Quick Read
- Hargreaves Lansdown cut core account fees from 0.45% to 0.35% for SIPP and Stocks and Shares ISAs.
- Share dealing fees for equities, ETFs, and investment trusts reduced by 41% from £11.95 to £6.95 per trade.
- A new £1.95 per trade fee was introduced for buying or selling funds online.
- The annual cap for holding shares in ISAs increased from £45 to £150.
- The fee changes are expected to cost Hargreaves Lansdown “tens of millions of pounds.”
LONDON (Azat TV) – Hargreaves Lansdown, one of the United Kingdom’s largest investment platforms, has announced its first major fee overhaul since 2014, significantly cutting core account charges and share dealing costs, effective March 1, 2026. This strategic move aims to enhance client value and sharpen its competitive edge amidst an increasingly crowded and cost-sensitive DIY investment market, though some investors with larger, diversified portfolios may see increased costs.
Major Fee Reductions Unveiled
Hargreaves Lansdown confirmed that its account charges for holding funds in Self-Invested Personal Pensions (SIPPs) and Stocks and Shares ISAs will be reduced by 10 basis points, from 0.45% to 0.35%. This change applies to investments under £250,000 and is a substantial shift for the company, which stated the overhaul would cost the business “tens of millions of pounds.”
Alongside the reduction in ongoing account charges, the platform is also slashing its share dealing fees. The cost for buying and selling shares, including investment trusts, Exchange Traded Funds (ETFs), and bonds, will drop by 41%, from £11.95 to £6.95 per trade. This reduction aims to make trading more accessible for individual investors.
However, the fee restructuring also introduces a new charge: clients will now pay £1.95 per trade for buying or selling funds online. Despite this new fee, Hargreaves Lansdown confirmed that clients who pay into their portfolios via direct debit or automatically reinvest their dividends will continue to trade for free. Richard Flint, interim CEO of Hargreaves Lansdown, stated that these changes would enable the platform giant to “become even greater value for [their] clients and make investing even simpler and more accessible.” He added that this investment in value comes alongside other recent enhancements, including an upgraded app, new product offerings, and strategic partnerships.
Navigating the New Cost Landscape
Investment research and publishing house Boring Money analyzed the implications of these changes for various client profiles. Their findings suggest that approximately eight out of ten existing Hargreaves Lansdown customers are set to benefit from the fee reductions, primarily due to the drop in the main administration fee from 0.45% to 0.35%.
According to Holly Mackay, CEO of Boring Money, Hargreaves Lansdown’s charge reductions will “really set the cost cat among the pigeons,” particularly impacting many robo-advisers who may now appear comparatively expensive. She noted that for customers focused on buying and holding funds, Hargreaves Lansdown’s fees will fall to be broadly in line with competitors, making their ready-made pensions some of the cheapest in the market, even more affordable than Vanguard and most robo-advisers.
However, the analysis also highlighted potential cost increases for a specific segment of investors. Customers holding a mixture of funds and individual stocks, or those with portfolios of trusts or ETFs exceeding £100,000, might find themselves paying more. This is primarily due to the annual cap for holding shares in ISAs more than tripling, from £45 per annum to £150. While the SIPP cap remains at £200 per year, this adjustment could affect higher-value, diversified portfolios.
Intensifying Competition in UK DIY Investment
The fee overhaul by Hargreaves Lansdown comes amidst a period of escalating competition within the UK’s DIY investment platform market. Traditional leaders like Hargreaves Lansdown and AJ Bell continue to dominate, but asset managers such as Vanguard and Fidelity are actively expanding their retail offerings and challenging established pricing structures. Vanguard, for instance, has been vocal about cutting fees, having slashed charges on several Europe-domiciled equity and fixed income ETFs in recent months, saving investors millions annually.
The competitive landscape is set to intensify further with the anticipated entry of JP Morgan Chase’s ‘DIY’ investment platform in 2026, following its rebranding from Nutmeg last October. Hargreaves Lansdown’s move to cut ETF dealing charges specifically makes trading ETFs on its platform more competitive than offerings from Fidelity, Halifax Share Dealing, and Charles Stanley Direct. The platform had also previously scrapped fees for regular saving into ETFs in 2023, signaling a sustained focus on this popular investment vehicle.
The fee restructuring by Hargreaves Lansdown represents a calculated strategic pivot designed to retain its dominant market position and attract new clients in a fiercely competitive environment. While broadly beneficial for the majority of its client base, particularly those holding funds and utilizing ready-made pensions, the specific adjustments to share holding caps suggest a nuanced approach that could selectively increase costs for certain high-value, diversified portfolios. This move underscores the ongoing pressure on investment platforms to balance competitive pricing with sustainable business models, signaling a potential new phase of cost-driven competition across the UK’s retail investment landscape.