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Welcome to my Nutmeg vs Hargreaves Lansdown comparison! Nutmeg and Hargreaves Lansdown are two very different investment platforms. But what sets them apart?
Should you trust Nutmeg with your money or is Hargreaves Lansdown the better choice? Read this Nutmeg vs Hargreaves Lansdown comparison to find out.
Nutmeg vs Hargreaves Lansdown Comparison
Hargreaves Lansdown and Nutmeg are both solid options for investors. Nutmeg is a robo-advisor whereas Hargreaves Lansdown offers premade portfolios and DIY options.
Nutmeg vs Hargreaves Lansdown Comparison Overview
| Nutmeg | Hargreaves Lansdown | |
| User ratings | 3.6/5.0 | 4.2/5.0 |
| Notable fees | 0.25%-0.75% account fee 0.22%-0.28% fund fee | 0.1%-0.45% DIY 1.33%-1.44% managed portfolios |
| Account types | GIA, ISA, Lifetime ISA, SIPP, Junior ISA | GIA, ISA, Lifetime ISA, SIPP, Junior ISA |
| Platform | Website and app | Website and app |
| Markets | Funds | Shares, funds, ETFs, trusts, bonds |
| Minimum deposit | £500 (£100 for LISA) | £25 monthly payment or £100 lump sum |
| Investment style | Robo-advisor Long-term investing | DIY Managed portfolios Long-term investing |
| Sign-up bonus | £100 bonus for pension transfers | None |
| Terms and conditions | Here | Here |
Company Backgrounds
Nutmeg is a robo-advisor platform. This means that its AI will recommend you a portfolio based on your investment goals and preferences.
It does not mean that this portfolio is superior to others or magically immune to losses. Nutmeg is a UK-based company that was founded in 2011. Find out more about Nutmeg in my full Nutmeg review.
Hargreaves Lansdown is an established investment broker founded in 1981. Hargreaves Lansdown is the UK’s largest investment platform with over 1.7 million clients.
You can get all the details in my Hargreaves Lansdown review.
Overall, Nutmeg is the newer and less established investment platform. But does this mean it performs worse?
User Ratings
Trustpilot
Nutmeg has an average Trustpilot score of 3.6 out of 5.0. Overall, 80% of users scored it as great or excellent.
Meanwhile, Hargreaves Lansdown has an average score of 4.2 out of 5.0 on Trustpilot. Of the reviews, 74% are great or excellent.
When comparing Nutmeg vs Hargreaves Lansdown, both platforms are popular on Trustpilot. Hargreaves Lansdown is rated slightly better with a gap of 0.6 points between the two.
What Is Trustpilot?
Overall, there are over 120 million reviews on Trustpilot. This means you can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Nutmeg vs Hargreaves Lansdown Fees
| Nutmeg | Hargreaves Lansdown | |
| Sign-up free | None | None |
| Deposit fee | None | None |
| Withdrawal fee | None | None |
| Inactivity fee | None | None |
| Commission | None | None |
| Account fee | 0.25%-0.75% | 0.1%-0.45% for funds 0.45% for stocks 1.33%-1.44% for managed portfolios |
| Fund management fee | 0.22%-0.28% | See account fees |
| Trading fee | Market spread 0.07% | £5.95-£11.95 |
| Other | None | – |
Both Nutmeg and Hargreaves Lansdown charge a percentage-based account fee. With Nutmeg, you also have a separate fund management fee.
Since Nutmeg only offers pre-made portfolios, the only fee that can be compared are Hargreaves Lansdown’s ready-made portfolio fees.
Overall, even Nutmeg’s most expensive portfolio is cheaper than Hargreaves Lansdown’s cheapest portfolio. Thus, Nutmeg is cheaper than Hargreaves Lansdown.
Though it has to be kept in mind that Nutmeg is a robo-advisor whereas Hargreaves Lansdown’s portfolios are actively managed.
This is more work and, therefore, also more expensive.
Account Types
Both Hargreaves Lansdown and Nutmeg have an excellent range of account types:
- General investment account (GIA)
- Individual savings account (ISA)
- Self-invested personal pension (SIPP)
- Lifetime ISA
- Junior ISA
Many investment platforms do not offer Lifetime ISAs and most are cash based. It is great to see that both platforms offer one.
Available Assets
Hargreaves Lansdown has obviously the greater choice of investment options.
On the site, you can choose from over 3000 funds, stocks from different exchanges, exchange-traded funds (ETFs), bonds, and investment trusts.
There are also five pre-made portfolios available, graded by risk level:
- HL Adventurous Managed
- HL Moderately Adventurous Managed
- HL Balanced Managed
- HL Cautious Managed
On the other hand, Nutmeg is a robo-advisor. This means that Nutmeg will recommend you a fund based on your preference.
You do not need to have any investment knowledge.
Nutmeg only has four portfolio types with five to ten funds each:
- Fully managed (10 portfolios)
- Smart Alpha (5 portfolios)
- Socially responsible (10 portfolios)
- Fixed allocation (5 portfolios)
If you are confident with choosing your own funds, you will find a greater variety on Hargreaves Lansdown. However, if you would rather have a fund recommendation based on your preferences, Nutmeg can help you.
User Interface
Both Nutmeg and Hargreaves Lansdown have a web platform and an app. And both are also quite simple and easy to use.
On Nutmeg, you will not have to search around much since you will be given a fund recommendation. Nutmeg also does all the hassle such as buying and selling for you.
Since you can buy many different investments on Hargreaves Lansdown, the site is more complex. However, it is still easy to use and beginner friendly.
Depositing and Withdrawing
Hargreaves Lansdown has a minimum deposit of a £100 lump sum or a £25 monthly direct debit. There are no fees for depositing and withdrawing money.
Deposits are instant if you pay by card and withdrawals are via Faster Payment which means they are mostly instant as well.
With Nutmeg, the minimum deposit amount is £500 or £100 for junior ISAs and LISAs. You can deposit via open banking which is easy and will only take one day.
Withdrawing will take three to ten days. Withdrawing with Nutmeg may take longer than with Hargreaves Lansdown but you have to keep in mind that Nutmeg also sells your investments for you.
Both Hargreaves Lansdown and Nutmeg have relatively high minimum investment amounts. Hargreaves Lansdown is slightly more accessible due to a lower minimum threshold.
Customer Support
Because Nutmeg is a robo-advisor it is most popular with beginner investors. Beginners often have questions and thus, having strong support is a must.
And indeed, Nutmeg’s customer support is quick and helpful.
Hargreaves Lansdown also has great customer support. However, because it does not have a live chat, communication is much slower.
If customer support is important to you, I recommend Nutmeg over Hargreaves Lansdown.
Sign-up Bonuses and Friend Referral Schemes
Hargreaves Lansdown does not have any sign-up bonuses. With Nutmeg, you can get £100 cashback if you transfer a pension valued at least £1000 to Nutmeg.
While Nutmeg’s offer seems generous at first glance, you also have to keep in mind that Nutmeg charges higher fees than other investment platforms.
Thus, if you do not want to use a robo-advisor, the fees make any transfer not worth your while.
Currently, neither Nutmeg nor Hargreaves Lansdown operates a friend referral scheme.
Is Nutmeg Better Than Hargreaves Lansdown?
Nutmeg is not necessarily better than Hargreaves Lansdown. Both are two different platforms: Hargreaves Lansdown offers more variety but also higher fees.
Nutmeg vs Hargreaves Lansdown Comparison Summary
Nutmeg and Hargreaves Lansdown are two solid investment platforms as you can see from this Nutmeg vs Hargreaves Lansdown comparison.
Hargreaves Lansdown is a well-established broker with lots of options and Nutmeg will provide you with recommendations. Both belong to the best investment apps available in the UK.
The outcome of this Nutmeg vs Hargreaves Lansdown comparison is as follows:
- User ratings: Hargreaves Lansdown
- Fees: Nutmeg
- Account types: Tie
- Investment markets: Hargreaves Lansdown
- User interface: Tie
- Depositing and withdrawing: Hargreaves Lansdown
- Customer support: Nutmeg
- Sign-up bonus and friend referral scheme: Nutmeg
Overall, Nutmeg and Hargreaves Lansdown are pretty even in terms of the number of categories won. However, this does not mean that Nutmeg is universally better.
Which platform is better for you depends on your preferences and investment experience.
For beginner investors, Nutmeg is likely the better choice. Advanced investors and those with large portfolios may prefer Hargreaves Lansdown as they can choose their own funds.
You may also be interested in my Freetrade vs Hargreaves Lansdown comparison.
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