The news that AJ Bell (AJB) is launching an app-only investment platform - with no dealing fees and an annual fee of just 0.15 per cent per annum - feels like an important moment for the do-it-yourself investing industry, even if its product range will be limited.
The app, called Dodl will launch in the first half of next year. It has fees to rival some of the cheapest neo-brokers as AJ Bell, the UK’s second-largest listed investment platform, seeks to fend off competition from apps that have attracted the lion’s share of new customers in recent months.
Until now, there has been much scepticism about whether apps that offer commission-free trading and have very low monthly costs have viable business models. But AJ Bell’s launch of Dodl, available at a minimum of £1 per month, suggests a vindication of the low-cost model with zero-commission trading.