To achieve your investment goals, you need to choose the right investment platform. Among the UK’s leading options, Interactive Investor (II) and Hargreaves Lansdown (HL) are two popular choices. Both cater to beginner investors and experienced investors alike, and both offer a range of investment products, tools, and services. But how do they stack up against each other?
Table of Contents
In this comprehensive guide, we compare Interactive Investor vs Hargreaves Lansdown across fees, features, and more to help you decide which platform suits you.
Interactive Investor’s flat-fee model is one of its standout features. It offers predictable costs for investors, particularly those with larger portfolios.
Subscription Tiers:
Dealing Fees:
Additional Costs:
Hargreaves Lansdown’s percentage-based fee structure can be more cost-effective for smaller portfolios but becomes expensive as investments grow.
Platform Fees:
Dealing Costs:
Hidden Costs:
The investment options offered by Interactive Investor are for all levels of investors.
Product Range:
Unique Offerings:
Additional Options:
Hargreaves Lansdown is for a broad audience with a slightly different focus.
Product Range:
Unique Offerings:
Advisory Services:
Personalized Portfolios:
Web Platform:
Mobile App:
Allows seamless access to your trading account, regular investing, and account management on the go.
Customer Reviews:
Customer Support:
Offers email and live chat support but lacks the extensive advisory services provided by Hargreaves Lansdown.
Web Platform:
Mobile App:
An award-winning app providing full access to accounts, investments, and trading.
Customer Reviews:
Customer Support:
Has a dedicated customer service team available via phone, email, and chat.
Both Hargreaves Lansdown and Interactive Investor are regulated by FCA.
Both investment platforms offer wide financial instruments – funds, UK and overseas shares, corporate and government bonds, exchange traded funds (ETFs) and investment trusts.
Offers a suite of tools, including:
Known for its vast investment resources, including:
Interactive Investor:
Hargreaves Lansdown:
| Feature | Interactive Investor | Hargreaves Lansdown |
|---|---|---|
| Fee Structure | Flat monthly fees, starting from £4.99 | Percentage-based fees, capped for shares/ETFs |
| Account Variety | Offers joint trading accounts and a broader range of global investments | Focuses more on advisory tools and UK-centric portfolios |
| Tools and Resources | Advanced tools like stock screeners and global exchange access | Guided options like Wealth Shortlist for fund selection |
| Best For | Frequent traders and experienced investors | Beginners and investors preferring curated options |
What Are ETFs?
Exchange-Traded Funds are investment funds that are traded on stock exchanges, much like individual stocks. Each ETF holds a collection of assets such as stocks, bonds, or commodities. It provides you with diversification.
How Do ETFs Work?
ETFs track the performance of a specific index (e.g., S&P 500) or sector. For example, a gold ETF might track the price of gold. You can buy and sell ETF shares during market hours, just like any other stock.
Why Invest in ETFs?
What Are ISAs?
An ISA is a tax-efficient savings and investment account available to UK residents. It allows you to save or invest up to a certain annual limit (the ISA allowance) without paying income tax or capital gains tax on the returns.
Types of ISAs:
Why Choose an ISA?
What Are SIPPs?
A SIPP is a DIY pension plan that gives you control over how your retirement savings are invested. Unlike traditional pensions, SIPPs allow a broader range of investment choices – individual stocks, funds, ETFs, and commercial property.
How Do SIPPs Work?
You contribute to your SIPP, and your money grows tax-free. You can manage the investments yourself or hire a professional. Upon retirement, you can withdraw a portion tax-free and use the rest for regular income.
Who Are SIPPs For?
What Are Unit Trusts?
A unit trust is a type of pooled investment fund where your money is combined with others to buy a range of assets. Unit trusts are managed by a fund manager and open-ended. That means the number of units goes up or down depending on demand.
Key Features:
Why Invest in Unit Trusts?
What Are Corporate Bonds?
Corporate bonds are debt securities issued by companies to raise capital. When you buy a corporate bond, you’re actually lending money to the company in exchange for regular interest payments and the return of your principal when the bond matures.
Types of Corporate Bonds:
Why Invest in Corporate Bonds?
Interactive Investor often edges out Hargreaves Lansdown for cost-efficiency with large portfolios and more international trading options.
Interactive Investor’s flat fee model is a game-changer. It ensures costs remain stable regardless of portfolio size. This structure appeals to experienced investors who manage larger amounts, as percentage fees charged by competitors can quickly add up.
Yes, Interactive Brokers typically has lower fees for frequent traders, especially for international shares. However, its platform is geared towards more experienced users.
Interactive Investor is regulated by the Financial Conduct Authority (FCA) and investments are protected under the Financial Services Compensation Scheme (FSCS), protection for your investments. The company also uses advanced security measures to safeguard customer data and funds.
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