Hargreaves Lansdown Cuts Fees Amid Growing Industry Competition

Hargreaves Lansdown, the UK’s largest DIY investment platform, has announced a significant overhaul of its fee structure in response to escalating competition in the financial services sector. The changes, which will affect approximately half of the company’s more than 2 million customers, will see reductions in annual account and share dealing fees while introducing a new charge for fund trading.

Starting in March 2025, the company will lower its platform fee from 0.45 percent to 0.35 percent. Share trading fees will decrease from £11.95 to £6.95 per trade, and fees on ready-made pension plans will drop from 0.75 percent to 0.45 percent annually. However, the introduction of a £1.95 fee for fund trades may offset some of these savings for customers who previously enjoyed free fund trading. Customers with a monthly automated investment setup will be exempt from this new charge.

Overall, the firm stated that around 80 percent of customers will either see their fees reduced or remain unchanged, while 10 percent may experience an increase of up to £1 per month and 3 percent could incur an increase of £10 or more.

Industry Landscape and Challenges

As competition intensifies across the financial services landscape, Hargreaves Lansdown faces pressure from established firms like JP Morgan and Chase, as well as emerging digital-only platforms like Robinhood. According to Richard Flint, chief executive of Hargreaves Lansdown, the fee restructuring is part of a broader strategy to rejuvenate the business and adapt to this rapidly evolving environment. He noted, “Competition has been developing for quite a long time and it’s not a surprise, it’s coming in many different forms.”

While some industry experts welcomed the fee reductions, others expressed concerns regarding the complexity of the changes. Andrey Dobrynin, chief executive and founder of Invest Engine, remarked that while lower headline fees can enhance long-term wealth accumulation, the introduction of new charges complicates the overall value proposition for retail investors. He stated, “This makes it incredibly hard for average retail investors to know if they are truly getting a good deal on fees and charges from their provider.”

Company Evolution and Future Leadership

This fee overhaul is the latest in a series of significant changes for Hargreaves Lansdown, which has a long history dating back to its founding in 1981 by Peter Hargreaves and Stephen Lansdown. The firm went public on the London Stock Exchange in 2007, and in March 2025, it was acquired in a £5.4 billion deal led by private equity firms including CVC Capital Partners, Nordic Capital, and Abu Dhabi’s Platinum Ivy. Hargreaves retained a 10 percent stake after selling half of his holdings, while Lansdown opted to sell his entire 6 percent stake, describing the moment as “bittersweet.”

In addition to the fee changes, Hargreaves Lansdown recently announced that Flint will step down as chief executive to assume the role of deputy chair. He will be replaced by Matt Benchener, who joins from rival Vanguard, where he managed the personal investment business in the United States. Benchener will transition into his new position in July after a handover period beginning in March.

As Hargreaves Lansdown navigates these changes, the company aims to solidify its position in a competitive market, balancing the need for innovation with the challenge of maintaining customer trust and satisfaction. The impact of these fee adjustments will be closely monitored as the firm adapts to the shifting dynamics of the investment landscape.