Fidelity vs Hargreaves Lansdown: what’s the difference?

Fidelity vs Hargreaves Lansdown: what’s the difference?

Hargreaves Lansdown and Fidelity are well-known investment platforms in the UK. 

Both provide a wide range of services for retail investors, including access to funds, stocks, and financial advice. 

Fidelity focuses on low-cost investing, offering a mix of passive and actively managed funds.

Hargreaves Lansdown offers a broader suite of services, including an easy-to-use platform, investment research tools, and educational resources, making it suitable for various types of investors.

What are Fidelity and Hargreaves Lansdown’s specific investment strategies?

Fidelity offers a combination of passive and active management strategies. 

Its index funds appeal to cost-conscious investors looking to track the market with minimal fees. If you’re after more tailored solutions, a financial adviser can guide you through active fund options, which carry more risk but the potential for higher returns.

Fidelity’s approach works well for beginners and experienced investors, depending on whether they prefer passive or hands-on management.

Hargreaves Lansdown also caters to a wide range of investors with its mix of active and passive funds.

The platform provides more hands-on options, including advisory services.

Hargreaves Lansdown emphasises comprehensive research tools to help investors make informed decisions. The platform is ideal for those who want to be more involved in managing their portfolios or need professional guidance. 

What fees can I expect from Fidelity and Hargreaves Lansdown?

Fidelity’s fees are competitive, especially for its passive products like index funds, which have some of the lowest expense ratios in the market.

According to the Fidelity website, they charge a service fee of 0.35%, which can drop to 0.2% for larger account sizes, or you incur no service fee if the value of your investments is over £1 million.

For online share trades, Fidelity charges £7.50 per trade, while phone transactions are priced at £30.

According to the Hargreaves Lansdown website, their fees are structured similarly.

The platform fee starts at 0.45% for investments up to £250,000 and decreases as the investment grows. There’s no charge if the value of your funds is over £2 million. 

For individual share dealing, Hargreaves Lansdown charges £11.95 per trade, £8.95 per trade for between 10 and 19 a month or £5.95 if you place more than 20 trades per month.

Who has better reviews: Fidelity or Hargreaves Lansdown?

When comparing Fidelity vs Hargreaves Lansdown reviews, the two stacks up as follows:

Fidelity reviews

Fidelity has a Trustpilot score of 4.4/5 based on nearly 5,000 reviews. Many clients highlight Fidelity's customer service and its user-friendly platform.

Investors appreciate the low fees for index funds, though some mention the higher costs for actively managed products.

Hargreaves Lansdown reviews

Hargreaves Lansdown has a Trustpilot score of 4.2/5 from over 11,500 reviews. Hargreaves Lansdown's customer service is praised for being helpful and efficient.

Clients also appreciate the educational tools and research options, although some express concerns about trading fees being higher compared to other platforms.

Is Fidelity or Hargreaves Lansdown better?

Hargreaves Lansdown and Fidelity’s platforms are similar in terms of investment opportunities, but they differ in their offerings, each with unique pros and cons.

Pros of Hargreaves Lansdown 

• Comprehensive platform with plenty of educational resources and research tools.
• It has strong customer service and an easy-to-navigate interface.
• Suitable for both passive investors and those seeking more active management.

Cons of Hargreaves Lansdown 

• Higher fees for trading shares compared to some competitors.
• Platform fees can become expensive for smaller portfolios.

Pros of Fidelity

• Low-cost index funds and competitive fees.
• A solid blend of active and passive investment options.
• Accessible, user-friendly platform with a focus on affordability.

Cons of Fidelity

• Higher fees for actively managed funds.
• Fewer educational tools compared to Hargreaves Lansdown.

Fidelity or Hargreaves Lansdown: which should I choose?

Choosing between Fidelity and Hargreaves Lansdown depends on your needs and investment goals.

If you prefer a more hands-on approach and value educational resources, Hargreaves Lansdown may be a better fit. On the other hand, if you’re looking for low-cost, passive investments with occasional access to active management, Fidelity might suit you best.

As well as fees, investment strategy, and various pros and cons, here are other questions you should ask yourself when choosing between Fidelity and Hargreaves Lansdown:

How do Fidelity and Hargreaves Lansdown remain competitive and adapt to changing market conditions?

Fidelity keeps costs low for index funds and continuously improves its platform, making it appealing to a broad investor base.

Hargreaves Lansdown stays ahead by offering comprehensive tools, research, and a large selection of funds.

Which platform is better for passive or long-term investing?

Vanguard is seen as the leader in passive investing, but both offer strong passive options. 

Fidelity’s low-cost index funds are ideal for passive, long-term investors. Hargreaves Lansdown also offers excellent passive options but stands out for those looking to blend passive and active management in one place.

Can you have an account with both Hargreaves Lansdown and Fidelity?

Yes, you can open accounts with Fidelity and Hargreaves Lansdown, taking advantage of their strengths.

However, managing multiple accounts can lead to tax liabilities and complexities, so it’s advisable to consult a financial adviser before pursuing this option.

Which platform provides better customer service and support?

Fidelity’s customer service is often praised for being efficient and helpful, while Hargreaves Lansdown’s customer service is known for being responsive and supportive.

Both platforms offer solid customer service options.

Can I access my Fidelity and Hargreaves Lansdown accounts through their websites and mobile apps?

Fidelity and Hargreaves Lansdown provide user-friendly online platforms and mobile apps for managing accounts, trading, and tracking performance.

Hargreaves Lansdown’s platform is particularly praised for its ease of use and comprehensive features, while Fidelity focuses on simplicity and accessibility.

Get expert financial advice

When choosing between Fidelity and Hargreaves Lansdown, there is no clear winner as both are highly regarded platforms catering to different types of investors.

Fidelity is ideal for those who prioritise low-cost, passive investments, while Hargreaves Lansdown offers a more comprehensive platform for hands-on investors looking for research and advisory services.

Ultimately, the best choice depends on your investment style and financial goals.

Find a professional financial adviser via Unbiased who can offer tailored advice and guidance to best suit your needs.