AJ Bell Youinvest reliability

Whether a financial provider like AJ Bell Youinvest is reliable and legit is an important and very legitimate question one can have. After all you trust AJ Bell Youinvest with your investment money and savings. It is also a very common question, we get this asked a number of times.

One thing worth bearing in mind: all the brokers that you find on BrokerChooser are regulated by at least one top-tier authority. So in this basic sense AJ Bell Youinvest is of course legit. Additionally, there are other factors you can take into account when you check the reliability of AJ Bell Youinvest, e.g. if AJ Bell Youinvest is listed on any exchange, provide two-step login, disclose transparently its financial result, etc.

Here, we've collected and summarized the common questions on broker reliability, enabling you to decide for yourself whether you consider AJ Bell Youinvest reliable in your individual circumstances. We also compared AJ Bell Youinvest with two similar brokers.

Is AJ Bell Youinvest legit?
AJ Bell Youinvest Fidelity International Halifax
Banking background No No Yes
Broker listed on stock exchange Yes No Yes
Annual financial statements on website Yes Yes Yes
Mobile two-step authentication Yes Yes -
Broker ownership transparency Yes No Yes
Broker management transparency Yes No No
Broker is audited by the Big Four No Yes Yes

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AJ Bell Youinvest reliability
Things always worth considering

When you assess a stock broker it's best to think through the following aspects:

  • What authority or authorities regulate the broker? In other words who can you turn to if something goes south?
  • How much protection do you have?
  • For how long AJ Bell Youinvest has been in operation?
  • Is it publicly traded itself?
  • How transparent is it?
  • How much do they protect your account from unauthorized access?
  • What auditor audits the brokerage?

As you see there are a number of aspects above. But not all of them were created equal.

We think the most important feature is to be regulated by at least one trustworthy authority.

Comparing regulators

First and foremost, to gather a wider knowledge about one broker's reliability, you should check the regulators of it. For this purpose, we sum up below the most important things to know about regulators and how to interpret them for your individual case.

AJ Bell Youinvest is regulated in the following countries and provides the following investor protection:

AJ Bell Youinvest regulation and investor protection
AJ Bell Youinvest
Country of regulation: UK
Investor protection amount: £85,000

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Don't forget that regulators are not created equal. Investor protection can also vary from authority to authority. There are top-tier regulators whose excellence lies within their features such as the presence of segregated accounts, the range of protection tools or the investor protection amount itself. Check out a few of the top-tiers in the table below. Most brokers reviewed by BC fall below one of the following four regulators:

Some regulators and their investor protection
FCA in the UK Financial Services Compensation Scheme (FSCS) provides coverage up to £85,000.
SEC, FINRA in the US Securities Investor Protection Corporation (SIPC) covers up to $500,000, including a $250,000 limit for cash.
BaFIN in Germany €100,000 for cash, and €20,000 for securities.
ASIC in Australia No investor protection.

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AJ Bell Youinvest is regulated by the top-tier UK regulator, the FCA or Financial Conduct Authority. FCA monitors which firms and individuals are able to enter the financial markets and supervises how firms work and stop those that don't meet their standards.

If a broker goes bankrupt, eligible customers would also be protected by the FSCS up to £85,000 per claimant per firm. For forex and CFD brokers you're also covered by negative account balance protection. A non-UK citizen is treated the same way as a UK resident in case something goes south.

There are some brokers that provide additional insurance because they have private insurance (e.g.: eToro through Lloyd's, among the US brokers Charles Schwab and Ally have similar setups), which means that you have an extra reliability net above the regulatory. It's worth checking it out when you're choosing your broker.

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AJ Bell Youinvest reliability
Additional "nice to have" safety features

The subsequent bullet points are rather supplementary, “nice to have” features. Ticking them definitely adds to the reliability and legitimacy of an online broker, but not having them is not necessarily a big red flag.

Banking background

AJ Bell Youinvest doesn't have a banking background, which is not crucial, but would make a better case for their reliability. The reason is that even if it's not required by law that a struggling broker must be saved by its parent bank, in most cases you can count on this happening.

Broker listed on stock exchange

AJ Bell Youinvest is listed on the following stock exchange: London Stock Exchange, which is a good sign for reliability.

Why is being listed on the stock market useful? For two reasons:

  • Listed companies by and large have stringent reporting requirements
  • If something really goes wrong with the broker, you'll be able to tell it from the (rapidly falling) share price of the broker in most cases. In this unlikely scenario, you'll have time to move your funds and securities to another broker.

Annual financial statements on website

While most of the people don't read financial statements, it's a promising sign for reliability that AJ Bell Youinvest publishes these regularly. Financial statements can be considered as financial reports, which generally contain information about a brokerage's income, profit and loss, retained earnings and cash flows.

Mobile two-step authentication

AJ Bell Youinvest provides two-step authentication when logging in, which makes the platform safer to use.

Broker ownership transparency

Ownership structure of AJ Bell Youinvest is public, everyone can check the owners of the company on their website, which adds to their reliability scores.

Broker management transparency

AJ Bell Youinvest is transparent about their management structure, which means that anyone can see who is in charge of management issues at the brokerage.

Broker is audited by the Big Four

AJ Bell Youinvest is not audited by one of the so-called Big Four auditors (KPMG, PWC, Deloitte, EY), which is not necessarily an issue, however it would guarantee another layer of reliability.

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AJ Bell Youinvest reliability
Bottom line

Now that we have gone through the most frequent and - as we think - most important reliability aspects of AJ Bell Youinvest, we hope that you feel armed enough with information for your future decision. In case you're still unsure, use our broker finder and meet the best online broker that suits your needs.

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Author of this article

Gyula Lencsés, CFA

Author of this article

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Gyula Lencsés, CFA

Head of content

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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