Hargreaves Lansdown vs Freetrade (2026):
Fees, ETFs, and who should switch
Both are legitimate platforms for UK investors. The difference is cost structure: HL charges a percentage platform fee plus dealing commissions, Freetrade charges a flat monthly subscription. Which one is cheaper depends almost entirely on your portfolio size and how often you trade.
Some of the links on this site are affiliate links, meaning we may earn a commission at no extra cost to you if you sign up through them. This does not affect our reviews or recommendations — we only feature products we genuinely believe are useful for investors. This site provides educational content only, not personalized investment advice. Investments can lose value and past performance does not guarantee future results. You are responsible for your own financial decisions and for confirming the tax and legal rules that apply in your country.
TL;DR
- Best for larger portfolios (above ~£50k) where the platform fee is capped.
- Unmatched fund and research depth — over 2,500 funds available.
- Established SIPP with strong self-managed pension tools.
- Dealing fees make it expensive for frequent traders at lower balances.
- Best for smaller portfolios (under ~£30–50k) and passive ETF investors.
- Flat monthly fee means the percentage cost drops as your balance grows.
- Zero dealing commissions — ideal for monthly contributions.
- Smaller investment universe; limited fund choice versus HL.
Two very different products
Hargreaves Lansdown and Freetrade are both UK-regulated investment platforms but they were built for different investors at different stages.
Founded in 1981 and listed on the FTSE 100, HL is the UK’s largest retail investment platform by assets under administration. It offers a full fund supermarket, comprehensive ISA and SIPP wrappers, and an extensive research library built for investors who want to manage their own portfolio in depth.
The trade-off: it’s built on a percentage fee model that was designed before flat-fee neobrokers existed. For smaller portfolios, the cost math doesn’t work in your favour.
Freetrade launched in 2018 as a commission-free neobroker targeting beginners and passive investors. It offers stocks, ETFs, and investment trusts through a clean mobile app. The ISA and SIPP are available on paid tiers.
The trade-off: the investment universe is narrower than HL — around 6,000 securities versus HL’s broader fund supermarket. It suits a simple ETF strategy well, but isn’t the right tool for active fund selectors.
| Feature | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Founded | 1981 | 2018 |
| Regulated by | FCA (UK) | FCA (UK) |
| FSCS protected | Yes — up to £85,000 | Yes — up to £85,000 |
| Stocks and Shares ISA | Yes | Yes (paid plan) |
| SIPP | Yes | Yes (Plus plan) |
| ETFs available | 3,000+ securities including ETFs | ~6,000 securities including ETFs |
| Funds (OEICs) | Yes — 2,500+ funds | No |
| Fractional shares | Limited | Yes |
| Mobile app | Good | Excellent |
Where the real cost difference lives
The fee structures are fundamentally different. HL charges a percentage of assets plus a dealing fee per trade. Freetrade charges a flat monthly subscription with no per-trade commissions.
| Fee type | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Platform fee (Shares/ETFs) | 0.45% pa (capped at £45/yr for shares/ETFs) | £0 on basic; £5.99/mo for ISA |
| Platform fee (Funds) | 0.45% pa up to £250k, then lower tiers | No funds available |
| Dealing fee (ETFs/shares) | £5.95–£11.95 per trade | £0 |
| ISA wrapper fee | Included in platform fee | £5.99/month (Standard plan) |
| SIPP wrapper fee | Included in platform fee | £11.99/month (Plus plan) |
| FX fee | 1.0% | 0.99% |
| Inactivity fee | None | None |
The crossover point: where HL becomes competitive
For shares and ETFs, HL caps its platform fee at £45 per year per account type (ISA capped separately). This is a significant advantage for investors with large balances. At £50,000 in an ETF ISA, the HL fee is £45/year — whereas Freetrade’s ISA costs £71.88/year (£5.99 x 12) before adding dealing commissions.
HL: ~£45 platform fee + £5.95–£11.95 per trade (ETF ISA)
Freetrade: ~£72/year ISA subscription, zero dealing fees
HL: £45 platform fee cap (ETF/share ISA) — cost stays flat
Freetrade: £72/year — but HL now competes favourably at this size
ETFs, funds and what you can actually buy
Both platforms offer ETF access, but HL’s breadth is substantially wider — and it adds an entire fund supermarket that Freetrade doesn’t have.
- 2,500+ funds (OEICs, unit trusts)
- ETFs from major providers (iShares, Vanguard, HSBC, Invesco)
- Investment trusts and direct shares
- Bonds and gilts
- Best-buy fund lists and HL’s own research
- Junior ISA, Lifetime ISA, SIPP all available
- ~6,000 stocks and ETFs (UK and US)
- ETFs from major providers (iShares, Vanguard, SPDR)
- Investment trusts
- Fractional shares on many positions
- No funds (OEICs or unit trusts)
- No gilts or bonds
If your strategy is a simple MSCI World or FTSE All-World ETF plus maybe a bond ETF, both platforms have what you need. The key difference is that HL also gives you access to actively managed funds — a meaningful option for investors who want that exposure.
If you only want ETFs, Freetrade’s universe is more than adequate and its zero-dealing-fee model suits a passive monthly contribution strategy well.
ISA and SIPP: what each platform offers
For UK investors, the ISA and SIPP are the two most important tax-sheltered wrappers. Both platforms offer them — but the costs and account tiers differ.
| Wrapper | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Stocks and Shares ISA | Available — platform fee applies | Available — £5.99/month (Standard plan) |
| SIPP (Self-Invested Pension) | Available — platform fee applies | Available — requires £11.99/month (Plus plan) |
| Junior ISA | Yes | No |
| Lifetime ISA | Yes | No |
| General investment account | Yes (free) | Yes (free basic) |
| SIPP annual management | 0.45% pa (capped at £200 for shares/ETFs) | Included in Plus plan (£143.88/year) |
App, interface and investor tools
User experience differs significantly — Freetrade is mobile-first and clean, HL is more comprehensive and research-heavy.
- Desktop and mobile — both well developed
- Fund and share research embedded in the platform
- HL best-buy lists and analyst commentary
- Portfolio analytics and performance tools
- Alerts and watchlists
- More complex interface — learning curve for beginners
- Mobile-first — the app is the platform
- Clean and simple interface for beginners
- Basic stock detail pages, no in-depth research
- Recurring order (savings plan) functionality
- Fractional shares make investing accessible
- Limited analytics compared to HL
Who should use which platform
- Your portfolio is above £50–100k and you hold ETFs (platform fee capped).
- You want access to actively managed funds (OEICs).
- You need a Junior ISA or Lifetime ISA.
- You want a SIPP with research tools and broad fund access.
- You prefer a platform with deep research and analysis built in.
- You are building a simple ETF portfolio with a portfolio under ~£50k.
- You contribute monthly and want zero dealing commissions.
- A clean, simple mobile app is your priority.
- You want fractional shares to invest smaller amounts in individual positions.
- You don’t need actively managed funds.
Some investors hold their ISA on Freetrade for cost efficiency and a SIPP on HL for the research depth and fund access. There is no rule against this, and it can be an effective way to optimise costs across different account types.
The downside is managing two platforms. If simplicity matters more, pick the one that fits your dominant account type — usually the ISA — and stick with it.
Ready to open an account?
Compare fees against your portfolio size before committing. Both platforms have no minimum deposit and no transfer-in fee — you can always move later.
Go deeper
Frequently asked questions
Is Hargreaves Lansdown better than Freetrade?
It depends on your portfolio size and investment strategy. Freetrade tends to be cheaper for passive ETF investors with smaller portfolios, thanks to its flat monthly fee and zero dealing commissions. HL becomes more cost-efficient at larger balances where its share/ETF platform fee is capped — and it has significantly broader investment range, including 2,500+ funds that Freetrade doesn’t offer.
Does Freetrade charge a platform fee?
Freetrade’s basic general investment account is free. Accessing a Stocks and Shares ISA costs around £5.99 per month on the Standard plan. A SIPP requires the Plus plan at around £11.99 per month. There are no percentage-based platform fees — your cost doesn’t scale with your balance, which is what makes Freetrade cheaper at lower portfolio values.
Does Hargreaves Lansdown charge dealing fees?
Yes. HL charges between £5.95 and £11.95 per deal for shares and ETFs, depending on how many trades you made in the previous month. Frequent traders (10+ deals per month) get the lowest rate. Funds (OEICs) have no dealing fee on HL. Freetrade charges no dealing commissions on any of its plans, making it significantly cheaper for investors who make monthly contributions.
Can I hold an ISA and SIPP on both platforms?
Yes. Both platforms offer a Stocks and Shares ISA and a Self-Invested Personal Pension (SIPP). On HL, both are available across all account types with the standard platform fee. On Freetrade, an ISA requires the Standard plan and a SIPP requires the Plus plan — so you’d pay £11.99/month to access both on Freetrade.
Which is better for passive ETF investing — HL or Freetrade?
For a simple passive ETF strategy with monthly contributions and a portfolio under roughly £50,000, Freetrade is typically cheaper. Zero dealing fees matter a lot when you’re buying monthly. At larger portfolio sizes, HL’s platform fee cap (£45/year for an ETF ISA) makes it increasingly competitive — and at very large balances, it can be cheaper than Freetrade’s subscription cost.
QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Fee figures are based on publicly available information and may change — always verify current pricing on each broker’s official website before opening an account. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions.