Stock share isa charges / fees Hargreaves Lansdown

[PostHeads123]

I have a stock share Isa across 3 funds I never paid attention to charges but noticed I seem to pay approx £245 a year on approx £42k value portfolio so approx 0.6% per annum, does that sound right or is HL expensive most the fees serms to HL charges.

[av185]

HL charges to reinvest share income but not fund income it may be this on top of the 0.45% fee.

[NowWatchThisDrive]

For holding just funds, HL can be relatively expensive as the cap on platform fees doesn't kick in until £2m AUM (vs £10k if you only hold stocks/ETFs). The lack of dealing fees might still leave you better off if you're more active, but that won't scale with AUM.

[PostHeads123]

av185 said:

HL charges to reinvest share income but not fund income it may be this on top of the 0.45% fee.

Does 0.6% approx sound reasonable then? Only thing I have too compare it against is my pension and charges for that are couple of hundred a year but pension worth alot more than my isa.

Thanks

[leef44]

I find it's not that clear on their site. If its a SIPP, I think it is capped at £45 per year or something like. I can't remember whether trading fees are on top of that.

For ISA, that cap does not apply. Typically their admin/platform fees are 0.45%. In addition to that you have the investment fee e.g Vanguard LS100 ETF is 0.22% so together that adds up to 0.67%. If it's individual shares then you have trading fees on top.

In the end, I went direct with Vanguard and transferred all out of HL because Vanguard provide a pdf showing all the %cost and total for each fund investment so that you get a clear picture of exactly what you are paying.

I just wished HL could be as succinct but instead it's a bit everywhere.

ETA: forgot to answer your question, 0.6% is ok but if it is like a global diversified fund which you just pump money in and forget about then it is on the high side. Vanguard is 0.45% for the same and I think with BlackRock if you have the MSCI global fund its even lower.

Edited by leef44 on Friday 10th February 14:27

[av185]

PostHeads123 said:

av185 said:

HL charges to reinvest share income but not fund income it may be this on top of the 0.45% fee.

Does 0.6% approx sound reasonable then? Only thing I have too compare it against is my pension and charges for that are couple of hundred a year but pension worth alot more than my isa.

Thanks

All charges are clearly stated on their website btw.

Looks like you probably hold low cost index trackers which have c 0.1 % annual fees. Plus the 0.45% fee brings the total charge to 0.6%.

HL not quite the cheapest but they have a great team and website and don't charge for fund dealing so it largely depends where your priorities lie in choosing a broker.

[simon800]

HL is by and large a piss take, unless you only hold stocks/ETFs and Investment Trusts.

If you are mainly in funds you need a new platform once AUM reaches a certain amount.

The idea of paying 0.07% for a fund and then 0.45% to the platform for holding it with them seems bonkers to me.

Interactive Investor is £9.99 a month, so once your portfolio reaches a certain size it represents far better value.