St James’s Place vs Hargreaves Lansdown: what’s the difference?

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 via 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 are higher, reflecting 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%, but these fees will change from 26 August.

From 26 August 2025, a controversial early withdrawal charge was removed. There is now an initial advice charge of:

• 3% on the first £250,000 investment

• 2% on the next £250,000

• 1% on investments of over £500,000

There’s also an ongoing charge of 0.8% (rising from 0.5%) on the value of your account for advice.

If St James’s Place is managing a product, you’ll have a 0.27% charge for unit trusts and individual savings accounts (ISAs) and 0.35% for pensions and investment bonds, which is lower for large investments.

A fee of between 0.09% and 0.69% applies to most of St James’s Place funds.

As an example, the fund charge on the Polaris 3 fund is 0.52% and the total ongoing charge for it would be 1.59% within an ISA or 1.67% within a pension, once product and advice charges are also taken into account.

These fees 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.

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, while there are no dealing fees for shares, investment trusts, gilts, bonds, and ETFs. For funds of £250,000 to £1 million, the annual fee is 0.25%, which falls to 0.1% for £1 million to £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.

There may be a minimum investment depending on the Hargreaves Lansdown account you choose, and if you decide to invest 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 to 19 deals and £5.95 for 20 or more. There are no inactivity fees.

If you want advice on your investments, Hargreaves Lansdown offers a financial planning and investment advice service. This typically costs 1%-2% of the amount you are investing.

This is a separate advice service and not an integral part of Hargreaves Lansdown’s proposition, as it is with St James’s Place.

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 are easy to compare.

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 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 responsive and helpful customer support for investors managing their portfolios online. Advice is also available at additional cost, if required.

Brand reputation

St James’s Place is well-known for its bespoke financial advice and premium services; however, it has been criticised for its high charges, including exit fees (which have since been scrapped).

Hargreaves Lansdown has a reputation for strong customer service and transparent fees, which make it a go-to platform for DIY investors. However, it isn’t the cheapest investment platform available.

Can you open accounts with both St James’s Place and Hargreaves Lansdown?

Yes, you can have accounts with both firms simultaneously. This might appeal 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’s services may be better. Its range of low-cost index funds and ETFs, combined with transparent fees, makes it ideal for buy-and-hold investors.

St James’s Place, while it has the benefit of tailored advice, focuses more on actively managed funds. These can incur higher costs, which 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.

Although if you want ad hoc or ongoing advice from Hargreaves Lansdown, it is available at an additional cost.

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.