Pros and cons of Hargreaves and Lansdown

SteveSilva

With all these trading platforms around H&L seem to be a popular one, maybe only because of their marketing. I would just like to ask some questions any help will be greatly appreciated.

What are peoples experiences of H&L?

I hear they aren't so good for Investment Trusts, why is that?

I am going to start of with HSBC 250 index which has an annual charge of 0.25%, then add Aberdeens Emerging Market, and JPM natural resources, now when I buy or sell I do not have to pay any more charges do I?

Are H&L a good place to buy or sell ETFs?

jimjames

I use HL for funds and find their website excellent.

I think the reason they are not so good for IT and ETFs is that they levy an additional charge - which was up to £200pa for holding them although that is shortly being cut.

dunstonh

I hear they aren't so good for Investment Trusts, why is that?

Because HL are paid by the fund houses to market packaged investments. ITs are not packaged investments.

Are H&L a good place to buy or sell ETFs?

no.

deadpeasant

jimjames wrote: »

I think the reason they are not so good for IT and ETFs is that they levy an additional charge - which was up to £200pa for holding them although that is shortly being cut.

This is true in the H.L. ISA or SIPP, but not I believe for their vanilla fund & share dealing account. The 0.5% levy applies only to ETFs, to ITs and to other shares (and to a few UTs/OEICs which don't pay H.L. any renewal commission) in the ISA or SIPP.

(This is aside from the 0.5% stamp duty which has to be paid on IT and other share purchases, which presumably no platform can avoid. No stamp duty on UTs/OEICs or ETFs.)

But even in their vanilla, non ISA/SIPP wrapped account, I believe that H.L. has higher dealing charges than e.g. Interactive Investor.

I hope this helps (and that somebody points out if I'm wrong).