Charges with Hargreaves Lansdown

emesalopez

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?

george4064

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.

dunstonh

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

dunstonh wrote: »

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.

Which funds do these two offer cheaper than HL?

jimjames

A_T wrote: »

Which funds do these two offer cheaper than HL?

I don't think there was a suggestion the funds were cheaper than HL, just that they have cheaper fund classes.

emesalopez wrote: »

Has anybody looked into charges with Hargreaves Lansdown?

Yes many people have especially since they were increased about 4 years ago

emesalopez wrote: »

Does anyone know if other platforms also give discounts on fund manager fees?

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

zagfles

HL are known to negotiate on charges if you have a big fund, see https://forums.moneysavingexpert.com/discussion/4889890

dunstonh

A_T wrote: »

Which funds do these two offer cheaper than HL?

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

jimjames wrote: »

I don't think there was a suggestion the funds were cheaper than HL, just that they have cheaper fund classes.

What examples are there of cheaper fund classes than those offered on HL?

MichelleUK

george4064 wrote: »

However bear in mind that HL have the best customer service around if you need or like some hand holding.

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!

emesalopez

Thank you all for your help

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.