Change Funds Platform from Hargreaves Lansdown

[bad company]

I have share dealing and ISA accounts with Halifax/HBOS which with the new charge structure costs £36 for both which is very reasonable.

I also hold funds with Hargreaves Lansdown and managed to negotiate their fees at .25% rather than the normal .45%. This still looks very expensive compared to HBOS though they do have some discounted fund charges to sweeten the pill. I was also put off HL as their not offering ‘bed & isa’ again this year. I reckon they’re overplaying the Covid excuse.

I’m just wondering if it’s time to say goodbye to HL and move the funds to Halifax or another broker. Has anyone here done this. I’m wondering how long it took and if it was a painful process?

[xeny]

I did an HL -> iWeb move about 5 years ago. It look perhaps two months (not certain, but definitely was not a rapid process), but was entirely hassle free.

[anonymous-user]

My thoughts,

• 0.25% isn't bad for the level of HL service at all (although that % never caps off for larger investors).
• Bed & ISA isn't really a big deal. The small amount of "out of market" risk which results might be a -ve or might be a +ve !

My limited understanding of the "low cost" providers is they are likely to offer a more limited service and a narrower range of investments.

[knk]

If you have a decent amount invested Fidelity's fees are discounted and I really like their platform.

[bad company]

rockin said:

My thoughts,

• 0.25% isn't bad for the level of HL service at all (although that % never caps off for larger investors).
• Bed & ISA isn't really a big deal. The small amount of "out of market" risk which results might be a -ve or might be a +ve !

My limited understanding of the "low cost" providers is they are likely to offer a more limited service and a narrower range of investments.

That’s been my view in the past but now I’m wondering what HL service I need or use. I haven’t needed to contact or phone them for ages. The bed & ISA thing is disappointing, the ‘Covid Excuse’ again.

[millen]

Some bad press for HL yesterday https://www.thetimes.co.uk/article/is-it-time-to-q... (you might need a 'burner' email address to read a couple of free articles a month). Surprised it doesn't mention the compensation brigade angling for HL post-Woodford. If this action succeeds, might it financially restrict HL's ability to grow/enhance their service offering?

[bad company]

millen said:

Some bad press for HL yesterday https://www.thetimes.co.uk/article/is-it-time-to-q... (you might need a 'burner' email address to read a couple of free articles a month). Surprised it doesn't mention the compensation brigade angling for HL post-Woodford. If this action succeeds, might it financially restrict HL's ability to grow/enhance their service offering?

Yes I read that but didn’t post a link due to the paywall. Very critical of HL.

[anonymous-user]

What did it say?

Only a couple of days ago there was a splash in the Times about business booming for HL as many more young customers are signing up to use their platform. Something about a lockdown inspired surge of business such that they now have one and a half million customers with an average age of 37. Said they have good client retention as well notwithstanding the Woodford situation.

[millen]

rockin said:

What did it say?

Only a couple of days ago there was a splash in the Times about business booming for HL as many more young customers are signing up to use their platform. Something about a lockdown inspired surge of business such that they now have one and a half million customers with an average age of 37. Said they have good client retention as well notwithstanding the Woodford situation.

The usual ranting about higher charges than most, surge in complaints to the FOS, 7 out of 10 HL 'own' funds are in the bottom quartile over 3 years, the Woodford 'best buy' saga and long transfer delays.

Curiously one of the transfer complainers is moving from HL to Embark - who I thought were the last word in dodgy SIPP operators. (Sadly I hold a small £100k Hornbuckle (= Embark) SIPP on which there's no prospect of an exit for 3+ years and for which they levy a £1k pa 'monitoring fee' for doing sweet FA! No other SIPP operator will accept the investment.)

[GR_TVR]

bad company said:

I also hold funds with Hargreaves Lansdown and managed to negotiate their fees at .25% rather than the normal .45%.

I hold a chunk of funds within HL and was mulling over a switch elsewhere, but could you give some insight as to how you negotiated the fees down?

Thanks

[bad company]

GR_TVR said:

bad company said:

I also hold funds with Hargreaves Lansdown and managed to negotiate their fees at .25% rather than the normal .45%.

I hold a chunk of funds within HL and was mulling over a switch elsewhere, but could you give some insight as to how you negotiated the fees down?

Thanks

Simple, I asked. It depends what you mean by ‘a chunk of funds’, you need a decent sized investment to get them to reduce their fees. They agreed to the reduced rate for both Mrs BC and I.

[Mr Pointy]

bad company said:

GR_TVR said:

bad company said:

I also hold funds with Hargreaves Lansdown and managed to negotiate their fees at .25% rather than the normal .45%.

I hold a chunk of funds within HL and was mulling over a switch elsewhere, but could you give some insight as to how you negotiated the fees down?

Simple, I asked. It depends what you mean by ‘a chunk of funds’, you need a decent sized investment to get them to reduce their fees. They agreed to the reduced rate for both Mrs BC and I.

When was that? There's some discussion that they might have dropped fees in the past but that they no longer do so.

[bad company]

Mr Pointy said:

bad company said:

GR_TVR said:

bad company said:

I also hold funds with Hargreaves Lansdown and managed to negotiate their fees at .25% rather than the normal .45%.

I hold a chunk of funds within HL and was mulling over a switch elsewhere, but could you give some insight as to how you negotiated the fees down?

Simple, I asked. It depends what you mean by ‘a chunk of funds’, you need a decent sized investment to get them to reduce their fees. They agreed to the reduced rate for both Mrs BC and I.

When was that? There's some discussion that they might have dropped fees in the past but that they no longer do so.

I agreed it with them in 2017 and it’s just carried on.

[GR_TVR]

bad company said:

Simple, I asked. It depends what you mean by ‘a chunk of funds’, you need a decent sized investment to get them to reduce their fees. They agreed to the reduced rate for both Mrs BC and I.

Thanks for the reply. Ha, I guess it depends what you then mean by "decent"!
High 5 figs and ongoing investment of 2-3k a month.

Was it as simple as "please reduce my fees" or more of a "reduce my fees or I'll have to move to x"?

[xeny]

GR_TVR said:

Thanks for the reply. Ha, I guess it depends what you then mean by "decent"!
High 5 figs and ongoing investment of 2-3k a month.

Presuming that is in funds, and looking at the breakpoints at https://www.hl.co.uk/help#charges-and-fees/fund-ch... , I suspect it may be a tricky conversation.

[Cabbage Patch]

I tried to negotiate lower fees with HL a couple of years ago. The accounts I look after are my SIPP and ISA, my wife's SIPP and ISA and my son's JISA. All in they total a reasonable amount but they wouldn’t budge on fees. Perhaps because it’s all spread too thinly?

I'm happy with HL's platform and the service, on the very odd occasion I’ve had to contact them, but still wanted to cut the fees. What I did was sell my funds and instead buy an HSBC global tracker ETF for each account. £11.95 dealing charge but the holding charge is capped at £45 annually on an ISA and £200 on a SIPP. Monthly I buy into funds (no dealing charge) and when there’s a reasonable amount built up to make it worth the £11.95 dealing fee, buy more of the ETF tracker.

[PhilboSE]

I negotiated reduced funds with HL about 4 years ago when I was shopping around for a new platform as I was being bent over by Cofunds at the time.

One of the reasons I went with HL was that the offered the full range of vehicles, such as JISA and child SIPPs. At the time that was quite rare.

HL honour the reduced fees for all my linked family accounts.