Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you are hoping for.
Below, we compare two UK investment platforms - Moneyfarm and Hargreaves Lansdown.
Moneyfarm is a UK robo advisor that gives you access to seven risk-rated portfolios, formal financial advice and ESG investments, whereas Hargreaves Lansdown is a UK investment platform that offers thousands of investments and other services, including shares, funds, financial advice and savings.
Use the tabs below to learn more about the similarities and differences between Moneyfarm and Hargreaves Lansdown.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven risk-rated portfolios that are recommended to you based on your online investor profile.
To get started, you’ll be asked to complete a short survey so that Moneyfarm can better understand how you approach finance before matching you to your investment portfolio.
With Moneyfarm, you can invest in a Stocks & Shares ISA, Private Pension or General Investment Account. Once you’ve funded your account, Moneyfarm’s team of investment experts will manage your portfolio for you.
Click here to learn more about Moneyfarm.
When you invest, please keep in mind that your capital is at risk.
With Moneyfarm, you can invest as follows:
Moneyfarm Stocks and Shares ISA
Click here to learn more about Moneyfarm’s Stocks and Shares ISA.
Moneyfarm Private Pension (SIPP)
Click here to learn more about Moneyfarm’s SIPP.
Moneyfarm General Investment Account (GIA)
Click here to learn more about Moneyfarm’s GIA.
Actively Managed Portfolios
Moneyfarm’s actively managed portfolio’s work to deliver long term growth for each investor by building, managing and rebalancing your portfolio(s) on your behalf.
Once Moneyfarm determines your knowledge, experience, risk appetite and objectives, you’ll be matched to one of seven ready-to-go portfolios that best suit your goals and investment style. Your portfolio will be made up of high-quality Exchange-traded Funds (ETFs) handpicked from around the world.
Moneyfarm recently introduced the Environmental, Social and Governance (ESG) investment style to its portfolios. Click here to learn more.
Moneyfarm offers free access to their investment consultants who provide guidance to help you feel more confident about your investment decisions. You’ll also receive digital investment advice to keep you on track and make sure your portfolio is suited to you, even if your circumstances change.
Moneyfarm provides expert opinions on your existing investments, taking into account performance, cost and quality, as well as retirement planning and your drawdown options.
With the Moneyfarm app, you can invest through a Stocks and Shares ISA, General Investment Account or Private Pension. Users also benefit from free and personalised digital investment advice from Moneyfarm’s investment consultants.
Once you’ve completed a questionnaire specifying your investment goals, risk preferences and financial habits, Moneyfarm will recommend a selection of its seven risk-rated portfolios.
These range from 1 for the lowest risk, to 7 for the highest risk product. Portfolios on the lower end of the scale mostly comprise of lower-risk level fixed-income investments, including government, corporate and emerging market bonds.
For example, Portfolio 1 makes up 53% cash and short-term government bonds, whilst Portfolio 7 comprises 66% developed markets equities.
Moneyfarm has a minimum investment amount of £500.
It's completely free to download the app.
Then Moneyfarm charges a management fee depending on how you choose to invest. Management fees cover all of your Moneyfarm products and are calculated as follows:
Fees are calculated daily based on the total market value of your portfolio.
On average, you’ll be charged 0.2% per annum in exchange-traded funds (ETF) fees. This is built into the cost of the ETF on any given day, so you won’t see fund charges being deducted from your portfolio directly.
Moneyfarm falls into the mid-price range category. Use our Robo Advisor Charges Comparison Table to understand how Moneyfarm compares to other robo advisors in the UK.
Moneyfarm is beginner-friendly. Its service is designed to make personal investing more accessible to the average person by arranging and managing your investments for you.
It’s a great starting point for those who want to watch their money grow without dealing with the nitty-gritty details of investing. You can use the Moneyfarm app, which is available on iOS and Android, to view your portfolio information and monitor your investment performance.
When you invest with Moneyfarm, your money is protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000.
This means you can get your money back if Moneyfarm were to go bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at their regulatory permissions on the FCA Register.
Visit Moneyfarm’s website.
Hargreaves Lansdown’s services are designed for investors who are happy making their own investment decisions. It is the UK’s largest investment platform for private investors, offering a broad range of investment tools and services, including ISAs, pensions, savings and investments, as well as a host of research and guidance tools to help you make informed investment decisions.
Its core mission is to build long-term client relationships by becoming a trusted partner and financial champion, ultimately helping you increase your financial security for the future.
If you choose to invest with Hargreaves Lansdown, you’ll gain access to thousands of funds, shares listed on the US, UK, European and Canadian stock exchanges, a range of ETFs, corporate and government bonds, and investment trusts.
Click here to learn more about Hargreaves Lansdown.
With Hargreaves Lansdown, you can invest as follows:
Hargreaves Lansdown Stocks and Shares ISA
Click here to learn more about the Hargreaves Lansdown Stocks and Shares ISA, including charges.
Hargreaves Lansdown Fund and Share Account
Click here for more information on the Hargreaves Lansdown Fund and Share Account, including charges.
Hargreaves Lansdown SIPP
Click here for more information on the Hargreaves Lansdown SIPP, including charges.
Hargreaves Lansdown Lifetime ISA (LISA)
Click here to learn more about the Hargreaves Lansdown Lifetime ISA, including charges.
Hargreaves Lansdown Junior ISA (JISA)
Click here to learn more about the Hargreaves Lansdown Junior ISA, including charges.
Hargreaves Lansdown Active Savings
Hargreaves Lansdown offers an Active Savings service, which saves you the hassle of searching around for the best savings rates and moving your money from one savings account to another to help boost the interest you earn.
Typically, this would involve lots of form filling and lengthy application processes, but with Hargreaves Lansdown, you’ll have access to a broad range of savings products from a range of banks and building societies and can move your money with the click of a button.
Click here to find out more about Hargreaves Lansdown's Active Savings.
Hargreaves Lansdown Master Portfolios
Hargreaves Lansdown’s Master Portfolios are ready-made investment portfolios designed to help kickstart your investment journey. They offer five example portfolios based on your aims and appetite for risk, but each portfolio can be fine-tuned to meet any specific goals you may have.
You can choose from a range of options, including Adventurous, Medium Risk, Conservative, Investing for Children or Investing for Income. Whilst each of the funds in the portfolios are professionally managed, it’s up to you to choose what portfolio best fits your needs. Investments can fall as well as rise in value so you could get back less than you put in.
Click here to learn more about Hargreaves Lansdown’s Master Portfolios, including charges.
Hargreaves Lansdown Financial Advice
Hargreaves Lansdown's Financial Advice service aims to help you gain confidence in your financial planning and decisions. You can make an initial advice query with an advisory help-desk consultant; then, you’ll be matched with an advisor best suited to your needs. They can help you with anything from meeting your goals and boosting your confidence to managing your income and expenditure after you retire. Please note there is a fee for financial advice.
Hargreaves Lansdown’s pension drawdown provides you with a flexible way to access your pension from the age of 55 (57 from 2028). You can usually receive up to 25% of your pension tax-free and upfront but can choose to invest the rest. The process usually starts with your pension provider and allows for greater control over your retirement planning and investment returns. But with drawdown, your pension value and income are not secure, so it could fall or even run out.
Hargreaves Lansdown allows you to compare annuities in one place so that you can maximise your retirement income for the future. You can receive a free annuity quote and begin buying annuities at any time from the age of 55 (57 from 2028) using the money in your pension. It offers a simple way to swap your pension savings for an income that is guaranteed for life. Annuities can’t normally be changed once set up, so it’s important to choose the right option for your circumstances.
When you open a Fund and Share Account with Hargreaves Lansdown, you'll get access to thousands of investment options, including UK and overseas shares, exchange-traded funds, investment trusts, bonds and more. You can also buy and sell shares through any Hargreaves Lansdown account such as an ISA or SIPP.
Opening an account takes just a few minutes and usually involves completing a short online form with your personal details. Once you have an account, trading is easy. Simply log in, select your shares, get a live price directly from the market and trade.
You can track your investments and create virtual portfolios with Hargreaves Lansdown's free watchlist feature, available on both website and mobile apps. Investments can fall as well as rise in value so you could get back less than you put in.
Click here to learn more about the Hargreaves Lansdown Fund and Share account.
With Hargreaves Lansdown, charges vary depending on how you choose to invest.
Platform Fee: 0.45% (on the first £250,000); 0.25% (on the value between £250,000 and £1m); 0.1% (on the value between £1m and £2m); No charge (on the value over £2m)
Dealing Fee: No charge
Shares (including UK and overseas shares, Investment Trusts, ETFs, VCTs, gilts and bonds):
Platform Fee: 0.45% (capped at £45 per year in the ISA and £200 per year in the SIPP) - free in the Fund and Share Account.
Dealing Fee (online): £11.95 per deal reducing to £8.95 if 10 - 19 deals the previous month and further reducing to £5.95 if 20+ deals the previous month
Regular Investments: £1.50 per deal
Other charges may apply - visit HL’s website for more information on the various charges.
With Hargreaves Lansdown, you are charged fees per account as opposed to the combined amount you have invested across the platform. For ISAs, SIPP and Fund accounts, this fee is 0.45% for investments up to £250,000 for funds.
Your fees decrease as your investments increase, and there are no charges on the portion of investments exceeding £2 million. For shares the charge is 0.45%, capped at £45 per year for ISAs and £200 per year for SIPPs. It’s free to hold shares in the HL Fund and Share Account.
Visit HL’s website for more information on the various charges when using Hargreaves Lansdown’s services.
Hargreaves Lansdown's wide range of investment services, financial advice and master portfolios means the platform is both beginner-friendly and suitable for the more advanced investor.
There are several resources for beginners to read and refer to before making important investment decisions, and a Financial Advice Service to help you kickstart your investment journey and boost your confidence when managing your finances.
Hargreaves Lansdown investors are also covered by the Financial Services Compensation Scheme (FSCS) protection, which means that your assets are protected up to £85,000 per person.
This means you can get your money back if Hargreaves Lansdown were to go bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.
Yes, Hargreaves Lansdown is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its permissions on the FCA Register.
Offers vary - please check their website for details of any current offers.
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