Anyone considering investments in the UK will come across the name Hargreaves Lansdown: it’s one of the oldest and largest providers and an FTSE 100 company.
Hargreaves Lansdown has won many recent awards for their investment services. They were named Share Dealing Customer Satisfaction Winner at the Finder Awards 2023, Best Online Stock Broker at The Personal Finance Awards 2022/2023, and Best Investment App, Best Buy ISA, Best Buy Lifetime ISA, and Best Buy Pension at the Boring Money Best Buys 2023. In addition, they won the award for Best Online/Mobile Access at the Colwma City of London Wealth Management Awards 2023.
But determining whether Hargreaves Lansdown is the best choice for your particular situation will depend on a number of factors, however. How experienced are you, how much are you investing, and which type of tax wrapper do you require?
This article aims to comprehensively review Hargreaves Lansdown, breaking down its features, costs, and services and comparing directly with other similar investment platforms.
We’ll look at both positive and negative factors that might influence your decision.
Our goal is to provide you with valuable insights so you can invest wisely and profitably.
Hargreaves Lansdown Review: My Verdict in 30 Seconds
Hargreaves Lansdown may be the perhaps traditional broker currently available in the UK, with a wide range of investments.
Reputable and well-established, it’s got the feel of a private bank where you get superb customer service and a lot of reliability, though you’ll pay slightly more than average for the privilege, especially when investing larger amounts. It pays interest on cash balances, which is a nice feature.
There are better trading platforms if you’re interested in day trading, but for longer-term investments, HL is excellent.
Reasons to Choose Hargreaves Lansdown is well-established, secure and with a huge range of investment options. The mobile APP and customer service are market-leading, and their educational resources are superb.
Reasons to Avoid – The common complaint with HL is its costs which are higher than many other platforms. Cheaper alternatives for smaller portfolios include eToro, AJ Bell and Vanguard. Those with larger portfolios will find fixed fee platforms such as Interactive Investor or Halifax Share Dealing a cheaper option.
(capital risk applies)
Pros and Cons of Hargreaves Lansdown
Pros
- A wide range of investment options makes it a one-stop shop for investors looking to build a diversified investment portfolio.
- User-friendly: The HL platform is easy to use, even for beginners.
- Strong research and analysis tools: Offers a variety of investment analysis tools, including investment calculators, performance charts, and market data.
- Reliable customer support: HL has a well-regarded customer support team, available via phone or email to help investors with any questions or issues.
- Transparent fee structure: HL’s fees and charges are transparent and easy to understand, with nothing hidden.
Cons
- Relatively high fees – compared to some other investment platforms. This can eat into investment returns over time.
- Limited free fund offerings: Hargreaves Lansdown only offers free trading on funds that are on their Wealth 50 list.
- Limited international trading options: Hargreaves Lansdown’s international trading options are somewhat limited, with only a handful of countries available for trading. This may be a downside for investors looking to build a more global investment portfolio.
- No robo-advisory service: HL does not offer a robo-advisory service, which may be a downside for investors who prefer a more hands-off investment approach.
- Potential for conflicts of interest: HL does generate revenue from the funds and investment products it offers on its platform, which can create potential conflicts of interest for investors.
Hargreaves Lansdown Investment Options
Hargreaves Lansdown Stocks and Shares ISA
Hargreaves Lansdown’s Stocks and Shares ISA offers a wide range of investment options, including access to over 3,000 funds, 1,000 shares and investment trusts.
You can choose from various investment styles and risk levels, from low-risk bonds and gilts to high-risk equities and commodities. The platform also offers an investment research tool, Wealth Shortlist, which provides guidance on which funds to invest in.
Manage the ISA online or through HL’s excellent APP. The platform also provides a solid range of investment analysis tools, including performance charts, portfolio analysis, and market news and insights.
Our Verdict: Overall, the Hargreaves Lansdown Stocks and Shares ISA offers a wide range of investment options and comprehensive research tools, but the relatively high fees can be a downside for some investors.
Hargreaves Lansdown Junior ISA
Hargreaves Lansdown offers a Junior ISA, a tax-efficient way for parents and guardians to save for their child’s future. Here’s what you need to know about the Hargreaves Lansdown Junior ISA:
Fees: Hargreaves Lansdown’s Junior ISA fees are relatively high compared to other investment platforms in the UK. These fees can add up quickly, especially for investors with small portfolios.
Our Verdict: Overall, the Hargreaves Lansdown Junior ISA is deserving of its 5-star review in the Times. Parents and guardians should be aware of the fees, which can be higher than some platforms.
Hargreaves Lansdown Lifetime ISA
Hargreaves Lansdown offers a Lifetime ISA (LISA), a tax-efficient way for UK residents aged 18-39 to save for their first home or retirement. Here’s what you need to know about the Hargreaves Lansdown Lifetime ISA:
Our Verdict: Overall, the Hargreaves Lansdown LISA offers the professional experience you would expect from a top platform and the added bonus of a government contribution. It’s also worth noting that the LISA is a long-term investment, and investments should ideally be made for a minimum of 5 years to maximize potential returns.
Hargreaves Lansdown Fund and Share account
Hargreaves Lansdown’s Fund and Share account is a popular choice. You can open an account online in minutes with just your debit card and National Insurance number. Then view and deal with your investments 24/7 online or with the HL app.
Transfer ISAs and investments to HL, and you could get between £50-£1,000 cashback as a thank you. You can use it to top up your investments, put it towards fees or withdraw it to your bank account.
Our Verdict: Hargreaves Lansdown’s Fund and Share account is well set up and has much to offer. You can customise how you display your holdings, create watchlists, and run virtual portfolios. Its easy-to-navigate interface makes it easy to access a wide range of investment extras, including heaps of original research on FTSE 100 stocks and its Wealth Shortlist portfolio of funds.
Additionally, the platform offers third-party analyst views and offers daily stock market updates, a weekly summary of the latest share insight, and investment trust research updates.
Although not the cheapest option available, Hargreaves Lansdown offers a wealth of research and quality support that is hard to fault. We consider it a top choice for those seeking a mainstream stocks-and-shares provider, especially if you’re willing to pay for access to high-quality research and support provided. There are cheaper platforms, of course, but the typical HL user isn’t looking for that.
Hargreaves Lansdown SIPP
Hargreaves Lansdown is a popular SIPP provider, with 460,000 investors already using the service.
Our Verdict: Overall, it’s a choice that gives you the benefits of the excellent customer service, mobile APP, educational resources and diversity of investments that HL is celebrated for. Some users, especially those with larger portfolios, may find the fees higher than other platforms.
What Other Services Does Hargreaves Lansdown Offer?
n addition to Stocks and Shares ISAs, SIPPs, and Junior ISAs, Hargreaves Lansdown offers a range of other investment and financial services. These include:
- Active Savings: A cash savings account allows investors to earn interest on their cash balances.
- Currency transfers: This service allows investors to transfer money between currencies and provides competitive exchange rates.
- Annuities: Hargreaves Lansdown provides a range of annuity options for those looking to secure a guaranteed income in retirement.
- Investment trusts: Hargreaves Lansdown offers a range of investment trusts, a type of closed-ended fund that invests in a range of assets.
- Free Tools and Investment Advice – Hargreaves Lansdown offers a range of free tools and resources to help investors make informed decisions, including investment research and analysis, investment calculators, portfolio analysis tools, investment guides and articles, and financial advice.
Is Hargreaves Lansdown good for Beginners?
We think Hargreaves Lansdown is a good choice for novice investors, although with a few stipulations.
The platform offers a range of thoughtful educational materials, such as videos and guides, to help beginners learn about investing. There are also plenty of account options, including ‘expert-managed investment, the HL Ready Made Investments service that handles your investments on your behalf, so you don’t have to worry too much once you begin.
Their tiered fee system is also cost-effective for smaller pots, becoming less so once you cross the £30k barrier.
Additionally, HL offers regular webinars catered to both beginners and experienced investors, covering topics such as gaining confidence in investment approaches, inheritance, passing wealth to loved ones, and retirement preparation.
What Products Does Hargreaves Lansdown Offer?
| Service | Description |
|---|---|
| Stocks and shares ISAs | Invest up to £20,000 tax-free, per the 2022/2023 tax year allowances. Get started from as little as £100. |
| Lifetime ISA | A type of ISA that allows UK residents under 40 to save up to £4,000 per year towards a first home or retirement, with a government bonus of 25% on contributions. |
| Junior ISA | A tax-free savings account that parents or guardians can open for children under 18 to help them save for their future. |
| Self-Invested Personal Pension (SIPP) | A pension scheme that allows UK residents to choose their own investments, giving them greater control over their retirement savings (ideal if you’re saving for your pension pot). |
| Junior SIPP | A SIPP designed for children under 18 that allows parents or guardians to invest on their behalf, helping them save for their retirement. |
| Active Savings account | A savings account that allows Hargreaves Lansdown clients to earn competitive interest rates by depositing their savings with a range of partner banks. |
| Cash ISA | An Individual Savings Account that allows UK residents to save tax-free in cash deposits with a range of partner banks. |
| Currency Transfers | A service that allows clients to transfer money between currencies, helping them to manage their currency risk when investing or travelling abroad. |
What are the Hargreaves Lansdown Fees & Charges?
| Service | Stocks and Shares ISA | Self-Invested Personal Pension (SIPP) |
|---|---|---|
| Annual account fee | 0.45% for accounts up to £250,000; 0.25% for accounts between £250,000 and £1m; no charge for accounts over £1m | 0.45% for accounts up to £250,000; 0.25% for accounts between £250,000 and £1m; no charge for accounts over £1m |
| Fund dealing charge | Free for online trades in Hargreaves Lansdown’s Wealth 50 list of preferred funds; £11.95 per online trade for all other funds; other charges may apply for telephone trades, regular savings, or fund switches | Free for online trades in Hargreaves Lansdown’s Wealth 50 list of preferred funds; £11.95 per online trade for all other funds; other charges may apply for telephone trades, regular savings, or fund switches |
| Share dealing charge | £11.95 per online trade; other charges may apply for telephone trades or regular savings | £11.95 per online trade; other charges may apply for telephone trades or regular savings |
| Foreign exchange fee | 1% charge for converting currency for overseas trades | 1% charge for converting currency for overseas trades |
| SIPP drawdown fee | N/A | £276 per year for income drawdown, plus additional charges for taking ad-hoc lump sums or other withdrawals |
Are Hargreaves Landsdown Fees too High?
The most common criticism of Hargreaves Lansdown concerns the fees, which are indeed higher than many. That said, if you’re investing for a pension – perhaps putting money into trusts every month as opposed to actively trading, the sums are not that significant. Since HL is the UK’s biggest platform, we can conclude that most people aren’t overly concerned about this side of things and are happy with the high level of customer service you pay for.
Of course, if you’re an active trader, there are much better platforms available in terms of both fees and functionality. HL is ideal for long-term investors building a pension or ISA.
Hargreaves Landsdown app review
The Hargreaves Lansdown app has a 4.1-star rating on Google Play based on 12.3K reviews. It has been downloaded more than 500K times. On Apple Store, it is ranked #87 in Finance and has a 4.7-star rating based on 47.9K ratings.
We spent a fair bit of time exploring the HL app with the following conclusions. On the one hand, the app works efficiently, and we have never experienced any stability or crashing issues, unlike some other users who have reported problems. As such, buying, selling, and checking your balance is perfectly adequate.
On the other hand, there are a number of areas where the app could be improved. For example, the deal button is far too close to the navigation bar, which can lead to accidental trades. Additionally, some of the feeds don’t reformat well for mobile screens, and there are a limited number of things you can do from the app, which can be frustrating. Despite these issues, we find the app useful for most regular investment activities.
What’s the Customer Service Like?
Hargreaves Lansdown offers a highly-regarded customer support team of UK-based representatives who can help via phone or email. They currently do not use live chat, which may be off-putting to younger users.
The phone lines are 8-5 pm, and Saturday morning, 9:30 am-12:30 pm.
You can also book an in-person meeting with an HL financial advisor at their London office or via telephone with one of their Bristol representatives.
I have had multiple interactions with them over the years and it’s always been prompt, knowledgeable and efficient. Hands down one of the best in the industry.
Hargreaves Lansdown Reviews
Hargreaves Lansdown receives excellent reviews on Trustpilot, with a current score of 4.1 stars over 8799 reviews.
59% of users award the platform 5 stars, citing a ‘helpful’, ‘professional’ and ‘efficient service.’
15% of users give negative reviews of only 1 star, citing ‘poor service’ and ‘long phone wait times.
Which Magazine scores it with 70%, placing it 5th out of the 15 investment platforms they looked at.
The reviews for the Hargreaves Lansdown app on Google Play present a mixed picture, with a variety of perspectives and experiences shared by users. Overall, the app has a rating of 4.2 stars from 13.2K reviews, indicating a generally positive reception but with notable areas for improvement.
Key Positive Points:
- Ease of Trading and Transparency: Users appreciate the straightforward trading process and the clear breakdown of trading costs.
- Consolidated Account Viewing: The app is praised for its ability to display various account types (ISA, Savings, Stocks and Shares) in one place.
- Simple and Informative Interface: Several users find the app well-designed, responsive, and helpful for monitoring portfolios and making investment decisions.
- Information Availability: The app provides detailed information on a wide selection of funds, aiding in the evaluation of historic performance.
Key Criticisms:
- App Stability and Performance Issues: Common complaints include the app being slow, unresponsive, or prone to crashing. Issues with loading times, connection errors, and unreliable price updates are frequently mentioned.
- Limited Functionality: Users express dissatisfaction with the lack of certain features such as advanced search options, the ability to delete individual companies from watchlists, and the absence of functionalities available on the website.
- Login and Accessibility Problems: Several reviews highlight difficulties with the login system, especially for users with poor phone signal, as the app requires a code sent via text message.
- Outdated Technology: Some users feel that the app technology is outdated, comparing it to apps from a decade ago, and calling for updates to improve its responsiveness and modernity.
- Commission and Fees: There are complaints about the commission structure, with some users considering it high, especially for beginner investors.
The Hargreaves Lansdown app on the Apple Store, ranked #83 in Finance, exhibits a notably higher customer satisfaction level with a rating of 4.7 out of 5 stars from 51.6K ratings. This suggests a generally favourable user experience among iOS users.
Is Hargreaves Lansdown safe?
Yes, it is completely safe and trustworthy.
Hargreaves Lansdown is a reputable company regulated by the Financial Conduct Authority (FCA) and is a member of the Financial Services Compensation Scheme (FSCS), which provides compensation of up to £85,000 to eligible customers if the company becomes insolvent. Of course, like any investment platform, it comes with risks.
HL’s security page mentions a ‘very conservative approach to accounting’, ‘ISA and SIPP procedures… independently assessed by HM Revenue & Customs,’ and that ‘Unit trusts and OEICs use a trustee or depositary to protect investors.’ They clearly take the safety and security of their client’s money very seriously.
Are Hargreaves Landsdown Good for Beginners?
Hargreaves Lansdown is a good choice for beginners. It’s easy to open an account, and the platform has a wide range of educational materials to explain how it all works and the basics of investing.
There is no demo account, which would be a useful option, but this is understandable since HL is more of an investment than a trading platform.
Hargreaves Lansdown’s educational materials include a trading platform tutorial and educational videos, but a demo account would be a helpful addition.
Customer service is highly responsive and provides relevant answers via phone or email support.
The deposit and withdrawal processes are attractive for new traders with low minimum deposits, free withdrawals, and no deposit fee.
Overall, Hargreaves Lansdown is a solid choice for beginners, but there is room for improvement in some areas.
(capital risk applies)
Hargreaves Lansdown FAQs
Can I transfer my existing investments to Hargreaves Lansdown?
Yes, you can transfer existing investments to Hargreaves Lansdown either online or by sending a transfer form by post. Transfer pensions, ISAs, or investments; you could even get cashback as a thank you.
How do I open an account with Hargreaves Lansdown?
To open an account with Hargreaves Lansdown, you can apply online or by phone. You’ll need to provide personal information and select the type of account you want to open.