January 27: Hargreaves Lansdown Cuts Fees, Adds Fund Dealing Charge
Hargreaves Lansdown fees are changing from 27 January, with a lower platform charge and a new cost for trading funds. The platform charge drops to 0.35% (from 0.45%), online share dealing falls to £6.95, and a £1.95 fund dealing charge arrives. Some ISA fee caps are lifted. The company says eight in ten clients will pay the same or less. We explain who benefits, who may pay more, and how to check your total cost in pounds.
What changed in the pricing update
Hargreaves Lansdown cuts its platform charge to 0.35% and trims online share dealing to £6.95 per trade. A new £1.95 fund dealing charge applies when you buy or sell funds. The firm is also lifting some ISA fee caps, which could affect larger accounts. Full details were confirmed on 27 January and flagged ahead of the new tax year to help clients plan.
The company says eight in ten clients will pay the same or less under the updated structure. Lower ongoing platform costs and cheaper share dealing offset the new fund dealing cost for many investors, according to reports in the Financial Times source and This is Money source. The net effect depends on how often you trade funds and the size of your ISA or SIPP.
Who benefits and who may pay more
Investors who buy and hold funds, or who mainly trade shares or ETFs online, should benefit. The lower platform charge and £6.95 dealing price can cut annual and transaction costs. If you make few fund trades each year, the £1.95 per trade is a small addition. Over time, lower ongoing fees can improve net returns, especially on mid-sized portfolios.
Active fund switchers could see higher costs because the £1.95 fund dealing charge adds up with each trade. Lifting certain ISA fee caps may also raise costs for larger balances. If you regularly rebalance across many funds or run model portfolios, review your trading pattern. Calculate the break-even point where the lower platform rate no longer offsets extra fund trading costs.
Competitive pressure among UK platforms
UK platform pricing has tightened, and this change increases pressure on rivals to sharpen tariffs. Lower ongoing charges appeal to long-term investors, while per-trade fees can steer trading behaviour. Clear, simple pricing is a key battleground. We expect greater transparency around total cost of ownership, including dealing, custody, and FX, rather than headline rates alone.
Expect more comparisons with AJ Bell fees and other platforms as investors run the numbers. Providers may respond with targeted offers, capped fees for larger pots, or discounts for regular investing. For now, the best approach is to compare your actual usage: platform percentage, number of fund trades, and any fixed account charges across providers before switching.
What investors should do now
List your accounts, portfolio size, and typical activity. Multiply your portfolio value by the 0.35% Hargreaves Lansdown platform charge for the annual custody cost. Add estimated dealing: number of share trades at £6.95 and fund trades at £1.95. Compare this sum with last year’s costs and with at least two rival platforms using your real trading pattern.
If you decide to move, check transfer methods (in specie vs cash), timeframes, and any exit or re-registration fees at either end. Avoid trading during transfer to reduce market timing risk. If you hold regular savings plans or dividend reinvestment, confirm how the new fund dealing charge applies before making changes to your setup.
Final Thoughts
The headline cuts should help many investors, but totals still depend on behaviour. Lowering the platform rate to 0.35% and reducing share dealing to £6.95 support buy-and-hold and share-led strategies. The new £1.95 fund dealing charge matters most for frequent fund traders, while ISA cap changes may lift costs for larger balances. Our advice is simple: map your actual trading and holding pattern, price it under the new structure, and compare like-for-like with a rival, including AJ Bell fees. Review direct debit investing, dividend reinvestment, and rebalancing frequency. Act only after you have a clear pound-and-pence estimate of your yearly costs.
FAQs
What exactly changed in Hargreaves Lansdown fees?
The platform charge falls to 0.35% from 0.45%, online share dealing drops to £6.95, and a new £1.95 fund dealing charge applies when you buy or sell funds. Some ISA fee caps are being lifted. Your total cost will depend on portfolio size and how often you trade funds and shares.
Who is likely to benefit most from the new pricing?
Buy-and-hold investors and those who trade mainly shares or ETFs should benefit from the lower platform charge and £6.95 dealing. If you make only a few fund trades each year, the £1.95 per trade has a small impact. The net outcome improves as portfolio size and holding period increase.
Who might pay more under the revised structure?
Frequent fund switchers and investors with large ISAs may pay more. The £1.95 fund dealing charge adds up with each trade, and lifting certain ISA fee caps could raise costs on bigger pots. If you rebalance often across several funds, price your expected trades to see the breakeven point.
How should I compare these costs with AJ Bell fees or other platforms?
Price your real usage. Calculate annual custody using the percentage platform charge, then add dealing costs for your expected share and fund trades. Repeat the same steps for AJ Bell fees and at least one other provider. Compare total annual pounds, not just headline rates, and include any transfer or FX costs.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
