Savers are moving tens of millions of pounds away from a major investment platform after it unveiled the biggest shake up to its charges in more than a decade.
Competitors say transfer requests have surged since the announcement, with investors appearing unconvinced that the changes go far enough to shift the firm’s reputation on price.
Hargreaves Lansdown, which has around two million customers, confirmed it would overhaul its pricing structure from March after setting out the reforms on January 26.
The Bristol-based company said it would cut its annual account charge and reduce dealing fees on shares. The headline platform fee is due to fall from 0.45 per cent to 0.35 per cent.
However, the revamp also introduces new costs. A £1.95 fee will apply when customers buy or sell funds online, while foreign exchange charges are being amended. At the same time, the annual cap on certain share charges will rise from £45 to £150.
Rival trading firms said transfer demand had ‘spiked’ since the Jan 26 announcement as disheartened investors fled Britain’s largest DIY investment platform in search of cheaper fees.
Investment group IG said the median transfer value from Hargreaves Lansdown to its service has increased from £58,000 last year to £85,000 this year.
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Another provider reported transfer demand running 200 per cent higher than in 2025, while a third said it had experienced the biggest transfer day in its history.
For some customers, the combination of headline cuts alongside fresh fees appears to have cemented concerns that cheaper options may be available elsewhere.
When setting out the overhaul, Hargreaves Lansdown said 80 per cent of customers would either pay less or see no change.
Industry experts believe those most likely to benefit are people with smaller portfolios and newer investors who trade less often.
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More experienced or active customers may start to question whether they can find better value elsewhere
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GETTYBy contrast, more experienced or active customers may start to question whether they can find better value elsewhere.
Wealthier savers are expected to feel the biggest effect, particularly those who max out their ISA allowance and also hold money in a general investment account, as they have until now avoided paying platform fees on that portion of their investments.
From March, however, a £150 cap will apply, meaning that money which previously sat outside the charging structure will start to face a cost.
Interactive Investor, which charges a flat subscription style fee rather than a percentage, reported an almost 200 per cent rise in transfers from Hargreaves Lansdown in the week following the announcement.
IG explained the average value of pots arriving from Hargreaves Lansdown had leapt from £95,000 to £280,000 within a fortnight.
Michael Healy, the UK managing director, said the firm had seen a “significant influx of customers moving over to us”.
Charlotte Ransom, of wealth planning firm Netwealth, said: “Fee changes tend to act as a catalyst for customers to re-engage with and better understand their overall charges.”
Holly Mackay, founder of independent financial platform Boring Money, said those being “prompted to move” by the changes were the “savvier and more affluent customers.
the revamp also introduces new costs
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GETTY“Fees can be complex to unpack and it’s typically the more confident, savvy investors who know precisely what they are paying,” she said.
Analysis by consumer group Which? found that an investor with £100,000 in a Hargreaves Lansdown stocks and shares Isa would be charged an annual £365.60 fee if they made four trade purchases and four sales each year from March.
This is above the £220.05 average charged by Britain’s most popular investment platforms.