Hargreaves Lansdown (HL) aims to offer a premium service, with extensive research, customer support and choice of investments. However, this comes at a price, as HL charges one of the higher platform and trading fees among the mainstream providers.
Pros
- Percentage-based platform fee may suit lower-value portfolios
- One of widest range of investments
- Comprehensive research offering
- Extensive customer support
- Lifetime ISA available
- Pays interest on cash balances
Cons
- Platform fee more expensive for higher-value portfolios
- High trading fee for shares
- One of higher foreign exchange fees on non-UK shares
- No cryptocurrency trading
Hargreaves Lansdown: a round up
Hargreaves Lansdown (HL) charges one of the higher percentage-based platform and share trading fees among the mainstream providers, although it does not charge a fee for buying and selling funds.
Investors benefit from a wide range of over 13,000 investments including shares, funds, exchange-traded funds (ETFs) and investment trusts. HL also offers a good choice of ready-made portfolios and a shortlist of selected funds.
HL provides a high level of customer support, with phone support available six days a week, in addition to email and secure messaging. It also excels in terms of the quality and extent of its research together with comprehensive educational tools, including live webinars.
HL pays interest on uninvested cash balances in trading accounts, individual savings accounts (ISAs) and Self-Invested Personal Pensions (SIPPs). However, it does not currently provide a community trading forum for investors.
What plans are available?
HL offers one main plan for customers across its range of accounts, including a general dealing account, ISA, Lifetime ISA and SIPP.
What products are available?
- general trading account
- ISA
- Lifetime ISA (LISA)
- SIPP
- Junior ISA
- active cash savings account
What are the investment choices?
HL offers the choice of over 13,000 investments, including:
- Over 8,500 shares from UK, North America and Europe
- Over 3,000 funds
- Over 1,400 exchange-traded funds (ETFs)
- Over 400 investment trusts
What else does HL offer?
- Ready-made portfolios: the choice of four ready-made portfolios, selected and managed by its in-house team. Investors can choose from cautious, balanced, moderately adventurous and adventurous portfolios. Each of the portfolios contains a selection of HL and third party funds, across different assets classes including equities, bonds and property.
- HL Portfolio Building Blocks: seven HL-managed ‘funds of funds’, comprising a global corporate bond, strategic bond, UK income, UK growth, European, US and Asia and Emerging Markets fund.
- HL Select Funds: three funds focused on a small number of stocks with long-term growth potential, split by UK income, UK growth and global growth.
- Wealth Shortlist: a selection of over 70 active and passive funds for investors, chosen using criteria such as performance, cost and investment strategy.
- Education: HL offers one of the most extensive educational offerings amongst the platforms, with investing guides and webinars. It also provides comprehensive research and excels in its coverage of individual companies.
- Apps: HL’s investing app is available on both Android and iOS devices.
- Security: HL is regulated by the Financial Conduct Authority (FCA) in the UK. The company uses third party banks and custodians to hold customers’ funds, which provides protection for customers in the event that the company went into liquidation.
What about fees and charges?
HL charges the following fees for its three main accounts:
Other fees include a foreign exchange fee on non-sterling trades of 1.0% (for transactions up to £5,000). The above trading fees are online only and a fee of 1% is charged for dealing over the phone (subject to a £20 minimum and £50 maximum).
Be mindful that investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK
In addition, HL recently removed its trading and platform fees on its junior ISA, making this one of the cheapest options available on the market.
Who should choose HL?
HL’s platform fee may attract some investors with smaller-value portfolios where a percentage-based (rather than fixed) fee may be a lower-cost option. It may also appeal to customers who are willing to pay more for a premium service.
With more than 13,000 investments to choose from, it’s also likely to suit those with a wide investment scope. It also has a research and educational offering for both beginners and more experienced investors.
How does HL rank on customer service?
Research firm Fairer Finance* gives HL an overall customer experience rating of 66%, split as follows: customer happiness (63%), customer trust (60%), complaints performance (81%) and transparency rating (60%).
*Data accurate as of April 2024
Frequently Asked Questions (FAQs)
How do I open an HL account?
According to HL, it should take around 10 minutes to open an account online. Customers will need to provide their personal details and national insurance number.
How do I transfer investments into an HL account?
Customers can transfer shares, funds, investment trusts and ETFs held in general trading accounts, ISAs and SIPPs into an appropriate HL account.
In the first instance, customers should check whether their existing provider charges an exit fee for transferring investments. For pensions, it’s also important to check whether any important benefits or guarantees may be lost.
HL will manage the transfer process and liaise with the existing provider. Many investments can be transferred ‘in specie’ whereby the investment moves across to the new provider, without having to be sold. This depends on whether the new platform offers the same investments.
How do I withdraw money from an HL account?
In order to withdraw money, customers need to add a registered bank account and the transfer should be processed within 1-3 working days.
Is HL safe?
HL is regulated by the Financial Conduct Authority (FCA) meaning that its systems and practices meet industry requirements.
Customers’ money and investments are placed in separate third party accounts under trust and customers are protected under the Financial Services Compensation Scheme (FSCS) up to £85,000 per investor.
However, there is no protection in terms of the underlying investments and the risk that they may fall in value.
What happens if HL goes bust?
Investments have ‘trust status’ which means that client investments, including cash, are ring-fenced from the firm’s creditors if HL becomes insolvent.
Client money is held in third party banks with FSCS protection up to £85,000 per person per account.
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