Freetrade V AJ Bell
26 Feb, 2022
Freetrade or AJ Bell?
Which one is the best option for you? We’ve done all the research and crunched the numbers to help you choose who’s the right home for your money.
Why are we comparing these providers?
Freetrade and AJ Bell are winners of our Boring Money Best Buy awards, which recognise excellence in the ISAs and pensions space. You may be comparing these providers already but perhaps you're struggling to decide which one to choose.
Two factors to bear in mind are the overall charges and which products are available with each provider. That’s why we’ve created this table below so you can do a quick head-to-head comparison of AJ Bell and Freetrade!
Pick from a wide range of investments
Pick from a wide range of investments
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Funds: 0.25%
Shares: 0.25% (maximum £3.50 per month)
Shares: £3 per month
Funds: £1.50
Shares: £9.95 (where there were 10 or more deals in the previous month: £4.95)
Shares: free
1% (for the first £10k)
Spot rate + 0.45%
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Who are Freetrade?
The first DIY investing platform to offer share dealing to investors
FreeTrade Plus is a new premium service with much more investment choices
A mobile-only provider, launching on iOS in 2018 and on Android in 2019
Who are AJ Bell?
Based in Manchester and one of the UK's biggest investment platforms
A great all-rounder if you’re looking for a decent mix of funds/shares/ISAs and pensions.
A safe bet if you want a fair price and decent service
What do they offer?
You can open ISAs, SIPPs and General Investment Accounts (GIAs) with both providers. Investment options also include shares, ETFs and Investment Trusts.
Freetrade V AJ Bell – trading charges
AJ Bell charges £1.50 for funds and £9.95 for shares, although this reduces to £4.95 if you do more than 10 deals in the previous month. There are no trading fees with Freetrade.
AJ Bell V Freetrade – platform charges
AJ Bell charges a flat rate of 0.25% for funds and shares (maximum £3.50 per month), while Freetrade charges just £3 for shares. Again, it will certainly prove to be a cheaper option if you're an enthusiastic share trader.
AJ Bell Vs Freetrade – minimum £ required
You'll need to put in at least £25 a month with AJ Bell. There's a £500 minimum initial amount for third party funds, although you can start with just £1 if you're investing in AJ Bell’s passive funds.
You can start investing with Freetrade for just £2 a month.
AJ Bell Vs Freetrade – which is best for saving for a mortgage or retirement?
AJ Bell may be a better option if you're planning on saving for a mortgage deposit in the next few years. With its Lifetime ISA, you get a 25% bonus on top of whatever you put it. AJ Bell was also a winner of our Best Buy Pension award for 2022, which recognises all-round excellence in the pensions space.
However, both providers offer SIPPs (Self-Invested Personal Pensions), which entitle you to claim £20 of free government money for every £80 you invest (and you can get an extra £20 per £80 if you're a higher-rate taxpayer).
AJ Bell Vs Freetrade– which is best for parents?
AJ Bell offers a Junior ISA (JISA), so it may be a better option for saving for children. With a JISA, you can put up to £9,000 a year into your child’s account until they turn 18.
AJ Bell Vs Freetrade - which is best for share trading?
Freetrade will undoubtedly be a popular option for share traders thanks to its free share-dealing fees and lower platform costs. The clue is obviously in the name! However if you trade regularly, platform fees won't vary much between the two.
AJ Bell v Freetrade - which is best for smaller investments?
Because you only need to put in £2 to open a Freetrade account, this may be a slightly better option if you want to 'drip-feed' your ISAs for the time being. The cost of a Stocks and Shares ISA is just £3 a month, but for the premium version - which costs £9.99 per month - this fee is waived. If you put in £4,000 in the year, you get 3% interest or £120 a year.
Either provider might be cheaper or more expensive depending on how much money you put in. But if you plan to share-trade frequently, AJ Bell may be somewhat cheaper overall.
AJ Bell v Freetrade - which is best if you have more money to invest?
Again, this will largely depend on how frequently you plan to trade.
AJ Bell v Freetrade - which is best for foreign exchange?
Freetrade charges 0.45% plus the spot rate, while AJ Bell is 1% for the first £10k, 0.75% for £25k to £50k and 0.5% for £50k+.
Want to compare other providers? Check out our comparison tables.
