Competition in the UK’s online investment market is set to intensify further after online stockbroker AJ Bell announced plans to launch a commission-free investment app targetting retail investors.

The service, called Dodl, is designed to make investing more cost-effective and accessible for a retail audience and is scheduled to be operational in the first half of 2022. In addition to the waiving of commission fees, the service will have an annual charge of 0.15%.

The products available on the app will include a range of themed investment funds as well as AJ Bell’s multi-asset funds and a selection of UK stocks.

Traditional asset managers are also looking to break into the retail investment app market which has enjoyed a boost in numbers thanks to the lockdown and a rise in online trading. The popularity of low-cost platforms like Robinhood that also waive commission fees has forced several brokers to similarly lower their fees.

It has also made the UK a crowded marketplace in terms of investment platforms. In addition to the likes of Hargreaves Lansdown, there are also fintech players like Revolut, Freetrade, eToro and Nutmeg as well as the various mainstream asset managers looking to develop their digital offerings.

The recently rebranded abrdn is reportedly in discussions to buy Interactive Investor, the UK’s second biggest retail investment platform, for more than £1.5 billion.

This would add to the acquisition of investment platform Finimize in November. Back in August abrdn also announced plans to launch a wealth management app.

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