What does the largest fee change in ten years at Hargreaves Lansdown mean for you?

Hargreaves Lansdown is reducing its headline fee from 045 percent to 035 percent , but it has been suggested that not everyone will be pleased with the new fee structure

Hargreaves Lansdown has announced the largest fee change in over a decade, but what does this mean for customers?

Starting on March 1st, the investment platform will make three significant changes: a fund dealing fee will be added, while its headline annual platform and share-dealing fees will be reduced.

The maximum annual platform fee for those who own stocks, trusts, or exchange-traded funds (ETFs) in an ISA or self-invested personal pension (SIPP) will also increase from 45 to 150.

According to Hargreaves, the fee structure change will cost the company tens of millions of pounds, but eight out of ten of its clients will either benefit or pay the same amount. Ten or more dollars a month will be paid by one in forty.

The fee change coincides with increased competition in the retail investment market, with JPMorganChase launching a new DIY investment platform in 2026 and financial firm Robinhood growing its operations in recent months.

As of March 1st, Hargreaves Lansdown will "become even greater value for our clients and make investing even simpler and more accessible," according to Richard Flint, the company's interim CEO.

What are Hargreaves Lansdowns going to charge?

Starting on March 1, Hargreaves Lansdown will reduce its headline annual platform fee from 0.45 percent to 0.35 percent.

For those who make zero to nine deals per month, the share trading fee will drop from 11.95 to 6.95 per trade. The share trading fee will be reduced from 8.95 to 6.95 for clients who make 10 or more deals per month, and from 5.95 to 3.95 for those who make 20 or more trades per month.

Customers who purchase or sell funds will be subject to a new 1.95 fee unless they have a regular savings plan in place (someone who invests monthly via Direct Debit).

The new fund dealing fee, according to Hargreaves Lansdown, was implemented because more retail investors are now trading in funds.

The maximum annual platform fee charge will increase from 45 to 150 for customers who have shares, ETFs, trusts, or bonds held within stocks and shares ISAs or SIPPs.

A Hargreaves Lansdown ready-made pension plan will cost 0.45 percent instead of 0.75 percent. Because of this, the company said, its pension plans are less expensive than the majority of workplace pension plans.

Hargreaves Lansdown's fee structure change is "broadly-speaking good news," according to Holly Mackay, CEO and founder of Boring Money, a company that offers advice to investors and savers.

"The all-in costs make Hargreaves Lansdown a cheaper ready-made pension play than Vanguard, most robos, and key rivals, though Interactive Investor still slightly outperforms them on costs once accounts start rising above 100,000," she stated.

However, Mackay stated that older, wealthier investors who have extra cash after using up their annual ISA and pension allowances may find it difficult to pay the new 0.35 percent annual platform fee (capped at 150) for those with General Investment Accounts (GIA).

The party is over for fare dodgers who have been using the fee-free GIA for listed securities and holding ETFs and investment trusts in a GIA for years. A "

You can use a calculator created by Hargreaves Lansdown to determine how much you will have to pay in fees when the new system takes effect on March 1.

What is causing Hargreaves Lansdown to reduce its fees?

The retail investment market is becoming more competitive, which is why Hargreaves Lansdown made the announcement.

According to Vanguard, starting on January 27, the annual fee for all of its LifeStrategy mutual funds will drop from 0.22 percent to 0.20 percent. Additionally, starting on February 1st, Interactive Investor will reduce foreign exchange (FX) fees and introduce three basic price plans.

According to Mackay, they are now "in line with a more palatable average fee" after leaving Hargreaves Lansdown, one of the more costly platforms for investment.

She remarked, "They're not trying to be the cheapest but this does make them more in line with the pack."

Mackay stated that Hargreaves Lansdown is watched "like a hawk" by the entire industry, and she anticipates that other firms will make minor adjustments to their fees in response to its announcement today, January 26.

See our guide to learn more about investment costs.