How safe is an investment with a consolidator like Hargreaves Lansdown?

Glen_Clark

aitcheff wrote: »

Thanks for the reassuring replies.

What are the lower cost platforms? I have used HL for years and I guess familiarity breeds complacency. I know that they are not the absolute lowest cost but I had thought they were reasonable.

I use https://www.x-o.co.uk, which is cheaper than HL, run by a plc called Jarvis who do the sharedealing service for Building Societies and manage the pensions for many companies.

Malthusian

Dird wrote: »

That assumes someone doesn't sell your shares and pockets the value while keeping your online account as showing they're still there.

A possibility which I covered in my second paragraph.

Glen_Clark

Dird wrote: »

That assumes someone doesn't sell your shares and pockets the value while keeping your online account as showing they're still there. Assuming each share has a unique number & a specific share is matched to each account, it wouldn't come to light until drawdown or longer if you die & it's passed to family. Meanwhile some guy is cruising around on a boat

Thats the 'Madoff style fraud' I referred to. Bernard Madoff got away with it for many years by keeping it all to himself, not even telling his family. I cannot see that happening in a plc like HL or X-O because someone would soon find out and put a stop to it. But if it did my understanding is that the losses would be covered by the platform or its insurers. Failing that the losses would be shared equally between all the other investors.

aitcheff

Thanks guys, for all your comments. I feel reassured on the safety of investments with HL or similar, but you've certainly prompted me to start to take a serious look at the costs.