Hargreaves Lansdown fees explained

May 2019
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Overview of Hargreaves Lansdown fees and charges

Hargreaves Lansdown logo

Hargreaves Lansdown's fees are considered to be high. This is usually a result of high fees across multiple fee types. It's important to be aware of this and to decide whether other advantages of Hargreaves Lansdown can still make it a good choice for you. These deciding features can be its research options, its education section or the general user experience you get on its trading platforms.

Here's a high level overview of Hargreaves Lansdown's fees

Hargreaves Lansdown Fees snapshot
AssetsFee levelFee terms
US stock feeHigh0-9 trades: £11.95 per trade; 10-19 trades: £8.95 per trade, 20+ trades: £5.95 per trade
EURUSD feeLowForex is provided by IG. The fees are built into spread, 1.5 pips is the spread cost
US tech fund fee-Not available
Inactivity feeLowNo inactivity fee

Hargreaves Lansdown fees
Hargreaves Lansdown fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.

This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
    • A commission is either based on the traded volume or it is fixed.
    • A spread is the difference between the buy price and the sell price
    • Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.

We compare Hargreaves Lansdown fees with its closest competitors, DEGIRO and Saxo Bank.

Hargreaves Lansdown fees
Hargreaves Lansdown trading fees

We see Hargreaves Lansdown's trading fees to be high because they charge more than most of its competitors.

Let's break down the trading fees into the different asset classes available at Hargreaves Lansdown.

Trading fees

Hargreaves Lansdown's trading fees are high.

Stock fees and ETF fees

Hargreaves Lansdown has average stock trading fees.

Stock fees of a $2,000 trade
Hargreaves LansdownDEGIROSaxo Bank
USA$17.3$0.6$9.9
UK $17.3$5.4$7.2
Germany$17.3$5.7$11.4

Forex fees

Hargreaves Lansdown's forex fees are low.

Forex fees of a $20,000 30:1 position open, 1-week-hold, and close
Hargreaves LansdownDEGIROSaxo Bank
EURUSD benchmark fee$13.6-$58.4
EURGBP benchmark fee$15.5-$27.2

Fund fees

Hargreaves Lansdown fund fees are average.

A $2,000 fund buy fees
Hargreaves LansdownDEGIROSaxo Bank
USA tech fund buy-$10.6-
Europe stock fund buy$0.2$10.6-

Bond fees

Hargreaves Lansdown has low bond fees.

Bond fees of a $10,000 trade
Hargreaves LansdownDEGIROSaxo Bank
USA--$91.2
Europe$17.3$11.5$91.2

CFD fees

Hargreaves Lansdown has high CFD trading fees.

CFD fees, commission of a $2,000 trade
Hargreaves LansdownDEGIROSaxo Bank
USA $15.0$0.7$10.0
UK$14.5$5.7$11.6
Germany$11.4$5.7$11.4

Crypto fees

Financing rates

Hargreaves Lansdown financing rates are low.

If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.

Hargreaves Lansdown yearly financing rates
Hargreaves LansdownDEGIROSaxo Bank
Apple financing rate5.8%4.3%7.1%
Vodafone financing rate4.0%2.5%5.3%
EURUSD financing rate2.9%-15.5%
EURGBP financing rate2.9%-6.7%

Hargreaves Lansdown fees
Hargreaves Lansdown non-trading fees

When it comes to looking at all the non-trading fees Hargreaves Lansdown is a cheap broker. This means that they don't charge you a lot for non-trading related activities on your trading account, like withdrawal fee.

Non-trading fees include various brokerage fees and charges at Hargreaves Lansdown that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

A high level overview of how Hargreaves Lansdown stacks up in non-trading fees
Hargreaves LansdownDEGIROSaxo Bank
Withdrawal fee$0$0$0
Deposit fee000
Inactivity feeNoNoYes
Account feeNoNoNo

Hargreaves Lansdown fees
Hargreaves Lansdown deposit fee

Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and Hargreaves Lansdown is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods Hargreaves Lansdown offers.

Hargreaves Lansdown deposit methods
Hargreaves LansdownDEGIROSaxo Bank
Bank transferYesYesYes
Credit/Debit cardYesNoYes
Electronic walletsNoYesNo
Deposit fee000

Hargreaves Lansdown fees
Hargreaves Lansdown withdrawal fee

Unlike the majority of the online brokers we have reviewed Hargreaves Lansdown does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.

Hargreaves Lansdown withdrawal fees and options compared
Hargreaves LansdownDEGIROSaxo Bank
Bank transferYesYesYes
Credit/Debit cardYesNoYes
Electronic walletsNoYesNo
Withdrawal fee$0$0$0

Hargreaves Lansdown fees
Hargreaves Lansdown inactivity fee

Hargreaves Lansdown does not apply an inactivity fee which is great because your account will not be charged even if you do not trade for a longer time period (months or years).

AUTHOR

Gergely Korpos
Gergely Korpos
Co-founder, CPO
Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager
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