Hargreaves Lansdown Review: The UK’s best platform for ETFs?

Conventional wisdom tells us that Hargreaves Lansdown isn’t cheap, and a quick look at the top results for “Hargreaves Lansdown review” confirms this impression. But it’s always worth looking closely at broadly held assumptions. In this case, you might be surprised to learn that for hands-off ETF and share investors, Hargreaves Lansdown is one of the cheapest UK platforms over the long term.

We will revisit this chart further down, but it’s interesting to note from the outset that if you stick to ETFs and shares, and take advantage of auto invest to avoid dealing charges, Hargreaves Lansdown can be legitimately seen as a “low-cost” platform.

Fees aside, its extensive suite of best-in-class resources and the scope of available investments is why Hargreaves Lansdown is the UK’s most popular platform. Think of it as investing not just for building wealth, but also in your financial education and confidence.

This review unpacks everything Hargreaves Lansdown has to offer investors – from its wide-ranging ETF selection and educational content to its user-friendly interface. (We also have a good look at the fees, and dispel some myths along the way.)

Disclaimer: This is an independent and impartial platform review. We may earn a small commission if you click on a link and decide to open an account with Hargreaves Lansdown. There is no obligation and it costs you nothing, but it does help us keep the lights on here so thank you in advance. Capital at risk.

Pros and Cons of Hargreaves Lansdown

Fees and Costs at Hargreaves Lansdown

As noted above, the headline rate of 0.45% in an ISA or SIPP, and the dealing fee of £11.95 per trade make Hargreaves Lansdown look more expensive than its competitors. However, look more closely and for ETF and share investors it’s actually a lot more favourable.

On top of this, they offer a best-in-class user experience and unparalleled resources. So is Hargreaves Lansdown the best value platform for ETF investors? Judge for yourself:

Fee Type	Description
Platform Fee	Stocks and Shares ISA: Up to 0.45% of the value of your shares (capped for shares, including ETFs, at £45 per year in an ISA and £200 in a SIPP) 0.25% for a Lifetime ISA No charge for a Junior ISA No charge for a Fund and Share Account
Dealing Charges	£11.95 per deal (lowered to £8.95 per deal for 10-19 deals per month and £5.95 for 20 or more). If you set up a regular direct debit (which you really should), the dealing charge for purchases is zero. No dealing charge for a Junior ISA.
Annual ETF Charges	Varies for different ETFs, typically ranging from 0.07% to 0.75%. These are the costs of the funds themselves, and you will pay them regardless of which platform you choose.
Transfer Fees	No fee for transferring in or out
Exit Fees	No exit fees for closing the account

Analysis of the Fee Structure

1. Platform Fee: This is a charge for using the Hargreaves Lansdown platform. The fee is 0.45% in a Stocks and Shares ISA, and for ETFs and shares there is a cap of £45 per year or £3.75 per month. This means that once you have £10,000 or more invested it is a low flat rate from then on. If you invest in funds the percentage based fees are uncapped for those investments, so the view that HL is expensive is true in this case. If you like funds, satisfy that urge elsewhere.
   • Worth noting there is no charge for holding ETFs within a standard Fund and Share Account, although no tax-free goodness for you.
2. Dealing Charges: These are the fees charged per transaction. Hargreaves Lansdown’s dealing charges are on the higher end compared to some competitors.
   • They offer reduced rates for investors who make more transactions per month. This could benefit active traders, but if you trade more than a few times a year then you’ll be better off with a commission-free platform.
   • More importantly, they also waive the dealing fee when buying shares when you set up a monthly direct debit with auto invest. This means if you only hold a few index ETFs, you can get away with just a couple of rebalancing trades every year.
3. Annual ETF Charges: These are ongoing charges associated with the specific ETFs and vary depending on the fund. They are nothing to do with HL and are levied by the ETF providers themselves.
4. Transfer Fees: Hargreaves Lansdown does not charge for transferring in from another platform, or out if you decide to change things up. In fact, HL offer a cash back if you transfer you existing investment over (terms apply).
5. Exit Fees: Zero fees to close your account, which is as it should be.
6. Funds: This is where it gets expensive. There is no cap so costs go up with your investments. If you want to invest in funds, look for a capped or fixed-fee platform. Charges are calculated in the following bands:
   • £0 to £250,000 – 0.45%
   • £250,000 to £1m – 0.25%
   • £1m to £2m – 0.1%
   • Over £2m – No charge

Is Hargreaves Lansdown expensive?

Contrary to conventional wisdom, Hargreaves Lansdown can be significantly cheaper over the long term than famously low-cost platforms like Vanguard. How is this possible? The answer lies in the capped fee of £45 per year, or £3.75 per month, which kicks in when your investments are worth at least £10,000. Freetrade is £5.99 a month, and Vanguard’s 0.15%, uncapped until you reach £250,000, meaning the costs keeps growing with your investments. Once you have £30,000 worth of investments, Hargreaves Lansdown is cheaper than Vanguard from then on.

Platform Fee Comparison

• Vanguard’s cap is £375 a year, which means that after you reach £250,000 you’ll be paying £31.25 per month vs Hargreaves Lansdown’s £3.75.
• Interactive Investor have a flat rate of £4.99, rising to £11.99 once you hit £50,000.
• Fidelity have a fee of 0.35% per year, capped at £90. There are dealing charges on top of this, including a reduced charge for automatic investment every month.
• AJ Bell have a competitive fee of 0.25%, capped at £3.50. Dealing fees apply, including a £1.50 fee each month for automatic investments. This is what pushes its costs over Hargreaves Lansdown.
• Freetrade have a simple flat rate of £5.99 per month that never changes. No dealing fees, but the monthly fee pushes it above HL for investors who trade little and take advantage of auto invest.
• Hargreaves Lansdown is the best value of the major UK platforms, with their fee of 0.45% capped at £45 per year, or £3.75 per month, for ETFs and shares. Dealing fees are high so it’s less value for money if you’re an active trader.

Hargreaves Lansdown’s Platform Overview

For a novice ETF investor, the first interaction with an investment platform can be both exciting and daunting. Hargreaves Lansdown’s platform is designed to demystify this experience, making it as seamless and intuitive as possible. Here’s how:

User-Friendly Interface

The platform’s interface is a blend of simplicity and sophistication. It avoids overwhelming users with excessive information or complex jargon. The dashboard provides a clear overview of your investments, real-time market updates, and easy navigation to different sections. There is a lot of information if you need it, but it isn’t overwhelming.

Accessibility

The platform is accessible both via a web browser and through a mobile app, ensuring that you can manage your investments on the go. The app mirrors the web platform, with added convenience for checking your portfolio, reading market news, or executing trades with just a few taps.

Customisation

One of the standout features is the level of customisation available. You can set up your dashboard to display the information most relevant to your interests and investment strategy. For ETF investors, this might mean having quick access to ETF performance charts, news related to specific ETF markets, or alerts on ETFs you’re monitoring.

Tools and Analytics

Hargreaves Lansdown offers a range of tools and analytics that can be invaluable for ETF investors. This includes detailed fund information, historical performance data, and comparison tools to evaluate different ETFs. For those new to the market, these tools provide a deeper understanding of their investments and help in making informed decisions.

Investment Guidance

The platform also offers guidance for investors. This comes in the form of curated lists of ETFs, categorised by performance, sector, or investment strategy, making it easier for novices to find funds that align with their goals. Additionally, there are regular market insights and analysis provided by Hargreaves Lansdown’s experts, offering valuable perspectives on current market trends – if you’re into that kind of thing.

They also offer free guides to help you on your way, such as the one below:

Review of Features for ETF Investors at Hargreaves Lansdown

Hargreaves Lansdown has tailored its platform to cater to a wide range of investors, including those interested in ETFs. For novice investors exploring the realm of ETFs, the platform offers several key features that make it a strong contender:

1. Extensive Range of ETFs: One of the standout features of Hargreaves Lansdown is its vast selection of ETFs. The platform offers access to around 1200 ETFs, covering a diverse range of sectors, from renewable energy to healthcare​​. This extensive range ensures that investors can diversify their portfolios across various industries and regions.
2. Research and Insight Tools: Hargreaves Lansdown provides comprehensive ETF research and insight tools. These tools offer market and company reports, sector reviews, and more, aiding investors in making informed decisions​​. The platform’s expert research team also provides ETF investing ideas, which can be invaluable for novices who may need guidance in selecting suitable ETFs​​.
3. Ready-Made Portfolios: For investors who prefer a more hands-off approach, Hargreaves Lansdown offers ready-made investment portfolios. These portfolios are compiled by in-house experts and cater to various risk appetites and investment goals. This feature is particularly beneficial for novice investors who may not yet have the confidence or experience to build their own portfolios​​. They come at a price, however.
4. Easy Access to ETF Information: The platform ensures that investors have easy access to key information about each ETF, including factsheets and Key Investor Information Documents(KIIDs). This transparency allows investors to drill down on the specifics of each ETF, including its performance, composition, and associated risks.
5. Regular Savings Option: Hargreaves Lansdown also offers a regular savings option, which allows investors to start with as little as £25 a month. This feature is particularly appealing as there is no dealing fee when investing through a direct debit. It’s also a practical way to build a habit of investing and can be used for ETFs as well as other investment vehicles​​.
6. User-Friendly Platform: The platform’s user-friendly interface and accessibility, as mentioned earlier, are a big selling point. The ease of use and clear presentation of information make it less intimidating for those new to ETF investing. The user reviews on Trustpilot wax lyrical about what a joy the platform is to use.
7. Investment Advice and Guidance: Hargreaves Lansdown provides investment advice services, which can be invaluable for beginners. This includes guidance on building an investment portfolio and planning for different financial goals​​.
8. Diverse Investment Options: Beyond ETFs, the platform offers a range of investment choices like shares, bonds, and more, allowing for a well-rounded investment experience. This broad range is beneficial for those looking to expand their investment horizons beyond ETFs in the future​​.

Its combination of a vast selection of ETFs, insightful research tools, user-friendly interface, and investment guidance makes it a comprehensive choice for those starting their investment journey in ETFs.

ISAs

Hargreaves Lansdown Stocks and Shares ISA Review

A tax-efficient way to invest in a wide range of assets including shares, funds, bonds, and more. Investors can use their ISA allowance to invest money without paying tax on any profits or income.

The annual costs discussed above apply here: 0.45%, capped at £45 per year for stocks and ETFs. This means over the long term it is at the cheaper end of the market – less expensive even than Vanguard. The dealing charge is £11.95, so if you have an itchy trigger finger you may want to look for a commission-free platform.

Verdict: For fund investors it’s expensive since the annual platform fee is uncapped. However, for long term ETF and share investors, the Hargreaves Lansdown Stocks and Shares ISA is one of the best value ISAs in the UK.

Hargreaves Lansdown Lifetime ISA

Aimed at helping individuals save for their first home or retirement, the Lifetime ISA allows individuals aged 18-39 to contribute up to £4,000 each tax year, receiving a 25% government bonus on contributions.

Annual charge is lower at 0.25%, and also capped at £45 per year for ETFs and shares. Usual dealing fees of £11.95 apply. Again, the fee cap means that as your investment pot grows, the costs are fixed at £45 per year or £3.75 per month.

Verdict: Because the annual fee is capped at £45 per year, the Hargreaves Lansdown Lifetime ISA is significantly cheaper over the long term than ones offered by most other UK platforms. Along with the tools and resources offered, it’s one of the best value ISAs in the UK.

Junior ISA

A tax-free savings account for children under 18, allowing parents and guardians to invest up to £9000 a year in a range of options with the child gaining access to the funds at 18.

Verdict: The best value Junior ISA in the UK – zero annual fees and zero dealing fees. Combine that with the range of investment options and the tools and resources at your disposal, this makes Hargreaves Lansdown’s Junior ISA the gold standard.

Hargreaves Lansdown SIPP Review

Self-Invested Personal Pensions, tax efficient retirement planning with a government boost of 45% on top as tax relief.

Verdict: The same 0.45% per year to hold stocks and ETFs, however the cap is raised to £200. It is still excellent value – for reference, Vanguard’s cap kicks in later at £375. If you avoid funds and stick to shares and ETFs, the Hargreaves Lansdown SIPP is a great option.

Customer Support and Resources

Hargreaves Lansdown is a superb investment platform to use

I have been using Hargreaves Lansdown for many years and have found the platform really good for me as a client who makes their own investment decisions. The help screens on the website are extremely useful and aid investment decisions relatively easy.
The HL site is easy to navigate and enables the user to find relevant information very quickly.
Your investment portfolio can be viewed with ease and transactions made with equal simplicity.
All in all I have found Hargreaves Lansdown easy to deal with and when I have had the occasional issue the help desk was fantastic.
I have no problem in recommending their services if you are prepared to take the responsibility for your own investment portfolio.

A 2024 Trustpilot review

For novice ETF investors, robust customer support and educational resources are essential. Hargreaves Lansdown offers a comprehensive range of support services and resources designed to assist investors at every stage of their journey.

Support	Details
Customer Service	Hargreaves Lansdown is known for its dedicated customer service. The support team is accessible via phone and email, offering timely and helpful responses. This is particularly beneficial for novice investors who may have frequent queries.
Educational Resources	The platform provides a wealth of educational materials. These resources range from basic investment guides to detailed articles on specific investment themes, along with a financial glossary. Such resources are invaluable for beginners in building their understanding of ETFs and the broader market.
Investment Guidance	For those who need more personalised assistance, Hargreaves Lansdown offers investment guidance services. These services can help tailor investment strategies to individual needs and goals, which is crucial for those new to investing. For a small fee (less than 1%) you can speak to a qualified financial advisor on a one-off or ongoing basis.
Tools and Calculators	The range of tools and calculators available aids in planning and managing investments. This includes calculators for pensions, tax implications, and potential investment returns, helping investors make informed decisions.
Mobile App Support	It doesn’t have all the bells and whistles of the website, but the mobile app allows for easy account management, trading, and access to resources.

Hargreaves Lansdown’s extensive customer support and educational resources provide a solid foundation for novice ETF investors. This support system not only helps in making informed investment decisions but also in understanding the broader aspects of financial planning and market dynamics.

Is Hargreaves Lansdown safe?

Yes. Hargreaves Lansdown is regulated by the Financial Conduct Authority (FCA), and clients are protected by the Financial Services Compensation Scheme. All client money is held on trust as is segregated from the rest of the business. Hargreaves Lansdown is listed on the FTSE and has a healthy cash reserve – it is also a non-trading company so it doesn’t run up liabilities of its own.

It’s also the UK’s largest platform – it’s probably not going anywhere.

Verdict

So, contrary to popular belief, Hargreaves Lansdown is not an expensive investment platform if you are an ETF and share investor. If you dabble in funds then you’ll pay for the privilege, but for long-term, hands-off builders of wealth it is hard to beat even on price. The fact that it is significantly cheaper than famously low-cost platforms like Vanguard, and offers a best-in-class selection of investments and tools, puts it in line to be one of the UK’s best value platforms.