Hargreaves Lansdown Review: how they work, fees, pros and cons

If you've ever considered an investment platform or a stockbroker in the UK, I'm sure you would have heard the name Hargreaves Lansdown platform. The Hargreaves Lansdown is one of the traditional broker platforms and a member of the London's Financial Times Stock Exchange 100 index (FTSE 100), managing about £120 billion.

Hargreaves Lansdown Review

But considering any platform best for your choice of investment depends on how experienced you are, your investment volume, and the type of tax required for the investment. And we're here to help you out on this mission.

This review guide provides an unbiased view of the Hargreaves Lansdown platform, breaking down its key features, commission and fees, product assets, customer reviews, and our expert verdict.

What is Hargreaves Lansdown, and How do they Work?

The Hargreaves Lansdown is one of the biggest UK financial companies founded on 1 July 1981 and has since risen to a company now listed on the London Stock Exchange as a constituent of the FTSE 100 index. It's trusted with over £120 billion worth of investment from 1.7 million clients.

Established in Bristol, UK, it provides broker services to all UK citizens. The company sells funds, shares, and related products in the UK, Canada, and other European countries to retail investors, enabling them to hold different investments together in one place.

Hargreaves Lansdown provides you with an account to hold and transact your investment. With the account, they provide you access to all investment options, trading tools, market updates, and transaction calculators to enhance your experience.

As an account holder, Hargreaves Lansdown provides an excellent and user-friendly online trading application that allows you to monitor your portfolio and perform all transactions. The application is compatible with iOS and Android mobile devices.

The broker's website is straightforward, easy to navigate, and provides informative investment guides and market updates.

Although Hargreaves Lansdown is a leading member of the UK's financial service, it has a relatively high cost and percentage-based commission fees for transactions, which is much for larger portfolios and doesn't encourage investors with smaller portfolios to join. This downside is where the new generation broker platforms like Freetrade, eToro, and ActivTrades exploit to provide broker services.

Overall, Hargreaves Lansdown is a trusted and safe broker with over 3,000 funds, corporate and government bonds, ETFs, and shares listed on the UK, Canadian and European stocks.

Main Features of Hargreaves Lansdown Platform

The table below provides a quick summary of the major features of Hargreaves Lansdown plc:

Main FeaturesDescription
RegulationRegulated by the UK's Financial Conduct Academy (FCA)
Markets and AssetsFunds, Shares, Investment trusts, Exchange-traded Funds (ETFs), Gift and corporate bonds, and Casg
Financial Compensation Claims in case of bankruptcyUp to £85,000
Account types/ ProductsStocks and shares ISA Share dealing account Lifetime ISA (LISA) Self-invested personal pension (SIPP) Junior SIPP Junior ISA (JISA) Active Savings
Minimum DepositMinimum deposit for HL Fund and Share Account is £1 Minimum sum investment into the Fund is £100
Deposit methodDebit card and Bank transfer
Deposit and Withdrawal FeeZero fee
Trading PlatformProprietary in-app and web-based trading platform
Base CurrencyPound Sterling
Foreign Currency ExchangeFirst £5,000 – 1% FX charge Next £5,000 – 0.75% FX charge Next £10,000 – 0.50% FX charge Over £20,000 – 0.25% FX charge

Is Hargreaves Lansdown Safe? | Regulations and Guarantee

You've worked hard for your savings, and you're entitled to know about the security of your investment. The Hargreaves Lansdown is regulated and authorized by the UK's Financial Conduct Authority (FCA) as an electronic money institution. This authorization certifies the financial institution as a body that conducts business according to the FCA rules.

Once you deposit your money in a Hargreaves saving product, it's covered by the Financial Service Compensation Scheme (FSCS). This is important because should the platform fail or cease trading, FSCS can award you up to £85,000 as compensation if they confirm that your investment is in default and cannot satisfy any claim against it.

Also, all investor money is in a segregated bank account from the company's fund per the FCA rules and regulations. This implies that any creditor of Hargreaves Lansdown Limited has no legal right to it, and the company is not obligated to use the money to cover its loss.

In addition, Hargreaves Lansdown has a treasury committee that oversees the management of clients' funds within the FCA's regulatory system, together with the selection, appointment, and ongoing monitoring of third-party institutions used to hold clients' money and assets.

Hargreaves Lansdown protects and holds your stock in a nominee account with you or any approved third-party custodian as the beneficial owner. The Hargreaves Lansdown Nominees Limited is a non-trading company. It so cannot run its liabilities, and Hargreaves Lansdown accepts total liabilities for any default in the nominee company.

Overall, all regulations, authorities, and committees in place ensure the safety of your investment, whether you own a pension, stock, or savings account. Therefore, the Hargreaves Lansdown is a haven to keep your money and invest in stocks.

Is Hargreaves Lansdown Reliable? | Regulations and Guarantee

As a licensed financial institution by the UK Financial Conduct Authority (FCA), Hargreaves Lansdown is a reliable platform, and financial experts can vouch for their reliability as they are one of the UK's traditional financial platforms.

Also, if the institution stops trading or fails in its primary duties, all clients' money is safe and will be returned to individuals since they are not together with the company's fund.

In addition, your Hargreaves Lansdown secures your account with electronic and procedural measures to keep you safe. They include secure encryption and validation, two-factor authentication (2FA), and deactivating your account's secure number after many incorrect attempts.

These conditions make Hargreaves Lansdown Limited a reliable platform to put your money.

Major Financial Assets Hargreaves Lansdown

Hargreaves Lansdown insight

Hargreaves Lansdown Limited, as a broker platform and financial institution, offers different forms of individual savings and pension accounts with lots of access to different assets.

Here is a detailed list of assets Hargreaves Lansdown gives you access to:

Funds

Funds are investments that pool money from many individuals and fund managers and use the fund to invest in a wide range of shares and bonds. Each investor is issued units that equate to their holdings of the funds.

Hargreaves Lansdown offers over 3,000 unit Trusts and OEIC from trusted fund managers with market-beating savings and discounts. They also provide a free analysis and updates from the Hargreaves Lansdown research team.

You can hold funds within Hargreaves Lansdown Stock and Shares ISA, Junior ISA, SIPP, and Fund and Share Account. There are no buying and selling commission charges.

Shares

Hargreaves Lansdown allows you to purchase a representative part of a company and gain from the company's profit as dividends. They offer low-cost UK, Canadian, US, and European shares with free comprehensive information and emails about the share.

In addition, the financial institution provides free limit orders and stop losses for your shares with no share buying and selling commission fee.

Exchange Traded Funds

Exchange-traded funds are funds traded on a stock exchange and are primarily used to track the performance of a share or bond index and commodities. They are traded like shares as they are listed investments.

Hargreaves Lansdown provides investors with over 1,300 exchange-traded funds and other related products with free limit orders, stop losses, and no annual management cost. In addition, the financial platform charge per ETF dealings in the previous month

ETF Dealing Charges

The ETF dealing charges depends on how often you trade ETF. The table below shows details about the number of dealings.

Deals in the Previous MonthDealing Charge
0-9 deals in the previous month£11.95 per deal
10-19 deals in the previous month£8.95 per deal
20 or more deals in the previous month£5.95 per deal

Investment Trusts

An Investment Trust is a type of fund company set up so that you can buy their shares on the stock exchange market. They aim to make profits for their shareholders by investing in a portfolio of shares, property, and other assets.

Hargreaves Lansdown offers over 400 Investment Trusts and Real Estate Investment Trusts (REIT) with free limit orders and stop losses.

Gilt and Corporate Bonds

When you buy bonds, you borrow the company or government money they invest and receive interest.

Gilts are UK government bonds that are provided to help public spending. They work just like bonds.

Hargreaves Lansdown gives you access to over 700 Corporate Bonds and Gilts with no annual management cost.

Cash

Hargreaves Lansdown allows you to open your account with a cash deposit and pick an investment later. Your cash deposit is safe and grows with increased rates.

Types of Hargreaves Lansdown Account and Charges Associated

Hargreaves Lansdown Account Types
Hargreaves Lansdown Account Types

Hargreaves Lansdown accounts are categorized as Individual Savings Accounts (ISAs) and Pension and Retirement Accounts.

These two categories contain different types of accounts, they include:

Individual Savings Account

  • Stock and Shares ISA
  • Lifetime ISA (LISA)
  • Junior ISA (JISA)

Pension and Retirement Accounts

  • Self-invested Personal Pension (SIPP)
  • Junior SIPP
  • Retirement
  • Annuities
  • Drawdown

Now, let's discuss the accounts in detail

1.     Hargreaves Lansdown Stock and Shares ISA

A Stock and Share ISA account is a popular investment account in the UK that allows you to save up to a particular amount each tax year without incurring tax. In 2023/2024 (6 April 2023 to 5 April 2024), you can deposit up to £20,000 to your ISA account.

With the funds deposited in the ISA account, you can invest it in any stocks and shares.

The Hargreaves Lansdown stock and shares ISA gives clients access to ready-made investments, over 3,000 funds, UK and overseas shares, Investment trusts, bonds, and ETFs. The platform also provides investment research tools, wealth lists, and market updates to give proper guidance on investing.

The Hargreaves Lansdown stock and share ISA ready-made portfolio contain assets based on your risk appetite. Their financial expert will buy and sell investments for you. For this package, you can only start with £1,000.

Conversely, you can control your investment portfolio by determining the asset you want to invest in. You can decide which share to buy and sell, and with the help of Hargreaves Lansdown research, you can decide.

You can start the DIY Hargreaves Lansdown stocks and shares ISA with £100 or £25 monthly.

Key Features of Hargreaves Lansdown Stock and Shares ISA

  • Tax-free investment growth, withdrawal, and deposit
  • Minimum amount to get started is £100 lump sum or £25 per month through direct deposit.
  • Maximum contribution for this tax year is £20,000

Hargreaves Lansdown Stock and Shares ISA Charges

If you hold funds or assets in your ISA account, these charges apply:

Value of FundsCharges
On the first £250,0000.45%
On the value between £250,000 and £1 million0.25%
On the Value between £1 million and £2 million0.1%
On a value over £2 millionNo charge

If you hold any shares, including UK and overseas shares, investment, exchange-traded funds, VCTs, gilts, and bonds, Hargreaves Lansdown charges 0.45%, capped at £45 annually.

2.     Hargreaves Lansdown Lifetime ISA (LISA)

The lifetime ISA program is a flexible approach to saving and investing for your first home purchase or retirement. Like other ISAs, it's a tax-free savings and investment account available for individuals between 18 and 39. Once you open the account, you can make contributions and get the bonus until age 50 each tax year

With the Hargreaves Lansdown LISA, you can save cash or invest in the stock market with an extra 25% bonus from the government up to £1,000 each tax year. This implies that you can contribute up to £4,000 each tax year and receive a government bonus of 25% to purchase your first house.

You can withdraw the LISA savings after 12 months from the first payment and use it to make an eligible purchase of your first housing property worth up to £450,000 or less.

If you want to take the money out before retirement (before you're 60) and not buy your first home, you will be charged a 25% government fee.

It's important to know that the Lifetime ISA allowance of £4,000 forms part of the tax-free £20,000 ISA allowance for each tax year. Remember, tax rules may change, and the maximum ISA deposit depends on the circumstances.

Key Features of Hargreaves Lansdown Lifetime ISA

  • Tax-free cash and investment growth with a 25% government bonus on any contribution
  • Tax-free withdrawals when buying your first home or at retirement age (age 60)
  • Minimum amount to get started is £100 lump sum or £25 per month through direct deposit.
  • Maximum deposit of £4,000 per year until age 50

Hargreaves Lansdown Lifetime ISA Charges

Value of FundsCharges
On the £1 million0.25%
On the value between £1 million and £2 millions0.1%
On a value over £2 millionNo charges

If you hold shares, including UK and overseas shares, investment trusts, ETFs, VCTs, gilts, and bonds, Hargreaves Lansdown charges 0.25%, capped at £45 per year.

3.     Hargreaves Lansdown Junior ISA (JISA)

Hargreaves Lansdown offers junior ISA, a tax-efficient account to save and invest for children under 18. Any return from the investment is free from UK income and Capital gain tax.

As a parent or legal guardian, you can start a Junior ISA for your child, and even friends and family can add money to the account. When your child turns 18, they can access the money or investments.

With the Junior ISA, you can choose investments, including funds, shares, bonds, and trusts.

You can invest up to £9,000 in a junior ISA according to the 2023/2024 tax year rule.

In addition, Hargreaves Lansdown Junior ISA is free, no commission or charges, so that your kid will have the full benefit for their future.

Key Features of Hargreaves Lansdown Junior ISA

  • Tax-free investment growth and tax-free withdrawal from age 18
  • Minimum amount to get started is £100 lump sum or £25 per month through direct deposit.
  • Maximum contributions is up to £9,000 in the 2023/2024 tax year

4.     Hargreaves Lansdown Self-invested Personal Pension (SIPP)

A Self-invested Personal Person is a type of retirement account that allows you to take charge of all the dealing associated with the investment. Here, you can invest where you want to and control how much goes into the investment.

With all these liberties, you have the same tax advantage as a traditional pension account, and the government will still give you a tax relief boost of up to 45% (or 47% if you're a Scottish ratepayer).

 Hargreaves Lansdown offers you a SIPP account, and if you don't know whether an investment is right for you, they have advisers to help you. This service requires an additional fee.

  Key Features of Hargreaves Lansdown SIPP

  • Tax-free growth and up to 45% tax relief on contributions if under the age of 75 and up to 47% for Scottish taxpayers
  • Up to 25% can be withdrawn tax-free. The rest is taxed as income
  • Minimum amount to get started is a £100 lump sum or £25 per month through direct deposit.
  • You can invest as you earn, usually up to £40,000 per year
  • UK residents are eligible

Hargreaves Lansdown SIPP Charges

Value of FundsCharges
On the first £250,0000.45%
On the value between £250,000 and £1 million0.25%
On the Value between £1 million and £2 million0.1%
On a value over £2 millionNo charge

If you're holding shares, including UK and overseas shares, investment trust, ETFs, VCTs, gilts, and bonds, Hargreaves Lansdown charges 0.45% at £200 per year.

5.     Hargreaves Lansdown Junior SIPP

The Junior SIPP is a personal pension you can start on behalf of your child to give them a head start in life. It's similar to regular SIPP but only differs in that parents or legal guardians manage the account until the child turns 18.

The Hargreaves Lansdown SIPP works much like the Junior ISA and SIPP combination. There's an allowance per child each tax year, of which the government will receive 20% tax relief.

The child won't have access to account management until they are 18.

  Key Features of Hargreaves Lansdown Junior SIPP

  • Tax-free investment growth with no UK tax on his investment income
  • 20% boost from the government, and up to 25% can be withdrawn tax-free. The rest is taxed as income
  • Minimum amount to get started is £100 lump sum or £25 per month through direct deposit.
  • Maximum contributions is £3.600 per year including £720 tax relief
  • UK residents are eligible

Hargreaves Lansdown Junior SIPP Charges

Value of FundsCharges
On the first £250,0000.45%
On the value between £250,000 and £1 million0.25%
On the Value between £1 million and £2 million0.1%
On a value over £2 millionNo charge

If you're holding shares, including UK and overseas shares, investment trust, ETFs, VCTs, gilts, and bonds, Hargreaves Lansdown charges 0.45% at £200 per year.

6.     Hargreaves Lansdown Fund and Share Account

The Hargreaves Fund and Share account is designed to help investors build their portfolios. It's an easy online service that lets you buy and sell over 3,000 shares, investment trusts, exchange-traded funds, and bonds.

You can build your portfolio or contact Hargreaves Lansdown financial experts for advice.

  Key Features of Hargreaves Lansdown Fund and Share Account

  • Tax-free dividend allowance, capital gain tax allowance, and personal savings allowance
  • Minimum amount to open is £1 or £25 per month through Direct Deposit
  • Maximum contribution is unlimited
  • UK and EEA residents are eligible

Hargreaves Lansdown Fund and Shares Account Charges

Your Hargreaves Lansdown fund and shares account charges depend on whether you hold funds or shares. The activity charges are:

For Shares

There is no charge for holding shares, including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts, and bonds.

For Funds
Value of FundsCharges
On the first £250,0000.45%
On the value between £250,000 and £1 million0.25%
On the Value between £1 million and £2 million0.1%
On a value over £2 millionNo charge
Fund Dealings

There is no charge for buying and selling funds, but for online and mobile app share dealing, Hargreaves and Lansdown charge per deal. The charges include:

Number of deals in the previous monthCharge per deal
0-9£11.95
10-19£8.95
20+£5.95

Note: There is an added foreign exchange charge for overseas share deals, depending on the deal size

7.     Hargreaves Lansdown Active Savings Account

The Hargreaves Lansdown Active savings account is a cash service launched in 2018 to help consumers get a better savings rate. The financial institution partnered with many banks to offer this online service and give you an interest-rate return on cash savings.

Also, instead of having to shop around for a savings account with a competitive rate, Hargreaves Lansdown allows you to swap to a new savings account with a better rate and no hassle of moving.

  Key Features of Hargreaves Lansdown Fund and Share Account

  • Account is taxed as saving interest up to £1,000 tax-free under a personal saving allowance
  • Minimum amount to open is £1, and the maximum contribution is unlimited
  • Only UK residents are eligible

Other Services Hargreaves Lansdown Offer

  • Hargreaves Lansdown Cash ISA – A cash ISA is a type of savings account that allows you to earn interest-free of UK income tax. You can put up to £20,000 into your cash ISA in a tax year. This is the maximum amount you can put in all your ISAs within the 2023/2024 tax year
  • Ready-made Portfolios – Hargreaves Lansdown's ready-made portfolio is an easy way to start investing if you're looking to invest but unsure where to start. The portfolio is an all-in-one type. Overall, the financial institution provides a portfolio of funds, and you are responsible for the amount you want to invest in each fund.
  • Hargreaves Lansdown Wealth Shortlist – The wealth shortlist is a selection of funds in various sectors. Hargreaves Lansdown believes that they are the best potential within their sectors. This helps potential investors build a well-balanced and diversified portfolio
  • Foreign Currency Exchange – With the Hargreaves Lansdown foreign currency exchange, you can transfer more than 40 different currencies, which will be converted to their base currency. This service is available online, and you can do it over the phone with their representative.
  • Spread Betting and CFDs – Hargreaves Lansdown allows you to trade CFDs and spread betting through its partner, IG Groups.
  • Annuity – Annuity is a retirement product and one of the methods to withdraw from your pension pot. The program allows you to swap some or all of your pension for a regular income that guarantees you payment for life.
  • Drawdown – This is a retirement payment option where you take a variable income from the pension pot while keeping some invested. You can take up to 25% of the pension pot at once as a tax-free lump sum.
  • Fund Finder – It's a feature on the Hargreaves Lansdown platform that allows you to search for a particular fund by sector, fund type, unit type, provider, and more.
  • Hargreaves Lansdown Transfer – This financial institution allows you to transfer investments to Hargreaves Lansdown or away from their platform at no charge. You can transfer existing Pensions, ISAs, and Investments to any broker free of charge or Hargreaves Lansdown with zero fees. You can perform this transfer online or by sending the transfer form by post.

Other Charges from Hargreaves Lansdown

DescriptionCharge
UK Stamp Duty0.5% on purchase of UK shares (rounded up to the nearest £5 for residual shares)
Panel on Takeover and Mergers£1 on UK shares deals over £10,000
Irish Stamp Duty1% on purchases of Irish shares
French Financial Transaction Tax0.3% on some French shares
Italian Financial Transaction Tax0.1% of the trade value, a minimum charge of £20
Telephone share dealing1% of the trade value, minimum charge of £20, and Maximum charge of £50
Direct Debit investment for FTSE 250 shares and selected investment trusts and ETFs£1.50 per stock per month
Automated sales to cover charges (selling fund units or shares to cover fees)£1.50 per deal for shares. No charge for fund
Quarterly statement and valuation (paperless)No charge
Quarterly statement and valuation (paper)£20 + VAT per year

  Hargreaves Lansdown Deposit and Withdrawal Options

Hargreaves provides easy, free, and straightforward deposit and withdrawal methods.

Deposit Methods

  • Debit Card: If you can access your Hargreaves Lansdown account online, you can add money using your debit card by selecting the ‘add money' tab. This method is instant.
  • Telephone: You can contact the help contact Hargreaves Lansdown on 0117 988 9965 with your debit card details.
  • By Post: You can send a cover letter quoting your client’s number, and the cheque will be made payable to ‘HLAM Client A/C.'

Withdraw Methods

  • Bank transfer – Provided your bank accepts Faster Payment, you can withdraw from the Hargreaves Lansdown app or website. The maximum amount you can request online per day is £9,999.
  • Telephone: Hargreaves Lansdown must have cleared your Nominated Bank Account on record and your security details set up to use this method. You can contact them on 0117 980 9950 to request the withdrawal.

Hargreaves Lansdown Customer Support Option

Hargreaves Lansdown offers highly-regarded and exclusive customer support via:

  • Phone: available 8–5 p.m. on business days and 9:30 a.m. -12:30 p.m. Saturday.
  • Via message on their website

You can also book an in-person meeting with Hargreaves Lansdown's financial advisor at their London office, via telephone, or with one of their Bristol representatives.

Hargreaves Lansdown Trading Platform

Hargreaves Lansdown Trading platform

Hargreaves Lansdown has a well-designed and easy-to-navigate trading mobile app and website. The mobile app is compatible with Android and iOS devices. The app is secured with touch and face ID to prevent security breaches.

With the trading platforms, you can access your Hargreaves Lansdown online account, buy, sell, and manage transactions.

Hargreaves Lansdown User Review

As an old financial institution still holding to its traditional styles of investment strategy, Hargreaves Lansdown has a 4.2 out of 5-star rating on Trustpilot. And about 59% five-star ratings from 8,000+ reviewers.

HL user reviews

The majority of the reviews describe the versatility of the platform and its excellent customer service. However, they lose star rating, being an expensive platform to manage for both small and large portfolios.

Also, the Hargreaves Lansdown app has 500,000+ downloads on the Google Play Store and over 12,000 reviews and ratings, showing 4.6 out of 5-star ratings.

Our Opinion about the Hargreaves Lansdown Platform

Hargreaves Lansdown is a safe investment platform associated with the top-tiered financial security FCA, and it's everything you can ask for in a financial institution. It has various account types, investments, and an excellent customer support team.

However, it isn't the most competitive in terms of commission fees and dealing charges. It's an expensive platform to manage portfolios and transactions.

Therefore, if you're looking for a trusted and reliable platform with track records of excellence for investment, Hargreaves Lansdown ticks all the boxes. But if you need a low to free commission and no-frills in town, check out other broker options.

FAQs about Hargreaves Lansdown

IS Hargreaves Lansdown too Expensive?

Some Hargreaves Lansdown fees and commissions are higher than their competitors, while others are lower. Also, the commission fees depend on the plan you want to invest in.

Can I still Make a Subscription to my ISA if I Move Abroad?

If you still reside within the European Economic Area (EEA) and can prove your eligibility for an ISA. In that case, you can invest money in or apply for an HL stock and shares ISA. If you move outside this area, Hargreaves Lansdown cannot accept your subscription anymore.

IS Hargreaves Lansdown Trustworthy?

Yes! It's one of the UK's most reputable and oldest financial institutions with a track record of excellence and commitment to serving its customers. Also, it's an FCA-registered financial platform and listed FTSE 100 company. Everything is very transparent. 

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