Interactive Investor v Hargreaves Lansdown
27 Feb, 2022
Interactive Investor or Hargreaves Lansdown? Which one is the right option for you? We’ve done the research and crunched the numbers to make it easier for you to decide who’s the right home for your money.
Why are we comparing Interactive Investor and Hargreaves Lansdown?
Interactive Investor and Hargreaves Lansdown have won our Boring Money Best Buy awards, which recognise excellence in the ISAs and pension space. These also honour providers who have delivered consistently good standards in an overall product category, such as ISAs, or a more-specific category, such as Lifetime ISAs.
Perhaps you’re curious about opening an ISA or setting up an SIPP with these providers but you’re struggling to decide between the two. How do you really know which one is the right fit for your financial goals? And how will the fees impact on your long-term returns? Well, have a look at the table below for a head-to-head comparison of Interactive Investor and Hargreaves Lansdown!
Interactive Investor V Hargreaves Lansdown - An overview
Pick from a wide range of investments
Pick from a wide range of investments
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Funds and Shares: £9.99 per month
Funds: 0.45% (for the first £250,000)
Shares: 0.45% (max £45 per year)
Funds and Shares: £7.99
Funds: free
Shares: £11.95 (for trading less than 9*units)
* deals in previous month
1.5% (for a value between £0 and £25k)
1% (for the first 5k)
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Who are Interactive Investor?
One of the UK's largest investment platforms, recently acquired by abrdn.
A popular choice for those with larger investments.
Operates on a fixed £ fee, so relatively more expensive for smaller portfolios.
Who are Hargreaves Lansdown?
The biggest investment platform in the UK, headquartered in Bristol.
Manages over £100bn in investors’ money.
Another good all-rounder if you 're looking for full suite of investment products.
Trading charges
Hargreaves Lansdown is a bit more expensive for occasional share-trading, but if you make regular trades, it may work out a bit cheaper than Interactive Investor.
Platform charges
Interactive Investor's flat platform fee of £9.99 may be a little expensive if you're planning to 'drip-'feed your investments with smaller amounts. Hargreaves will be a little cheaper in this regard, as its fees are 0.45% for the first £250k. Funds and shares are also more expensive for Interactive Investor, while Hargreaves Lansdown has a cap of £45 year, compared to £119.88 for Interactive Investor.
Minimum £ required
With Hargreaves, you'll need to make an initial deposit of £100, followed by at least £25 a month thereafter. With Interactive Investor, there's no minimum contribution, but you'll need to put in at least £25 each month if you want to benefit from their free regular investing service.
Which is best for saving for a mortgage or retirement?
Hargreaves Lansdown has an advantage because it offers a Lifetime ISA, which allows you to put away up to £4,000 a year and get a 25% bonus from the Government This is all tax-free, so up to £1,000 of free money is up for grabs.
However, both providers also offer Self-Invested Personal Pensions (SIPPs), with which you can benefit from £20 of free government money for every £80 you put in (and an extra £20 per £80 if you're a higher-rate taxpayer).
Which is best for parents?
Both providers are a decent option for parents looking to build a tax-free nest for their children. They offer Junior ISAs (JISAs), which allows you to put away up to £9,000 for your children, until they turn 18.
Which is best for smaller investments?
Hargreaves is a cheaper option for smaller investments, because the % fee will work in your favour compared to Interactive Investor's fixed £ fee.
Which is best if you have more money to invest?
For larger pots, Interactive Investor may have the edge, as the fixed fee can work in your favour in this scenario. Hargreaves Lansdown can be quite pricey for larger portfolios, for the same reason.
Which is best for foreign exchange?
As with many providers, foreign exchange fees for Interactive Investor and Hargreaves Lansdown operate on a 'sliding scale'. That is, the more you put in, the lower the rate. Interactive Investor's foreign exchange fees start at 1.5% up to £25k but fall to just 0.25% for £600k plus, while Hargreaves is only 0.25% for over £20k.
Want to compare other providers? Check out our comparison tables.
