Hargreaves Lansdown vs Lightyear
No-one grieves high fees once they've moved to Lightyear.
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When you invest, your capital is at risk.
 | ||
|---|---|---|
Platform fees | Free | 0.45% of holdings per year, see below |
ETFs - execution fee | Free | £5.95 - £11.95 |
US shares - per order | $1 max 0.1%, min $0.10 | £5.95 - £11.95 Plus FX fee |
EU shares - per order | €1 | £5.95 - £11.95 Plus FX fee |
UK shares - per order | £1 | £5.95 - £11.95 |
Currency conversion (FX) | 0.35% | 1.00% First £5k (see below) |
Multi-currency | ||
Interest on GBP - uninvested cash | 3.00% AER | 2.78% AER, first £10k (see below) |
Interest on EUR - uninvested cash | 2.00% AER | |
Interest on USD - uninvested cash | 3.00% AER |
Pricing data for Hargreaves Lansdown sourced on hl.co.uk, and correct as of 21st November 2024. Platform fees are based on total holdings and type of instruments held. In a HL Stocks & Shares ISA, the charges to hold funds are calculated in bands, with the first £250,000 charged at 0.45%, £250,000 to £1m at 0.25%, £1m to £2m at 0.1%, and over £2m at 0%. Shares and exchange-traded funds (ETFs) are charged at 0.45% per year, and capped at £45.
Stocks trading costs are based on the number of trades in the previous month. £11.95 fee is the first tier from 0 to 9 trades in the previous month. £8.95 per trade for 10-19 trades, and £5.95 for 20 or more trades.
FX is also tiered with 1.00% FX fee on the first £5,000, reduced to 0.75% for the next £5,000, 0.5% for the £5,000 after that, and 0.25% over £20,000. Interest rates are based on cash holdings in an HL ISA, and these are also tiered: 2.78% AER up to £10,000, 2.99% AER from £10,000 to £49,999, 3.20% AER from £50,000 to £99,999, and 3.51% for over £100,000.
Frequently asked
Hargreaves Lansdown vs Lightyear: FAQs
Is Hargreaves Lansdown expensive?
Hargreaves Lansdown charges a tiered annual management fee for holding funds, starting at 0.45% for portfolios up to £250,000 and decreasing for larger portfolios. For shares, ETFs, and investment trusts, there's a flat custody fee of 0.45%, capped at £45 annually in an ISA.
Additionally, Hargreaves Lansdown charges £11.95 per trade for shares, ETFs, and investment trusts, with discounts available for frequent traders. While the platform offers extensive tools and research, these higher costs may not appeal to cost-conscious investors or those looking for a more streamlined, modern approach to investing.
Is Hargreaves Lansdown’s ISA flexible?
No, Hargreaves Lansdown’s Stocks & Shares ISA is not flexible. This means that if you withdraw funds during the tax year, you will lose the associated ISA allowance. Flexible ISAs allow you to withdraw and replace funds within the same tax year without impacting your annual allowance, but this feature is not available with Hargreaves Lansdown.
Lightyear does not currently offer a Stocks & Shares ISA or a Cash ISA. We’ll be launching our ISA before the end of this tax year (by the end of March 2025).
Is it time to quit Hargreaves Lansdown?
Whether it’s time to leave Hargreaves Lansdown depends on your investment needs and priorities. If you’re satisfied with their research tools, fund options, and customer service, and you don’t mind the higher fees, it may still be a good fit.
However, if you’re looking for more modern features (like earning interest on cash balances or holding multiple currencies), access to ETFs without execution fees, or lower cost passively-managed investment options, you might want to explore alternatives such as Lightyear. Conducting a comparison based on your specific investment goals can help you decide.
Can I earn interest on cash held with Hargreaves Lansdown?
Yes, Hargreaves Lansdown pays interest on uninvested GBP (£) cash balances, but the rates are generally quite low. The interest rate depends on the account type and the amount held, but it is often less competitive compared to dedicated savings accounts or platforms that offer interest on cash across multiple currencies, like Lightyear.
Can I transfer stocks from Hargreaves Lansdown to Lightyear?
Yes, you can transfer stocks from Hargreaves Lansdown to Lightyear. Lightyear accepts transfers of whole shares, provided each position is worth at least £/$/€1,000. Only regular, exercised stocks can be transferred; Lightyear does not accept non-qualified stock options (NSOs).
To start a transfer, read our guide to stock transfers.
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Disclaimer
This comparison is for educational purposes only and should in no way be taken as investment advice. When investing, your capital is at risk. Seek guidance if necessary.