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hargreaves lansdown review

Hargreaves Lansdown Review

 

This Review…

Michael Englefield – Drewberry
Written by:
Michael Englefield
Content Manager at Drewberry
⏰  10 min read

Founded

1981

Company Overview

Hargreaves Lansdown was founded in 1981 and has grown to become a major UK platform for pensions, ISAs and general share trading. Listed on the FTSE 100 and based in Bristol, Hargreaves Lansdown bills itself as the UK’s largest fund supermarket for private investors.

Read Drewberry's Hargreaves Lansdown review

The Hargreaves investment platform is known as Vantage Service and gives investors the flexibility to choose from more than 2,500 funds, UK, US, Canadian and European shares, exchange traded funds (ETFs), investment trusts, bonds and gilts.

These investments can all be held in any of its Vantage accounts, which includes a dealing account, stocks and shares ISAs, self-invested personal pensions (SIPPs) and junior ISAs.

Hargreaves Lansdown offers financial services on both an advised and an execution-only basis, with the former including full portfolio management if desired.

As with all investing, capital is at risk. The value of investments can fall as well as rise and you may get back less than you paid in. Lifetime ISA, ISA and pension rules apply.

 

Reviewing the Hargreaves Lansdown Range

Hargreaves Lansdown ISA

  • Open a Hargreaves Lansdown Stocks & Shares ISA with £100 or monthly contributions of £25
  • As with all ISAs, earn tax-free returns on investments of up to £20,000 per tax year
  • Fees on funds start at 0.45% on the first £250,000 falling to no charge for ISAs worth £2 million+
  • Fees on shares are levied at a flat 0.45%, capped at £45 per annum
  • There may also be underlying fees and dealing charges – see Hargreaves Lansdown’s fees page
  • This is a capital-at-risk product, so the value may fall as well as rise. ISA rules apply

Hargreaves Lansdown SIPP

  • Start a Hargreaves Lansdown pension with just £100 or monthly contributions from £25
  • Transfer existing pensions, make payments from your bank account or a combination of the two
  • Get pension tax relief on contributions at your highest marginal rate
  • Fees on funds start at 0.45% on the first £250,000 falling to no charge for pots worth £2 million+
  • Fees on shares are levied at a flat 0.45%, capped at £200 per annum
  • Capital is at risk. Eligibility to invest in pensions depends on personal circumstances. Pension tax rules are subject to future change.

Hargreaves Fund & Share Account

  • Start a Hargreaves Lansdown Fund & Share Account from just £1, with a minimum lump sum investment of £100
  • Direct debits can be set up from as low as £25 per month
  • No fees on share holdings (including UK and overseas shares, investment trusts, ETFs, Venture Capital Trusts [VCTs], gilts and bonds)
  • There may be underlying fees and dealing charges – see Hargreaves’ fees page
  • Open an account on behalf of a child under a Bare Trust (Junior Investment Account)
  • This is a capital-at-risk product, so the value may fall as well as rise

Hargreaves Lansdown Lifetime ISA

  • Start saving into your Hargreaves Lansdown LISA with just £100 or £25 per month
  • Get a 25% government bonus on the money you save each year (up to a maximum threshold of £4,000)
  • Fees on funds start at 0.45% on the first £250,000 falling to no charge for ISAs worth £2 million+
  • Fees on shares are levied at a flat 0.45%, capped at £45 per annum
  • There may also be underlying fees and dealing charges – see Hargreaves’ fees page
  • This is a capital-at-risk product, so the value may fall as well as rise. Lifetime ISA rules apply

Hargreaves Lansdown Junior ISA

  • Invest up to £4,260 into a Junior ISA each tax year free from UK tax
  • Choose from over 2,500 funds, UK and overseas shares, investment trusts, bonds and ETFs
  • Open a Hargreaves Lansdown Junior ISA online, by post or over the phone
  • Alternatively, you can transfer a Child Trust Fund or an existing Junior ISA to Hargreaves Lansdown
  • Converts to a Hargreaves Stocks & Shares ISA when the child reaches 18
  • ISA tax rules are dependent on individual circumstances and are subject to change
The Hargreaves Lansdown Pension
Start a Hargreaves Lansdown SIPP with just £100 or monthly contributions from £25
 

Hargreaves Lansdown Investment Solutions Explained…

Hargreaves Lansdown Stocks & Shares ISA

  • As with all ISAs, save up to £20,000 each tax year in your ISA and pay no tax on any returns you make
  • Transfer existing ISAs to the Hargreaves Lansdown platform
  • Choose your own investments from over 2,500 funds, UK and overseas shares, investment trusts, bonds and ETFs
  • If you don’t want to choose your own investments, start a ready-made portfolio built by Hargreaves instead for a lump sum of £1,000
  • Hold cash in your ISA until you’re ready to invest (although no interest will be paid on cash sums less than £5,000)
  • Funds held in your UK ISA are free from tax

Hargreaves Lansdown Pension (SIPP)

  • Save for your retirement with the Hargreaves Lansdown pension and pay in up to £40,000 each tax year
  • You may be able to pay in more than £40,000 if you have unused allowance from previous years
  • Get tax relief on payments into your pension at your highest marginal rate
  • Start a pension with just £100 or regular monthly contributions of £25
  • Choose your own investments or select a ready-made Hargreaves Lansdown SIPP portfolio with a minimum investment of £1,000, which involves Hargreaves choosing investments on your behalf and looking after the day-to-day management.
  • Use Hargreaves’ Master Portfolios if you want to choose your own investments but need help getting started, which involves you selecting your risk tolerance and receiving an investment starting point
  • Start a Junior SIPP to begin investing in your children’s future
  • Buy an annuity or move to drawdown at retirement with your pension

Hargreaves Lansdown Fund & Share Account

  • A Fund & Share Account from Hargreaves aims to be a low-cost dealing account that allows you to buy, sell and hold your investments under one flexible wrapper
  • Open a HL Fund & Share Account with just £1, with minimum lump sum payments of £100 or monthly direct debits of £25
  • Manage your fund online, over the phone or by post
  • Returns on your investments can either by reinvested, held as cash or paid out into a nominated bank account
  • Hargreaves Lansdown will take care of all of the transfer work for you if you want to transfer other investment holdings into the Hargreaves platform
  • Open a HL Fund & Share Account in joint names providing both holders are over 18

Hargreaves Lansdown LISA

  • If you’re aged between 18 and 39, you can open a Lifetime ISA and pay in up to £4,000 a year up to your 50th birthday
  • The government will top this up with a 25% bonus, up to £1,000 per tax year
  • You can also open a Hargreaves Lansdown LISA in the name of children and grandchildren
  • The money must be used to buy your first home or to save for later life (it can only be withdrawn on the purchase of your first home worth less than £450,000 or if you’re aged 60+)
  • Pay no tax on future returns
  • You can open and add money to other types of ISAs (Cash ISAs, Stocks and Shares ISAs or Innovative Finance ISAs) alongside your Lifetime ISA, although you’ll only be able to save into one Lifetime ISA each tax year
  • Start your Hargreaves LISA in as little as 5 minutes with just £100 or payments from £25 per month
  • Opt to use the Simply Invest route, a low-cost solution involving one simple fund investing in 650 British companies or choose your own investments from 2,500 funds, shares, trusts and bonds to build your own portfolio

Hargreaves Lansdown Junior ISA

  • A Junior Stocks and Shares ISA is a tax-efficient investment account for children under 18 which can be opened by any parent or legal guardian.
  • Save up to £4,260 per year, which is only accessible once your child reaches 18
  • Hargreaves Lansdown’s Junior ISA automatically converts to a Stocks & Shares ISA on the child’s 18th birthday
  • Transfer an existing Junior Stocks & Shares ISA or Child Trust Fund to the HL platform

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The Hargreaves Lansdown ISA
Open a Hargreaves Lansdown Stocks & Shares ISA with £100 or monthly contributions of £25
 

Hargreaves Lansdown Fees & Charges

Hargreaves Lansdown Fees

ISA, Lifetime ISA and Junior ISA

Funds

£0 – £250,000

0.45%

£250,000 – £1 million

0.25%

£1 million – £2 million

0.1%

£2 million+

No charge

Shares

0.45%
Capped at £45 per annum

Self-Invested Personal Pension (SIPP)

Funds

£0 – £250,000

0.45%

£250,000 – £1 million

0.25%

£1 million – £2 million

0.1%

£2 million+

No charge

Shares

0.45%
Capped at £200 per annum

Fund & Share Account

Funds

£0 – £250,000

0.45%

£250,000 – £1 million

0.25%

£1 million – £2 million

0.1%

£2 million+

No charge

Shares

No Charge

Online Share Dealing Fees

Number of Deals in Previous Month

Charge Per Deal

0 – 9

£11.95

10 – 19

£8.95

20+

£5.95

 

Review of Hargreaves Lansdown Charges

  • Each month, Hargreaves automatically deducts charges from cash held in your account
  • If the cash balance of your account is insufficient to meet the charges, Hargreaves Lansdown will sell some of your investments to cover them, charging £1.50 per deal if it has to do this
  • How much cash you should hold to meet these charges will depend on your investments – Hargreaves will suggest a minimum cash balance for you to hold
  • Automatic reinvestment is charged at 1% of trade value (minimum £1, maximum of £10). Hargreaves will reinvest your income once it reaches £10 per holding or a set amount you choose
  • Account closure fees starting from £25 apply across the Hargreaves Lansdown range

For more detail on Hargreaves Lansdown’s fees, charges and interest rates, check out its dedicated page here >>

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Is Hargreaves Right for Me?

  • Hargreaves Lansdown isn’t the cheapest investment platform on the market, but does pride itself on offering high levels of client service
  • You can start investing from as little as £1, with low minimum monthly contributions also permitted
  • There are exit fees for closing your account, which isn’t the case for other platforms on the market.
  • Hargreaves Lansdown provides you with access to a wide variety of investments to choose from, as well as offering ready-made portfolios for those newer to investing or those who don’t want to choose their own investments
  • The Hargreaves Lansdown SIPP can be moved to drawdown or used to purchase an annuity through Hargreaves when the time comes for you to retire
  • Hargreaves has a range of investment options for children, from the Junior ISA to the Junior SIPP. Alternatively, you can set up a Fund & Share Account for a child under 18 by writing it into trust.

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As with all investing, capital is at risk. The value of investments can fall as well as rise and you may get back less than you paid in. ISA and pension rules apply. Tax rules are subject to change and dependent on individual circumstances. Information correct as of June 30 2018.