Trading 212 vs Hargreaves Lansdown: what’s the difference?

Trading 212 and Hargreaves Lansdown (HL) are two of the biggest investment platforms in the UK. 

But what exactly are the differences between them, and which one is better for your investing needs?  

This guide examines the key distinctions between HL and Trading 212 to help you decide which platform to choose. 

What is the difference between Trading 212 and Hargreaves Lansdown? 

Trading 212 and Hargreaves Lansdown (HL) are distinctively different in their target audience and service offering. 

Trading 212 is an app-based investment platform designed primarily for ease-of-use, cost-effectiveness, and accessibility.

It appeals mostly to younger investors and beginners interested in commission-free investing, fractional shares, and straightforward user interfaces. 

Hargreaves Lansdown is one of the UK's largest and most established investment platforms, favoured by investors seeking comprehensive financial services, extensive fund research, pension options, and high-quality customer support.

It's particularly popular among more experienced investors and those planning for retirement. 

Trading 212 and Hargreaves Lansdown: how do the fees compare? 

Fees are a crucial consideration when comparing platforms. 

Trading 212 fees: 

• Account fees: None (no inactivity or management fees) 

• Trading fees: Commission-free trading on shares and ETFs 

• Foreign exchange fees: 0.15% currency conversion charge 

• Deposit fees: No fees for deposits; however, limits may apply for certain payment methods 

Hargreaves Lansdown fees: 

• General funds and shares account: 0.45% annual management charge fee.

• Stocks and shares ISA: 0.45% management charge for funds of up to £250,000 (this fee falls with the size of your funds with no charge for over £2 million), 0.45% management charge capped at £45 per year for shares, investment trusts, ETFs, gilts and bonds.

• Lifetime ISA: 0.25% management charge for funds (this fee falls with the size of your funds with no charge for over £2 million), 0.25% management charge capped at £45 per year for shares, investment trusts, ETFs, gilts and bonds.

• Self-invested personal pension (SIPP): 0.45% management charge for funds up to £250,000 in value with lower annual charges for higher values held in funds and no charge for over £2 million, 0.45% management charge capped at £200 per year for shares, investment trusts, ETFs, gilts and bonds.

• There are no trading charges for funds.

• £11.95 fee for ETF/share dealing (this decreases if you made more than nine trades in the previous month). There's also an ongoing charge figure (OCF) on each fund. 

Overall, Trading 212 typically offers significantly lower fees, particularly attractive for frequent or smaller investors.

Hargreaves Lansdown's higher fees are balanced by extensive additional services and depth of research. 

Is Trading 212 or Hargreaves Lansdown better? 

The answer depends significantly on your individual investment goals and requirements.

Here's a detailed comparison based on key factors: 

Range of investments 

Trading 212 offers a diverse yet simpler range including stocks, ETFs, fractional shares, and CFD trading (contracts for difference). It doesn't offer mutual funds or bonds. 

Hargreaves Lansdown provides extensive investment options, including thousands of funds, investment trusts, shares, bonds, ETFs, and pensions. 

For range and depth, HL clearly leads, especially beneficial for diversified or sophisticated investors. 

Research and guidance 

Trading 212 provides basic company data, simplified charts, and educational materials ideal for beginners. It lacks deep analysis or advisory support. 

Hargreaves Lansdown offers extensive research, analysis, fund recommendations, comprehensive market news, and educational resources—excellent for investors needing support or guidance. 

HL stands out for those who prioritise investment research and advisory services. 

Brand reputation 

Although newer, Trading 212 has grown rapidly popular due to its modern, user-friendly app, cost efficiency, and appeal to younger investors. It holds regulatory approval from the FCA and has FSCS protection. 

Hargreaves Lansdown are highly respected, established in 1981, HL has an outstanding reputation for reliability, service quality, and extensive investment capabilities. It’s fully FCA regulated and FSCS protected. 

Hargreaves Lansdown has the stronger brand reputation due to its longevity and market position, but Trading 212 still remains a popular choice with investors. 

Can you open accounts with both Trading 212 and Hargreaves Lansdown? 

Absolutely. Many investors benefit from using both platforms simultaneously: 

For example, Trading 212 could be ideal for cost-effective, frequent investing or trading in shares and ETFs, whereas Hargreaves Lansdown may suit your long-term investments, pensions, and funds where deeper insights and broader options add value. 

Having both accounts could diversify your investing strategies and maximise advantages from each provider.

Our expert says: How financial advice can improve your investment returns

"If you’re considering investing, it pays dividends to seek guidance from a qualified financial adviser.

They can help build an investment portfolio that aligns with your risk appetite and long-term goals, as well as review it regularly so you can boost your chances of generating the returns you want."

Karen Barrett, CEO and Founded at Unbiased

Which is better for passive, long-term investing? 

If your goal is passive, long-term investing, Hargreaves Lansdown often stands out due to its broader fund range, pension options, and comprehensive resources. 

However, if your focus is exclusively on low-cost ETFs or shares for passive index-tracking strategies, Trading 212 could be more cost-effective and practical. 

Ultimately, HL suits investors seeking deeper fund-based investment strategies, while Trading 212 fits simple, passive ETF-based investments. 

How do their investment philosophies differ? 

The two platforms have notably distinct investment philosophies.

Trading 212 encourages self-directed investing, emphasising low fees, simplicity, and accessibility. It appeals particularly to DIY investors comfortable with technology, app-based investing, and trading. 

Hargreaves Lansdown promotes comprehensive wealth-building and retirement-focused strategies. It focuses heavily on active management, offering extensive guidance and research tools designed for informed investment decision-making. 

Trading 212 supports self-managed, cost-effective strategies, whereas HL champions a more structured and advisory-driven approach. 

Get expert financial advice 

Choosing between Trading 212 and Hargreaves Lansdown depends significantly on your personal investment needs, goals, and experience.

Trading 212 is best for cost-conscious, tech-savvy investors who prefer simplicity and direct access to markets.

Conversely, Hargreaves Lansdown is excellent for investors prioritising comprehensive financial services, detailed research, pension planning, and more personalised support. 

No matter your chosen platform, seeking expert financial advice tailored to your circumstances is crucial for informed, strategic investing decisions. 

To connect with a trusted financial adviser and ensure you're making the best investment decisions, find an expert financial adviser here.