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Hargreaves Lansdown Review

Updated On:
June 10, 2022
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Hargreaves Lansdown Review

Please note: As with all investments, your capital is at risk. Hargreaves Lansdown’s services are designed for investors who are happy making their own investment decisions.

Contents:

1. What Is Hargreaves Lansdown?

Hargreaves Lansdown 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 shares listed on the US, UK, European and Canadian stock exchanges, funds, ETFs, corporate and government bonds, and investment trusts.

2. Hargreaves Lansdown Pros and Cons

Here are the pros and cons of Hargreaves Lansdown:

Pros Cons
  • Wide range of accounts. You can open investment and cash ISAs, trading accounts and children’s accounts.
  • Mid to high price range overall.
  • Access to thousands of investment options, research and ideas.
  • Very high share dealing fees.
  • Offers financial advice.
  • Beautiful and easy-to-use web and mobile interface.
  • Established and trusted investment platform - currently the biggest in the UK.
  • 3. Is Hargreaves Lansdown any Good?

    Hargreaves Lansdown is one of the best investment platforms in the UK at the moment because of its comprehensive investment offering, wide range of accounts and easy-to-use mobile app and web platform.

    Hargreaves Lansdown is also rated excellent on Trustpilot with 4.3 stars out of 5 from 6,205 reviews (at the time of writing).

    4. How Does Hargreaves Lansdown Work?

    With Hargreaves Lansdown, you can invest via a stocks and shares ISA, fund and share account, personal pension, lifetime ISA, cash ISA, junior ISA or active savings account. You can also take advantage of some specialist features such as financial advice, master portfolios and pension drawdown.

    Here is a detailed breakdown of how Hargreaves Lansdown works:

    Stocks and Shares ISA

    1. 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.
    2. 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.
    3. You should keep in mind that 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.
    4. Click here to learn more about the Hargreaves Lansdown Stocks and Shares ISA, including charges.

    Fund and Share Account

    1. 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.
    2. You can choose from over 3,000 funds, UK and overseas shares, corporate and government bonds, ETFs, investment trusts and more.
    3. Setting up a Fund and Share Account with Hargreaves Lansdown takes just minutes with your debit card and national insurance number, and you can download the HL app to manage your investments 24/7.
    4. As always, remember that investments can fall as well as rise in value, so you could get back less than you put in.
    5. Click here for more information on the Hargreaves Lansdown Fund and Share Account, including charges.

    Self-Invested Personal Pension (SIPP)

    1. A Hargreaves Lansdown self-invested personal pension (SIPP) offers a tax-efficient way to build up an income for when you retire.
    2. With Hargreaves Lansdown, you’ll have the freedom to decide exactly where your pension is invested. You can choose from a wide range of options, including funds, stocks & shares and ETFs.
    3. As with all pensions, you’ll receive tax relief on contributions of up to 100% of your earnings every year, with the cap at £40,000 for most people – other limits can apply.
    4. 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.
    5. Always keep in mind that investments can fall as well as rise in value, so you could get back less than you put in. Additionally, you usually can’t access the money in your pension pot until you are at least 55 (increases to 57 in 2028) when you can take 25% as a tax-free lump sum with the rest taxable.
    6. Click here for more information on the Hargreaves Lansdown SIPP, including charges.

    Lifetime ISA (LISA)

    1. 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.
    2. 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.
    3. 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.
    4. Tax rules can change, and benefits depend on your circumstances.
    5. Click here to learn more about the Hargreaves Lansdown Lifetime ISA, including charges.

    Junior ISA (JISA)

    1. A Hargreaves Lansdown Junior ISA offers tax-efficient investments of up to £9,000 each tax year on behalf of a child.
    2. 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.
    3. The Junior ISA must be opened by the parent or guardian of the child, but anyone can pay into it. The child can access funds held in the account once they turn 18.
    4. You should keep in mind that 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.
    5. Click here to learn more about the Hargreaves Lansdown Junior ISA, including charges.

    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 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.

    Master Portfolios

    Hargreaves Lansdown’s Master Portfolios are ready-made baskets of investments 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 is professionally managed, it’s up to you to choose what portfolio best fits your needs. As usual, please remember that 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.

    Financial Advice

    Hargreaves Lansdown's Financial Advice service aims to help you gain confidence in your financial planning and investment 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 that 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 and 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 guaranteed for life. Annuities can’t normally be changed once set up, so it’s important to choose the right option for your circumstances.

    5. What Are Hargreaves Lansdown’s Fees?

    Here are some of Hargreaves Lansdown’s fees:

    Funds‍

    1. 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).
    2. ‍Dealing Fee: No charge.

    Shares (including UK and overseas shares, investment trusts, ETFs, VCTs, gilts and bonds)

    1. Platform Fee: 0.45% (capped at £45 per year for ISA and £200 per year for SIPP). No charge for holding shares in a Fund and Share Account.
    2. Dealing Fee (Online): £11.95 per deal, reducing to £8.95 if there were 10 - 19 deals in the previous month and further reducing to £5.95 if there were 20+ deals in the previous month.
    3. Regular Investments: £1.50 per deal.

    Other charges may apply - visit HL’s website for more information on the various charges.

    6. How Do I Trade on Hargreaves Lansdown?

    To trade on Hargreaves Lansdown, you need to open a Fund and Share Account, which is similar to a general investment account with other platforms.

    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 other 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 live prices 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 the website and mobile apps. Remember that 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.

    7. Is Hargreaves Lansdown Good for Beginners?

    Yes, Hargreaves Lansdown is 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 is available to help you kickstart your investment journey and boost your confidence when managing your finances.

    8. Is Hargreaves Lansdown Expensive?

    Hargreaves Lansdown is neither really expensive nor cheap. The cost of your investment depends on which accounts you open, the types of investments you purchase and the frequency of your trades.

    It is worth bearing in mind that with Hargreaves Lansdown, you are charged fees per account instead of on the combined amount you invested across the platform.

    For funds held in an ISA, SIPP or fund and share account, this fee is 0.45% for investments up to £250,000. Your fees, on a percentage basis, decrease as your investments increase, and there are no charges on the portion of investments exceeding £2 million.

    For shares held in an ISA or SIPP, 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.

    Use our Investment Platform Charges or Trading Platform Charges comparison tables to see how Hargreaves Lansdown’s charges compare to other investment platforms in the UK.

    Then visit Hargreaves Lansdown for more information on the various charges.

    9. 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.

    10. Is Hargreaves Lansdown Safe?

    Yes, Hargreaves Lansdown is safe. As a Hargreaves Lansdown customer, Your deposits are protected by the Financial Services Compensation Scheme (FSCS), which means you can get your money back up to £85,000 per person if Hargreaves Lansdown goes bust. Keep in mind that the FSCS does not cover losses arising from the performance of any of your investments.

    11. How Do I Open an Account With Hargreaves Lansdown?

    To open an account with Hargreaves Lansdown, click here.

    12. Alternatives to Hargreaves Lansdown

    Alternatives to Hargreaves Lansdown in the UK include Interactive Investor, AJ Bell Youinvest, FinecoBank and Freetrade.

    Interactive Investor

    Interactive Investor has over 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. You get a free trade every month, which you can use to buy or sell any investment. Interactive Investor’s services include a Trading Account, Stocks and Shares ISA, SIPP and Junior ISA.

    Visit: Interactive Investor

    See: Interactive Investor Review

    AJ Bell Youinvest

    AJ Bell Youinvest has thousands of investments for you to choose from, including shares, funds, investment trusts, and ETFs. And you can manage them online or with its mobile app. If you need help choosing, it has four ready-made portfolios and other investment ideas.

    Visit: AJ Bell Youinvest


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