Hargreaves Lansdown - revised dee structure

[mark seeker]

Not sure if I missed the discussion on this, looks like HL are making quite a few changes to the fee structure, i can't imagine too many folk will save money on the revised fees.


https://www.hl.co.uk/help/income-and-fees/fees-exp...

[Countdown]

Sorry to hijack the thread;

[i]Account charges. We are reducing our annual account charges from 0.45% to 0.35% on Stocks and Shares ISA and SIPP accounts.
For Fund and Share Accounts, we’re reducing account charges for holding funds, from 0.45% to 0.35%, and introducing a charge of 0.35% to hold shares. You can see full charging tiers below.[/i]

If I hold a Vanguard ETF in a HL account do I pay the vanguard charge on top of the HL charge?

[mark seeker]

Countdown said:

Sorry to hijack the thread;

[i]Account charges. We are reducing our annual account charges from 0.45% to 0.35% on Stocks and Shares ISA and SIPP accounts.
For Fund and Share Accounts, we re reducing account charges for holding funds, from 0.45% to 0.35%, and introducing a charge of 0.35% to hold shares. You can see full charging tiers below.[/i]

If I hold a Vanguard ETF in a HL account do I pay the vanguard charge on top of the HL charge?

Correct, you'll pay 0.35% to HL for the platform fee and the Vanguard fee for the product. If you hold the same Vanguard Fund or ETF on the Vanguard platform you'll pay 0.15% platform fee + the Vanguard product fee. Note that Vanguard now has a minimum monthly fee of £4 for accounts with less than £32,000 invested, effective from February 28, 2025. For accounts with balances over £32,000, the existing fee of 0.15% applies.

[Countdown]

mark seeker said:

Correct, you'll pay 0.35% to HL for the platform fee and the Vanguard fee for the product. If you hold the same Vanguard Fund or ETF on the Vanguard platform you'll pay 0.15% platform fee + the Vanguard product fee. Note that Vanguard now has a minimum monthly fee of £4 for accounts with less than £32,000 invested, effective from February 28, 2025. For accounts with balances over £32,000, the existing fee of 0.15% applies.

Thanks Mark.

I had assumed I was paying only 0.22% on my VG ETF

[NowWatchThisDrive]

Given what I own and typical dealing frequency it looks like it will save me about forty quid a year across mine and my wife's accounts. Meh, whatever.

Countdown said:

mark seeker said:

Correct, you'll pay 0.35% to HL for the platform fee and the Vanguard fee for the product. If you hold the same Vanguard Fund or ETF on the Vanguard platform you'll pay 0.15% platform fee + the Vanguard product fee. Note that Vanguard now has a minimum monthly fee of £4 for accounts with less than £32,000 invested, effective from February 28, 2025. For accounts with balances over £32,000, the existing fee of 0.15% applies.

Thanks Mark.

I had assumed I was paying only 0.22% on my VG ETF

The 22bps is the cut Vanguard take for managing the ETF regardless of you hold it with, it's baked into the NAV so you don't pay it explicitly.

[mark seeker]

Countdown said:

Thanks Mark.

I had assumed I was paying only 0.22% on my VG ETF

Sorry i'm wrong, currently if held in a Fund and Share account, for VG ETF this is free, this will move to 0.35% (capped at £150 per year)

Currently HL will cap the fee at £45 a year if you're holding in an S&S ISA, this is moving to £150 per year.

[Mr Pointy]

I'll go from paying nothing to the maximum of £150 a year for the shares holding in my Fund & Share account. Not particularly happy about that.

[Countdown]

Apologies again for thread hijack - I'm confused

Let's say I hold the following funds on

(i) Just the Vanguard platform; OR
(ii) In my First Direct S&S ISA

VWRL
VUKE
VERX
VHYL

My assumption was that I'm paying 0.22% only on the VG platform but 0.22% plus whatever First Direct charge where held on the FD S&S ISA.

Is that correct?

[NowWatchThisDrive]

Countdown said:

Apologies again for thread hijack - I'm confused

Let's say I hold the following funds on

(i) Just the Vanguard platform; OR
(ii) In my First Direct S&S ISA

VWRL
VUKE
VERX
VHYL

My assumption was that I'm paying 0.22% only on the VG platform but 0.22% plus whatever First Direct charge where held on the FD S&S ISA.

Is that correct?

You don't really "pay" anyone the 0.22% whether you hold the ETF with Vanguard or FD. It's silently taken out of the ETF's assets every day and reflected in the NAV. The platform fee that Vanguard, FD or whoever then charge is entirely separate to that 0.22%.

[Mr Pointy]

No, Vanguard have a platform fee as well as the fund fee:

https://www.vanguardinvestor.co.uk/what-we-offer/f...

[mark seeker]

Mr Pointy said:

I'll go from paying nothing to the maximum of £150 a year for the shares holding in my Fund & Share account. Not particularly happy about that.

(Held outside of an ISA) I've got a hike coming, to go from charging £0 for Equities / Gilts to £150 is steep, its odd they don't have a relationship fee rather than charge an account cap for each account you hold with them.

[MJohnson]

So is it, in most cases, cheaper to hold a Vanguard fund with Vanguard than another platform

[Philvrs]

I d look at the fees from IG for holding vanguard etfs in a s&s isa.

Edited by Philvrs on Monday 26th January 11:48

Edited by Philvrs on Monday 26th January 12:00

[mark seeker]

said:

Thanks - I'll take a look, I was wondering where to move to.

[WayOutWest]

Good for H-L ISAs and SIPPs, 0.45% down to 0.35% and the fee cap for holding shares, ETFs, investment trusts and individual bonds in a SIPP lowering from £200 to £150.

If you held a £500,000 value SIPP with H-L consisting of shares, ETFs, investment trusts and gilts (e.g. anything exchange traded) that means they are only charging you 0.03%.

[Panamax]

Strange that nobody's mentioned HL's introduction of a new "dealing charge". £1.95 per trade for online trading of funds.

[scot_aln]

I noticed that too which was previously one of their differences. Think all these finance and retirement threads have helped me get much better at just leaving alone so won't matter too much for me.

They do have a calculator to compare new vs old

https://www.hl.co.uk/help/fees/calculator

[Sheets Tabuer]

Is it worth moving to a fee free app like robin hood?

[leef44]

My ISA is currently capped at £45 fee (it holds ETF) but this will increase to £150 capped fee

I only just transferred it to them last year due to the low cap.

[butchstewie]

If you don't like the HL fees and you have a decent amount of AUM look at IWeb (now Scottish Widows) and Interactive Investor.