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AJ Bell is removing charges for regular investing in a shake-up of its fees.
The investment platform currently charges £1.50 a trade for regular investments but this cost has now been removed.
In terms of one-off trading fees, the platform charges £5 a trade for shares and £1.50 for fund dealing.
This means that regular investing will be the cheapest way to invest through AJ Bell* following the removal of the fee.
Charlie Musson, managing director of consumer investing at AJ Bell, said that investing should be ‘simple, straightforward and low-cost’.
‘Helping people start small by investing from as little as £25 a month with no dealing fees will support more people to get into the investing habit,’ he added.
Shake-up: AJ Bell is one of many investment platforms that has tinkered with its fee structure this year
AJ Bell joins other platforms shaking up fees
This year has seen several investment platforms shake up fees to woo investors as the Government aims to get more Britons into the stock market.
The most notable and controversial of these has been Hargreaves Lansdown, which slashed its account fee from 0.45 per cent to 0.35 per cent in March.
But the platform also became more expensive for many investors because of a much higher £150 cap on holding shares and exchange-traded funds (ETFs) in a stocks and shares Isa or general investment account.
Interactive Investor* simplified its flat-fee structure in February while Freetrade* removed fees for self-invested pensions in January, effectively making the platform free of account charges.
AJ Bell is already relatively low-cost with account fees of 0.25 per cent. The maximum monthly charge for shares in a stocks and shares Isa is £3.50.
By comparison Fidelity* and Hargreaves Lansdown* charge 0.35 per cent while Bestinvest charges 0.4 per cent on funds and UK shares.
Interactive Investor* charges flat fees of £5.99 a month for portfolios of up to £100,000.
How does AJ Bell compare with other platforms?
In our view, AJ Bell is a good all-round platform for those with a small pot who are just starting to invest – especially with the removal of regular investing fees.
Find out more and open an account at AJ Bell*.
Platforms like AJ Bell, Hargreaves Lansdown and Interactive Investor are well-established and have a wealth of research and expert analysis to help you choose where to invest.
They also have dedicated customer service teams to help when you have a problem.
But it’s possible to invest and pay zero account fees using newer platforms such as Freetrade*, InvestEngine* and Trading 212*.
You’ll sacrifice the support that more established platforms give investors, but less of your wealth will be eroded by fees.
You can read more about choosing a provider by reading our pick of the best investment platforms.
And if you’re just beginning your journey, you can learn more about how to start investing with our comprehensive guide.
Which platforms charge a fee for regular investing?
Regular investing involves setting up a monthly contribution by direct debit that the platform places into an investment of your choice.
It’s a simple and cost-effective way to make a habit of investing.
The removal of regular investing charges brings AJ Bell in line with other platforms that don’t levy this fee.
Bestinvest, Hargreaves Lansdown and Interactive Investor already have free regular investing services, while Fidelity charges £1.50 a trade.
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