Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • emesalopez
    • By emesalopez 5th Oct 17, 2:42 PM
    • 2Posts
    • 0Thanks
    emesalopez
    Charges with Hargreaves Lansdown
    • #1
    • 5th Oct 17, 2:42 PM
    Charges with Hargreaves Lansdown 5th Oct 17 at 2:42 PM
    Has anybody looked into charges with Hargreaves Lansdown? I was reading an article in the MSE website which explained that Hargreaves Lansdown's platform fee is more expensive than other platforms. However Hargreaves Lansdown get discounts on the fund management fees which vary depending on each fund. So, if I was to move my funds from Hargreaves Lansdown to another cheaper platform, I may save money in the platform fee but I may end up paying more on fund manager's fees. Plus I would have to pay an exit charge.

    Does anyone know if other platforms also give discounts on fund manager fees?
Page 1
    • george4064
    • By george4064 5th Oct 17, 2:52 PM
    • 844 Posts
    • 895 Thanks
    george4064
    • #2
    • 5th Oct 17, 2:52 PM
    • #2
    • 5th Oct 17, 2:52 PM
    All you need to do is compare between platforms the total charges (Fund manager charge and platform charge).

    As a general rule of thumb, investing in funds through HL is more expensive than through other platforms. However bear in mind that HL have the best customer service around if you need or like some hand holding.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £9,136.98/£12,000 (76%)
    • dunstonh
    • By dunstonh 5th Oct 17, 3:12 PM
    • 89,852 Posts
    • 55,455 Thanks
    dunstonh
    • #3
    • 5th Oct 17, 3:12 PM
    • #3
    • 5th Oct 17, 3:12 PM
    I was reading an article in the MSE website which explained that Hargreaves Lansdown's platform fee is more expensive than other platforms.
    They are one of the most expensive platforms out there. More expensive than advised platforms too.

    However Hargreaves Lansdown get discounts on the fund management fees which vary depending on each fund.
    That is not unique to HL. Most platforms have a range of super clean funds. HL do not have the largest range. Old Mutual Wealth platform has the most. I believe Standard Life platform are next.
    So, if I was to move my funds from Hargreaves Lansdown to another cheaper platform, I may save money in the platform fee but I may end up paying more on fund manager's fees. Plus I would have to pay an exit charge.
    Most platforms do not have exit charges either.

    Does anyone know if other platforms also give discounts on fund manager fees?
    Most of them.

    HL have one thing going for them that many of the cheaper options on the DIY side do not have and that is the quality of software. Do not underestimate the importance of software.

    I had a client who was charges focused rather than quality focused and they ended up on a cheap platform who needed wet signatures on withdrawal. They needed some money very quickly whilst they were abroad. Getting the actual signature on the form delayed it and cost them money. Whereas a slightly more expensive platform with no signature requirements, online processing and prefunding could have had the money required to them that same day it was requested.

    Platforms are a value added service. Paying less to get less will be fine for some people. Paying a bit more for quality is what others may focus on.
    • A_T
    • By A_T 5th Oct 17, 3:30 PM
    • 198 Posts
    • 95 Thanks
    A_T
    • #4
    • 5th Oct 17, 3:30 PM
    • #4
    • 5th Oct 17, 3:30 PM
    That is not unique to HL. Most platforms have a range of super clean funds. HL do not have the largest range. Old Mutual Wealth platform has the most. I believe Standard Life platform are next.
    Originally posted by dunstonh
    Which funds do these two offer cheaper than HL?
    • jimjames
    • By jimjames 5th Oct 17, 5:06 PM
    • 12,095 Posts
    • 10,544 Thanks
    jimjames
    • #5
    • 5th Oct 17, 5:06 PM
    • #5
    • 5th Oct 17, 5:06 PM
    Which funds do these two offer cheaper than HL?
    Originally posted by A_T
    I don't think there was a suggestion the funds were cheaper than HL, just that they have cheaper fund classes.


    Has anybody looked into charges with Hargreaves Lansdown?
    Originally posted by emesalopez
    Yes many people have especially since they were increased about 4 years ago

    Does anyone know if other platforms also give discounts on fund manager fees?
    Originally posted by emesalopez
    Yes they do. Whether it's worthwhile depends on the total cost and your portfolio value. For £5k you might find very little difference with HL, for £500k you could make a big saving
    Last edited by jimjames; 05-10-2017 at 5:08 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • zagfles
    • By zagfles 5th Oct 17, 5:18 PM
    • 12,353 Posts
    • 10,357 Thanks
    zagfles
    • #6
    • 5th Oct 17, 5:18 PM
    • #6
    • 5th Oct 17, 5:18 PM
    HL are known to negotiate on charges if you have a big fund, see http://forums.moneysavingexpert.com/showthread.php?t=4889890
    • dunstonh
    • By dunstonh 5th Oct 17, 5:20 PM
    • 89,852 Posts
    • 55,455 Thanks
    dunstonh
    • #7
    • 5th Oct 17, 5:20 PM
    • #7
    • 5th Oct 17, 5:20 PM
    Which funds do these two offer cheaper than HL?
    Originally posted by A_T
    I'm not sure how that ties in with what I said.

    Most platforms have the usual suspects on superclean. Some fund houses have been dishing them out like sweets at halloween. Then there are the odd unique deals to certain platforms. And finally, the more limited selection that may appear on a smaller number of platforms.

    I would estimate around 80% of the superclean funds appear on all the major platforms. Then each will have a smaller spread of uniques or limited numbers.

    Broadly speaking, the greatest number of superclean go to the largest platforms.
    • A_T
    • By A_T 5th Oct 17, 5:47 PM
    • 198 Posts
    • 95 Thanks
    A_T
    • #8
    • 5th Oct 17, 5:47 PM
    • #8
    • 5th Oct 17, 5:47 PM
    I don't think there was a suggestion the funds were cheaper than HL, just that they have cheaper fund classes.
    Originally posted by jimjames
    What examples are there of cheaper fund classes than those offered on HL?
    • MichelleUK
    • By MichelleUK 5th Oct 17, 8:41 PM
    • 298 Posts
    • 176 Thanks
    MichelleUK
    • #9
    • 5th Oct 17, 8:41 PM
    • #9
    • 5th Oct 17, 8:41 PM
    However bear in mind that HL have the best customer service around if you need or like some hand holding.
    Originally posted by george4064
    I have found that HL have gone off the boil lately.

    1. I sent a share certificate in with a transfer form. A few days later, I received a letter asking me to complete the enclosed transfer form. I messaged them to say that they already have it and they eventually found the original.
    2. I queried the price on a fund purchase on a contract. They took days to reply, but in the meantime I discovered that the fund was actually closed that day, so the price was the day after (wrong date on contract). When they eventually replied, it was a load of waffley nonsense totally unrelated to what had actually happened.

    I also have an account with Charles Stanley Direct and they are far more responsive and actually make the effort to respond to your issue rather than cut and paste waffle!
    Last edited by MichelleUK; 05-10-2017 at 9:00 PM. Reason: Spelling
    • emesalopez
    • By emesalopez 6th Oct 17, 12:01 PM
    • 2 Posts
    • 0 Thanks
    emesalopez
    Thank you all for your help
    • snowqueen555
    • By snowqueen555 6th Oct 17, 10:14 PM
    • 690 Posts
    • 492 Thanks
    snowqueen555
    I definitely looked into this, but in the end it is the difference between paying £12 a month in fees with HL, vs £8-9 with a cheaper broker. Is it worth me changing over?

    At the minute, no. I like having a LISA and SS ISA in one account, and the HL app and website and high number of funds to invest are for me worth paying a few extra quid.

    If I get a bigger nest egg that might change in the future.

    If you did want to invest to stocks, i'd recommend degiro.
    • Alexland
    • By Alexland 6th Oct 17, 11:16 PM
    • 445 Posts
    • 262 Thanks
    Alexland
    I agree if you have started with HL you might as well stay with them until the pots are big enough to make a saving by moving. Just don't forget to move when the fees are too high.
    • The_Doc
    • By The_Doc 7th Oct 17, 9:59 AM
    • 28 Posts
    • 24 Thanks
    The_Doc
    Monevator is an invaluable source of information:

    http://monevator.com/compare-uk-cheapest-online-brokers/
    • Chordeiles
    • By Chordeiles 14th Oct 17, 4:45 PM
    • 91 Posts
    • 42 Thanks
    Chordeiles
    HL are known to negotiate on charges if you have a big fund, see http://forums.moneysavingexpert.com/showthread.php?t=4889890
    Originally posted by zagfles
    That's a very old thread and Hargreaves Landsdown's policy will have "evolved" (perhaps because of the way folks are sharing such information ?).

    In April of this year my request for improved fees was rejected in terms so blunt as to be quite rude. I have about half a million in my HL SIPP. A request for waiving of transfer-out fees was more successful (but then I probably had them "over a barrel" on that one, for reasons too long-winded to explain here).

    As I have proceeded with my transfer-out a couple of other emails I have sent them have been misinterpreted by HL as further requests for reduced fees, or at least they took the opportunity to reiterate that there could be no reduction in fees when that really wasn't what I was now asking for.

    Ironically the reduction they would have needed to make to keep me as a customer wasn't actually that great.

    If anyone had a different experience in recent months I'd be pleased to hear about it, it could be that my original request got clouded by being included with a complaint, and in their determination to reject all complaints they felt the need to reject every part of my letter.
    • Alexland
    • By Alexland 15th Oct 17, 12:52 PM
    • 445 Posts
    • 262 Thanks
    Alexland
    Even if it is possible to negotiate with HL on fees I have not yet seen an example where the reduction was significant enough to be a best in market product and so worth staying with them on large account balances.
    • jamei305
    • By jamei305 15th Oct 17, 5:30 PM
    • 202 Posts
    • 250 Thanks
    jamei305
    I notice HL are now including the "vantage service charge" of 0.45% on each fund's Annual Charges. For example the Legal & General International Index Trust used to be listed as having just the "net ongoing charge" of 0.08% but now is clearly shown to have a "maximum overall charge" of 0.53%.

    This should help as there have clearly been people on here confused about their charges for funds. I wonder if it was pushed on them by a particular regulatory change?
    • dunstonh
    • By dunstonh 15th Oct 17, 5:38 PM
    • 89,852 Posts
    • 55,455 Thanks
    dunstonh
    The disclosure on charges is changing from 3rd January. MiFIDII directive comes in at that point.
    • ColdIron
    • By ColdIron 15th Oct 17, 5:44 PM
    • 3,454 Posts
    • 4,061 Thanks
    ColdIron
    Where is the "maximum overall charge" clearly shown? I'm not saying it isn't, just that it eludes me
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

290Posts Today

2,033Users online

Martin's Twitter
  • I was surprised to see the three people in front of me in the newsagents were all shocked their old £1 coins were no longer taken.

  • RT @natdebtline: If you?ve been visited by a bailiff since April 2014 we want to hear your story for our #bailiffreform campaign https://t.?

  • Well so far it seems there's one thing remainers and leavers agree on - the EU is getting the better of the negotia? https://t.co/70z5ffpG8S

  • Follow Martin