How does Hargreaves Lansdown compare to other providers in terms of cutting fees for ISA and SIPP investors?

The largest investment platform in the UK, Hargreaves Lansdown, has reduced its fees for some clients by 40%, to their lowest point ever

In comparison to other providers, is it a good deal?

The platform fee for early-bird investors opening new stocks and shares ISA or self-invested personal pension (SIPP) accounts has been reduced by Hargreaves Lansdown.

The annual fee will be reduced by 40% for customers who contribute or transfer at least 10,000, from a maximum of 0point 45 percent to 0point 27 percent.

Those who open and fund an account between April 15, 2025, and June 30, 2025, are eligible for the exclusive offer.

Additionally, the largest investment platform in the UK has introduced a new promotion whereby clients who establish a new direct debit in a stocks and shares ISA or SIPP by June 30, 2025, will receive a cash refund for their account fee.

According to Paul Dimambro, director of pensions, investments, and ISAs at Hargreaves Lansdown, "Investors would be forgiven for forgetting that a new tax year has begun following a hectic couple of weeks with notable market movements brought on by President Trump's tariffs.

In order to provide people with an additional incentive to start down the path to financial independence, we have introduced two new offers.

The exclusive deals coincide with other investment platforms trying to attract new users by offering cashback bonuses of up to £5,000.

However, the lower cost also coincides with rival Vanguard raising its prices by implementing a four-month fee at the end of February.

We examine in greater detail how the special offers operate and whether Hargreaves Lansdown is competitive with an account fee of 0.27%.

How are the special offers operated?

A 40% platform fee discount is offered for six months to investors who deposit £10,000 or more into a new Hargreaves Lansdown stocks and shares ISA or SIPP.

As a result, from July 1, 2025, to December 31, 2025, a 0.27 percent charge will be applied (capped at 2 points per month for the ISA, or 10 points per month for the SIPP). With a cap of 3.75 for the ISA and 16.67 for the SIPP, it will then return to 0.45 percent.

Customers who only make financial investments, however, might be able to pay an even lower fee. Fund investors who meet the special offer requirements and have accounts under £250,000 will pay a reduced fee of 0.27%; however, those with larger portfolios will pay less.

Investors who have accounts worth between £250,000 and £999,999 will pay 0point 15 percent, which is a decrease from 0point 25 percent. Those with between £1,000,000 and £1,999,999 will pay 0.06%, which is a decrease from 0.01%. Investors who have more than £2 million in their fund accounts will not be paid anything in the interim.

To receive the best deal, you must open and fund the account between April 15, 2025, and June 30, 2025.

Between April 15 and June 26, 2025, early-bird regular savers can take advantage of the second offer by creating a new direct debit instruction.

Their account charges of 045% will be reimbursed to them in the form of cashback. On July 26, 2026, after meeting specific requirements, this will be deposited into their Loyalty Bonus Accounts.

These include requiring the monthly direct debit to be at least £25 and maintaining it for a minimum of 12 months at the same or greater amount.

In what ways does Hargreaves Lansdown's reduced fee differ from that of its rivals?

A 40 percent reduction seems like a fantastic offer, but how does the cheaper price compare to its competitors given that Hargreaves Lansdown is one of the priciest platforms?

To find the most cost-effective platforms, we asked a financial consulting firm called Lang Cat to do the math.

According to the article, Hargreaves Lansdown's annual fee will decrease from 68 to 54 for a person with a modest 15,000 ISA portfolio invested in funds because of the lower fee for six of the 12 months.

According to Lang Cats' analysis of 13 platforms, it is among the most affordable platforms with a 54 platform fee.

At 36, Halifax Share Dealing is the least expensive. HL, however, is ranked lower than Charles Stanley Direct, Fidelity, Interactive Investor, and Bestinvest.

What about larger portfolios? The Hargreavess fee is no longer the highest cost for portfolios this size, as it drops from 450 to 360 for an ISA valued at 100,000. Once more, the discounted six-month fee is reflected in these HL charges. It is now closer to some of its rivals, like Fidelity (350) and Bestinvest (400).

At 150 and 144, respectively, Vanguard and Interactive Investor are significantly less expensive.

Regardless of the size of the portfolio, HL's fee for an ISA investing only in investment companies (as opposed to funds) is only £36 per year because a monthly cap applies.

Because of HL's special offer, the platform is jointly the cheapest of the 13 examined, along with Halifax Share Dealing. In comparison, Vanguard charges 48 per year for an ISA with a value of 25,000 or 50,000; the cost increases as the size of the portfolio goes up. AJ Bell charges either 38 or 42 percent, depending on how much is invested.

Bestinvest, Willis Owen, and Close Brothers, on the other end of the spectrum, charge between 38 and over 1,000 for the largest portfolios.

"Any price reduction is welcome to lower the cost of investing, but it's important to consider what the cost becomes after the offer period expires," Chris Bredin, a consultant at the Lang Cat, tells BFIA.

"An investment of £50,000 with Hargreaves Lansdown funds within an ISA is charged at 0point 27 percent during the offer period; after that, it rises to the standard rate of 0point 45 percent."

A similar picture is painted by the analysis in terms of SIPPs. If a person opens a SIPP, contributes £100,000, and only makes investments in cash, they will be charged 360 per year instead of the normal 450. This is more than Vanguard (150) and Interactive Investor (156), but less than Barclays and Bestinvest (both 400).

The cheapest of 13 platforms, a 100,000 SIPP that only invests in investment companies would pay 160 annually (as opposed to the full cost of 200).

"Investors should consider other aspects when comparing platforms based on price," Bredin continues. Along with the amount invested, other factors that may impact pricing include the kind of asset being invested in, the frequency of trading, and the wrappers used.

"Obviously, fees are just one aspect of the situation. Among the many other factors that will influence your personal decision based on your unique set of circumstances are things like how much assistance you need choosing investments, your impression of a brand, and your level of trust in it.