The UK’s leading DIY investment platform, Hargreaves Lansdown, is set to reduce fees for approximately half of its over two million customers in response to growing competition within the sector. The company announced a reduction in its annual account and share dealing fees, while introducing a new charge for fund trading, marking its first pricing overhaul in over a decade.
The changes are expected to cost the company, which was acquired by private equity firms including CVC Capital Partners, Nordic Capital, and Abu Dhabi’s Platinum Ivy in March 2025, tens of millions of pounds. The new fee structure will be effective from March, with the company stating that 80% of customers will either pay lower fees or the same amount.
While the majority of customers will benefit or see no change, 10% will face an increase of up to £1 per month, and 3% will incur an additional charge of £10 or more. A new £1.95 charge will apply to fund trades, although customers with a monthly automated investment will be exempt. The platform fee, or “headline” account charge, will decrease from 0.45% to 0.35%. Share trading fees will drop from £11.95 to £6.95 per trade, and fees on ready-made pension plans will fall from 0.75% per year to 0.45%.
While some industry experts welcomed the fee reductions, others highlighted the complexity for retail investors. Andrey Dobrynin, CEO and founder of Invest Engine, noted that while lowering headline fees can enhance long-term wealth accumulation, the introduction of new charges for fund dealing complicates the overall cost assessment for investors.
This fee restructuring occurs amid intensifying competition in the investment platform market. Major financial services companies like JP Morgan and Chase have entered the sector, and digital-only platforms such as Robinhood are gaining market share. Richard Flint, CEO of Hargreaves Lansdown, stated that the changes aim to “reinvigorate the business” in response to the evolving competitive landscape.
The platform has undergone significant transformations over the past year. Founded in 1981 by Peter Hargreaves and Stephen Lansdown, the firm was the first to sell funds directly to investors and went public on the London Stock Exchange in 2007. In a £5.4 billion acquisition, private equity firms took control last year, with Hargreaves retaining a 10% stake after selling half of his holdings, while Lansdown sold his entire stake.
Earlier this month, the company announced that Richard Flint will step down as CEO to become deputy chair. Matt Benchener, from rival Vanguard, will succeed Flint, joining the firm in March for a transition period before assuming the CEO role in July.
