Hargreaves Lansdown Review 2020: Fees, Pros and Cons and Features

Wondering whether Hargreaves Lansdown is the right share dealing platform for you? This review covers everything you need to know.
Matthew Levy
Author: Matthew Levy
Last Updated: 28 July 2020

Hargreaves Lansdown is one of the UK’s most well-known companies when it comes to providing online investment services. The platform provides a wide range of services, including share dealing, financial advice, foreign currency exchange, and pensions. But is Hargreaves Lansdown share dealing right for you?

This review covers everything you need to know about share dealing on Hargreaves Lansdown, from the tradable assets to the fees and everything in between. Let’s get to it.

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eToro: Top UK Share Dealing Account

Our Rating

  • Free account
  • Social and copy share trading
  • Over 800 stocks to buy with no stamp duty
  • Social trading tools
75% of retail investor accounts lose capital when trading CFDs with this provider.

What is Hargreaves Lansdown?

Founded in 1981 by Peter Hargreaves and Stephen Lansdown, Hargreaves Lansdown is a financial services company that has over 1.2 million clients and administers around £105 billion worth of investments. It is based in Bristol and employs over 1,580 people. Hargreaves Lansdown is publicly traded on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Initially, the company was set up to provide information on unit trusts and tax planning matters. As time progress, the range of products expanded considerably as it ventured into online share dealing services in the late 1990s. The tariff of £9.95 was the cheapest in the UK at that time.

Today, Hargreaves Lansdown is one of the major players in online share dealing in the UK. In addition to share dealing, Hargreaves Lansdown customers can also invest in a range of other assets, including ETFs, bonds, investment trusts and forex.

Hargreaves Lansdown Pros and Cons

Let’s take a quick look at the pros and cons of share dealing on Hargreaves Lansdown.

Pros:

      • Offers a wide range of shares and funds within the UK and outside
      • No account opening or management fees for share dealing
      • £1 minimum deposit for share dealing accounts
      • Easy to use website and mobile app
      • Insights and trading tools

Cons:

      • No demo account
      • Only bank cards and cheque accepted

Shares Offered

Hargreaves Lansdown users can trade thousands of shares from the UK, as well as the US, Canada and Europe. Shares from a range of stock exchanges are available to trade, including the FTSE 500, the Dow Jones and Nasdaq. As well as investing in companies, share dealing is also available across over 2,500 investment funds, investment trusts and ETFs.

Trading through the mobile platform and web interface is really easy and it offers comprehensive information to users before executing a trade. For example, while investing in an ETF, you can browse through details like holdings of the fund, dividend yield, fees, and strategy adopted by the fund.

Similarly, while purchasing a fund, details of the charges, the latest news, and holdings can be seen while purchasing. These features make Hargreaves Lansdown a one-stop-shop, as there’s no need to visit other websites to get the necessary details of the shares you’re interest in.

Other Assets

In addition to share dealing, Hargreaves Lansdown offers users the chance to trade and invest in a wide range of other assets. These are:

    • Bonds and IPOs
    • Over 2,500 investment funds
    • Spread betting and CFDs. This is accessible through Hargreaves Lansdown Markets, which is provided by Hargeaves Lansodwn’s partner, IG.

In addition to these tradable assets, Hargeaves provides several other financial services, including financial advice, investment ideas, and retirement services. There are also ISAs and a foreign currency service which allows you to make regular overseas payments, buy and sell property abroad, or bring money back to the UK. The exchange rates offered are competitive when comparing it to that offered by banks and other providers.

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Fees

Hargreaves Lansdown has a staggered fee structure in which the number of deals in the previous month determines the fee for the present month. This is as follows:

  • 0-9 deals – £11.95 fee
  • 10-19 deals – £8.95 fee
  • 20 or more deals – £5.95 fee

When share dealing online, the monthly fee will never rise above £11.95. There is a separate structure for share dealing done over the telephone, which is 1% of the trade value subject to a minimum of £20 and a maximum of £50. If you’re only dealing shares, there is no annual account management fee, nor are there account opening or inactivity fees. However, there are annual fees of up to 0.45% if you hold funds.

There are no charges for the transfer of funds and the paperless quarterly statements are provided for free. There is a fee of £1.50 to sell shares through the Automated dealing route. Paper-based statements incur a change of £20 + VAT per year, as the company seeks to maintain better margins by providing more electronic statements.

Special Features

Hargreaves Lansdown has a range of resources and tools that you can use to inform your share dealing. Here’s what’s on offer.

News and insights

The platform has a news section which allows you to keep up to date with the latest happenings in the investment world. You also get three daily news updates via email. With regard to insights, you can make use of articles and free weekly emails containing expert views and opinions on the shares market, and you can register to receive research direct to your inbox.

If you’re a beginner looking to learn the ropes, there’s also an educational section with a series of useful guides.

Interactive share charts

These are one of the most useful trading tools available on Hargreaves Lansdown and can be a great option for investors looking to execute trades based on technical analysis. The platform also offers live share prices, detailed fact sheets, investment calculators, and stop loss and limit orders.

Customisable alerts and display

Hargreaves Lansdown offers plenty of freedom when it comes to customising your experience to suit you. You can tailor the display so that the holdings in your portfolio are organised how you like, and you can create watchlists to keep track of investments. There’s also the chance to create share alerts, meaning you’ll receive an email or notification every time a chosen share reaches a level set by you or releases an announcement.

Account Options

There are several different account types available to Hargreaves Lansdown, and by answering questions during the sign up process the platform will help you select the account that’s best suited to your investment interests. Let’s take a look at what’s on offer.

Fund and Share Account

You can open a fund and share dealing account at Hargreaves Lansdown for just £1 and there’s no limit to the amount of money you can invest.  These limits make it a good choice for both beginners and more experienced investors. If you only hold shares there is no annual management fees, although you may pay up to 0.45% if you hold funds, depending on the value of the funds you hold. You’ll need to be a UK resident to apply for this account.

Stocks and Shares ISA

The stocks and shares ISA at Hargreaves Lansdown comes with a £100 minimum deposit and a £20,000 maximum investment limit. The advantage is that has several tax benefits, including no tax on income and tax-free growth. You need to live in the UK to be eligible for this account and there is an 0.45% annual charge.

Self-Invested Personal Pension (SIPP)

This option provides a flexible pension that allows you to invest in a range of assets while still getting tax relief of up to 45% and tax-free growth. It requires a £100 ump sum or £25 direct debit to open this account and comes with a 0.45% annual fee. You can invest up to £40,000 each year.

Other accounts

Hargreaves Lansdown also offers several other account options, including a Lifetime ISA, a Junior ISA and a Junior SIPP.

Banking

The minimum deposit at Hargreaves Lansdown is based on the type of account. For fund and share accounts the minimum amount required to open an account is just £1. For other types of accounts, a lump sum of £100 or £25 for a monthly payment option is required. The maximum contribution also varies based on the account type.

For adding money to the account, debit card payments and processed instantly, while withdrawals requested by noon are typically completed within 24 hours.  Hargreaves Lansdown also supports deposits through cheques, but this comes with significantly longer processing times. There are no charges for transferring funds into and out of your Hargreaves Lansdown account.

User Experience

Hargreaves Lansdown has a well-designed website with a user-friendly interface. It’s very easy to make your way around the site, with everything clearly organised and linked. The site has a clean appearance, with the simple yet modern design ensuring it’s one of the better-presented share dealing platforms around.

Dedicated sections are available for share dealing, pensions, financial advice, and currency exchange, and there’s also a news section where you can keep up to date with the latest happenings in the investment space.

Mobile Trading

If you’re looking to trade shares on your mobile, then Hargreaves Lansdown offers a mobile app for iOS and Android devices.  Just like the desktop site, the Hargreaves Lansdown app is well designed and easy to use, allowing users to execute trades smoothly while on the go.

The Hargreaves Lansdown mobile application offers all core functionalities of the desktop website, including share dealing, transaction history, fund transfer, and tracking shares, currencies, or funds. You can also log in with fingerprint or facial identification if you’re using an iPhone.

Security

Hargreaves Lansdown is regulated in the UK by the Financial Conduct Authority (FCA) and is one of the most reputable share dealing platforms around, so you can be sure it’s safe and secure.

Investments of up to £85,000 are protected under the Financial Services Compensation Scheme (FSCS) and the website and mobile app use encryption technology for any transaction carried out with Hargreaves Lansdown, so you can invest in confidence.

Customer Service

Hargreaves Lansdown only currently offers customer support via email. You need to fill in a contact form and then wait for an advisor to get back to you. There is also a comprehensive FAQ section on the website which is able to help with many general queries.

Supported Countries & Regions

Hargreaves Lansdown can only be used by UK residents. Its accounts and services aren’t available to investors and traders living in other countries.

Hargreaves Lansdown Share Dealing vs. Other Share Dealing Platforms

Hargreaves Lansdown is certainly one of the more impressive share dealing platforms out there, which is to be expected from such a well known and trusted brand.

It offers a good range of investment options, a very well designed website and app, a number of different account options and some other useful services, like financial advice. Also, if you’re only share dealing, then you don’t need to pay any account management costs.

However, while it certainly has its pros, Hargreaves Lansdown still lags a little behind top platforms like eToro. For starters, eToro allows users to both buy shares and trade CFDs (contracts for difference) in a single platform, allowing you to go short and speculate on prices going down, as well as make larger trades using leverage.

It’s also a social trading platform that boasts innovative tools like CopyTrader, which allows you to copy the portfolio of any of eToro’s over 12 million users. On top of that, eToro offers 0% commission and no stamp duty on share dealing, and it also offers a wide range of other assets, including forex and cryptocurrency.

So, while Hargreaves Lansdown is an impressive platform in many respects, it doesn’t quite match eToro, which is our pick for the best share dealing account.

Conclusion

Hargreaves Lansdown certainly has a lot going for it. A trusted brand with a wide range of assets and plenty of useful features, it’s easy to see why it may be an attractive platform for prospective investors interested in share dealing.

However, if you’re looking for the very best share dealing platform our there, we’d advise going checking out our eToro review. An innovative social trading platform with low fees, a fantastic range of financial instruments, copy trading tools and PayPal support, eToro ticks every box. Simply click the link below to sign up and get started today.

eToro: Top UK Share Dealing Account

Our Rating

  • Free account
  • Social and copy share trading
  • Over 800 stocks to buy with no stamp duty
  • Social trading tools
75% of retail investor accounts lose capital when trading CFDs with this provider.

FAQs

Is Hargreaves Lansdown licensed?

Yes. It's licensed and is regulated by the FCA, so it's a safe platform that keeps your account and funds secure.

How can I deposit money to my Hargreaves Lansdown account?

Money can be added to the account using a debit card or cheque. You can choose to either make individual deposits or set up a direct debit.

Does Hargeaves Lansdown offer telephone dealing?

Yes, share dealing via telephone is available on the platform. It comes with a 1% charge, with a minimum of £20 and a maximum of £50.

Can I transfer my portfolio from another broker to Hargreaves Lansdown?

Yes, if you hold shares then it's possible to transfer your portfolio from another broker to Hargreaves Lansdown and vice versa.

Does Hargreaves Lansdown offer a demo trading account?

No, Hargreaves Lansdown currently does not offer a demo account.

Matthew Levy

Matthew possesses more than 10 years' experience as a financial writer. He covers a wide range of topics, with a particular interest in stocks, bonds, mutual funds and ETFs.

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eToro: Buy and Sell Shares with 0% Commission

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75% of retail investors lose money when trading CFDs with eToro.

eToro: Buy and Sell Shares with 0% Commission
Visit eToro

75% of retail investors lose money when trading CFDs with eToro.

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