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 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 specific markets with minimal fees.

For example, the Fidelity Index UK Fund aims to track the performance of the FTSE All-Share. It has an ongoing charge of 0.06% and transaction fee of 0.02%.

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 over 3,000 active and passive funds.

This includes the HL Select UK Growth Shares Fund with an account charge of 0.45% and 0.6% net ongoing charge.

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 such as 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.

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.

The pros of Hargreaves Lansdown 

• It offers a comprehensive platform with plenty of educational resources and research tools, which can be useful for proactive investors.
• It has strong customer service and an easy-to-navigate interface. This can be handy if you have any urgent queries or want an easy to use platform.
• It is suitable for both passive investors and those seeking more active management.

The cons of Hargreaves Lansdown 

• It has higher fees for trading shares compared to some competitors. It's worth comparing fees between platforms and understanding how fees can impact returns.
• Platform fees can become expensive for smaller portfolios, so it's a good idea to do your research as another platform may be more suitable.

The pros of Fidelity

• It offers low-cost index funds and competitive fees, which is suitable for long-term investors who want a hands-off approach.
• You can access a solid blend of active and passive investment options. This is worth considering if you want to use both an active and passive investment strategy.
• Users benefit from an accessible, user-friendly platform with a focus on affordability.

The cons of Fidelity

• There are higher fees for actively managed funds, which can impact your returns over the long term.
• There are fewer educational tools compared to Hargreaves Lansdown, which can be a drawback if you're keen to develop your understanding of investments.

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.

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?

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 means it's vital to monitor your tax liabilities, so it’s advisable to consult a financial adviser before pursuing this option.

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

Yes, you can access your accounts through Fidelity and Hargreaves Lansdown's site and apps.

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

Hargreaves Lansdown’s platform also offers the latest news and insights via the app, and you can create watchlists to find and track new investors.

Fidelity's app allows you to track global market indices and offers analysis reports.

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.