Hargreaves Lansdown is by far the most popular UK stockbroker, with over 1.7 million customers. Due to its solid background and terrific track record, it is often the first choice for people looking for a trustworthy broker who can deliver. Founded in 1982, it is one of the oldest operating stock brokers in the UK. However, we do feel like this stockbroker is stuck in time. Hargreaves Lansdown’s high fees make it impractical for active traders to do their daily operations and risk losing lots of money to fees. Moreover, Hargreaves Lansdown does not allow for direct crypto exposure. For that reason, we have a full article on the Hargreaves Lansdown crypto alternatives.
This article will present the best Hargreaves Lansdown Alternatives available in the UK. We will focus both on DIY investors and also on people who are looking for Managed Portfolios (like Robo-Advisors). Come along and discover what’s in store for you!
A. Hargreaves Lansdown Alternatives for DIY Investors
It features a broad offer of financial products with comprehensive educational tools, data, and charts. They offer Stocks & Shares ISA and Junior ISA (JISA).
When investing, your capital is at risk
BestInvest offers Stocks & Shares ISA, Junior ISA Personal Pension (SIPP) accounts, as well as financial coaching, investment advice, and planning tools.
When investing, your capital is at risk
InvestEngine only trades ETFs, and they do so in a very cheap way. The only cost you pay is the fund fee! You also have the Stocks & Shares ISA account option!
When investing, your capital is at risk
1. Interactive Brokers
Products: Stocks, Bonds, Mutual funds, ETFs, Options, Fractional shares, Futures, Forex, Commodities
Regulatory entities: FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB
Minimum Deposit UK: £0
Demo Account? Yes (£1,000,000)
Pros
✔️ Extensive range of products
✔️ Robust platform
✔️ Comprehensive educational tools
✔️ Extremely customisable workstation
Cons
❌ Lengthy account opening process
❌ Complex desktop trading platform (TWS)
Interactive Brokers Platform and Educational resources
Interactive Brokers presents one of the best platforms in the market. From the richness of data on companies to the level of customisation, there is just no other platform that does it all like Interactive Brokers. From ETFs, to stocks, bonds, and options trading, this one has it all. It is even a great alternative for US platforms that are unavailable in the UK such as Thinkorswim or Robinhood.
The desktop trading platform is a bit challenging to navigate and does not have the most appealing design. The educational tools are also great and informative, with videos and articles of excellent quality.
Interactive Brokers Commissions and Fees
The fees are just one more highlight of Interactive Brokers. They have no minimum deposit, no inactivity fee, no withdrawal fee, and minimum trading fees. For example, the fee for US stocks is $0.005 / share, and 0.05% of the trade value for UK stocks. You can find all the information here, as the pricing structure can be hard to understand.
Interactive Brokers – Last Words
Interactive Brokers is a great broker for all types of investors. Getting accustomed to more complex platforms is an excellent way to ensure that you trade with complete information and are able to perform more complex analysis. Nonetheless, if you are a beginner, the platform can be a bit daunting. This platform is regulated by the UK’s Financial Conduct Authority (FCA) and is a participant in the Financial Services Compensation Scheme (FSCS). It offers phone, chat, and email support if you have any questions. All in all, an excellent option for intermediate and advanced traders!
2. Bestinvest
Products: Funds, Shares, ETFs, Investment trusts and VCTs
Regulatory entities: Financial Conduct Authority (FCA)
Minimum Deposit UK: £0
Demo Account? No
Pros
✔️ Extensive product selection
✔️ Great user interface
✔️ Experienced financial planners
✔️ Low fees on SIPP
Cons
❌ Somewhat opaque pricing
❌ No demo account
Bestinvest Platform and Educational resources
Bestinvest offers tax-efficient products such as Stocks and Shares ISA, Junior ISA, and SIPP. The platform has a clean, aesthetic design, and the navigation is simple and intuitive. They offer financial coaching and advice. We do feel it lacks the depth and richness of data that other platforms provide. The educational resources are well structured and give a good base for further exploration.
Bestinvest Customer Service and Security
Although there are no charges for fund trading, there is a £4.95 trading share fee. The fee structure is tiered (more information here), which means that the higher you invest, the less you pay (in percentage).
Bestinvest – Last Words
Bestinvest is one of the oldest players in the UK. Regulated by the FCA, this broker offers a comprehensive platform that provides a vast range of products with moderate fees. They also offer financial advice. One “Investing for your goals” advice session costs £295 and a “Portfolio health check” session costs £495.
3. InvestEngine
Products: 500+ ETFs
Regulatory entities: Financial Conduct Authority (FCA)
Minimum Deposit UK: £100
Demo Account? No
Pros
✔️ No ISA, FX or trading fees
✔️ Fractional investing available
✔️ Beautiful design and user interface
✔️ Tool to calculate fees and costs
Cons
❌ Does not feature LifeStrategy Funds
❌ Not possible to buy individual shares
InvestEngine Platform and Educational Resources
If you’re into exchange-traded-funds (ETFs), InvestEngine is for you, as it offers over 500 ETFs. The platform’s design is refined and goal-driven. The site’s navigation is seamless and easy to navigate.
InvestEngine Commissions and Fees
This is the winner if you want to invest in an almost free-of-cost environment. There are no fees to open a Stocks & Shares ISA or to set up your account. You can also have a DIY portfolio with no platform or dealing fees, but ETF costs apply.
InvestEngine – Last Words
InvestEngine is a great broker for investing in ETFs and building self-managed or expert-managed portfolios. They offer an extensive range of products, and they do so with minimum costs. Although it is recent, InvestEngine has entered the market with a bang!
B. Hargreaves Lansdown Alternatives for Managed Portfolios
InvestEngine only trades ETFs, and they do so in a very cheap way. The management fee is only 0.25%! You also have the Stocks & Shares ISA account option!
When investing, your capital is at risk
Moneyfarm is currently one of the most prominent digital investment platforms in Europe. It offers 7 different managed portfolios for all tastes!
When investing, your capital is at risk
If you’re looking for a user-friendly platform with low commissions, Wealthify is the way to go. It features 5 different managed portfolios with low fees.
When investing, your capital is at risk
1. InvestEngine
Products: 500+ ETFs
Regulatory entities: Financial Conduct Authority (FCA)
Management Fees: 0.25%
Number of Portfolios: 13 out of 2 types of portfolios
InvestEngine has very attractive Managed Portfolios. They offer portfolios that allow you to invest your money in a basket of ETFs giving you an opportunity to increase the chances to increasing your value over time.
With this approach, you get a well-diversified portfolio in terms of sectors and regions within a low cost structure adapted to your risk profile and investment goals.
2. Moneyfarm
Products: ETFs
Regulatory entities: Financial Conduct Authority (FCA)
Management Fees: 0.75% up to £10,000
Number of Portfolios: 7
Pros
✔️ Excellent for beginners
✔️ Free personal investment advisor
✔️ Superb track record
✔️ Socially responsible portfolios
Cons
❌ High minimum deposit (£500)
Moneyfarm Platform and Educational Resources
With over 90,000 investors and over £2bn invested, Moneyfarm is currently one of the most prominent digital investment platforms in Europe. The platform is beautiful, modern, and to the point. It is the only platform that offers a personal investment advisor who guides you through your investments and provides investment strategies for the future.
Moneyfarm Commissions and Fees
Considering what has just been said, you would expect that Moneyfarm had high fees. Quite the contrary. The advisor is entirely free, and fees for the managed portfolios range from 0.75% to 0.35%, depending on your invested money.
Moneyfarm – Last Words
Although somewhat recent (founded in 2011), Moneyfarm has made a statement on the digital investment platform’s world and is now sitting in an envious place. With seven different portfolios for you to choose from, including a socially responsible portfolio, Moneyfarm is a perfect option for people who want their money taken care of with low costs.
3. Wealthify
Products: ETFs and mutual funds
Regulatory entities: Financial Conduct Authority (FCA)
Management Fees: 0.6% flat fee
Number of Portfolios: 5
Pros
✔️ Ease of use
✔️ Beautiful design
✔️ No minimum investment
✔️ No withdrawal charges
Cons
❌ Limited control over investments
Wealthify Platform and Educational Resources
Wealthify is an award-winning platform with a straightforward and intuitive design. It offers you the chance to start investing with as little as £1, which makes it ideal for absolute beginners. You can also choose from 5 pre-designed portfolios that vary depending on how much risk you’re willing to take.
Wealthify Commissions and Fees
Wealthify‘s fees are fairly simple. They have a flat rate of 0.6%, which is charged annually on your investment balance. Additionally, their digital advisory service is entirely free. Wealthify is the best choice if you’re looking for an easy-to-use platform with no minimum deposit.
Wealthify – Last Words
If you’re looking for a user-friendly platform with low commissions, Wealthify is the way to go. Their fees are low, and their pre-designed portfolios offer an excellent way to start investing without needing too much research. The only downside is that you don’t completely control your investments, as the platform takes care of everything. Nonetheless, it is still a great option if you want to stay on top of your investments without doing all the legwork.
The Bottom Line
When selecting Hargreaves Lansdown alternatives, it is essential to consider multiple factors, such as the fees and services offered. Suppose you are looking for the best Hargreaves Lansdown alternatives for DIY investing. In that case, we believe that Interactive Brokers, Bestinvest, and InvestEngine are the best options.
If you are looking for Managed Portfolios, InvestEngine, Moneyfarm, and Wealthify are three of the best Hargreaves Lansdown alternatives. They offer low fees, excellent customer service, and a wide range of portfolios. All three platforms are suitable for both beginner and experienced investors alike. Therefore, these are definitely worth considering if you’re looking for Hargreaves Lansdown alternatives.
We hope this article gave you a better understanding of the best Hargreaves Lansdown alternatives available in the UK.
Happy investing!