Hargreaves Lansdown Reduces Platform Fees for Early-Bird Investors
Investment platform Hargreaves Lansdown cuts fees for ISA and SIPP clients - how does this measure up against other service providers?
Investment platform Hargreaves Lansdown has announced a reduction in its platform fee for early-bird customers opening a new Stocks and Shares ISA or self-invested personal pension (SIPP) account. The annual charge will be reduced by 40%, dropping from a maximum of 0.45% to 0.27%, for those contributing or transferring in at least £10,000.
The special offer is available to customers who open and fund an account between 15 April and 30 June 2025. This reduced rate will be in effect from 1 July 2025 to 31 December 2025, capped at £2.25 per month for the ISA or £10 per month for the SIPP.
In addition, Hargreaves Lansdown is offering another incentive for new customers. Those who set up a new direct debit for a Stocks and Shares ISA or SIPP by 30 June 2025 will have their account fee refunded to them in cash.
Paul Dimambro, director of pensions, investments, and ISAs at Hargreaves Lansdown, commented, "After a turbulent few weeks due to President Trump's tariffs, it's easy for investors to overlook the start of a new tax year. This is why we've launched these special offers, aiming to provide an extra incentive for individuals to take the first step towards their financial freedom."
The cheaper fees come as competitors like Vanguard introduce a £4 monthly fee, effective at the end of February.
How the Special Deals Work
For customers investing £10,000 or more, the reduced platform fee of 0.27% will apply for six months, from 1 July 2025 to 31 December 2025. After that, the standard rate of 0.45% will resume. Fund investors with accounts valued less than £250,000 who meet the special offer criteria will pay the reduced fee of 0.27%, while those with larger portfolios will pay even less.
The second offer is for customers setting up a new direct debit for a Stocks and Shares ISA or SIPP by 26 June 2025. They will receive their account charges as cashback, to be paid into their Loyalty Bonus Accounts on 26 July 2026, provided they maintain a consistent direct debit for at least 12 months.
Comparing Hargreaves Lansdown's Lower Fees with Competitors
Although a 40% discount may seem attractive, Hargreaves Lansdown is known for having higher platform fees. The lang cat, a financial consultancy, has analyzed the fees of various platforms and concludes that for an ISA portfolio of £15,000 invested in funds, Hargreaves Lansdown's annual fee will drop from £68 to £54 during the six-month promotional period, making it one of the cheapest platforms.
For larger ISA portfolios of £100,000, the fee drops from £450 to £360, making Hargreaves Lansdown less expensive than Bestinvest and Fidelity but more expensive than Vanguard and Interactive Investor.
Investors opening a SIPP and investing solely in funds will face an annual charge of £360 (as opposed to the standard £450), making it cheaper than Barclays and Bestinvest but more expensive than Vanguard and Interactive Investor.
It's crucial for investors to take into account other factors when considering platform fees, such as investment types, trading frequency, and wrapper preferences. Beyond pricing, factors like investment assistance and brand trust play a significant role in making a personal, informed choice based on an individual's circumstances.
Sources:
- Hargreaves Lansdown press release
- The Lang Cat analysis
- Early-bird investors who open a new Stocks and Shares ISA or self-invested personal pension (SIPP) account with Hargreaves Lansdown between 15 April and 30 June 2025 will benefit from lower platform fees, with the annual charge reduced by 40%.
- Personal finance experts should consider Hargreaves Lansdown's special offer as a potential opportunity for lower fees within their pensions and personal-finance planning, especially for those contributing or transferring in at least £10,000.
- The newsletter from financial consultancies like The lang cat could provide valuable insights for investors seeking information about platform fees, as they analyze and compare the costs of various platforms, such as Hargreaves Lansdown, Vanguard, Bestinvest, Fidelity, Barclays, and Interactive Investor.
- It's essential for investors to weigh the cost savings from reduced fees against other factors like investment types, trading frequency, and wrapper preferences when choosing an investment platform, while also considering aspects like brand trust and investment assistance as part of their personal-finance decisions.
