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When comparing Vanguard vs Hargreaves Lansdown, which investment platform is better? Both platforms are well-known and popular, making choosing between them difficult. Yet, you can only use one investment platform. Choosing the wrong broker could mean losing money and wasting time.
Vanguard and Hargreaves Lansdown are both solid options for investors. Hargreaves Lansdown is more expensive. However, it gives you access to more investment options and managed portfolios.
Vanguard vs Hargreaves Lansdown Comparison Overview
| Broker | Vanguard | HL |
|---|---|---|
| User ratings | 4.1/5.0 | 4.2/5.0 |
| Notable fees | 0.15% account fee 0.2% fund management fee | 0.1%-0.45% DIY 1.33%-1.44% Managed |
| Account types | GIA, ISA, SIPP, Junior ISA | GIA, ISA, SIPP, Junior ISA, LISA |
| Platform | Website and app | Website and app |
| Markets | Funds | Shares, funds, trusts, ETFs |
| Minimum deposit | £500 lump sum or £100 monthly | £100 lump sum or £25 monthly |
| Investment style | DIY Long-term investing | DIY, managed portfolios Long-term investing |
| Sign-up bonus | None | None |
Company Backgrounds
Vanguard is an online investment platform founded in 1975. Vanguard came to the UK in 2009 and has over 50 million users worldwide. Read more in my Vanguard review.
Hargreaves Lansdown is an established investment broker founded in 1981. Hargreaves Lansdown is the UK’s largest investment platform. It has over 1.8 million clients. Read more in my Hargreaves Lansdown review.
Hargreaves Lansdown is the newer platform, but both companies have a long history.
User Ratings
Trustpilot
Vanguard has an average score of 4.0 out of 5.0 on Trustpilot. Of the reviews, 76% are great or excellent. Meanwhile, Hargreaves Lansdown has an average score of 4.1 out of 5.0 on Trustpilot. Of these, 74% are great or excellent.
Both platforms are popular on Trustpilot. Hargreaves Lansdown is rated better, with a gap of 0.1 points between the two.
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Fees
| Broker | Vanguard | HL |
|---|---|---|
| Sign-up free | None | None |
| Deposit fee | None | None |
| Withdrawal fee | None | None |
| Inactivity fee | None | None |
| Commission | None | None |
| Account fee | 0.15% per year, capped at £375 | 0.10%-0.45% for funds 0.45% for stocks 1.33%-1.44% for managed portfolios |
| Fund management fee | 0.2% on average | No additional charge |
| Trading fee | 0.0%-0.1% | £5.95-£11.95 |
| Other | 0.02%-0.15% one-off ETF fee £7.50 to buy at live price (optional) | – |
Vanguard charges a simple account fee of 0.15% with a cap of £375 per year. Hargreaves Lansdown has a more complex fee structure. You pay 0.45% on funds (less for amounts exceeding £250,000) and 0.45% on stocks.
The managed portfolios are more expensive because the portfolio manager does the work for you. The fees for assets held in a Lifetime Individual Savings Account (ISA) are about half the normal fees. Junior ISAs are free.
Vanguard is cheaper than Hargreaves Lansdown. Hargreaves Lansdown is only cheaper if your investments are in a Lifetime ISA or a Junior ISA. Both accounts can only hold a limited amount of funds. Thus, serious investors will have most of their funds in an ISA.
If you want a cheaper alternative, read my Freetrade vs Hargreaves Lansdown comparison.
Account Types
Both Vanguard and Hargreaves Lansdown have a good range of account types:
- General investment account (GIA)
- Individual Savings Account (ISA)
- Self-invested Personal Pension (SIPP)
- Junior ISA
In addition, Hargreaves Lansdown offers a Lifetime ISA. Many investment platforms do not offer Lifetime ISAs, and most are cash based. If you want a Stocks & Shares Lifetime ISA, Hargreaves Lansdown wins.
Markets
On Vanguard, you can choose one or more of 83 funds, including ethical funds. You cannot buy single stocks on Vanguard. You also will not receive help with choosing funds.
HL has over 3000 funds, bonds, and stocks listed on the UK, Canadian, and European stock exchanges. You can also buy bonds and invest in managed portfolios.
While Vanguard is DIY, Hargreaves Lansdown also offers managed portfolios. There are four portfolios available:
- Cautious
- Balanced
- Moderately Adventurous
- Adventurous
Hargreaves Lansdown has more fund options. Yet, Vanguard is the obvious choice if you want to buy Vanguard funds.
User Interface
Both Vanguard and Hargreaves Lansdown have a web platform and an app. Both are also user friendly and easy to use. HL has more resources to help you navigate the platform and learn about investing. You can also choose managed portfolios. With Vanguard, you are on your own.
Both platforms are user friendly. However, Hargreaves Lansdown is easier for beginners due to guides and managed portfolios.
Depositing and Withdrawing
Vanguard has a minimum deposit of a £500 lump sum or a £100 monthly direct debit. There are no fees for depositing and withdrawing money. Deposits are instant if you pay by card, and withdrawals take up to five business days.
Hargreaves Lansdown has a minimum deposit of £100 or £25 monthly direct debit. There are no fees for depositing and withdrawing. Withdrawals are usually instant.
HL has a lower minimum investment amount, making it more accessible to beginners. They are also faster for withdrawals.
Customer Support
HL offers fast and helpful customer support, but they do not have a live chat. As I have stated in all my Vanguard-related posts, I do not like Vanguard’s customer support. I have been with Vanguard for a long time, and the customer service has been unhelpful and misleading.
If customer support is important to you, I recommend Hargreaves Lansdown over Vanguard.
Is Hargreaves Lansdown Better Than Vanguard?
Hargreaves Lansdown is not necessarily better than Vanguard. Both are different platforms targeting different investors. With Vanguard, you get no-frills and cheap access to Vanguard funds. HL has more investment choices and other resources but may come at a higher price.
Vanguard vs Hargreaves Lansdown (HL) Comparison Summary
Vanguard and Hargreaves Lansdown are two solid investment platforms. Vanguard is a great platform to buy Vanguard funds, and HL offers more variety. Both also belong to the best investment apps available in the UK.
The outcome of this comparison is as follows:
- User ratings: Hargreaves Lansdown
- Fees: Vanguard
- Account types: Hargreaves Lansdown
- Investment markets: Hargreaves Lansdown
- User interface: Hargreaves Lansdown
- Depositing and withdrawing: Hargreaves Lansdown
- Customer support: Hargreaves Lansdown
- Sign-up bonus and friend referral scheme: Tie
Hargreaves Lansdown wins more categories than Vanguard. This result does not mean that Hargreaves Lansdown is universally better. Vanguard wins one of the most important points, being the cheapest platform. Plus, Vanguard gives you access to all Vanguard funds.
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