interactive investor vs AJ Bell — which broker is better?

Pros

• Flat monthly subscription instead of a percentage of assets — GBP 71.88 a year on Core covers a GBP 100,000 portfolio, against GBP 250–350 at percentage-based rivals
• GBP 3.99 per UK and US share trade on Core and Plus, GBP 2.99 on Premium, with one or two free trade credits included on the higher plans
• The Trading Account, Stocks and Shares ISA and SIPP are all covered by the same subscription, with the pension admin fee already inside the price and no charge for pension withdrawals
• Cash can be held in GBP, EUR and USD with interest paid on all three, so a US round trip does not have to cross the FX spread twice
• Free regular monthly investing from GBP 25 on every plan, and free transfers both in and out
• Over 40,000 investment options across 17 global markets, including a bond and gilt range that is among the better ones on a UK retail platform
• Strong editorial research: Morningstar-rated fund selections, ii's own research hub and market commentary from an experienced financial journalism team
• UK-based contact centre, with an international dealing desk open until 21:00 for US market hours

Cons

• The flat fee is punishing on small balances — GBP 71.88 a year is 1.44% on a GBP 5,000 portfolio, where a percentage platform would charge under GBP 20
• The Core plan is capped at a GBP 100,000 portfolio, so crossing that line forces a jump to Plus at GBP 179.88 a year — a 150% increase triggered by portfolio growth rather than by anything you choose
• Dividend reinvestment costs 99p per holding on Core and Plus, which quietly erodes the flat-fee advantage for income investors with many small positions
• A string of ancillary charges other UK platforms do not levy: GBP 5 a month for non-UK residents, GBP 2 plus VAT a month for paper documents, GBP 25 for a failed payment, GBP 30 a month for company and trust accounts
• Only 17 global markets against 24 at AJ Bell, non-UK and non-US international shares cost GBP 9.99 a trade on Core, and there are no options, futures, CFDs, direct crypto, fractional shares or demo account
• Support is weekdays only, 07:45–17:30, with no weekend cover — AJ Bell answers the phone on Saturdays and Sundays

Pros

• Custody charge on shares, ETFs and investment trusts capped at GBP 3.50 a month in the Dealing account and ISA, and GBP 10 a month in the SIPP — GBP 42 and GBP 120 a year respectively
• GBP 1.50 online fund dealing is among the cheapest on any UK platform, and regular monthly investing is free from GBP 25
• Share dealing at GBP 5.00, falling to GBP 3.50 in any month following one with 10 or more share deals
• Listed on the London Stock Exchange under AJB as a FTSE 250 constituent, with published audited accounts and FCA regulation
• Which? Recommended Provider for eight consecutive years, 2019 to 2026 — the only investment provider to achieve that run
• Seven-day customer support: phone 08:00–19:00 on weekdays and 10:00–14:00 at weekends, plus live chat and secure message
• Free transfers in and out, free withdrawals, free cash holding with interest paid, and no inactivity fee
• 24 international markets and a deep menu — over 4,000 funds, over 3,500 ETFs, over 400 investment trusts, bonds, gilts, ETCs and warrants

Cons

• The 0.25% custody charge on funds is uncapped up to GBP 250,000, so a GBP 200,000 fund portfolio pays GBP 500 a year where a flat-fee platform charges under GBP 100
• Foreign exchange starts at 0.75% on the first GBP 10,000 of a trade, with a further 0.5% taken when overseas dividends are converted into sterling
• Six of the 24 international markets — Australia, Hong Kong, Japan, New Zealand, Singapore and South Africa — are telephone-only with a GBP 10,000 minimum order, which effectively puts them out of reach for most retail portfolios
• No options, futures, spread betting, CFDs, direct crypto or fractional shares, and no demo account to test the platform first
• In-house research is thinner than Hargreaves Lansdown's: a favourite-funds list and Shares Magazine content rather than a full analyst desk with written coverage of individual holdings
• Sterling is the only cash currency, so a round trip in a US share crosses the FX spread twice with no way to hold dollars between trades