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.

Moneyfarm vs Hargreaves Lansdown

Updated On: Sep 2, 2021
Moneyfarm vs Hargreaves Lansdown

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 LogoHargreaves Lansdown

Moneyfarm - Choose from seven risk-rated portfolios 

Is Moneyfarm any good?

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.

How does Moneyfarm work?

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

  • Moneyfarm’s Stocks and Shares ISA offers a fully managed, easy and tax-efficient way to grow your money for the future, with a current maximum investment of £20,000 per tax year. 
  • Moneyfarm will manage your Stocks & Shares ISA for you through a globally diversified portfolio that best suits your needs. Their expert team will work to monitor, adjust and rebalance your ISA to make sure that you’re getting the best returns.
  • Transferring an ISA to Moneyfarm is free and handled by the Moneyfarm team. 
  • Please note that Moneyfarm has a minimum investment amount of £500.

Click here to learn more about Moneyfarm’s Stocks and Shares ISA.


Moneyfarm Private Pension (SIPP)

  • Moneyfarm’s SIPP offers a globally diversified, tax-efficient private pension targeted to your retirement goals.
  • You’ll usually receive a 25% boost to your pension in the form of tax relief without the need to claim from HMRC. For higher or additional rate taxpayers, up to 45% can be claimed back through your annual tax return.
  • Moneyfarm offers free pension drawdown from the age of 55, where you can withdraw up to 25% of your pension as a tax-free lump sum or in installments.
  • You can also pass on funds from your pension to your beneficiaries, free from inheritance tax.

Click here to learn more about Moneyfarm’s SIPP.


Moneyfarm General Investment Account (GIA)

  • Moneyfarm’s General Investment Account allows you to make unlimited contributions, so you can invest beyond your ISA allowance. Funds can be invested and withdrawn at any time with no additional fees.
  • With a Moneyfarm GIA, you can open multiple portfolios with different risk levels to match each of your goals.
  • Moneyfarm will provide active, hands-on management of your GIA by building, and rebalancing your portfolio(s) for you.

Click here to learn more about Moneyfarm’s  GIA.

Other services and features

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.


Investment Advice

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.

How do I invest with Moneyfarm?

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.

What are Moneyfarm’s charges?

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:


  • 0.75% on investments between £0 to £10,000
  • 0.6% on any investments from £10,001 to £50,000
  • 0.5% on any investments from £50,001 to £100,000
  • 0.35% on any investments over £100,000 +


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.

Is Moneyfarm expensive?

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.

Is Moneyfarm good for beginners?

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.

Is Moneyfarm safe?

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.

Is Moneyfarm regulated by the FCA?

Yes, Moneyfarm is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at their regulatory permissions on the FCA Register.

Does Moneyfarm have a referral scheme?

No.

How do I open an account with Moneyfarm?

Hargreaves Lansdown - Access thousands of investments and other services

Is Hargreaves Lansdown any good?

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.

How does Hargreaves Lansdown work?

With Hargreaves Lansdown, you can invest as follows:


Hargreaves Lansdown Stocks and Shares ISA

  • The Hargreaves Lansdown Stocks and Shares ISA offers an easy and tax-efficient way to grow your money for the future, with a current maximum investment of £20,000 per tax year. 
  • To get started with a Hargreaves Lansdown Stocks and Shares ISA, you can invest  as little as a £100 lump sum or £25 per month. You’ll then have the freedom to invest in a range of funds, shares, investment trusts and more. Investments can fall as well as rise in value so you could get back less than you put in.
  • Tax rules can change and their benefits depend on your circumstances.

Click here to learn more about the Hargreaves Lansdown Stocks and Shares ISA, including charges.


Hargreaves Lansdown Fund and Share Account

  • Hargreaves Lansdown’s Fund and Share Account offers a low-cost, flexible way to trade in the stock market and manage your investments in one place.
  • Choose from over 3,000 funds, UK and overseas shares, corporate and government bonds, ETFs, investment trusts and more. Investments can fall as well as rise in value so you could get back less than you put in.
  • Setting up a Fund and Share Account with Hargreaves Lansdown takes just minutes with your debit card and NI details. Download the HL App to manage your investments 24/7.

Click here for more information on the Hargreaves Lansdown Fund and Share Account, including charges.


Hargreaves Lansdown SIPP

  • A Hargreaves Lansdown SIPP offers a tax-efficient way to build up an income for when you retire. 
  • As with all pensions, you’ll receive tax relief on contributions of up to 100% of your earnings every year, with the maximum cap at £40,000 for most people – other limits can apply. In essence, your contributions are topped up by the government with an additional 20% - so if you decide to invest £8,000, the government will contribute a further £2,000, bringing your total contribution to £10,000. If you pay a higher rate of tax, you can claim further tax relief through your tax return.  Remember, pension and tax rules can change and benefits depend on your circumstances.
  • With Hargreaves Lansdown, you’ll have the freedom to decide exactly where your pension is invested. Choose from a wide range of options, including funds, stocks & shares, and ETFs. Investments can fall as well as rise in value so you could get back less than you put in.
  • Please note: you usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028), when you can take 25% as a tax-free lump sum with the rest taxable.

Click here for more information on the Hargreaves Lansdown SIPP, including charges.


Hargreaves Lansdown Lifetime ISA (LISA)

  • A Hargreaves Lansdown Lifetime ISA offers a flexible way to save for your first home or later life. You need to be between 18-39 years old to open a Lifetime ISA, but you can continue paying into the account and receiving government bonuses until you turn 50.
  • For each tax year, you can pay up to £4,000 into a Lifetime ISA and the government will add a further 25% bonus. For example, for every £4 you save, the government will add an extra £1. The maximum government bonus per tax year is £1,000.
  • After exactly 12 months from your first payment, you can withdraw the money to purchase a first property worth up to £450,000, or you can wait until you turn 60 to access the funds in your account. Any other withdrawals will normally be subject to a 25% government withdrawal charge, so you could get back less than you put in.
  • Tax rules can change and benefits depend on your circumstances.

Click here to learn more about the Hargreaves Lansdown Lifetime ISA, including charges.


Hargreaves Lansdown Junior ISA (JISA)

  • A Hargreaves Lansdown Junior ISA offers tax-efficient investments of up to £9,000 each tax year on behalf of a child. 
  • Like the standard Hargreaves Lansdown ISA, the minimum contribution to start investing in a Hargreaves Lansdown Junior ISA is £25 a month, or you can begin with a lump sum of £100.
  • The Junior ISA must be opened by the parent or guardian of the child, but anyone can pay into it. Funds held in the account can be accessed by the child once they turn 18. Investments can fall as well as rise in value so they could get back less than you put in.
  • Tax rules can change and benefits depend on your circumstances.

Click here to learn more about the Hargreaves Lansdown Junior ISA, including charges.

Other services and features

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.


Pension Drawdown

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.


Compare Annuities 

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.

How do I trade with Hargreaves Lansdown?

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.

What are Hargreaves Lansdown’s charges?

With Hargreaves Lansdown, charges vary depending on how you choose to invest.


Funds:

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.

Is Hargreaves Lansdown expensive?

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.


You can also use our investment platform or stock broker comparison table to see how Hargreaves Lansdown’s charges compares to other investment platforms in the UK.

Is Hargreaves Lansdown good for beginners?

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.

Is Hargreaves Lansdown safe?

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.

Is Hargreaves Lansdown regulated by the FCA?

Yes, Hargreaves Lansdown is authorised and regulated by the Financial Conduct Authority (FCA). Have a look at its permissions on the FCA Register.

Does Hargreaves Lansdown have a referral scheme?

Offers vary - please check their website for details of any current offers.

How do I open an account with Hargreaves Lansdown?

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