Hargreaves Lansdown Revamps Fees Amid Intensifying Market Competition
The UK’s largest DIY investment platform, Hargreaves Lansdown, is set to revamp its fee structure starting in March 2026. This change impacts more than two million customers and comes in response to increased competition within the investment industry.
Fee Reductions and New Charges
Hargreaves Lansdown announced reductions in its annual account and share dealing fees. Approximately 80% of customers will either benefit from lower fees or maintain their current fee structure. Notably, share trading fees will decrease from £11.95 to £6.95 per trade.
- Annual platform fee reduced from 0.45% to 0.35%
- Fees on ready-made pension plans drop from 0.75% to 0.45% per year
- New £1.95 charge introduced for fund trading, with exemptions for those using automated monthly investments
Despite the overall fee reductions, some customers will experience increases. Around 10% will see their fees rise by up to £1 monthly, with 3% facing hikes of £10 or more.
Strategic Shift Amid Tough Competition
The fee overhaul follows a £5.4 billion acquisition by several private equity firms, including CVC Capital Partners, Nordic Capital, and Abu Dhabi’s Platinum Ivy, completed in March 2025. Hargreaves Lansdown’s CEO, Richard Flint, emphasized that this move is aimed at revitalizing the business to remain competitive amid growing challenges from firms like JP Morgan, Chase, and digital platforms such as Robinhood.
Industry Reactions
While some industry leaders praised Hargreaves Lansdown’s effort to lower fees, others voiced concerns about the complexity of the changes. Andrey Dobrynin, CEO of Invest Engine, commented on the difficulty for retail investors to discern the true value of the new fee structure, noting that the introduction of new charges makes it challenging to evaluate the overall cost-effectiveness.
Company Evolution
Founded in 1981 by Peter Hargreaves and Stephen Lansdown, the platform pioneered direct fund sales to investors. It went public on London’s premium exchange in 2007. Following the recent acquisition, co-founder Peter Hargreaves sold half of his stake, retaining a 10% interest, while Stephen Lansdown sold his entire nearly 6% stake.
In a leadership change, Flint will transition to the role of deputy chair, with Matt Benchener set to join as CEO in July 2026 after a handover period. Benchener previously led Vanguard’s personal investment business in the U.S., which serves millions of clients.
The imminent fee changes and leadership transition signal a transformative period for Hargreaves Lansdown as it seeks to adapt to a continually shifting investment landscape.
