Why look beyond Hargreaves Lansdown?
Hargreaves Lansdown is the UK's largest investment platform, with superb research, service and a vast fund range. The catch is price: its 0.45% SIPP fee is among the highest of the big platforms, and on a large pot that adds up. Rivals now match HL's choice while charging considerably less, making a switch tempting for cost-conscious investors.
Hargreaves Lansdown vs the alternatives
| Provider | Fund fee | Share/ETF cap | Edge over HL |
|---|---|---|---|
| Hargreaves Lansdown | 0.45% | £200/yr cap | — |
| AJ Bell | 0.25% | £10/mo cap shares | Roughly half the fee |
| Interactive Investor | £5.99–12.99/mo flat | Flat fee | Cheapest on large pots |
| Fidelity | 0.35% (capped at £90 over £25k) | Capped | Lower fee, strong service |
How much you could save
On a £150,000 pension held in funds, HL charges around £675 a year at 0.45%. AJ Bell charges roughly £375 at 0.25%, and Interactive Investor just £143.88 on its flat plan — a saving of over £500 a year for very similar investment choice. Those savings compound substantially over the years to retirement.
What HL does better
- Widely rated research, fund analysis and the Wealth Shortlist.
- Strong customer service and a polished app and website.
- A capped £200 share fee that limits costs for active share traders.
See our cheapest pension provider and best SIPP providers guides.
Paying for a premium service
Hargreaves Lansdown's 0.45% fund fee buys a genuinely strong service: deep research, the Wealth Shortlist of favoured funds, responsive customer support, and a polished platform. For investors who lean on that research or value the reassurance of a market leader, the premium can be worth paying. The question is whether you actually use those extras enough to justify a fee that, on a large pot, can be double or triple what a rival charges for very similar investment access.
Where the savings come from
The big saving in switching is on the platform fee, not the funds themselves — you can usually buy the same funds anywhere. Dropping from HL's 0.45% to AJ Bell's 0.25% halves the platform cost; moving to Interactive Investor's flat fee can cut it by 80% or more on a sizeable pot. On £200,000 in funds, that's the difference between roughly £900 a year at HL and about £144 at Interactive Investor, for materially the same holdings.
Who should stay with HL
Switching isn't right for everyone. Frequent share traders benefit from HL's £200 annual cap on share charges. Investors who genuinely rely on the research and shortlists may find the guidance worth the fee. And those with smaller pots will find the percentage difference in cash terms modest, so the hassle of transferring may not pay off until the pot grows. The case for moving strengthens as your balance and confidence increase.
Making the switch smooth
- HL has abolished exit fees, so transferring out is penalty-free.
- Check whether your funds transfer "in specie" (intact) or must be sold and rebought.
- On a large pot, confirm whether a flat fee beats a percentage fee at your balance.
- Keep contributing through the transfer so tax relief isn't interrupted.
Estimate your fee saving over time with our pension calculator.
Is the HL premium worth it for you?
The honest answer to whether you should leave Hargreaves Lansdown depends entirely on how you invest and how large your pot is. If you lean heavily on HL's research, the Wealth Shortlist and its customer service, or if you trade shares actively and benefit from its £200 share-charge cap, the premium fee may be justified. If, like many savers, you simply hold a handful of funds and rarely use the extras, you are paying double or triple what AJ Bell, Fidelity or Interactive Investor would charge for essentially the same investment access. On a large fund-based pot, switching can save several hundred pounds a year, which compounds significantly over time. With exit fees abolished, there's little to lose by moving beyond the administrative effort. The sensible test is to look honestly at which HL features you actually use; if the answer is "few", a cheaper platform will give you the same investments for considerably less, and the saving will only grow as your pot does.
Verdict
AJ Bell is the best all-round HL alternative, roughly halving the fee with similar choice. Interactive Investor wins outright on large pots thanks to its flat fee, while Fidelity suits those wanting low cost plus strong service.