Hargreaves Lansdown "playing hardball"

koru

Interesting that the Daily Telegraph, Guardian and Evening Standard are all using the "price war" headline. I assume this comes straight from the HL press release.

A strange way to spark a price war, by announcing prices higher than virtually any other platform...

Rollinghome

Wilkins wrote: »

Everyone's circumstances will be different but probably no one should rush to take action. For me, with just a handful of unwrapped equities and one ETF, there's no need to do anything now, and the only currently escapable fee is that for account closure.

I am thinking I will just trade my way out of HL over the next couple of years or so, starting with the ETF (because they might hit this next), as and when opportunities arise.

It becomes trickier for anyone holding equities and doesn't want to be forced into selling - which is why they might want to insist on a free transfer out.

Otherwise I'm not sure why most people would want to pay so much more than on other platforms, including a raft of extra charges such as doubling the charge ceiling for holding ITs and equities by treating them as different:
"In addition to reducing the charge to 0.45%, we are amending this arrangement such that investment trusts are assessed separately to shares, ETFs, bonds, gilts and similar investments in calculating the charge."

Most of the new charges come in at the end of February and if you intend to leave anyway you'll avoid the closure fees on each account that comes in shortly after. It's a hassle but for many, once they know all the options, might be as well to bite the bullet sooner than later. However, each to his own.

Rollinghome

jimjames wrote: »

Rather an about turn from their article this morning!

Clearly this one is written by a journalist that actually knows something about investing!:T

Also a more balanced article here: http://www.telegraph.co.uk/finance/personalfinance/investing/10574397/Hargreaves-Lansdown-the-new-hidden-charges.html
"Hargreaves Lansdown: the new 'hidden' charges' "

Froggitt

Rollinghome wrote: »

HL have made the cost of escaping so high I doubt you'd have much luck with that route, especially moving ITs/equities.

To move just a dozen funds HL will charge £360

Im getting £200 or so refunded by my new provider. They will refund upto £300 of exit fees.

elantan

Have just had a look at my h&L charges etc... looks like i will be moving digs as well .. now to decide whether to just cash it all in ( apart from the pension obviously ) or just transfer it out

i havnt used up my I.S.A allowance so i could cash it in and repay into a new one ... might make it easier to do it this way actually

Rollinghome

Froggitt wrote: »

Im getting £200 or so refunded by my new provider. They will refund upto £300 of exit fees.

On equities and ITs or on unit trusts/oeics?

zagfles

Well, I'm quite pleasantly surprised after all the scare stories of 0.7% charges!

Michael_Nottingham

Ouch - I will be seeing a massive increase as a result of this - I have a substantial amount invested in low cost index trackers with HL. Will definitely moving - just need to do the sums to work out where to!

Any views on where is the best for a SIPP mainly invested in very low cost index trackers with very low portfolio churn?

guitarman001

Got a letter today saying they're charging 0.45% per annum on sums up to £250k? How does this apply to Lifestrategy funds which currently have an initial charge of around 0.2% followed by a £2 monthly fee??
I'm also going to be buying American stock and wonder how this will be affected.

kidgorgeous

Algie wrote: »

I have just read my letter from HL.
I have 500k invested in Vanguard Lifestrategy 100% equity.
If I am reading the new charging structure correctly it looks like I will be charged £1750 per year in future, up from my current annual charge of £24! I am clearly one of the losers with this change

Would it be cheapest to invest directly with vanguard?