Switching from Hargreaves Lansdown due to new charges

atari_st

I currently have a SIPP with HL worth less than £100K however am concerned around the new charges particularly the fund switching fees of £1.95 per trade which feels v high. Have other readers switched to other platforms. If so what ones did you switch too and are there services and charges better?

dunstonh

It may be worth stating what asset types you are investing in. e.g. UT/OEICs or direct assets such as shares, ITs or ETFs.

HL has always been expensive for funds, but it will be cheaper going forward. Hower its still very expensive compared to others. So, if you are using funds (which you do reference in your post) you will likely be paying lower charges in future.

atari_st

thanks for the feedback. I invest in OEICs in my SIPP and typically rebalance each quarter.

DavidT67

Moved nine family ISA and SIPP accounts to FreeTrade or Fidelity for the cashback offers. Fund ranges are slightly more limited than Hargreaves Lansdown, but you'll be able to find something comparable.

squirrelpie

HL has always been expensive for funds, but it will be cheaper going forward.

Only for SIPPS for exchange investments. £200→£150 For ISAs it's going up £45→£150 !

DavidT67

I used to buy a MMF fund on the 1st of the month and then sell on the 27th of the month to gain soms extra interest compared to their uninvested cash interest rate; HL's new £1.50 dealing fee for funds finished that.

But them introducing a £150 fee on the GIA in a World of free brokers and fund platforms was just plain insanity !

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/81885116#Comment_81885116

It will be interesting to see the drop in assets under management as a result of this. I have transferred nearly a million pounds out for an ISA myself. Transferred to three different providers for three cashbacks.

I can hold Vanguard Global All Cap OEICS for free at Freetrade, so why not! I only used ETFs at Hargreaves.

DavidT67

Yep, we had millions with HL, and tolerated the fees for the customer service and full range of products and functionality offered. But there comes a point when you've gotta to say enough is enough.

The fact that they've launched a cashback offer to encourage new customers to transfer in days after raising fees for established customers is just crazy.

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/81885804#Comment_81885804

This is the sort of nonsense that happens when private equity gets involved in a business. It’s rarely good news.

poseidon1

When private equity takes over a business they look for a return on their investment over a 5 to 7 years period before exiting and moving onto greener pastures.

Looks like HL's new owners have pushed for rejigged fees, with their ROI and exit in mind, but appear to be ignoring the significant competition keen to take a slice of HL's pie.

They may have been viewing much of the client base as 'sheep' waiting to be shorn. In my case all my ISA shares, gilts and corporate bonds will be winging their way across to ii, never to return.

atari_st

Thanks so much for all your comments and guidance. The HL fees, especially the £1.95 charge per fund switch, were the final straw for me. I’ve gone ahead and submitted a SIPP transfer to Fidelity to take advantage of their £300 cashback offer.