Picking the right platform for you

Like all important financial decisions, the best place to start when choosing your do-it-yourself (DIY) investment platform is asking yourself exactly what you need and expect from it. This can feel like a big and slightly daunting question, but it’s much easier when you break it down into smaller ones.

Here’s six key areas where investment platforms can differ, and six important questions you can ask yourself to help you pick the platform that’s right for you.

1. Accounts

Which types of investment accounts do you need?

You’ll likely know the investment account(s) you need before you know which platform to go for, and not every platform offers every type of account. For example, maybe you’re looking for an investment account for your child, or a Lifetime ISA to invest for your first home? These are just some accounts which are very popular but not available everywhere.

Once you’ve decided on your choice of account, check where you can get it. This can be a great way of narrowing down your options as a very first step towards picking your platform.

If you’re haven’t decided which account you want to go for yet, take a look at the range of investment accounts available with AJ Bell.

2. Investments

What investments do you want to have access to?

Are you just looking to get your money ‘into the market’ via standard funds and shares? Or do you want all the bells and whistles possible, so you can actively build and manage a highly personalised investment portfolio?

All investment platforms exist on a spectrum of how extensive their investment range is. Some platforms offer just a handful of index funds, for a really simple investing experience. Then you have other platforms, like AJ Bell, which offer the works in our investment range – international shares, thousands of funds – both passively and actively managed – and even bonds and other more complex investments.

Decide where your needs sit on the spectrum of investment options – are you looking for a simple starting place or somewhere you can really flex your investing muscles!? Then go for a platform that matches this.

3. Access and usability

How do you want to access and manage your investments?

We live in a world of improved accessibility to our finances, and that’s a very good thing, but different people have different preferences in how they keep tabs on theirs. Do you manage your money on a desktop computer, or do you prefer to keep everything in your pocket, via an app? Consider how you want to connect with your investments and choose a platform that offers this.

It’s not only the ‘how’ you’ll access and manage your investments, but the ‘how easy’ that’s worth thinking about. Maybe the platform you’ve been looking at offers the right kind of access for you, but it’s not the most ‘user-friendly’. It’s worth doing a little digging into this to avoid future frustrations – things like customer reviews and having a poke around the website or app can help you get a feel for this before you open an account. Make sure it’s up to your standards!

4. Charges

What are you comfortable paying for your platform?

Charges are an unavoidable reality of investing, but platforms differ on what and how much they charge you to use their products and services. Shopping around to find the best value platform for your needs is a very worthwhile cause and means you’d see more of any returns your investments make.

The main charge platforms take is their account charge – also called the platform charge or custody charge, depending on who you go with. It’s the ongoing charge you pay to hold investments in your account with them. You’ll usually see it stated as either as a percentage of the value of the investments in your account – as is the case with AJ Bell and Dodl – or some platforms charge a flat rate instead.

Also consider the other charges you could pay to invest. These include dealing charges, foreign exchange charges (for overseas investments) and any other additional admin-related charges. You could even dig a little deeper – if you know the types of investments you want, you could check what their charges are like on each platform.

When comparing platform charges, the important thing to remember is getting the best value, not just generally, but for the specific features you’re looking for. And what you need may include slightly more support, content or investment options which typically comes at a higher price.

5. Support and communication

What kind of support do you need?

When we talk about support, we mean the content and people you can access via your platform, to help you manage your accounts and investments. It’s not advice (DIY investment platforms can’t and don’t offer personal advice), but more like reassurance as you move through your investing journey. If you encounter a problem when investing, this is where the support you get can make or break your experience with a platform.

It’s worth planning ahead and thinking about the type of support you’d want if you get stuck: would you want to be able to call a “real person” at these times, or maybe you’d prefer the efficiency of a webchat? Or perhaps you’re all about that self-service life and want a great range of how-to articles to figure it out yourself? Everyone’s different and the way we like to communicate with services we use is too. So just double check your choice of platform can support you in the way that works best for you.

6. Learning and research

Do you want access to extra investment and learning materials?

Most platforms offer research and learning resources to help you build your knowledge alongside your investments. Where platforms vary is how much and the type of content they offer in this department. Do they provide hundreds of articles, videos and research tools or is it more of a basic package of resources? Ask yourself what educational materials you want to have access to and then look for the platform which can cater to your content needs!

What does AJ Bell offer?

At AJ Bell, we understand investing isn’t a one-size-fits-all journey. That’s why we offer two distinct DIY investment platforms, which helps us cater to a wide range of self-investor needs: AJ Bell and AJ Bell Dodl.

There are plenty of similarities between the two – most importantly both offer you the trusted name and experience of a FTSE 250 company. But there are quite a few differences between them in the key areas we’ve talked though in this article.

AJ Bell Dodl is all managed from the palm of your hand through the Dodl app, and offers a straightforward range of accounts and investment options. We keep things simpler with Dodl because it’s designed for those who are just starting out on their investing journey. And with a simpler set up, we can keep the costs a little lower. But that does mean you won’t have all the bells and whistles available on the full AJ Bell platform.

If you’re looking for a wider range of investment options, you might want to consider AJ Bell rather than Dodl. You’d get to choose from thousands of funds, UK and international shares, investment trusts and exchange-traded funds. AJ Bell also gives you the option to open accounts for your children, and access to more investment ideas and a wealth of research resources. It’s also worth noting that you might be more suited to it if investment apps aren’t for you. With AJ Bell, you can manage your investments via the website or mobile app, and can call our customer support team if ever you need it.

So now you know the questions to ask, and what to look out for when choosing your investment platform, you’re armed with what you need to choose the right platform for you!

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