Hargreaves Lansdown review: what are the pros and cons?
Is Hargreaves Lansdown a good fit for your investments and pension? We explore the features and offerings of the UK’s largest investment platform to see how well it matches your financial goals.
Hargreaves Lansdown is one of the UK’s largest fund management and investment platforms, with over 40 years of industry experience and over two million customers.
The platform offers over 13,000 investment options, including shares, funds, and exchange-traded funds (ETFs).
Customers pay a 0.45% platform fee for funds up to £250,000 (this is lower for higher value investment accounts) and trading fees of up to £11.95 per trade.
Find a financial adviser through Unbiased that is the right fit for your investment and financial goals.
Hargreaves Lansdown: who are they?
Established in 1981, Hargreaves Lansdown is one of the UK’s leading financial services companies. Over the years, it has grown into a trusted name, serving over two million clients with £172 billion of assets under management (AUM).
Based in Bristol, the firm offers a broad range of investment and savings services for novice and experienced investors.
Known for its premium service, Hargreaves Lansdown helps individuals take control of their financial futures by offering various accounts and investment options.
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Founded
1981
Assets under management (AUM)
£172 billion
Fees
0.45% platform fee on funds of up to £250,000
What does Hargreaves Lansdown do?
Hargreaves Lansdown offers a comprehensive range of financial services that simplify investing for everyday people.
They provide access to over 13,000 investment options, including shares, funds, ETFs, and investment trusts.
Hargreaves Lansdown offers a variety of account types including cash individual savings accounts (ISAs), stocks and shares ISAs and self-invested personal pensions (SIPPs).
For those new to investing or looking for guidance, Hargreaves Lansdown also provides comprehensive educational tools to explain more about investing, as well as detailed guides, webinars, and market commentary on investment trends.
What are the pros and cons of Hargreaves Lansdown?
Hargreaves Lansdown has several advantages but also some drawbacks.
Here’s a quick look:
The pros of Hargreaves Lansdown
A wide range of investing options: There are over 13,000 options. This helps you to easily diversify your investment portfolio.
Comprehensive research tools and educational resources: This can help you to make informed investment decisions, although expert financial advice is also recommended.
Excellent customer service and phone support: You can get help quickly if needed.
Interest paid on uninvested cash balances: This can help you, boost your balance, although interest paid is often lower than you would receive from a savings account.
Ready-made portfolios: If you don’t want to pick your own investments, Hargreaves Lansdown offers ready-made portfolios, based on your risk appetite.
The cons of Hargreaves Lansdown
Higher fees than some competitors: This can impact your returns over the long term, so it's worth comparing costs with other platforms.
Trading fees on shares are expensive: It’s a good idea to explore these before investing.
High foreign exchange fees on non-UK shares: This can be a huge drawback if you invest outside the UK, which is worth considering for a diversified portfolio.
No community trading forum for investor discussions.
What financial services does Hargreaves Lansdown offer?
Hargreaves Lansdown provides a range of financial services tailored to different investor needs.
These include a stocks and shares ISA, which offers tax-efficient investing for UK investors.
There’s also a lifetime ISA (LISA) designed for those saving for their first home or retirement, and a cash ISA for more conservative savers.
Retirement savers can use a SIPP, which offers a tax-efficient way to save for retirement. Hargreaves Lansdown also offers a junior stocks and shares ISA, an active savings account, and annuities, giving clients access to a full suite of personal finance tools.
For hands-off investors, Hargreaves Lansdown provides ready-made portfolios and managed funds, allowing users to choose portfolios based on their risk tolerance.
The ready-made portfolios are created by experts, and you can start investing with as little as £25 a month or with a £100 lump sum.
While ready-made funds are useful for hands-off investors, it's always a good idea to regularly review the performance and your investment goals.
What fees does Hargreaves Lansdown charge?
Hargreaves Lansdown fees are considered to be on the higher end, especially for larger portfolios.
Fees vary depending on the type of assets, with different charges on funds and shares:
Funds: Customers pay a 0.45% platform fee on funds of up to £250,000, dropping to 0.25% for balances between £250,000 and £1 million and 0.1% for amounts between £1 million and £2 million. Any funds of over £2 million do not incur a fee.
Shares: There’s no platform fee for shares for their general investment account, but ISA and SIPP holders pay 0.45%, capped at £45 for stocks and shares ISAs and £200 for SIPPs per year.
Trading fees: Share dealing fees start at £11.95 per trade, decreasing to £8.95 or £5.95 if you trade more frequently. There is no charge for trading funds.
Fund fees: Fund fees depend on the type of fund held. You’ll need to check the fund information to find out more.
Here’s a summary of the platform charges on a stocks and shares ISA portfolio of different sizes, assuming your investments are split 50/50 between funds and shares.
| ISA portfolio | Platform charge on funds | Platform charge on shares | Total platform fee |
|---|---|---|---|
| £100,000 | £225 | £45 | £270 |
| £500,000 | £1,125 | £45 | £1,170 |
| £1 million | £1,750 | £45 | £1,795 |
| £2 million | £3,000 | £45 | £3,045 |
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"It can be daunting paying for financial advice, but it should add more value than it costs – and benefit you in the long term.
For example, optimising your pension strategy so you have a fund with lower fees and a track record of strong performance could pay dividends when you retire, although there are no guarantees.
There are other benefits as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning and experience lower financial stress.”
Hargreaves Lansdown pension review: is it right for your retirement savings?
Hargreaves Lansdown offers two main pension products - a SIPP and a junior SIPP for customers under 18.
The SIPP includes ready-made pension options for customers who prefer a simple approach and don’t want to pick their own investments.
Key strengths of a Hargreaves Lansdown pension
Wide choice and flexibility: You’re not limited to a small set of in-house funds. Hargreaves Lansdown's SIPP gives access to a broad universe of investment options (shares, ETFs, investment trusts, funds, etc).
Strong reputation, customer service, and support: Hargreaves Lansdown is a well-established name with a track record, and its pension service is often praised for reliability.
Ready-made pension options: Choosing a ready-made portfolio means investments are chosen and managed on your behalf, based on your financial goals and attitude to risk.
Potential drawbacks of a Hargreaves Lansdown pension
Relatively high cost for many investors: Charges are typically higher than those of many newer or lower-cost competitors. This is worth considering as percentage fees and trading charges can eat into returns.
Less attractive for large pension pots: Because of the percentage-based platform fees, larger pension pots may disproportionately feel the cost burden relative to returns.
Hargreaves Lansdown pension verdict
If you’re someone who wants control, flexibility, and a robust, well-supported pension platform, Hargreaves Lansdown's SIPP is a good option.
You get access to many investment choices, decent support, and a tiered fee model that rewards larger pots.
However, if your pension pot is relatively large, or you intend to trade frequently, you should carefully compare the costs and features of your pension with lower-cost or advisory-inclusive pension providers.
What technology does Hargreaves Lansdown use?
Hargreaves Lansdown offers a user-friendly online platform and a mobile app for iOS and Android. The app allows users to manage their portfolios, make trades, and access the platform’s research tools from anywhere.
It’s ideal for those who prefer to stay connected to their investments while on the go.
The app offers simple navigation and easy access to educational content, making it accessible even for those new to investing. Hargreaves Lansdown’s technology is built to streamline investment, giving users quick access to tools and insights.
Hargreaves Lansdown security: is it secure?
Hargreaves Lansdown takes security seriously, implementing multiple safeguards to protect client accounts. The platform uses secure encryption and two-factor authentication (2FA), with options for fingerprint or facial recognition via its app.
Account holders are automatically logged out after inactivity, and a five-digit verification code is required for account access without biometric login. The platform also uses secure withdrawal processes, ensuring updates to nominated bank accounts are validated.
Does Hargreaves Lansdown have good customer service?
Hargreaves Lansdown excels in customer service. They offer phone support six days a week, alongside secure messaging and email support.
Investors can access a wealth of resources, including educational guides and live webinars, to help them make informed decisions.
A recent 5 star review on Trustpilot said:
"The phone line was busy so I asked for a callback which happened around 30 minutes later. My query was answered quickly & successfully by a very knowledgeable gentleman. Very happy with the service."
Final verdict: is Hargreaves Lansdown right for you?
Hargreaves Lansdown remains one of the most trusted and comprehensive investment platforms in the UK, appealing to a wide range of investors, from beginners seeking guidance to experienced investors managing significant portfolios.
Its combination of reliability, excellent customer service, and powerful research tools makes it a top choice for those who value quality and support over low-cost trading.
It’s best suited to:
Investors who value premium service and support, including responsive phone help and detailed research resources.
Long-term investors who prefer to hold funds and investments for years rather than trade frequently.
Those looking for convenience, with access to ISAs, SIPPs, ready-made portfolios, and savings products all under one roof.
However, cost-conscious investors or active traders may find the platform’s fees on the higher side, particularly for share dealing and foreign investments.
Overall, Hargreaves Lansdown offers an outstanding all-round experience, secure, easy to use, and well-supported, making it ideal for investors who are willing to pay a little more for quality, expertise, and peace of mind.
What are the best alternatives to Hargreaves Lansdown?
When searching for alternatives to Hargreaves Lansdown, UK investors will find many platforms that cater to different needs.
To identify the best options, we’ve considered factors like fee structure, investment selection, account types, user experience, and additional features.
Here’s a breakdown of the alternatives:
| Company | Founded | Headquarters (UK) | Assets under management (global) |
|---|---|---|---|
| AJ Bell | 1995 | Manchester | £4.7 billion |
| Interactive Investor | 1995 | Manchester | £85 billion |
| Vanguard | 1975 | London | £7.5 trillion |
| Fidelity | 1969 | London | £663.1 billion |
| Bestinvest | 1986 | London | £3 billion+ |
Get expert financial advice
Hargreaves Lansdown is a respected financial services firm with a robust, reliable platform offering a wide range of investment options, educational tools, and excellent customer service.
While its fees may be higher than some competitors, especially if you have a large portfolio or trade frequently, the comprehensive service and support could make it worth the cost.
Whether new to investing or a seasoned pro, Hargreaves Lansdown provides the tools and resources to help you confidently manage your financial future.
For expert financial advice, seek a financial adviser through Unbiased and ensure you have access to the guidance you need, tailored to your unique circumstances.
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