AJ Bell SIPP Review 2026: The Low-Cost Alternative That Most Investors Overlook
- Alpesh Patel
- 3 days ago
- 4 min read
If you are paying £200 per year and £11.95 per trade on Hargreaves Lansdown, AJ Bell will save you money.
AJ Bell is the UK's second-largest retail investment platform with over 500,000 clients and more than £85 billion under administration. It is listed on the London Stock Exchange (FTSE 250) and is FCA-authorised. Its SIPP offering covers everything HL does: individual UK and international stocks, ETFs, funds, investment trusts, and bonds. The platform fee for shares and ETFs is lower than HL. The dealing commissions are lower. And for most self-directed investors in the £50,000–£500,000 range, the total annual cost of ownership on AJ Bell is approximately £100–£200 less per year.
And yet most investors default to HL because it is better known. This review gives you the data to make an informed choice.
Alpesh Patel OBE is a hedge fund manager, Bloomberg TV alumnus, Financial Times author, and former Visiting Fellow at Corpus Christi College, Oxford. AJ Bell appears in every GIP platform conversation as the cost-conscious alternative to HL for UK self-directed investors.
AJ Bell SIPP Charges 2026: The Full Breakdown
AJ Bell's SIPP charges for shares and ETFs:
Platform fee: 0.25% per year on shares and ETFs, capped at £42/year (£3.50/month)
Dealing commission: £9.95/trade online; £4.95/trade for frequent traders (10+ deals/month)
FX conversion: 1.0% for amounts up to £10,000; 0.75% for £10,001–£50,000; 0.5% above £50,000
Funds (OEICs): 0.25% per year, uncapped — same concern as HL for large fund-based portfolios
AJ Bell vs HL: The Direct Cost Comparison
For a self-directed investor holding shares and ETFs, making 20 trades per year (10 UK, 10 US) with average trade size of £8,000:
£100,000 portfolio — HL: £200 + £239 dealing + £80 FX = £519/yr. AJ Bell: £42 + £199 dealing + £80 FX = £321/yr. Saving: £198/yr
£250,000 portfolio — HL: £200 (capped) + £239 + £80 = £519/yr. AJ Bell: £42 (capped) + £199 + £80 = £321/yr. Saving: £198/yr
£500,000 portfolio (same trading pattern): Saving: still approximately £198/yr (both platforms capped on shares)
For a typical GIP investor the annual saving on AJ Bell vs HL is approximately £150–£200 per year — primarily from the lower platform cap (£42 vs £200) and marginally lower dealing commissions. Compounded over 20 years at 11%, that £180 annual saving is worth approximately £12,000 in additional portfolio value.
Where AJ Bell Genuinely Wins
AJ Bell's platform fee cap of £42/year (£3.50/month) for shares and ETFs is significantly lower than HL's £200 cap. For investors who hold predominantly individual stocks and ETFs rather than funds, this alone produces a consistent £158/year saving over HL. AJ Bell's mobile app has improved substantially in recent years and is now regarded as one of the better retail investment interfaces in the UK market. Their fund and ETF universe is broad and comparable to HL.
Where AJ Bell Falls Short of HL
HL's primary advantage over AJ Bell remains service quality and brand investment. HL's research tools, fund performance data, and portfolio analytics are deeper and more polished. HL's customer service is faster and more comprehensive. For investors who use HL's research library and analytical tools regularly as part of their investment process, the premium over AJ Bell may well be justified. AJ Bell's research tools are functional but less extensive.
The Verdict: Who Should Use AJ Bell?
AJ Bell is the better choice for GIP investors who hold predominantly individual stocks and ETFs (not funds), make 10–30 trades per year, and want to minimise costs without sacrificing access to UK and international markets. The £42/year platform cap is genuinely the most competitive in the UK market for active stock pickers with portfolios above £17,000.
HL remains the better choice for investors who actively use HL's research tools and analytics, value their customer service quality, or are not yet ready to optimise for cost at this level of detail. The £150–£200 annual premium over AJ Bell is genuine but not life-changing — the far bigger lever is the investment framework, not the platform fee.
Frequently Asked Questions: AJ Bell SIPP
What are AJ Bell SIPP charges in 2026?
For shares and ETFs: 0.25% per year, capped at £42/year (£3.50/month). Dealing commission: £9.95/trade online (£4.95 for 10+ trades/month). FX: 1.0% up to £10,000; 0.75% up to £50,000; 0.5% above. For funds: 0.25% per year, uncapped.
Is AJ Bell SIPP safe?
Yes. AJ Bell is FCA-authorised, listed on the London Stock Exchange (FTSE 250), and FSCS-protected up to £85,000. Client assets are held separately from AJ Bell's own balance sheet under FCA custody rules. It is a well-regulated, financially stable platform.
Is AJ Bell cheaper than Hargreaves Lansdown?
Yes, for shares and ETFs. AJ Bell's platform cap of £42/year compares to HL's £200/year cap. Dealing commissions are £9.95 vs £11.95 on HL (infrequent trader rate). FX charges are broadly comparable. For a typical self-directed stock picker, AJ Bell saves approximately £150–£200/year over HL.
Can I hold international stocks in an AJ Bell SIPP?
Yes. AJ Bell provides access to UK, US, and major international exchange equities, ETFs, and investment trusts. The universe is broadly comparable to HL for the stocks on the GIP Approved List, the majority of which are US-listed. FX conversion charges apply for non-GBP trades.
Should I switch from HL to AJ Bell?
If you hold predominantly stocks and ETFs (not funds), trade 10–30 times per year, and do not rely heavily on HL's research tools, switching to AJ Bell will save you approximately £150–£200/year. The transfer process takes 4–8 weeks and is managed by AJ Bell as the receiving platform. If HL's service quality is important to you, the saving may not be worth the friction of switching.
For a holistic assessment of your current platform and investment framework, book a free portfolio review here.
Sources & Further Reading
AJ Bell — SIPP charges, dealing commissions, and platform features (2026). ajbell.co.uk/sipp
Hargreaves Lansdown — SIPP charges comparison. hl.co.uk/pensions/sipp
Financial Times — SIPP platform comparison and investment account fee analysis. ft.com/personal-finance
Good Money Guide — Best SIPP providers 2026. Independent platform comparison. goodmoneyguide.com
Which? — Investment platform and SIPP reviews. which.co.uk/money/investing
Times Money Mentor — UK investment platform comparison 2026. thetimes.co.uk/money-mentor
Disclaimer: This article is for educational purposes only. Fee figures are based on publicly available AJ Bell and HL pricing as at March 2026 and are subject to change. This does not constitute a personal recommendation to use any specific platform. Always verify current charges directly with the provider.
Alpesh Patel OBE