AJ Bell Youinvest: Option To Allocate Long-Term Capital

August 12, 2020
Brokers
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AJ Bell Youinvest is a broker that will allow you to invest in a wide range of financial instruments including stocks, funds, investment trusts and ETFs. The broker is regulated and offers a fast and very intuitive account opening process. In addition, AJ Bell Youinvest is listed on the London Stock Exchange and is part of the FTSE 250 stock index. If you are a UK investor and are interested in a broker that meets high regulatory standards, AJ Bell Youinvest may be a good alternative.

It is true that AJ Bell Youinvest is a broker that has good characteristics in several aspects. But, we strongly believe that Capital.com is the best online trading platform because it’s one of the easiest and cheapest ways to trade CFDs on equities, commodities, indices, Forex pairs and cryptocurrencies anywhere in the world. Capital.com offers you zero fees on intra-day trading, a lightning-fast web platform and their proprietary Negative Balance Protection. Also, Capital.com gives you the best chance at financial success with a clean, easy-to-use interface.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with AJ Bell Youinvest and scored our findings on a 10-point scale across 10 distinct categories.
Fees 3
Signup Process 10
Minimum Deposit 10
Ease of Use 9
Deposit & Withdrawal Options 8
Customer Support 9
Asset Classes 7
Referral Program 4
Demo Account & Educational Resources 2
Safety & Regulation 10
Total 72

What is AJ Bell Youinvest?

AJ Bell Youinvest is a UK broker only available for UK residents. The broker was founded in 1995 and specializes in investment accounts and pension accounts. Also, this broker is authorized and regulated by the Financial Conduct Authority (FCA). Additionally, the Financial Services Compensation Scheme (FSCS) will cover up to £85,000 of investments per person.

AJ Bell Youinvest Pros & Cons

Pros

  • You can open an account quickly.
  • No inactivity fees.
  • No minimum deposit.
  • Technical support attention is fast.
  • High-level fund protection.
  • Listed on the London Stock Exchange.

Cons

  • Only available for UK residents.
  • There are commissions per trade.
  • Only one account base currency.
  • There is little diversity of financial instruments.
  • No 24/7 support.
  • No demo account.

Account Types

AJ Bell offers several types of account designed primarily for people who want to invest their pension funds or retirement savings:

Self-Invested Personal Pension (SIPP)

A SIPP will allow you to add money yourself to your account to invest your capital and be able to accumulate capital for your retirement. Also, you can transfer other pensions to a SIPP, letting you manage your whole pot in one place. Like all pensions, SIPPs earn you tax relief. For every £80 you put in, the government adds £20, and you can claim an extra £20 if you’re a higher earner.

Stocks And Shares ISA

An ISA, or Individual Savings Account, is an ideal way for most people to invest as it offers generous tax benefits and allows you to access your money when you want. Whatever you are saving for, when you invest in an ISA you pay no further tax on any income earned or any gains when you sell your investments.

Dealing Account

It is a standard investment account in which you can invest your capital in stocks, funds, investment trusts, ETFs and bonds.

Lifetime ISA

This type of account is designed for millennials with the aim of encouraging new generations to save. This type of account, like any pensioner account in the UK, offers tax benefits. For every £4 you put in, the government adds £1 up to a maximum bonus of £1,000 per year.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.
scoring categories

#1 AJ Bell Youinvest Fees

Youinvest does not contemplate fees for the ownership of an account. Additionally, the broker does not charge deposit fees or inactivity fees.

However, you must pay withdrawal fees and commissions every time you make a trade.

Take into account that if you are an active investor there are some reductions in fees. In the following table we present the fees per deal:

Funds (including unit trusts and OEICs) online£ 1.50
Shares (including investment trusts, ETFs, gilts and bonds) online£ 9.95
Shares, where there were 10 or more shares deals in the previous month£ 4.95
Regular investments online£ 1.50

The broker loses quite a few points in this category due to the fact that there are commissions for negotiating financial instruments. Consider that there are other brokers like Capital.com that do not charge commissions for trading with financial assets. Also, if you are interested in other brokers that offer you better alternatives in terms of fees, we recommend that you read “TD Ameritrade” and “Forex.com”, there you will find that these brokers are better rated in this category.

AJ Bell Youinvest Fees Score: 3/10

#2 AJ Bell Youinvest Signup Process

The process of opening an account at AJ Bell Youinvest is fast and completely online. Please note that the broker is only available for UK residents. Thus, in the verification process, the broker checks your address. In this way, you will need to verify that you have been living in the UK for at least the last 3 years.

Another of the documents that you should have on hand when verifying your account is your identity document and that’s it. You can invest with AJ Bell without problems.

The account opening process is simple, fast and secure. In this way, the broker gets the maximum points in this category because you can open an account and start trading the same day you decide to invest your capital.

AJ Bell Youinvest Signup Process Score: 10/10

#3 Minimum Initial Deposit

AJ Bell Youinvest does not impose any minimum deposit restriction so that you can trade on the investment platform. However, take into account that the minimum investment in the platform is £1.5.

This aspect is very important because if you are a retail investor you can start your trading career with low amounts. For this reason, the broker is very well qualified in this category.

For your reference, below we show you the minimum initial deposit required by other brokers:

Broker                       Minimum Initial Deposit
TD Ameritrade$0 USD
Capital.com$20 USD
eToro$50 USD
Forex.com$100 USD

AJ Bell Youinvest Minimum Initial Deposit Score: 10/10

#4 Ease of Use

The investment platform offered by AJ Bell Youinvest is easy to use and very intuitive. You will see that you can use filters to find the financial instruments that you need to evaluate along with a description and analysis of each of them.

In addition, the platform allows you to compare several assets on the same graph, provides you with reports and even news associated with each asset that you decide to test. But, you must take into account that the platform does not offer many customization options so you will not be able to make modifications with which you feel more comfortable when evaluating investment alternatives.

nvestment platform offered by AJ Bell Youinvest

AJ Bell Youinvest App

AJ Bell Youinvest also offers you a version of the investment platform for mobile. In this way, you can follow your investments anywhere without being tied to your computer. In the app, you can enjoy the same features as in the computer version. Also, the app is stable as it has a rating of 4.7/5 in the Apple App Store and 3.3/5 in Google Play.

AJ Bell Youinvest also offers you a version of the investment platform for mobile

In general terms, the platform offers a good degree of analysis thanks to the tools it offers. It is always a plus to be able to add financial information such as reports or news to each time you test a financial asset. However, customization is important and because AJ Bell Youinvest offers a low level of customization, the broker leaves one point behind in this category.

AJ Bell Youinvest Ease of Use Score: 9/10

#5 Deposit & Withdrawal Options

AJ Bell Youinvest only uses British pounds as the base currency for investment accounts. Furthermore, the broker does not charge commissions for funding your account. Also, one aspect that you should keep in mind is that you can only deposit money from an account that is in your name.

The broker only offers the possibility of transferring funds with the following methods:

  • Bank transfer
  • Credit/Debit card

Please note that there are some fees when you withdraw funds from your account. Below we show you in which cases there are such charges:

Cash transfer to another manager or stockbrokerNo charge
Transfer out the underlying assets£25 per holding
Payment by CHAPS£25
Cash withdrawal by BACSNo charge
Disinvestment, if we need to sell some of your holdings to cover charges£9.95 per holding

AJ Bell Youinvest leaves much to be desired in terms of deposit & withdrawal options, as it only considers a single currency as the base currency and the withdrawal and funding methods are very limited. There are other brokers that offer many more alternatives such as Skrill, Neteller, PayPal, and it is even possible to use cryptocurrencies to fund your account.

If you are interested in a broker that offers you many more funding and withdrawal alternatives and is much better rated in this category, we recommend reading “Interactive Brokers”, “Pepperstone” and “FXGiants”.

AJ Bell Youinvest Deposit & Withdrawal Options Score: 8/10

#6 AJ Bell Youinvest Customer Support

AJ Bell Youinvest’s customer support is available from 8 am to 7 pm, Monday to Friday, and 10 am to 2 pm on Saturdays (GMT+1). The attention is good and fast, and you can be attended without waiting too much. In this way you can communicate with the technical staff with the following alternatives:

The broker loses one point in this category because it only offers customer service via phone or email. There are other brokers like Capital.com that offer live chat; a great way to communicate with technical staff in real-time Also, technical support is only 24/5.

AJ Bell Youinvest Customer Support Score: 9/10

Customer Support

#7 Asset Classes

Stocks

AJ Bell Youinvest will allow you to trade stocks from different markets internationally. You will be able to trade shares from:

AustraliaFranceLuxembourgSouth Africa
AustriaGermanyNetherlandsSpain
BelgiumHong KongNew ZealandSweden
CanadaIrelandNorwaySwitzerland
DenmarkItalyPortugalUnited States
FinlandJapanSingapore 

Gold

You can trade precious metals like gold.

Bonds

You can trade fixed income instruments of both government bonds and corporate bonds.

ETFs

You can trade ETFs from a large number of markets. For example:

  • Artemis US Select Acc.
  • Baillie Gifford Japanese Acc.
  • iShares Core S&P 500 ETF Acc.
  • Man GLG Japan Core Alpha Acc.

It is true that AJ Bell offers quite a few alternatives to invest in stocks, ETFs and mutual funds internationally. However, it falls short in the Forex market and does not offer cryptocurrencies either. These assets are important because they will help to complement your investment portfolios. For this reason, AJ Bell loses some points in this category.

AJ Bell Youinvest Asset Classes Score: 7/10

#8 Referral Program

AJ Bell Youinvest offers you the opportunity to earn extra money through referrals. This way you can earn £100 every time you refer your friends to invest in AJ Bell.

How Does It Work?

  • Take into account that you can use the referral program as many times as you want and you will receive £100 for each friend you refer.
  • You can recommend anyone as long as they are new customers.
  • The person you refer must open a SIPP or ISA and fund it with £10,000 or more within 120 days of opening the account.
  • Once your friends have opened and funded their account, just ask them to send an email with their name and address to recommendafriend@youinvest.co.uk.
  • Within 90 days, you will receive £100 directly to your bank account associated with the AJ Bell Youinvest investment platform.

While it is true that the broker offers a referral bonus, the criteria for you to receive the bonus are very particular because your friends must invest more than £10,000. This makes it difficult to get investors who are willing to invest these sums of money. You will not be able to earn money by recommending AJ Bell Youinvest to retail investors who are generally always looking for investment platforms with attractive features. For this reason, the broker loses quite a few points in this category.

AJ Bell Youinvest Referral Program Score: 4/10

#9 Demo Account & Educational Resources

AJ Bell Youinvest Demo Account

Unfortunately, you will not be able to test the investment platform before trading with real money because the broker does not offer demo accounts.

Educational Resources

About educational resources, you find useful material but it is average. For example, on the website, you will find podcasts, articles and investment analysis videos. In the broker’s portal, you will also find a top of the most traded stocks, fundamental data and a Financial diary where you will find the most relevant events in international markets that could have an effect on the stock market.

Take into account that although the broker offers educational content that could complement your investment strategies, the fact that you cannot open a demo account makes AJ Bell lose most of the available points in this category. It is very important that you can test your strategies, and the most profitable way to do it is with a demo account.

AJ Bell Youinvest Demo Account & Educational Resources Score: 2/10

#10 AJ Bell Youinvest Safety & Regulation

AJ Bell Youinvest is authorized and regulated by the Financial Conduct Authority (FCA).

Additionally, the Financial Services Compensation Scheme (FSCS) will cover up to £85,000 of investments per person.

The broker is covered by recognized regulations in the UK. Also, it offers an excellent coverage scheme that gives it high credibility as a reliable and safe institution. For these reasons, AJ Bell Youinvest gets a high score in this section.

AJ Bell Youinvest Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

AJ Bell Youinvest vs. Capital.com

Selecting the broker that best suits your investment strategies and plans is one of the decisions you must make with the greatest amount of information available so that you can operate without distractions and focus on making money. Moreover, it should also allow you to be confident when investing your money by letting you do the best analysis possible at the same time offering you the lowest rates. Taking into account the most relevant aspects for an investor, we prefer Capital.com over AJ Bell Youinvest for the following reasons:

It Offers An Unlimited Demo Account

One factor that is essential when testing an investment platform is being able to access a demo account. In this aspect, AJ Bell Youinvest falls short because it does not offer demo accounts. With Capital.com you can truly test the platform since you will be able to use a paper money demo account to test each one of the tools and features of the investment portal. It is a pity that AJ Bell does not use a demo account with which you can put your hypotheses and investment strategies into practice without the risk of a real money account.

It Has The Best Fees

Capital.com doesn’t charge any fees on any asset that you trade: stocks, commodities, cryptocurrency, indices, forex, ETFs, or anything else. It doesn’t charge monthly or annual fees, inactivity fees, or deposit or withdrawal fees, either. It also offers tight spreads on trades, unlike other zero-fee brokers, who make their money on wide spreads. Capital.com only makes money on the overnight fees on leveraged trades, so if you trade without leverage, you’ll never pay any fees.

Far Better Withdrawal Options

AJ Bell Youinvest does not offer many deposit and withdrawal options so you should take this aspect into account when making your decision. In contrast, we can affirm that Capital.com is a better choice because you will have a greater number of withdrawal options. In Capital.com you can use a credit card, bank transfer, debit card, SOFORT, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, Neteller and Skrill. You’re never charged a fee to deposit or withdraw money with Capital.com.

AJ Bell Youinvest In Summary

  • AJ Bell Youinvest is a UK broker only available for UK residents. Also, the broker was founded in 1995 and specializes in investment accounts and pension accounts.
  • AJ Bell offers several types of accounts.
  • You will not have to pay any type of commission for inactivity.
  • The process of opening an account at AJ Bell Youinvest is fast and completely online.
  • AJ Bell does not impose any minimum deposit restriction.
  • AJ Bell Youinvest offers you the opportunity to earn extra money with the referral program.
  • The broker does not offer demo accounts.

If you are looking for a UK broker that offers you retirement accounts in which you can invest in the long term and that does not require minimum amounts to do trading, you can consider AJ Bell Youinvest as an alternative to taking into account.

However, think twice! Because choosing the broker that best suits your goals is a task worthy of someone who wants to exploit their profits to the fullest.

We think that Capital.com is a better option because it offers a broader base of investment options, doesn’t charge any fees on any asset that you trade, offers a demo account, and the educational content is complete and useful. Also, the trading platform has an excellent interface and far better withdrawal options. Capital.com is ideal for all types of investors.

Capital.com will allow you to exploit your profits to the maximum because you will be investing in a secure platform, which saves you costs and in which you can also create the best trading strategies.

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