Hargreaves Lansdown cut its platform fee from 0.45% to 0.35% in March 2026 — the first significant price reduction in years. But the same month, it introduced a new £1.95 dealing charge for funds and raised its ETF cap from £45 to £150. The net effect for most investors: cheaper for fund investors with large portfolios, more expensive for ETF investors.
And since June 2026, Barclays Smart Investor removed its platform fee entirely, making fund investing genuinely free for the first time at a mainstream platform.
HL’s fee structure as of March 2026
For ISA accounts:
- Funds: 0.35% on the first £250,000 / 0.25% above £250,000 — no annual cap on funds — £1.95/trade dealing charge (new)
- ETFs and shares: 0.35% capped at £150/year (raised from £45) — £6.95/trade (reduced from £11.95)
- Regular investing: free when buying monthly via Direct Debit
What HL actually costs now
| Portfolio | HL funds (monthly trading) | HL ETFs/shares |
|---|---|---|
| £10,000 | £58 | £150 |
| £25,000 | £111 | £150 |
| £50,000 | £198 | £150 |
| £100,000 | £373 | £150 |
| £250,000 | £898 | £150 |
| £500,000 | £1,523 | £150 |
Fund cost includes 0.35% platform fee plus 12 × £1.95 dealing charges. ETF cost is the £150/year cap (fee is capped well before the full percentage applies for most portfolios, but dealing charges are additional).
When switching saves money — fund investors
The crossover between HL and alternatives has shifted since the fee changes:
| Portfolio | HL funds | ii Core | Barclays | Saving vs HL |
|---|---|---|---|---|
| £10,000 | £58 | £120 | £0 | Barclays saves £58 |
| £25,000 | £111 | £120 | £0 | Barclays saves £111 |
| £50,000 | £198 | £120 | £0 | Barclays saves £198; ii saves £78 |
| £100,000 | £373 | £120 | £0 | Barclays saves £373; ii saves £253 |
| £250,000 | £898 | £120† | £0 | Barclays saves £898 |
†ii Core limited to £100k portfolios; ii Plus at £179.88/year needed above that.
For fund investors, Barclays is now cheaper than HL at every portfolio size. The HL vs ii Core crossover sits at around £27,500 — above that size, ii Core beats HL on fund costs.
When switching saves money — ETF investors
The March 2026 HL changes complicate the ETF picture. The cap rose from £45 to £150, making HL significantly more expensive for ETF-only investors.
| Platform | ETF ISA annual cost |
|---|---|
| InvestEngine | £0 |
| Freetrade Basic | £0 |
| Trading 212 | £0 |
| AJ Bell | £42 cap + dealing |
| HL | £150 cap + dealing |
For ETF investors, free platforms have always been cheaper than HL. But the cap rising from £45 to £150 widens that gap considerably — and also makes AJ Bell (£42/year cap) a much better alternative than HL for ETF portfolios that need more than just free ETF platforms.
When HL is worth keeping
HL still makes sense if you:
- Value the breadth — HL’s investment range and research tools are genuinely the best of any UK platform
- Use the regular investing feature — monthly fund investing is free, avoiding the £1.95 dealing charge entirely
- Want a single platform for ISA, SIPP, LISA, JISA and GIA — HL offers every account type under one roof
- Value the customer service — HL’s support is among the best in the industry
Before you switch
Calculate the actual saving: at £50,000, HL fund costs are around £198/year; ii Core is £120. That’s £78/year — worth switching for. At £100,000 the saving is £253/year. At £10,000 it’s only £38/year (HL vs Barclays), where the exit fees may not be worth it.
Factor in exit fees: HL charges £25 per line of stock for in-specie transfers. Ten holdings = £250 in exit costs. It can take 12+ months to break even on exit fees at smaller savings.
Consider the dealing charge change: if you currently invest monthly via HL’s regular investing service, you pay £0/trade. Moving to ii Core means paying £3.99/trade for the same frequency. Factor this into your annual cost comparison.
Check for protected benefits in any SIPP before transferring.
Alternatives compared
| Platform | Annual fee (funds) | When it undercuts HL | Notes |
|---|---|---|---|
| Barclays | £0 | Always | Free funds; £6/trade for ETFs |
| Interactive Investor | £71.88 + £3.99/trade | Above ~£27,500 | Core plan: £100k limit |
| Vanguard | 0.15% (min £48/yr) | Always for rate | Vanguard funds only |
| Fidelity | 0.35%, no dealing | Always on dealing | Same rate, no fund trade fee |
| AJ Bell | 0.25% + £1.50/trade | Always on rate | ETF cap £42/yr |
| InvestEngine | £0 | Always | ETFs only |
Fee estimates based on published rates as of June 2026. Always verify current fees directly with your provider before making a switching decision.