AJ Bell vs Interactive Investor: Best Low-Cost SIPP Compared

For cost-conscious pension drawdown investors, AJ Bell and Interactive Investor consistently rank among the best options. Both offer competitive fees and comprehensive features, but which one is right for you? Let's break down the comparison.

Fee Structure Comparison

The fee structures are fundamentally different, which matters depending on your pot size:

AJ Bell Fees

• 0.25% on funds (capped at £3.50/month for shares/ETFs/trusts)
• Dealing: £1.50 for funds, £5 for shares (£3.50 if 10+ trades/month)
• No drawdown setup fee

Interactive Investor Fees

• Flat monthly fee: £4.99 (Investor), £11.99 (Super Investor), or £19.99 (Pension Builder with SIPP)
• Includes free monthly trades (1, 2, or unlimited depending on plan)
• Additional trades: £3.99 each
• No percentage-based custody fee

Cost Comparison by Pot Size

Here's what you'd pay annually in platform fees:

• £50,000 pot: AJ Bell £125 vs II £239.88 (Pension Builder) - AJ Bell wins
• £100,000 pot: AJ Bell £250 vs II £239.88 - II slightly cheaper
• £250,000 pot: AJ Bell £625 vs II £239.88 - II significantly cheaper
• £500,000 pot: AJ Bell £1,250 vs II £239.88 - II much cheaper

The crossover point is around £96,000. Below this, AJ Bell's percentage-based fee is cheaper. Above it, Interactive Investor's flat fee provides better value. For more on how fees impact your retirement, read our guide on pension drawdown fees and charges explained.

Investment Range

Both platforms offer extensive investment choices:

AJ Bell:

• 2,000+ funds
• UK and international shares
• ETFs and investment trusts
• AJ Bell's own fund range (competitively priced)
• Ready-made portfolios

Interactive Investor:

• 40,000+ investments
• Extensive fund range with ACE (ethical) ratings
• Wide share dealing coverage
• Quick-start funds and model portfolios
• Investment trusts with dedicated research

Both platforms will satisfy most investors. Interactive Investor edges ahead for investment trust enthusiasts and those wanting the widest possible choice.

Drawdown Features

For pension drawdown specifically:

AJ Bell:

• No drawdown setup fee
• Flexible withdrawal options
• Regular income or ad-hoc withdrawals
• Good retirement planning tools
• Income drawdown modeller

Interactive Investor:

• No drawdown setup fee
• Flexible withdrawal scheduling
• Natural income option
• Retirement planning calculator
• Take tax-free cash in stages

Both platforms handle drawdown competently with no significant differences in core functionality. If you're unsure whether drawdown is right for you, our comparison of drawdown vs UFPLS explains the alternatives.

Platform and App Experience

AJ Bell: Clean, modern interface that's particularly beginner-friendly. The mobile app is well-designed and regularly updated. Good educational content integrated throughout.

Interactive Investor: Comprehensive but busier interface with more information density. Excellent for experienced investors who want detailed data. The app is functional but slightly more complex.

For newer investors, AJ Bell's simpler design may be preferable. Experienced investors often appreciate II's depth of information.

Customer Service

Both platforms offer telephone and online support. AJ Bell has slightly longer phone hours and has won awards for service quality. Interactive Investor provides solid support with a helpful online knowledge base.

Neither matches Hargreaves Lansdown's service reputation, but both are adequate for most needs.

Unique Features

AJ Bell's standout features:

• Dodl app - super-simplified investing for beginners
• AJ Bell funds with low charges
• Favourite Lists for tracking investments
• Strong educational content

Interactive Investor's standout features:

• Free regular investing (no dealing charge)
• ii Super 60 curated fund list
• ACE ethical ratings on funds
• Free trading credits each month
• Investment trust expertise and research

Which Should You Choose?

Choose AJ Bell if:

• Your pension pot is under £100,000
• You prefer a cleaner, simpler interface
• You value extensive educational resources
• You're relatively new to investing
• You don't trade frequently

Choose Interactive Investor if:

• Your pension pot is over £100,000
• You want the widest investment choice
• You trade regularly and want inclusive monthly trades
• You're interested in investment trusts
• You prefer flat, predictable fees

The Verdict

Both platforms are excellent choices for pension drawdown. The decision largely comes down to pot size and personal preference.

For smaller pots, AJ Bell's percentage-based fee keeps costs proportionate. For larger pots, Interactive Investor's flat fee delivers substantial savings - potentially hundreds of pounds annually. Understanding safe withdrawal rates can help you plan how much income to take regardless of which platform you choose.

If you're starting drawdown with a modest pot but expect it to grow, consider that you may want to switch to II later as your balance increases. Both platforms make transfers relatively straightforward. If you're considering consolidating pensions before choosing a platform, see our guide on pension consolidation pros and cons.

Use our fee calculator to see exactly what each platform would cost for your specific pot size, and read our full AJ Bell review and Interactive Investor review for more details.

For a broader look at how these two compare against all major providers, see our Best Pension Drawdown Providers 2026 guide, updated for the latest 2026 fee changes.

This comparison is for general information only and does not constitute financial advice. Platform fees and features may change. Consider your own circumstances and, if unsure, seek advice from a qualified financial adviser.