Hargreaves Lansdown's New 0.35% Fee: The Exact Cost at £50k, £100k, and £500k

From 1 March 2026, Hargreaves Lansdown made three significant changes:

Account charges dropped from 0.45% to 0.35% per year — applicable to all investments tracked against the Bank of England base rate environment on Stocks & Shares ISAs and SIPPs. That's calculated on the total value of your investments, billed monthly. According to HL's own announcement, this is the first major fee reduction since 2014 — twelve years of charging the highest percentage in the market.

Share dealing fell from £11.95 to £6.95 per trade online. Frequent dealers (20+ trades in the previous month) pay £3.95. This brings HL closer to AJ Bell's £5.00 per share deal, though AJ Bell still wins on price.

A new £150 annual cap on account charges for shares, ETFs, and investment trusts in each account type. This is the real game-changer — it means holding a £500,000 ETF portfolio in an HL SIPP costs £150 in platform fees, not £1,750. The cap applies per account (so ISA and SIPP are separate caps).

HL also introduced a £1.95 charge per fund trade online. Previously, fund dealing was free. For buy-and-hold investors making a handful of trades per year, this is trivial. For active fund switchers, it could add £50-100/year.

The Ready-Made Pension Plan now charges just 0.15% account fee plus 0.30% investment charge — 0.45% total, down from 0.75%. That undercuts robo-advisors like Nutmeg and Wealthify, which is remarkable for the UK's largest platform.

Platform fees compound. A 0.10% annual difference on a £100,000 portfolio costs you roughly £2,800 over 20 years, assuming 5% real growth. Here's how the three major UK platforms compare after all the 2026 fee changes. For a deeper dive on flat-fee vs percentage-fee maths, see our dedicated comparison.

For fund investors at £50,000:

• HL: £175/year (0.35%)
• AJ Bell: £125/year (0.25%)
• Interactive Investor: £71.88/year (Core plan, £5.99/month)

For fund investors at £100,000:

• HL: £350/year
• AJ Bell: £250/year
• Interactive Investor: £179.88/year (Plus plan, £14.99/month — mandatory above £100k)

For fund investors at £250,000:

• HL: £875/year
• AJ Bell: £350/year (0.25% on first £250k, then 0.10%)
• Interactive Investor: £179.88/year

For ETF/share investors at £100,000:

• HL: £150/year (capped)
• AJ Bell: £120/year (capped at £10/month for shares)
• Interactive Investor: £179.88/year (Plus plan)

That last comparison is the one HL wants you to see. For share and ETF investors above roughly £43,000, HL's cap makes it cheaper than Interactive Investor's Core plan. AJ Bell still wins on shares with its £10/month cap, but the gap has narrowed to just £30/year.

The disparity becomes most extreme for large fund portfolios. At £500,000, HL charges £1,750/year versus ii's £179.88 — a £1,570 annual gap that amounts to over £47,000 over 30 years. That's a deposit on a buy-to-let property, sacrificed to platform fees.

HL saved its clients £56 million in fund discounts in 2025. That's not trivial. If you're buying popular funds like Fundsmith Equity or Lindsell Train Global, HL often secures a lower ongoing charge figure (OCF) than other platforms. On a £100,000 fund holding, a 0.05% OCF discount saves you £50/year — offsetting some of the platform fee premium.

The service argument is real too. HL's Bristol-based helpdesk consistently wins industry awards (200+ according to their website), and the mobile app is widely regarded as the best in the UK platform market. If you value being able to call someone who speaks fluent pension, HL charges for that privilege.

HL also offers free regular investing via Direct Debit — no dealing charge at all. If you're drip-feeding £500/month into an index fund, you save £1.50 per trade versus AJ Bell, or £3.99 versus Interactive Investor's Core plan. Over 12 months, that's £18-£48 saved — a small but real offset against the higher platform fee.

But here's what HL can't argue away: for a straightforward buy-and-hold fund portfolio above £100,000, you're paying at least £170/year more than Interactive Investor. Over a 30-year pension accumulation phase, that's roughly £12,000 in fees before compounding — £18,000+ after. If you don't use the research or the helpdesk, you're paying for services you don't consume. That money could instead sit inside your £20,000 annual ISA allowance, growing tax-free.

HL's drawdown charges are one bright spot: no withdrawal fees for pension drawdown. Some platforms charge per withdrawal. If you're approaching or in drawdown and plan frequent access, this saves money at the point it matters most.

After running the numbers across every combination, three clear scenarios emerge where HL is competitive or wins outright:

1. ETF-heavy portfolios above £43,000. The £150 annual cap means you pay less than ii's Core plan (£71.88/year) once your ETF portfolio exceeds about £43,000. At £200,000 in ETFs, HL costs £150 versus AJ Bell's £120 — a £30 annual difference that many investors won't notice. For a pure ETF investor building towards retirement in a SIPP with tax relief, HL is genuinely competitive. The annual pension allowance of £60,000 means large pension contributions make fee efficiency critical.

2. Small fund portfolios under £20,000. At £20,000 in funds, HL charges £70/year versus ii's £71.88. The percentage fee is actually cheaper than the flat fee at low balances. If you're just starting your ISA investing journey, HL's percentage structure means you pay proportionally less while your portfolio is small.

3. Regular investors. HL offers free dealing on monthly Direct Debit investments — no dealing charge at all. AJ Bell charges £1.50 per fund deal. If you're making 12 fund purchases per year via regular investing, that's £18 saved at HL. Combined with potential OCF discounts on popular funds, the total cost gap narrows.

4. Families with Junior ISAs. HL charges no account fees and no online dealing charges for Junior ISAs. Interactive Investor requires the Plus plan (£14.99/month) for Junior ISA access. If you're investing for children alongside your own ISA and SIPP, HL's free Junior ISA is worth factoring in.

The scenario where HL is worst value: a £200,000-£500,000 fund portfolio with infrequent trading. At £500,000 in funds, HL costs £1,750/year versus ii Premium at £479.88. That's £1,270/year in extra fees — over £38,000 across a 30-year accumulation phase. No amount of research access or helpdesk quality justifies that differential. See our analysis on Interactive Investor's fee plans compared. See our analysis on Bestinvest vs AJ Bell fee comparison.

If you're an existing HL client, the fee cut happened automatically on 1 March. You don't need to do anything to benefit from the lower rates.

If you're considering switching platforms, the transfer is free in both directions — HL doesn't charge exit fees, and most competitors don't charge to receive transfers. An in-specie transfer (moving your actual investments without selling) typically takes 4-8 weeks for a SIPP and 2-4 weeks for an ISA. MoneyHelper's platform switching guide covers the process in detail.

Before switching, check three things:

1. Your actual annual cost. Use HL's own charges calculator and compare with AJ Bell and ii. The headline rate isn't the full picture — fund discounts, dealing frequency, and the share cap all affect your real cost.

2. The funds you hold. Some funds have lower OCFs on HL due to negotiated discounts. If you hold £200,000 in funds with a 0.10% HL discount, that's £200/year in savings that disappears if you move.

3. Your SIPP drawdown plans. HL charges no withdrawal fees for pension drawdown. Some platforms charge per withdrawal. If you're approaching retirement, factor this in.

4. Capital gains implications. An in-specie transfer avoids this, but if you need to sell and rebuy due to fund unavailability on the new platform, you may trigger capital gains tax on gains above the £3,000 annual exempt amount for 2025/26.

The FCA register confirms HL's authorisation (firm reference 115248). Your investments are protected by the FSCS up to £85,000 per institution if the platform fails — though your underlying investments remain yours regardless.

This article is for informational purposes only and does not constitute financial advice. You should seek independent financial advice before making any investment decisions.