are happy just to invest in Vanguard funds, or whether you'd value the greater degree of choice of different fund houses from AJ Bell Dodl, as well as being able to invest in shares.
For more details on both options, visit our Vanguard Investor review and AJ Bell Dodl review.
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