January 27: Hargreaves Lansdown Cuts Platform Fee, Adds Fund Trade Charge
Hargreaves Lansdown fees are set for a major reset that matters for UK savers. The platform will cut its core fee to 0.35%, trim share-dealing costs, add a £1.95 charge for each fund trade, and raise the ISA share-charge cap. We explain what these moves mean for ISA platform charges, SIPP fee changes, and fund dealing costs. We also outline who may pay less or more, and how to keep your total bill down.
What changed in the pricing
Hargreaves Lansdown will reduce the core platform fee to 0.35%. The group also plans lower share-dealing costs, which should help regular share buyers and ETF investors. The cut narrows the gap with cheaper rivals, without moving to a flat-fee model. As competition heats up, we expect more price pressure across the UK market, as noted by the Financial Times source.
The new £1.95 charge per fund trade changes how costs add up. Investors who switch funds often will now see dealing costs where previously many paid none per transaction. The ISA share-charge cap rises, which may lift costs for high-activity users before the cap kicks in. Overall, hargreaves lansdown fees look sharper for simple portfolios but may rise for frequent fund traders.
ISA platform charges fall with the 0.35% rate, while a higher ISA share-charge cap could offset savings for active traders. SIPP fee changes align the structure for pension investors, pairing the lower platform fee with the new fund trade pricing. Investors Chronicle reports a broad reshaping across ISA and pensions source. We see hargreaves lansdown fees favouring long-term, low-turnover investors.
What this means for different investors
A simple test helps. On a £20,000 ISA in funds, a 0.35% platform fee equals £70 a year. If you make two fund trades, add £3.90. Total cost stays modest, and you benefit from the fee cut. For many beginners and monthly savers, hargreaves lansdown fees now look competitive, provided trading activity stays low.
Frequent switching changes the bill. Each fund buy or sell adds £1.95. Ten trades a year add £19.50, 24 trades add £46.80. On a £50,000 portfolio, the 0.35% platform fee is £175, so dealing can become a bigger slice. Active allocators should track fund dealing costs and consider batch rebalancing to reduce charges under the new structure.
Lower share-dealing costs help stock pickers and ETF buyers, especially those making regular contributions. The higher ISA cap may mean more room before charges stop accruing, but cap details matter to heavy traders. For many, hargreaves lansdown fees will fall if most activity is in shares and ETFs, while minimal fund dealing keeps extra costs contained.
How it compares with rivals
Some brokers use percentage charges, others prefer flat fees. Percentage pricing like 0.35% scales with account size, which may suit smaller portfolios. Larger balances can prefer flat fees. We suggest testing your annual cost across providers. Add platform fees, fund dealing costs, and share trades to get a like-for-like total before switching.
Across the UK, more platforms separate access fees from dealing fees for clarity. A small fund trade charge can curb excessive switching and make costs transparent. As competition intensifies, pricing keeps moving, as covered by the Financial Times source. We expect rivals to review pricing bands if hargreaves lansdown fees attract new inflows.
When comparing providers, look beyond headline rates. Check transfer-out fees, in-specie transfer rules, and any discounts for larger balances. Moving accounts can take weeks, which adds friction. Before switching for lower hargreaves lansdown fees or a rival deal, confirm all charges, tools, research access, and customer support hours.
Practical steps to cut your bill
Write a quick total-cost sum. Platform: 0.35% times your average yearly balance. Fund trades: £1.95 times expected buys and sells. Shares and ETFs: the new dealing rate times your trades, noting any ISA cap effects. Compare this to last year’s spend to see if hargreaves lansdown fees now save you money.
Use ISAs and SIPPs to protect gains and income from tax, then keep trading simple. Bundle fund switches into fewer, planned rebalances. Consider monthly investing to reduce impulse trades. Keep an eye on fund dealing costs when reweighting. Small behaviour tweaks can outweigh headline changes in hargreaves lansdown fees.
Fees change as competition shifts and volumes move. Set a reminder to review your provider each year. Reprice your portfolio after any update to platform fees, ISA platform charges, SIPP fee changes, or fund dealing costs. If hargreaves lansdown fees adjust again, you will be ready to act quickly with a clear, tested plan.
Final Thoughts
Hargreaves Lansdown’s new pricing trims the platform fee to 0.35%, cuts share-dealing costs, adds a £1.95 fund trade charge, and raises the ISA share-charge cap. The net effect depends on how you invest. Buy-and-hold investors with few fund trades likely pay less. Frequent fund switchers could pay more. To decide, price your own year: platform percentage on average balance, plus fund and share trades. Compare this result with rival quotes. Review ISA platform charges and SIPP fee changes annually, keep turnover low, and rebalance on a schedule. With a clear cost checklist, you can keep total charges down while staying invested.
FAQs
What is the new Hargreaves Lansdown platform fee?
The platform fee moves to 0.35%. That rate applies to the value of eligible holdings, so a £20,000 portfolio costs £70 a year before dealing. This sits alongside lower share-dealing costs, a £1.95 fund trade charge, and a higher ISA share-charge cap. Always check your account type and holdings.
How do the new fund dealing costs work?
Each fund buy or sell now carries a £1.95 charge. If you switch funds often, these charges add up. Ten trades in a year would add £19.50 to your bill. Buy-and-hold investors who trade sparingly will see a smaller impact from the new fund dealing costs.
How do the changes affect ISA platform charges?
ISA investors get the 0.35% platform rate, which can lower ongoing costs. The ISA share-charge cap rises, which may change how quickly you reach the cap. The impact depends on your trading volume and portfolio size. Add the percentage fee and dealing to estimate your personal ISA platform charges.
What should SIPP investors consider in these fee changes?
SIPP fee changes follow the new structure, pairing the 0.35% platform rate with the fund dealing charge. The effect depends on your pension balance and trading pattern. Long-term investors who rarely switch funds may save, while active allocators should watch dealing frequency to manage total SIPP 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.
