Hargreaves Lansdown vs AJ Bell: what’s the difference?

Hargreaves Lansdown and AJ Bell are among the leading investment platforms in the UK. 

But how do they compare on fees, the selection of funds and service offerings? 

This guide examines the key differences between HL and AJ Bell to help you decide. 

What is the difference between Hargreaves Lansdown and AJ Bell?

Hargreaves Lansdown offers a broad range of investment options and guidance tools aimed at a range of investors, including those starting out and more experienced investors.

AJ Bell offers an execution-only dealing platform targeted primarily at confident DIY investors who know what they want. 

So Hargreaves Lansdown provides more support, while AJ Bell offers a more stripped-back service at a lower cost.

Learn more: What are the best alternatives to Hargreaves Lansdown?

Hargreaves Lansdown vs AJ Bell: how do the fees compare?

Pricing is a key consideration when comparing investment platforms as fees can eat into your returns 

Here is how the fees stack up: 

Hargreaves Lansdown pricing

Investments in shares, investment trusts, exchange-traded funds (ETFs), bonds and gilts in its stocks and shares individual savings account (ISA) and fund and shares accounts are charged in bands, depending on the value of the assets invested. 

Assets of up to £250,000 are charged at 0.45%, while those with £250,000 to £1 million are charged at 0.25%. Those with assets of £1 million to £2 million are charged 0.1%, and there is no charge for assets over £2 million. 

This is also capped at £45 per year for stocks and shares and lifetime ISAs or £200 annually for a self-invested personal pension (SIPP).

A dealing charge of £11.95 for funds, shares and ETFs applies - this may be reduced to £8.95 or less with more frequent share deals.

There are no platform or account fees charged on funds.

AJ Bell pricing

There is a 0.25% account fee for assets up to £250,000 (maximum £3.50 per month for the shares account charge).

The account charge for funds may be reduced for larger assets, falling to 0.1% for the next £250,000 to £500,000 and no charge for funds worth over £500,000.

Other fees include:

• £1.50 regular fund dealing fee.

• £5 share dealing fee.

• No platform or account fees on funds.

AJ Bell is cheaper overall for regular fund investors, thanks to its lower account and dealing fees. Hargreaves Lansdown's fund dealing costs can be higher than AJ Bell's and add up.

Is Hargreaves Lansdown or AJ Bell better? 

Looking beyond the fees, other factors worth weighing up include: 

• Choice: Hargreaves Lansdown offers over 3,000 funds, shares, ETFs and investment trusts. AJ Bell has a smaller fund range (over 2,000) but also offers shares and trusts.

• Tools: Hargreaves Lansdown provides research, fund shortlists and calculator tools, while AJ Bell has minimal tools, although it has stock-screeners, an app and useful ‘how to’ guides and videos.

• Service: Hargreaves Lansdown offers advice, guidance and customer support. AJ Bell is purely an execution-only platform.

• Accounts: Both offer ISAs, SIPPs, general investment accounts (GIAs) and lifetime ISAs.

• Brand: Hargreaves Lansdown has a more established name, while AJ Bell has a growing reputation. Overall, there is no definitively superior platform, as each suits different types of investors.

Which should you choose?

Consider the following when deciding if Hargreaves Lansdown or AJ Bell better meets your needs. 

If you’re prioritising: 

• Low fees: AJ Bell

• A wide fund range: Hargreaves Lansdown

• Investment guidance: Hargreaves Lansdown

• To do your own research and DIY investing: AJ Bell

• Reporting tools and calculators: Hargreaves Lansdown

• A simple trading platform: AJ Bell

• More guidance: Hargreaves Lansdown

• An execution only platform: AJ Bell 

While the above is useful to consider, doing your own research and getting expert financial advice is also important.

A financial adviser can help you create an investment portfolio and strategy based on your unique circumstances and future goals.

Can you have accounts with both Hargreaves Lansdown and AJ Bell?

Yes, you can open a Hargreaves Lansdown and an AJ Bell account. 

Here are some of the potential benefits of holding both: 

• You can get access to a wider range of investments, which is ideal for those looking for a diversified portfolio.

• You can use Hargreaves Lansdown for guidance and AJ Bell for lower fees.

• The ability to compare platforms and switch if needed.

• You can split tax-efficient allowances between multiple ISAs.

The only extra hassle is tracking multiple accounts and paying more in fees overall. 

However, using Hargreaves Lansdown alongside AJ Bell can provide a good combination of research and low costs. 

Which offers better support for long-term, passive investing?

Hargreaves Lansdown and AJ Bell accommodate a long-term passive investing strategy as the former has a large range of index funds and ETFs, while the latter has a smaller but decent index fund selection. 

For completely hands-off investors, Hargreaves Lansdown offers more guidance, fund shortlists and tools to support passively managing your portfolio. But AJ Bell costs less, which may appeal to DIY investors who want a low-cost platform to execute trades. 

So, Hargreaves Lansdown likely suits passive investors who value some guidance, while AJ Bell fits those who prioritise low fees. 

How do their investment philosophies differ?

Hargreaves Lansdown’s philosophy includes: 

• Providing a wide selection of investment options.

• Offering tools and services to help investors with their investment strategy.

• Enabling investors to actively manage their portfolios, so they're in control.

• Providing market insights and fund research so investors can boost their knowledge before investing.

• Developing long term relationships with clients. 

AJ Bell’s philosophy includes: 

• Providing a simple low-cost investment platform.

• An execution-only service with no advice, although investors can get expert financial advice elsewhere to help with their investment strategy.

• Letting investors research and choose their investments, allowing them to have full control.

• Offering basic tools focused on ease of trading.

• Keeping investing simple and hassle-free. 

So, Hargreaves Lansdown aims to equip active investors with tools and guidance, while AJ Bell seeks to strip back investing to just the essentials at a low cost. 

Hargreaves Lansdown suits those who value more guidance, while AJ Bell will appeal to confident DIY investors who want low fees. 

Want help with your investment journey? 

Choosing the right platform is just one part of building a successful investment strategy.

A qualified financial adviser can help you navigate your options, tailor a portfolio to your specific goals and risk tolerance, and keep your investments on track over time.

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Whether you're just getting started or looking to fine-tune your existing strategy, speaking to an adviser can give you the clarity and confidence you need to make smarter financial decisions.

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