Beginner investors looking for an easy way to get started without breaking the bank may be considering investing via an app-only option, such as Freetrade or AJ Bell Dodl. Both offer a relatively low-cost way to invest straight from your phone and claim to simplify the investing process through a stripped-back platform that does away with the calculators, guides or research on offer from bigger-name investing platforms.
In this article we weigh up the key features of both Freetrade* and AJ Bell Dodl*. We also show you how you could get a free share worth between £10 and £100* with our reader offer with Freetrade (capital is at risk).
Freetrade vs AJ Bell Dodl - which is better?
| Freetrade | AJ Bell Dodl | |
| Services | Accessed through smartphone app
Stock performance information User forum |
Investing app
Ready-made investment portfolios managed by AJ Bell Choice of 37 funds and 80 UK & US stocks |
| Products | ISA, GIA, SIPP | ISA, GIA (General Investment Account), Lifetime ISA, SIPP |
| Minimum investment | £1 | £100 or £25 monthly investment |
| Fees | Basic account - Free
Standard account - £5.99 per month or £59.88 annually (Includes ISA) Freetrade Plus - £11.99 per month or £119.88 annually (Includes ISA & SIPP) |
0.15% annually (minimum £1 per month per product)
Additional underlying fund charges |
| Customer reviews (Trustpilot) | 4.0 out of 5.0 | 4.5 out of 5.0 |
| Money to the Masses Offer | Receive a free share worth between £10 and £100* when you sign up for a basic account and deposit a minimum of £50 (Terms and conditions apply) | n/a |
Freetrade vs AJ Bell Dodl - services
Freetrade* is a platform designed solely for buying and selling shares, ETFs and bonds, so it doesn't offer as many services as big-name investment platforms like Hargreaves Lansdown. However, it still offers some information and tools for users to find shares, see limited performance data, buy and sell, and monitor their portfolio performance – all through the app.
Similarly, AJ Bell Dodl* is an investing app with a streamlined selection of potential investments. It is a scaled-down and simplified version of what is offered by the main AJ Bell brand. It offers eight ready-made, risk-rated funds and a range of 29 themed funds managed by AJ Bell. Alternatively, there are 37 funds and 80 UK and US shares available for users to build their own portfolios. This differentiates it from the main AJ Bell proposition, which has a far broader range of investments. The Freetrade range is also wider, offering access to around 4,700 stocks and ETFs on its 'Basic' plan and over 6,200 stocks and ETFs on its 'Standard' and 'Plus' plans.
Freetrade vs AJ Bell Dodl - products
Freetrade's* free 'Basic' plan is a more limited product than AJ Bell Dodl as it only offers a General Investment Account (GIA) option. This could be a major red flag if you are looking to invest in a tax-efficient way through a stocks and shares ISA. Holding your shares in an ISA with Freetrade will require an upgrade to one of the paid plans at a cost of either £5.99 or £11.99 per month. To use a SIPP, you will need to choose the Freetrade Plus plan, which costs £11.99 per month. This added monthly cost could be enough to outweigh the benefits of Freetrade's commission-free investing set up – it all depends on how you plan to use the platform.
AJ Bell Dodl* offers stocks and shares ISAs, GIAs, Lifetime ISAs and SIPPs as standard, though note there is no Junior ISA option. However, keep in mind that some competitors such as Vanguard do not offer Lifetime ISAs, unlike AJ Bell Dodl. There is also no option for a savings account, cash ISA or Junior SIPP, which are available through rival platforms. AJ Bell Dodl does, however, pay 4.84% AER variable interest on any uninvested cash.
AJ Bell Dodl's fee structure is different from Freetrade's, so there is no monthly subscription fee to pay in order to access any particular type of account. While it doesn't charge a 'subscription' fee, it does charge a minimum fee of £1 per month per product.
Freetrade vs AJ Bell Dodl - minimum investment
Freetrade's* credentials as a top option for beginners are boosted by its low minimum investment. You can start investing with just £1, though you will need to upgrade to a 'Standard' account at a cost of £5.99 per month if you want access to an ISA or £11.99 per month to upgrade to a 'Plus' account to open a SIPP.
In contrast, AJ Bell Dodl* has a much higher minimum opening investment at either a £100 lump sum or a £25 monthly commitment. This could be an obstacle for users looking to dip their toes into investing, though the same could be argued for the need to pay a subscription to get an ISA through Freetrade.
Both platforms compare well on this front with Vanguard, which requires a £500 lump sum.
Freetrade vs AJ Bell Dodl - fees
Freetrade* fees are structured differently to those of other investment platforms, including AJ Bell Dodl. As its name suggests, buying and selling shares is free, even with its basic account. The cost is in the form of a monthly subscription should you upgrade to a Freetrade Standard account (£5.99 per month) or to a Freetrade Plus account (£11.99 per month). You will need one of these accounts to hold your money in an ISA (Standard or Plus) or SIPP (Plus only). Upgrading would also give you access to additional features, including earning up to 5% interest on any cash you hold. This means that if an ISA or SIPP is essential to you, a monthly subscription is required in place of the usual fee system that investing platforms use.
AJ Bell Dodl's* fee model goes down the more traditional percentage route, but its pricing makes it one of the cheapest platforms in the UK, alongside Vanguard. It charges just 0.15% a year, per account. There is no subscription fee or commission for buying or selling. However, one factor to keep in mind is the minimum payment of £1 per month per product. This means that you would need to invest more than £8,000 to avoid the minimum fee and get the 0.15% rate.
Freetrade vs AJ Bell Dodl - customer reviews
Based on the results on customer review site Trustpilot, both AJ Bell Dodl* and Freetrade* are rated mostly positively by their customers. Freetrade is rated 3.9 out of 5.0 based on just over 4,000 reviews. Of those, 67% gave Freetrade five stars . Freetrade tended to get good reviews of the ease-of-use and low-cost nature of its platform. However, 15% of reviews gave only one star. These customers complained of poor communication and slow transfer times.
AJ Bell Dodl is out ahead with a strong Trustpilot score of 4.6 out of 5.0, albeit based on just over 200 reviews. Approximately 76% of reviewers gave AJ Bell Dodl a five star score, highlighting its excellent customer service and ease of use. However, 7% rated it at one star with some citing a slow complaints process.
Summary: Freetrade vs AJ Bell Dodl
Freetrade* and AJ Bell Dodl* are both attractive options for beginner investors looking for a low cost platform that is easy to manage directly from your phone. However, the app-only nature of both platforms will not suit everyone. What's more, in comparison to more traditional platforms, both are missing the wide range of products and services that will be essential features for most experienced DIY investors. While Freetrade has a good forum where you can get ideas for what to invest in and AJ Bell Dodl has a range of risk-rated, ready-made funds, there is a chance that some beginners may find it hard to reach an optimum level of diversification with the limited tools available. If you are happy that you have the research skills and experience to build your own portfolio, then AJ Bell Dodl and Freetrade could both work out cheaper than some of the big-name platforms.
When it comes to the head-to-head, your deciding factors should be how you want to invest, how much you want to invest and how much choice you want to have. AJ Bell Dodl does not have the range of stocks and ETFs that Freetrade can boast, which will be limiting to some. However, it does have ready-made portfolios, which can be a good jumping-off point for beginners. When it comes to cost, you will need to decide if the monthly cost of Freetrade (assuming you choose the ISA or SIPP wrapper) outweighs the percentage fee of AJ Bell Dodl.
For more detailed explanations of each of the platforms, read our Freetrade review and AJ Bell Dodl review.
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