Hargreaves Lansdown drops regular savers’ fees

ColdIron

May be of interest to HL clients

• Hargreaves Lansdown (HL), the UK’s largest retail broker, has slashed its charges for regular savers, removing the £1.50 fee on monthly contributions into investment trusts, shares and exchange-traded funds (ETFs).
• The move, in response to fierce price competition from rivals, applies to all regular savings plans at Hargreaves, whether they are linked to a general fund and share investment account, ISA or Sipp.
• Hargreaves said the change brings the regular savings charge on direct debits into trusts, shares and ETFs in line with funds, which have always been free.
• The Bristol-based funds supermarket has also scrapped the 1%, or £1-£10, charge to reinvest dividend income into shares. 

https://citywire.com/investment-trust-insider/news/hargreaves-lansdown-drops-regular-savers-fees/a2414165

Alexland

I noticed this when looking at their fees yesterday - so on a 'Fund and Share' dealing account you can now regularly invest in shares/ETFs for no trade or ongoing charge.

Kaizen917

Wish they would allow for LISA transfers. I could set up a new one with them this year but would rather keep this consolidated.

london21

Getting more competitive now. I moved my funds due to their high fees. Now using Iweb.

ColdIron

Alexland said:

I noticed this when looking at their fees yesterday - so on a 'Fund and Share' dealing account you can now regularly invest in shares/ETFs for no trade or ongoing charge.

Seems so (stamp duty and PTM still applies)

And the £11.95 dealing charge is levied for sales but as it says further on in the link

• Hargreaves said its general investment account was now effectively ‘free’ for regular contributions, with no service, administration, exit or online dealing fees. Investors putting in orders over the phone will continue to pay, however.

For some this is (almost) cheaper than IWeb

Albermarle

I wonder if the £45 cap on fees in  an ISA when investing in ETF's etc can be maintained now the revenue from regular dealing/dividend reinvestment is stopping?

Alexland

Albermarle said:

I wonder if the £45 cap on fees in  an ISA when investing in ETF's etc can be maintained now the revenue from regular dealing/dividend reinvestment is stopping?

It's still £45 more than Investengine. When I was with HL there were only a few hundred exchange traded assets they were offering regular investment on don't know if that's changed.

Albermarle

Although personally I am not entirely comfortable investing via a startup platform with zero charges .

AndyTh_2

Also InvestEngine doesn't do deals at time of buy request. It aggregates them later in the day to buy

Alexland

AndyTh_2 said:

Also InvestEngine doesn't do deals at time of buy request. It aggregates them later in the day to buy

It's similar with HL's regular investing function.

Herbalus

Interesting. I currently have most of my LISA with them in VWRP. I have a monthly DD of £25 into blackrock consensus because 1) the monthly bonus is enough for the monthly fee plus a bit spare, and 2) it allows me a DD which I use for a current account perk.

When I top up the LISA with a bigger lump sum each year, I sell down the blackrock consensus and buy into VWRP to minimise purchase costs.

This change may mean it’s now possible to just have the monthly £25 go into VWRP without any HL charges and skip the blackrock stage?