St James’s Place vs Hargreaves Lansdown: what’s the difference?
Uncover the key differences between St James’s Place and Hargreaves Lansdown to find the right fit for your investment needs.
Summary
- St James’s Place focuses on tailored advice and actively managed funds, while Hargreaves Lansdown aims to empower DIY investors with greater flexibility.
- Fees for St James’s Place include an initial charge of up to 5%, plus annual management fees ranging from 1.6% to 1.9%.
- Hargreaves Lansdown’s fees are competitive, with a 0.45% annual charge for up to £250,000 of funds (this fee is lower for higher fund balances) and no inactivity fee.
- Hargreaves Lansdown offers access to over 3,000 funds, exchange-traded funds (ETFs), and shares, while St James’s Place provides a more curated selection of actively managed options.
What is the difference between St James’s Place and Hargreaves Lansdown?
St James’s Place and Hargreaves Lansdown are two heavyweights in the UK investment space, but they operate quite differently.
St James’s Place focuses on wealth management, offering personalised advice through its network of advisers. In contrast, Hargreaves Lansdown is all about giving DIY investors the tools to take charge of their own portfolios.
Their philosophies also couldn’t be more distinct. St James’s Place focuses on tailored, face-to-face advice and actively managed funds. In contrast, Hargreaves Lansdown prioritises accessibility and cost-efficiency, offering access to thousands of funds, shares, and ETFs.
Geographically, both firms cater predominantly to UK investors but with some global reach through different investment options. St James’s Place tends to cater to high net worth individuals, while Hargreaves Lansdown serves a broader demographic, including beginners and seasoned investors.
When it comes to product offerings, St James’s Place leans heavily on actively managed funds and structured products. Hargreaves Lansdown gives more flexibility, with over 3,000 funds, ETFs, and shares to choose from.
Fees also vary significantly. Fees for St James’s Place reflect their premium advisory model, while Hargreaves Lansdown’s fees are far more competitive for those who are happy to manage their investments themselves.
St James’s Place vs Hargreaves Lansdown: how do the fees compare?
Here’s how Hargreaves Lansdown’s fees compare to those charged by St James’s Place:
St James’s Place fees
Fees for St James’s Place are designed to cover the cost of personalised advice and active fund management.
Typically, you’ll pay an initial product charge of up to 5% on your investment, followed by ongoing annual management fees of between 1.6% and 1.9%. For example, if you invested £5,000, you would face an upfront charge of £250, plus annual fees of between £80 to £95, depending on the fund.
While these fees may seem steep, they support the high level of guidance clients receive through their advisers and customer service from St James’s Place, which is known for providing a hands-on experience and building long-term relationships.
This personal approach ensures clients receive tailored solutions aligned with their goals, which many investors value.
Hargreaves Lansdown fees
Hargreaves Lansdown’s fees are more straightforward and wallet-friendly for those managing their own investments.
The platform charges a 0.45% annual fee for holding funds of up to £250.000, capped at £45, while there are no dealing fees for shares and ETFs. For funds of £250,000-£1 million, the annual fee is 0.25%, which falls to 0.1% for £1 million-£2 million.
There is no charge for funds of over £2 million and no opening fees to get started, making it easy for investors to build their portfolios without upfront costs. For example, a £5,000 investment in a fund would cost just £22.50 per year in platform fees.
There may be a minimum investment depending on the Hargreaves Lansdown account you choose and if you decide on investing a lump sum or monthly.
Trading fees are set at £11.95 per transaction for up to nine deals in the previous month, falling to £8.95 for 10-19 deals and £5.95 for 20 or more. There are no inactivity fees, making Hargreaves Lansdown an attractive choice for cost-conscious investors.
Is Hargreaves Lansdown or St James’s Place better?
Deciding which option is better when comparing Hargreaves Lansdown and St James’s Place depends on your needs and various factors, including:
Range of investments
When it comes to investment range, Hargreaves Lansdown and St James’s Place is an easy comparison.
Hargreaves Lansdown offers more than 3,000 funds, shares, and ETFs, giving investors the freedom to build diverse portfolios. St James’s Place, however, focuses on actively managed funds and a more curated range of investment products.
Research and guidance
Hargreaves Lansdown equips DIY investors with excellent tools such as portfolio trackers, interactive calculators, and in-depth research. On the other hand, St James’s Place provides hands-on guidance, helping clients navigate complex financial goals with expert advice.
For day-to-day support, St James’s Place customer service is tailored and relationship-driven, ensuring clients feel supported at every stage of their investment journey. Hargreaves Lansdown, while less personal, has a strong reputation for offering responsive and helpful customer support for investors managing their portfolios online.
Brand reputation
Both firms are highly respected but for different reasons.
St James’s Place is well-known for its bespoke financial advice and premium services, while Hargreaves Lansdown's customer service and transparent fees make it a go-to platform for DIY investors.
Can you open accounts with both St James’s Place and Hargreaves Lansdown?
Yes, you can have accounts with both firms at the same time. This can be particularly beneficial if you want to enjoy the personalised support from St James’s Place alongside the flexibility of managing your own investments through Hargreaves Lansdown.
However, having accounts with both platforms does come with added complexity.
You’ll need to monitor two fee structures, different platforms, and potentially overlapping investments, as well as understand any potential tax liabilities.
While this approach offers diversification and the best of both worlds, it’s worth carefully weighing the additional costs and administrative effort involved.
Which is better for passive, long-term investing?
For passive, long-term investors, Hargreaves Lansdown services may be more ideal. Its range of low-cost index funds and ETFs, combined with transparent fees, makes it ideal for a buy-and-hold strategy.
St James’s Place, while excellent for tailored advice, focuses more on actively managed funds. These can have higher costs that may reduce returns over the long term for investors.
How do their investment philosophies differ?
Here’s how St James’s Place and. Hargreaves Lansdown's approach to investment differs:
The philosophy of St James’s Place
The philosophy behind St James’s Place is all about building relationships and delivering tailored advice.
The firm prioritises active fund management and bespoke strategies, making it suited to investors who value guidance and expertise over hands-on control.
The philosophy of Hargreaves Lansdown
Hargreaves Lansdown’s philosophy focuses on empowering individuals to take charge of their investments, focusing on accessibility, flexibility, and transparency.
The firm’s tools and extensive range of funds cater to those who prefer independence and control over their investment decisions.
Get expert financial advice
Choosing between Hargreaves Lansdown and St James’s Place ultimately depends on your investment style and priorities.
St James's Place may be the right fit if you prefer personalised advice, active fund management, and a hands-on relationship with an adviser. However, if you value cost-efficiency, flexibility, and tools to manage investments independently, Hargreaves Lansdown is a strong choice.
Both firms offer excellent services; the decision depends on what works best for your financial goals.
Let Unbiased match you with a professional financial adviser to help you achieve your long-term investment goals with a tailored strategy.
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