ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

YouInvest (Formerly Sippdeal) by AJ Bell Review

Updated on January 14, 2015

Warning

The information in this hub is not updated daily. Always double check the information against the providers website. The opinions provided are my own and I am not affiliated with AJ Bell other than as a client.

Overall Rating

5 stars for Overall

The Not So Good

  • No dividend reinvestment available
  • Prohibitively high charges for low cost funds (excluding ETF's)
  • High minimums for frequent trader discounts

The Good

  • No annual administration fee
  • Low dealing commissions
  • Large selection of funds
  • Helpful staff
  • Transfer in offer and refer a friend available

A Peak into the Dealing Site

Overview by Investor Type

Investor Type
 
Indexer
Access to ETF's but custody charge makes index funds much more expensive
Funds investor
Your spoiled for choice, with good discounts on offer but watch out for custody charges on some funds
Active Trader
Probably not the best provider for you
When choosing a provider you need to decide how you're going to invest. There is no one size fits all provider

Review

Overview

YouInvest is part of AJ Bell which is one of the biggest brokers in the UK. An interesting thing to bear in mind when comparing YouInvest to other brokers/platforms is that AJ Bell is often the company running other peoples services. For example at the time of writing Barclay's SIPP is run by AJ Bell. This is probably a good explanation of why YouInvest looks cheaper than many others. Another thing worth knowing is that AJ Bells’ biggest shareholder is Invesco Perpetual.

Every year I trawl through every stocks and shares ISA provider in Britain (I have a list) and decide which is the best for my needs. I've decided on YouInvest with Hargreaves Lansdown being a close runner up. I’d advise you to review your investment provider every year as the industry is becoming highly competitive and thus good deals can often be found by those who seek them out.

What I like

To be honest the number one reason that I moved to YouInvest is because they don’t charge an annual management charge (AMC). The importance of avoiding this fee cannot be underestimated. If you have a small portfolio and have to hand over 0.5% of it each year that can seriously reduce your returns over time. If you have a big portfolio and your charges are capped this may be less important but still worth saving on.

If you are a fund investor you will find that you get an insane number of funds to choose from (though watch out for the custody charge). As AJ Bell is a very large provider they are able to negotiate big discounts and offer rebates.

I’ve also found the staff to be well trained, professional and honest (no patter or excuses). Every time I’ve got in contact they have solved my problem and exceeded expectations. I’ve found their customer service to be almost on par with that of Hargreaves Lansdown (the best customer service I have ever experienced). Though I still would prefer it if they used an 0800 number as opposed to an 0845 number.

I also like the dealing site, the portfolio management tools and the research provided. They provide everything that you could reasonably need and, better still, the research is provided by Morningstar which is highly detailed and very reliable.

Finally when switching broker you should always look for perks or ways to lower switching costs. For a while AJ Bell was running a transfer in offer for ISA and SIPPS but I don’t know if it will still be active so I’d check the website for details. Also, at the time of writing they have a “refer a friend” which pays you £100 if you can get a friend to credit/transfer enough money into YouInvest.

What I don’t Like

Probably the biggest disadvantage in my opinion is the lack of a low cost dividend reinvestment plan. The consequence of this is that you have to sit on cash waiting for enough of your dividends to build up so that you can put in a trade (e.g. reinvesting a £100 dividend at current commissions would eat up 10% of the dividend so its uneconomical to do this). I also wish they would create a smart deal like Equiniti (where they pool trades together to offer a much lower commission) but that’s not a big deal (pun unintended). Just if anyone from AJ bell is reading this...

Another thing that potential investors should bear in mind is that YouInvest does not provide the same level of hand holding as other providers. For example HL has an in house research team, internet TV show, investment magazine and detailed investment research while YouInvest leaves to do all their own research with little support. But that’s not to say that their research services are bad – their research centre provides all you really need. YouInvest is aimed at slightly more sophisticated investors who are reasonable financially literate. When it comes to DIY investing YouInvest is about as DIY as it gets – which I’m totally fine with.

One class of people I would not recommend YouInvest to is very active traders as other brokers offer better frequent trader rates. One of the best to look into is Interactive Brokers. At the time of writing YouInvest requires that you place 10 trades in one month before you can get the frequent trader rate – at a cost of almost £100. But for the majority of sane investors (no sane person should trade more than 10 times per month) the brokerage fees at AJ Bell are very reasonable.

Another problem which is common to most providers is prohibitive fees charged on low cost funds such as those provided by Vanguard. To these they apply a “custody charge” which is very expensive and only economically viable for very large portfolios. I suspect this is to prevent you investing in funds which don’t pay AJ Bell any commission which is unsurprising as their not a charity. However, you can still of course invest in ETF’s (funds listed on a stock exchange) and you’ll only have to bay brokerage.

Note: also watch out for funds which have a custody charge and standard (1.5% or so) management fees.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Dunkgrease 

      5 years ago

      Hi, can you confirm whether these "Not So Good points are still valid. Specifically

      1. The FAQs on the Sippdeal site states that you can reinvest dividends, but I have not found any specific information on it or apparent charges. I note that HL charge 1% min £10 max £50 for dividend reinvestment.

      2. From what I can glean from the Sippdeal site, they charge only one Custody Charge fee irrespective of how many investments are held which amounts to less than £100 per year. Compared to HL which charges 0.5%max £200 per year.

      These charging levels for Sippdeal don't seem too bad.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)