Hargreaves Lansdown slashes ISA and SIPP fees

Kepler Trust Intelligence looks as what the new HL fees mean for investors…by Jo Groves

Hargreaves Lansdown (HL) has announced major fee cuts today, as mainstream platforms come under increasing pressure from zero-commission rivals.

The headline move is a steep reduction in share trading fees, previously the highest among major platforms at £11.95. From 1 March, this will fall to £6.95, bringing it nearer to competitors such as AJ Bell (£5.00) and interactive investor (£3.99).

Platform fees have also been trimmed at the lower end:

• ISA and SIPP charges will fall from 0.45% to 0.35% for portfolios under £250,000, versus 0.25% at AJ Bell and a flat £4.99-£11.99 per month at interactive investor.
• The annual cap on share-based holdings (shares, ETFs and investment trusts) will drop from £200 to £150 in SIPPs.

There are a few changes in the other direction, however:

• Funds, previously free to trade, will now incur a £1.95 dealing fee, though this is lower than AJ Bell (£1.50) and interactive investor (£3.99).
• The annual cap on share-based holdings in ISAs will rise from £45 to £150.
• Shares held in general trading accounts will now attract a 0.35% platform fee, capped at £150 per year, replacing the previous zero charge.

What fees will HL customers pay?

We’ve modelled the impact across a range of portfolio values to see whether investors will save money once the new fees come into force.

We’ve assumed investors make 24 trades a year, split equally between funds and shares, and have an equal split between funds and shares in portfolio value.

ISA fees

Most ISA customers should see modest savings, although those with £100,000 portfolios are slightly worse off as the higher share cap offsets the lower platform fees.

SIPP fees

SIPP customers should benefit the most, helped by lower trading fees, reduced platform charges and the lower cap on share-based holdings.

Trading account fees

We’ve run the numbers on smaller portfolio values for the trading account as most customers favour ISAs or SIPPs due to the tax advantages.

Customers with smaller value portfolios are likely to gain the most from the reduction in trading fees, however, the introduction of a platform fee on shares increasingly offsets this at higher values.

How do the new fees compare to other mainstream providers?

We’ll be updating our guides to the best SIPP providers, ISA providers and trading platforms when the new HL fees come into effect. In the meantime, here’s a quick heads-up, using the same assumptions as before.

While HL remains more expensive than AJ Bell, fees are lower than interactive investor for ISA and SIPP portfolios of £10,000.

Our thoughts

Overall, we see the changes as positive, particularly for SIPP investors who should enjoy meaningful fee reductions. While HL remains more expensive than some rivals, its reputation for strong customer service may well be enough to persuade many investors to stay put.

And on that note, there’s just over two months left to use your ISA and SIPP allowances in the current tax year. If you’re looking for ideas, we’ve just written a guide on five themes for your ISA for 2026, alongside where Kepler staff are investing their Junior ISAs on our sister website, Expert Investor.

_Disclaimer

_{This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.}