AJ Bell fees in 2026: the ETF cap is not a fund cap

AJ Bell's ISA tariff charges 0.25% a year on shares (including ETFs, investment trusts and gilts), capped at £3.50 a month; its funds (unit trusts and OEICs) cost 0.25% on the first £250,000, 0.10% on the next £250,000 and zero on the remainder. Those are separate charges on separate holdings. The provider's own £30,200 mixed-portfolio example bills £2.50 a month for £12,000 of shares plus £3.75 a month for £18,000 of funds. The £42 cap does not shelter the fund portion.

Vanguard's self-managed ISA tariff charges £4 a month if the invested balance across accounts is under £32,000, or 0.15% annually from £32,000, capped at £375. This applies to its own funds and ETFs; it does not offer individual company shares or third-party funds. For the matched example, take either the same Vanguard ETF at both providers or the same Vanguard mutual fund at both providers; do not compare an ETF's platform bill with a fund's investment performance. At £40,000 and with £200 added monthly, the account remains above Vanguard's £32,000 threshold if markets do not move.

The chart shows cumulative estimated custody fees in pounds for five years: £40,000 invested at the start, twelve £200 month-end additions per year, no withdrawals or trades beyond the monthly purchases, and zero market return. Annual charges are approximated using the average of the twelve month-end balances. AJ Bell ETF charges are at the monthly cap throughout. Vanguard's 0.15% and AJ Bell's fund 0.25% are applied to those average balances. Monthly dealing via AJ Bell's eligible regular investing service is free; fund OCFs, spreads and any ad-hoc dealing are excluded because they depend on the investment and how you trade.

What changes the recommendation? At this balance, the £366.25 gap between AJ Bell's fund bill and its ETF bill over five years is larger than the £135.75 ETF-platform advantage over Vanguard. Switching the holding to chase a custody cap brings spread, possible dealing charges and differences in fund tracking and structure into the decision; compare the actual ETF and fund documents before doing so. Our platform directory and AJ Bell core review cover features beyond fees.

For an ETF held without ad-hoc trades, AJ Bell charges 0.25% up to £16,800 of share holdings, then at most £42 annually in an ISA. Vanguard charges £48 annually below £32,000 of invested balance. That makes AJ Bell's ETF custody cheaper even at small balances on these tariffs; the old claim that Vanguard wins below £17,000 ignores its £4 monthly minimum. Above £32,000, 0.15% of the balance at Vanguard rises while AJ Bell's ETF cap stays flat. This is a custody-only comparison, not a universal verdict: Vanguard's fees can be shared across its eligible accounts, and cash is not charged.

For an eligible Vanguard OEIC fund at both providers, AJ Bell's 0.25% first-tier charge reaches Vanguard's £48 flat fee at £19,200 (0.0025 × £19,200 = £48). From just above £19,200 to below £32,000, Vanguard's flat fee is lower. At £32,000 and up, its 0.15% is below AJ Bell's 0.25% first-tier fund fee. Above £250,000, AJ Bell's fund fee drops to 0.10% on the next slice, not on the entire pot, so do not infer a reversal from the marginal rate. This crossover assumes a single ISA with the same qualifying fund and no non-regular trades; different account mixes change it.

AJ Bell's charges overview says monthly regular investment can start from £25 with no dealing fee. One-off online share deals cost £5 and one-off fund deals £1.50, per the ISA tariff. Four extra share trades a year add £20 at AJ Bell, or £100 across our five-year window; at £40,000 that leaves just £35.75 of the modelled ETF-custody saving over Vanguard before considering Vanguard's optional £7.50 quote-and-deal service or any spread. Frequent trading is not the same scenario as the buy-and-hold chart.

The AJ Bell SIPP tariff caps its 0.25% share/ETF custody charge at £10 a month, or £120 a year; its fund tiers mirror the ISA's percentage schedule. The ISA's £42 ceiling does not apply to a pension. On a £100,000 all-ETF SIPP held for a year without changes in market value, the custody bill reaches £120, before ETF costs or trades. An all-OEIC SIPP at the same balance incurs £250 of AJ Bell fund custody charges. The investment mix, not merely the account name, determines which figure you pay.

Vanguard's self-managed pension and ISA account-fee explanation says its fee is calculated on the total invested balance across eligible accounts and charged only once. Adding an ISA to an existing SIPP can therefore change the effective comparison: do not add two £48 Vanguard minimums, and do not assume AJ Bell's ISA and SIPP caps combine into one. For a retirement account, also check what happens when you start withdrawals: AJ Bell says it charges no SIPP drawdown withdrawal fee on the SIPP tariff, but fund and custody charges still apply. Our SIPP fee breakdown goes into account-level detail.

Fund-only investor with more than £19,200 in an eligible Vanguard fund: on the stated tariff and without ad-hoc trades, Vanguard's self-managed account is cheaper on platform fees. AJ Bell's wider range does not help if you will never use it. Investor who wants individual shares or direct gilts: Vanguard's own-funds-only range rules it out regardless of the custody arithmetic; compare other full-range providers in the platform directory instead. Frequent trader: calculate dealing, spreads, FX and any taxes alongside custody; a tiny custody saving can disappear after a few trades.

Cash waiting to invest is another reason not to decide on the chart alone. AJ Bell says cash holdings attract no account charge; Vanguard says its account fee is only charged on invested money in its fee schedule. Compare their published cash interest rates at the time you actually hold cash. For ISA transfers, use the provider transfer process rather than withdrawing and redepositing; AJ Bell notes its ISA is not flexible on its ISA information page. Our ISA transfer guide explains the wrapper risk.

Investment values fall as well as rise. The examples assume unchanged tariffs and no investment growth, not a forecast. This article is for informational purposes only and does not constitute financial advice. You should seek independent financial advice before making any investment decisions.