Our bottom line
As the UK’s largest investment platform, Hargreaves Lansdown are experienced at what they do. For years they’ve been a prominent and reliable choice for people looking to invest. The stocks and shares ISA from Hargreaves Lansdown is well rounded and will suit many long-term investors, especially those who prefer funds in my opinion.
Hargreaves Lansdown has won plenty of awards over the years. Their goal is to provide investors of all abilities somewhere you can go to get what they need. There’s a big choice of investments, a well-designed mobile app, decent-value share-dealing charges, and expert research and information.
Top features of Hargreaves Lansdown’s Stocks and Shares ISA
The ability to buy and sell funds for no cost is a big advantage of this account. Long-term investors looking to fill up their ISA with funds have plenty to choose from. Your account can be set up for just £100 or relatively small monthly investments of £25. There are no penalties or costs for withdrawing, transferring, or closing an account, which is also a bonus for investors.
On top of their wide investment choices and ease of moving money, they also offer a satisfaction guarantee (terms apply). This means that if you’re unhappy with the services after 12 months, you can get in touch and they’ll refund your account charges and you can move somewhere else.
Hargreaves Lansdown’s commission prices
Although most fund dealing involves no commission, there is a tiered system for share dealing based on the number of trades in the previous month:
- £11.95 per deal for 0-9 trades each month
- £8.95 per deal for between 10-19 trades
- £5.95 per deal for 20+ trades
So the more active you are with your share purchases, the lower your fees per trade will be.
It’s worth noting that these are the share dealing fees for online trading only, phone and post charges are different, and other costs (like stamp duty) may apply.
Fees you should know about
Although shares held in the account incur a flat 0.45% fee, funds held are charged on a tier system as follows:
- 0.45% on the first £250,000
- 0.25% on funds valued between £250,000 – £1m
- 0.1% on funds between £1m – £2m
- No charge for holding funds valued over £2m
Some funds will also have their own additional costs and charges that are not controlled by Hargreaves Lansdown, but are worth considering.
If you want to opt for any share income to be automatically reinvested, there is a charge equal to 1% of the trade value (minimum £1, maximum £10). This doesn’t apply to funds, where there is no charge for reinvesting income.
There’s no fee for purchasing funds by direct debit. But there is a charge of £1.50 per stock per month for buying FTSE 350 shares and selected investment trusts and exchange-traded funds (ETFs) via direct debit.
Any telephone share deals will incur a fee equal to 1% of the trade value (minimum £20, maximum £50). So it’s better value to trade online or on the mobile app. For overseas dealing, there is an FX charge of 1% for trades up to £5,000, which then gets lower for higher value deals.
It’s also worth keeping some cash in your account to cover any charges. If there’s no cash, investments are sold. This doesn’t cost you anything if funds are sold to pay for account charges, but if shares need to be sold, it costs £1.50 per deal. Hargreaves Lansdown will suggest a minimum cash amount for you to hold, which you will be able to see on your account when you log in.
Buying shares, ETFs and funds with a Hargreaves Lansdown Stocks and Shares ISA
With over 3,000 investment options available, there’s plenty to choose from when filling up your ISA allowance here.
This account really shines when it comes to funds, and I believe they wipe the floor with a lot of the competition. As a stockbroker, they also offer plenty of individual shares listed on various exchanges.
If you don’t like the DIY approach, there are six ready-made portfolios. All you need to do is select if you’re looking for growth or income. Then, just choose your level of risk and you’re good to go! It’s worth bearing in mind these managed portfolios carry their own ongoing charges and require a larger minimum investment.
If you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice
Hargreaves Lansdown’s platform
Hargreaves Lansdown allows investors to buy investments and manage their account online or through the mobile app. Along with having access to a wide choice of investing options, the platform has some really useful tools. Investors are able to set stop-loss and limit orders along with access to interactive charts and real-time share alerts.
The website was refreshed and revamped a few years ago to give it a nice smooth look both online and on the app. Both work pretty seamlessly and the application in particular has drawn lots of positive feedback from users.
Hargreaves Lansdown’s research offerings
Hargreaves Lansdown has been in the investing game for a long time so they know their stuff. They use this knowledge to help out investors by providing ideas and information from their expert analysts.
Along with general market insights and news, there’s some great specific research based on individual companies. You’re also able to access press and broker tips from ShareCast, which is great for those who like to do some extra digging around the investing landscape.
New investors can easily find lots of basic information to help get you started on your journey. For those with more experience who want to research the nitty gritty details, there’s plenty of materials available that are updated on a regular basis.
Do be mindful that any investment information and expert opinion provided on Hargreaves Lansdown’s website is not personal advice and is designed for investors who are happy making their own investment decisions. If you’re unsure about the suitability of an investment for your circumstances, you’ll want to seek out your own independent financial advice
Service and support
Hargreaves Lansdown offers a number of dedicated phone lines based in Bristol that are available from 8.00am – 5.00pm Monday to Friday and 9.30am – 12.30pm on Saturdays. They also offer share dealing support during market hours.
You can also get in touch with them through a contact form on the website. They aim to provide enough resources and account access to minimise the need for contact, but they’re there if you need them.
Is a Hargreaves Lansdown Stocks and Shares ISA right for you?
If you predominantly buy funds, then I believe this account can be of great value. Because this stocks and shares ISA makes it easy and cheap to deal funds, it may be a good place to start with this type of investment. Then you can always develop out into things like individual shares as you get more experienced.
For someone who prefers individual shares, this account definitely rewards more active traders. However, I’d say there can be better value found elsewhere if you tend to just make a small number of individual share purchases each month.
Hargreaves Lansdown offers great all-round stocks and shares ISA, providing lots of choices and decent value. It’s not the cheapest account out there, but I believe the research and support available make this an attractive pick for both novice and experienced investors alike.