Hargreaves Lansdown is the UK’s leading investment platform, managing about £120 billion for over 1.7 million clients. Founded in 1981, it has grown to become a trusted name in the investment world. This review will look at what Hargreaves Lansdown offers, its strengths and weaknesses, and who might benefit most from using their services.
Hargreaves Lansdown Investment Products and Services
- Hargreaves Lansdown Stocks and Shares ISA Hargreaves Lansdown’s Stocks and Shares ISA is a tax-efficient way to invest up to £20,000 per year. It offers:
• Access to over 3,000 funds and a wide range of UK stocks
• Ability to invest in individual stocks and shares
• Option to choose ready-made portfolios
• Regular investing from just £25 per month - Hargreaves Lansdown Junior ISA In March 2023, Hargreaves Lansdown removed all fees for their Junior ISA, making it one of the most competitive Junior ISAs available in the UK. Features include:
• No annual management charges
• Can be opened with just £100
• Option for family and friends to contribute
- The Hargreaves Lansdown Lifetime ISA is designed for those saving for their first home or retirement. Key points:
• 25% government bonus on contributions
• Can be used for stocks, shares, or cash savings
• Reduced fees introduced in 2023
- Hargreaves Lansdown Fund and Share Account: This is Hargreaves Lansdown’s standard investment account, offering:
• No limit on how much you can invest
• Wide range of investment options including UK stocks and exchange-traded funds
• No platform fee for holding shares
- Hargreaves Lansdown SIPP Hargreaves Lansdown’s SIPP is popular for its flexibility and wide investment choice. Features include:
• Access to over 3,000 funds and individual stocks
• Options for both accumulation and drawdown
• Comprehensive retirement planning tools
- Hargreaves Lansdown Ready-Made Portfolios for those who prefer a hands-off approach, as Hargreaves Lansdown offers ready-made portfolios:
• Choice of risk levels from cautious to adventurous
• Professionally managed and regularly rebalanced
• Lower minimum investment compared to some competitors
- Hargreaves Lansdown Active Savings: This service allows users to manage their cash savings alongside investments:
• Access to competitive savings rates from multiple banks
• Easy switching between accounts
• No additional fees for using the Active Savings account
Hargreaves Lansdown Investment Tools and Resources
Hargreaves Lansdown stands out for its extensive research and educational resources:
• Hargreaves Lansdown’s Wealth Shortlist: A curated list of funds the Hargreaves Lansdown team believes have excellent potential
• Fund Finder: A tool to help investors search and filter funds based on various criteria
• News and Insights: Regular market updates and analysis from in-house experts
• Investment calculators: Tools to help plan for retirement, calculate potential returns, and more
• Hargreaves Lansdown app: Highly rated app for managing investments on the go
Hargreaves Lansdown Fees and Charges
Hargreaves Lansdown’s fee structure is tiered based on the amount invested:
• 0.45% on the first £250,000
• 0.25% on the portion between £250,000 and £1 million
• 0.10% on the portion between £1 million and £2 million
• No charge on the value over £2 million
Additional Hargreaves Lansdown fees:
• Share dealing: £11.95 per trade, reducing to £5.95 for frequent traders
• Fund dealing: No charge
• SIPP drawdown fee: £276 per year if taking income
While not the cheapest option, many users feel the quality of service justifies the cost.
Hargreaves Lansdown User Experience and Customer Service
Hargreaves Lansdown is known for its user-friendly platform and excellent customer service:
• Hargreaves Lansdown website: Clear, intuitive layout with easy access to account information and tools
• Hargreaves Lansdown app: Highly rated on both iOS and Android, allowing full account management
• Customer support: Available via phone, email, and secure messaging 6 days a week
• Educational resources: Webinars, guides, and articles suitable for both beginners and experienced investors
Strengths of Hargreaves Lansdown
- Wide Range of Investment Options: With over 3,000 funds and access to most UK stocks, Hargreaves Lansdown offers one of the broadest ranges of investments in the market.
- Quality of Research and Tools: The platform provides extensive in-house research and user-friendly tools to help investors make informed decisions.
- Great Customer Service: Consistently praised for its knowledgeable and helpful support team.
- User-Friendly Platform: Both the Hargreaves Lansdown website and app are well-designed and easy to navigate.
- Reputation and Stability: As one of the best investment platforms in the UK, Hargreaves Lansdown offers peace of mind in terms of financial stability.
Weaknesses of Hargreaves Lansdown
- Higher Fees: While not the most expensive, Hargreaves Lansdown’s fees are higher than some alternatives like AJ Bell, especially for larger portfolios.
- No Demo Account: Unlike some competitors, Hargreaves Lansdown doesn’t offer a demo account for new investors to practice.
- Limited International Stocks: While offering good access to UK stocks, the platform has limited options for international equities.
Is Hargreaves Lansdown Good for Different Types of Investors?
• New investors: Hargreaves Lansdown is good for those who value guidance and educational resources
• Small portfolios: Investors with smaller portfolios benefit from the percentage-based fee structure
• Diverse investors: Those who prioritize a wide range of investment options and high-quality research
• Service-oriented investors: Investors who value great customer service and are willing to pay a bit more for a premium experience
Is Hargreaves Lansdown Safe?
Hargreaves Lansdown is regulated by the Financial Conduct Authority (FCA) and is a member of the London Stock Exchange. Client money is held separately from the company’s own funds, and investments up to £85,000 are protected under the Financial Services Compensation Scheme (FSCS).
How to Open an Account with Hargreaves Lansdown
To open an account with Hargreaves Lansdown, you’ll need:
• Your National Insurance number
• Debit card details
• Bank account information
The process can be completed online in minutes, and you can start investing with as little as £100 or set up regular investments from £25 per month.
Hargreaves Lansdown vs Competitors
When comparing Hargreaves Lansdown to alternatives like AJ Bell or Interactive Investor, consider:
• Fees: Hargreaves Lansdown tends to be more expensive, especially for larger portfolios
• Investment range: Hargreaves Lansdown offers a wider range of investments than many competitors
• Research and tools: Hargreaves Lansdown provides more comprehensive research and analysis tools
• Customer service: Hargreaves Lansdown is known for its excellent customer support
Conclusion: Is Hargreaves Lansdown the Best Investment Platform for You?
Hargreaves Lansdown offers a comprehensive investment platform with a wide range of products, excellent research and tools, and top-notch customer service. While its fees are not the lowest in the market, many investors find the quality of service justifies the cost.
Hargreaves Lansdown is particularly well-suited for new UK investors or those who value guidance and a user-friendly experience. However, more experienced investors or those with very large portfolios might find better value elsewhere.
As with any investment decision, it’s important to consider your personal financial goals and circumstances when choosing an investment platform. Remember that the value of your investment can go down as well as up, and you may get back less than you initially invested.
Whether Hargreaves Lansdown is the best investment platform for you will depend on your individual needs and preferences. This Hargreaves Lansdown review 2024 aims to provide you with the information you need to make an informed decision.
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