Hargreaves Lansdown review: what are the pros and cons?

Hargreaves Lansdown: who are they?

Established in 1981, Hargreaves Lansdown is one of the UK’s leading financial services companies. Over the years, it has grown into a trusted name, serving over 1.8 million clients and looking after £142 billion of assets under management (AUM).

Based in Bristol, the firm offers a broad range of investment and savings services to cater to novice and experienced investors.

Known for its premium service, Hargreaves Lansdown helps individuals take control of their financial future through various accounts and investment choices.

What does Hargreaves Lansdown do?

Hargreaves Lansdown offers a comprehensive range of financial services that simplify investing for everyday people.

They provide access to over 13,000 investment options, including shares, funds, ETFs, and investment trusts.

Hargreaves Lansdown caters to a variety of needs, from individual savings through an individual savings account (ISA) to retirement planning via a self-invested personal pension (SIPP).

For those new to investing or looking for guidance, Hargreaves Lansdown also provides comprehensive educational tools to make investing simple, as well as detailed guides, webinars, and research resources that walk users through every step.

What are the pros and cons of Hargreaves Lansdown?

Hargreaves Lansdown has several advantages but also some drawbacks.

Here’s a quick look:

Pros

• You can access a wide range of investment options, with over 13,000 choices. This helps you to easily diversify your investment portfolio.
• Comprehensive research tools and educational resources are available, helping you to make informed investment decisions, although expert financial advice is also recommended.
• Hargreaves Lansdown provides excellent customer service and phone support so you can get help quickly if needed.
• You can get interest paid on uninvested cash balances, helping to boost your balance.

Cons

• It has higher fees compared to some competitors. Higher fees can impact your returns over the long term, so it's worth comparing costs with other platforms.
• The trading fees on shares are expensive, so it's a good idea to explore these before investing.
• High foreign exchange fees on non-UK shares. This can be a huge drawback if you invest outside the UK, which is worth considering for a diversified portfolio.
• There is no community trading forum for investor discussions.

What financial services does Hargreaves Lansdown offer?

Hargreaves Lansdown provides a range of financial services tailored to different investor needs.

These include a stocks and shares ISA, which offers tax-efficient investing for UK investors.

There’s also a lifetime ISA (LISA) designed for those saving for their first home or retirement and a cash ISA for more conservative savers.

Retirement savers can use a SIPP, allowing greater control over retirement investments. Hargreaves Lansdown also offers a junior stocks and shares ISA, an active savings account, and annuities, giving clients access to a full suite of personal finance tools.

For hands-off investors, Hargreaves Lansdown provides ready-made portfolios and managed funds, allowing users to choose portfolios based on their risk tolerance.

The ready-made portfolios are created by experts and you can invest from £100 or £25 a month.

While ready-made funds are useful for hands-off investors, it's always a good idea to regularly review the performance and your investment goals.

What fees does Hargreaves Lansdown charge?

Hargreaves Lansdown fees are considered to be on the higher end, especially for larger portfolios.

According to the Hargreaves Lansdown website, for funds, the platform charges 0.45% up to £250,000, dropping to 0.25% for balances between £250,000 and £1 million and 0.1% for amounts between £1 million and £2 million. Any portfolio exceeding £2 million does not incur a fee.

There’s no platform fee for shares for their general investment account, but ISA and SIPP holders pay 0.45%, capped at £45 for stocks and shares ISAs and £200 for SIPPs per year. 

Share dealing fees start at £11.95 per trade, decreasing to £8.95 or £5.95 if you trade more frequently. 

What technology does Hargreaves Lansdown use?

Hargreaves Lansdown offers a user-friendly online platform and a mobile app for iOS and Android. The app allows users to manage their portfolios, make trades, and access the platform’s research tools from anywhere.

It’s ideal for those who prefer to stay connected to their investments while on the go. 

The app offers simple navigation and easy access to educational content, making it accessible even for those new to investing. Hargreaves Lansdown’s technology is built to streamline investment, giving users quick access to tools and insights.

Hargreaves Lansdown security: is it secure?

Hargreaves Lansdown takes security seriously, implementing multiple safeguards to protect client accounts. The platform uses secure encryption and two-factor authentication (2FA), with options for fingerprint or facial recognition via its app. 

Account holders are automatically logged out after inactivity, and a five-digit verification code is required for account access without biometric login. The platform also uses secure withdrawal processes, ensuring updates to nominated bank accounts are validated. 

Does Hargreaves Lansdown have good customer service?

Hargreaves Lansdown excels in customer service. They offer phone support six days a week, alongside secure messaging and email support.

Investors can access a wealth of resources, including educational guides and live webinars, to help them make informed decisions.

Get expert financial advice

Hargreaves Lansdown is a respected financial services firm with a robust, reliable platform offering a wide range of investment options, educational tools, and excellent customer service.

While its fees may be higher than some competitors, especially for large portfolios or frequent traders, the comprehensive service and support could make it worth the cost for those seeking a premium investing experience. 

Whether new to investing or a seasoned pro, Hargreaves Lansdown provides the tools and resources to help you confidently manage your financial future.

For expert financial advice, seek a financial adviser through Unbiased and ensure you have access to the guidance you need, tailored to your unique circumstances.