Hargreaves Lansdown vs Freetrade (2026):
Fees, ISA, SIPP and who it fits
Both are FCA-regulated UK platforms. But HL restructured its fees in March 2026 and Freetrade’s ISA is now free — which changes the comparison significantly. This guide has been fully updated with the new numbers, the flexible ISA difference, cash interest features, and a rebuilt cost crossover analysis.
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TL;DR
- Best for active fund investors — 2,500+ OEICs/unit trusts, no dealing fee on funds.
- SIPP cap of £200/yr makes it competitive for large pension portfolios.
- Active Savings marketplace gives access to competitive cash rates alongside your portfolio.
- Platform fee (0.35%, capped at £150/yr for ETFs in ISA) is still higher than Freetrade’s £0.
- No flexible ISA — withdrawals permanently reduce your annual allowance.
- ISA is now free (Basic plan) — the cheapest ongoing account cost for ETF/share investors.
- Flexible ISA: withdraw and re-add cash in the same tax year without burning your allowance.
- Zero dealing commissions at every tier — better for monthly contributors.
- Now offers mutual funds, gilts, treasury bills and a Junior ISA.
- Backed by IG Group (FTSE 100) since 2024 — stronger institutional footing.
Two very different products
HL and Freetrade are both FCA-regulated UK investment platforms, but they were built for different investors — and both have changed significantly in the past 12 months.
Founded in 1981, HL was the UK’s largest retail investment platform by AUA for decades. In August 2025, it was taken private by a consortium of private equity investors — ending its run as a FTSE 100 company. The core product is unchanged: a full fund supermarket with 2,500+ funds, all major ISA types, a SIPP, and an in-house research team.
From 1 March 2026, HL reduced its platform fee from 0.45% to 0.35% and updated its dealing fee structure. These are meaningful changes but don’t close the gap with flat-fee neobrokers for smaller investors.
Freetrade launched in 2018 as a commission-free neobroker. In 2024 it was acquired by IG Group, a FTSE 100 listed financial services firm — providing stronger institutional backing and regulatory standing. The platform now offers 6,500+ securities including ETFs, stocks, mutual funds, gilts, treasury bills, investment trusts and REITs.
The ISA became free in 2025 (now included in the Basic plan), and the platform added a Junior ISA and flexible ISA structure. The SIPP remains behind the Plus plan (£11.99/month) but carries no percentage account fee.
| Feature | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Founded | 1981 | 2018 |
| Ownership (2026) | Private (PE consortium since Aug 2025) | Part of IG Group (FTSE 100 listed) |
| Regulated by | FCA (UK) | FCA (UK) |
| FSCS protected | Yes — up to £85,000 | Yes — up to £85,000 |
| Stocks and Shares ISA | Yes | Yes — free (Basic plan) |
| Flexible ISA | No | Yes |
| SIPP | Yes | Yes (Plus plan — £11.99/month) |
| Junior ISA | Yes | Yes |
| Lifetime ISA (LISA) | Yes | No |
| Funds (OEICs / unit trusts) | Yes — 2,500+ funds | Yes — selected funds |
| ETFs | Yes — wide range | Yes — wide range |
| Gilts / Treasury Bills | Yes | Yes |
| Fractional shares | Limited | Yes |
| Cash savings product | Yes — Active Savings | No (cash interest on uninvested balance only) |
| Mobile app | Good | Excellent |
Updated fees — March 2026
HL restructured its entire fee schedule on 1 March 2026. Platform fee reduced, dealing fees restructured, FX fees now tiered. The figures below reflect the current structure.
| Fee type | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Platform fee (ETFs / shares) | 0.35% pa, capped at £150/yr (ISA & SIPP) | £0 — no platform fee |
| Platform fee (Funds) | 0.35% pa — no cap on fund holdings | No percentage fee on funds held |
| Dealing fee (ETFs / shares) | £6.95/trade (£3.95 if 20+ trades/month) | £0 |
| Dealing fee (Funds) | £1.95 per fund trade | £0 |
| Regular investing (Direct Debit) | Free — no dealing fee for scheduled monthly buys | Free — recurring orders available |
| ISA wrapper | Included in platform fee | Free — included in Basic plan |
| SIPP wrapper | Included in platform fee (capped at £200/yr for ETF/shares) | Requires Plus plan (£11.99/month — no % fee) |
| FX fee | Tiered: 0.99% (≤£10k), 0.50% (£10k–£25k), 0.20% (>£25k) | 0.99% (Basic); 0.59% (Standard); 0.39% (Plus) |
| Minimum to open ISA/SIPP | £100 lump sum or £25/month regular | No minimum |
| Inactivity fee | None | None |
The cost crossover: how it changed in 2026
Before Freetrade made its ISA free, there was a crossover point where HL’s capped fee became cheaper than Freetrade’s monthly subscription. That dynamic no longer exists for ETF and share investors. With Freetrade’s ISA at £0 and HL’s ISA at 0.35% (capped at £150/yr), HL has a higher ongoing account cost at every portfolio size for a pure ETF/share strategy.
HL: £35/yr platform fee + £6.95/trade (or £0 via monthly Direct Debit)
Freetrade: £0/yr — no platform or dealing fee
HL: £150/yr platform fee (capped) + £0 if using monthly Direct Debit
Freetrade: £0/yr — cost advantage remains at all balances
HL: £175/yr platform fee (0.35% × £50k, below £200 cap)
Freetrade Plus: £143.88/yr flat — cheaper here, no percentage risk
HL: £200/yr (capped) — comparable to Freetrade, slightly more
Freetrade Plus: £143.88/yr — still cheaper but by a smaller margin
Regular investing: both platforms offer it free
For passive investors who contribute monthly and rarely trade actively, both platforms support automated recurring investing at no dealing cost — though the mechanics differ.
HL’s regular investing feature lets you set up a monthly Direct Debit into any fund, ETF, or share with no dealing commission. Trades execute on a set date each month. Minimum is £25/month.
This effectively brings the dealing fee to £0 for disciplined monthly investors — removing what would otherwise be the biggest cost friction on HL.
Freetrade supports recurring orders for automatic monthly investments into ETFs and stocks. Zero commission on all trades regardless — recurring or otherwise. No minimum contribution requirement.
The combination of free ISA + no dealing commissions + recurring orders makes this one of the lowest-friction passive setups available for UK investors.
What you can actually buy
Freetrade’s investment range has expanded significantly in the past 18 months. It is no longer just a stock and ETF platform — but HL’s fund depth remains substantially wider.
- 2,500+ funds (OEICs, unit trusts — active and passive)
- ETFs from all major providers (iShares, Vanguard, HSBC, Invesco, SPDR)
- Investment trusts and direct UK and international shares
- Bonds, gilts and fixed income
- HL’s own in-house fund range (Wealth Shortlist)
- Junior ISA, Lifetime ISA, SIPP, Junior SIPP all available
- Active Savings — cash ISA and savings marketplace
- 6,500+ stocks and ETFs (UK and US markets)
- Mutual funds — selected range (added 2024–25)
- Investment trusts and REITs
- Gilts and UK Treasury Bills (added 2024–25)
- Crypto ETNs (higher risk — separate risk acknowledgement required)
- Fractional shares on many positions
- No LISA — Freetrade does not offer a Lifetime ISA
A MSCI World, FTSE All-World, or S&P 500 UCITS ETF — the core of most passive UK portfolios — is available on both platforms. Freetrade’s ETF universe from iShares, Vanguard and SPDR covers the essential trackers without gaps.
Where HL wins on range is fund investors who want access to actively managed OEICs, sector funds, or HL’s curated Wealth Shortlist — none of which are available on Freetrade in comparable depth.
Flexible ISA: a meaningful differentiator
One feature that rarely gets mentioned in headline comparisons but matters in practice: whether the ISA is flexible.
HL’s Stocks and Shares ISA is a standard (non-flexible) ISA. If you withdraw money during the tax year, that portion of your annual £20,000 allowance is permanently used up for that year — you cannot re-add the withdrawn amount.
This is not unusual — most platform ISAs are non-flexible — but it does mean you need to be deliberate about withdrawals during the tax year if you’re close to your allowance.
Freetrade’s ISA is flexible. You can withdraw money and re-deposit it in the same tax year without it counting against your annual allowance a second time. The allowance resets when the tax year does.
This is a genuine advantage for investors who might need to access their ISA temporarily — for example, using ISA cash for a short-term purpose and reinvesting it before April.
ISA and SIPP: full wrapper comparison
Both platforms offer the two most important UK tax-sheltered wrappers. The structure and cost differ in ways that matter depending on how large your portfolio is and how you invest.
| Wrapper | Hargreaves Lansdown | Freetrade |
|---|---|---|
| Stocks and Shares ISA | 0.35% pa, capped at £150/yr (ETFs/shares) | Free — included in Basic plan |
| ISA type | Standard (non-flexible) | Flexible |
| SIPP annual cost (ETF/shares) | 0.35% pa, capped at £200/yr | £143.88/yr flat (Plus plan — no % fee on top) |
| Junior ISA | Yes | Yes |
| Junior SIPP | Yes | No |
| Lifetime ISA (LISA) | Yes | No |
| Cash ISA | Yes — via Active Savings | No |
| ISA minimum deposit | £100 lump sum or £25/month regular | No minimum |
| General investment account | Yes — standard platform fee | Yes — free |
Cash interest and savings: very different offerings
Both platforms pay something on uninvested cash, but the products are structurally different. HL offers a full savings marketplace; Freetrade pays tiered interest directly in the account.
Active Savings is HL’s cash savings marketplace — a separate product that lets you access savings accounts and cash ISAs from multiple partner banks. You choose the provider, rate, access type (easy-access, fixed-term), and minimum deposit.
- Competitive rates from multiple banks through one platform
- Cash ISA access available through Active Savings
- Useful if you want to keep savings and investments in the same place
- FSCS protected per underlying bank (up to £85k each)
Freetrade pays interest on uninvested cash held in your account. Rate varies by plan. Plus plan subscribers earn up to 5% on the first £3,000 — competitive versus many easy-access savings accounts.
- Basic plan: lower rate (check current rates on Freetrade’s site)
- Standard plan: higher rate
- Plus plan: up to 5% on first £3,000 of uninvested cash
- Applies to cash sitting in your account awaiting deployment
App, interface and investor tools
The platforms are built differently. Freetrade is mobile-first and clean. HL is more comprehensive and research-heavy.
- Desktop and mobile — both well developed
- In-platform research: fund and share analysis, ratings, commentary
- Wealth Shortlist: HL’s curated best-buy fund list
- Portfolio analytics, performance history and alerts
- Model portfolios and managed service available
- More complex interface — steeper learning curve for beginners
- Higher trust score across comparison platforms (4.4/5 vs Freetrade 3.9/5)
- Mobile-first — clean app experience, now also available on web browser
- Simple onboarding — no minimum required to get started
- Basic security information and stock fundamentals on Standard plan
- Fractional shares make investing accessible from small amounts
- Recurring orders and limit/stop-loss orders available
- Lower trust/rating scores than HL at present — still building track record
- Backed by IG Group since 2024 — stronger infrastructure and oversight
Who should use which platform
- You want access to actively managed funds — HL’s 2,500+ fund range is unmatched at this price point.
- You need a Lifetime ISA or Junior SIPP.
- You want an Active Savings product alongside your investments — HL’s cash marketplace is a genuine differentiator.
- You use the regular investing (Direct Debit) feature to offset dealing fees.
- You value in-depth research, the Wealth Shortlist and portfolio analytics built into the platform.
- You hold a very large SIPP (above ~£60k) where HL’s £200/yr cap makes it competitive with Freetrade’s flat fee.
- You want the cheapest ongoing ISA for a passive ETF strategy — it is now free, at every portfolio size.
- You want a flexible ISA — the ability to withdraw and re-add in the same tax year.
- You make monthly contributions and want zero dealing commissions at all times.
- You want fractional shares to invest smaller amounts regularly.
- A clean mobile-first interface matters more than research depth.
- You don’t need actively managed funds or a Lifetime ISA.
Some investors run their ISA on Freetrade (free, flexible, zero dealing fee for ETFs) and their SIPP or fund holdings on HL (fund access, research, Active Savings). There is no rule against using both, and the cost split can work well once you’ve sized up the numbers for your specific balances.
The trade-off is managing two platforms. If simplicity matters more than marginal cost optimisation, pick the one that best fits your primary account type — usually the ISA — and stick with it.
Ready to open an account?
Both platforms have no transfer-in fee and you can move later. Compare fees against your specific portfolio size before committing — the right answer is different for ETF-only investors versus fund investors.
Go deeper
Frequently asked questions
Is Hargreaves Lansdown better than Freetrade?
It depends on what you need. Freetrade now offers a free ISA with no platform fee, making it cheaper on ongoing account costs for ETF and share investors at virtually every portfolio size. HL’s strength is its fund supermarket (2,500+ OEICs), Active Savings cash product, full range of ISA types including LISA and Junior ISA, and in-depth research tools. If you want more than ETFs and shares, HL wins on range. If you want the lowest ongoing cost for a passive strategy, Freetrade wins.
Does Freetrade charge a platform fee?
No. Freetrade does not charge a percentage-based platform or custody fee. Since 2025, the Stocks and Shares ISA is included in the free Basic plan with no monthly charge. A SIPP requires the Plus plan at £11.99 per month, but that flat fee does not scale with portfolio value. There are no ongoing custody or holding charges on any tier.
What are Hargreaves Lansdown’s fees after the March 2026 changes?
From 1 March 2026, HL reduced its annual platform fee from 0.45% to 0.35%. For shares, ETFs, investment trusts and bonds held in an ISA or SIPP, the annual fee is capped at £150 per account. Fund holdings are charged at 0.35% with no cap. Fund dealing now costs £1.95 per trade. Share and ETF dealing costs £6.95 per trade, reducing to £3.95 for 20 or more trades placed in the previous month. Regular monthly investing via Direct Debit remains free. FX fees are now tiered: 0.99% on amounts up to £10,000, 0.50% between £10,000 and £25,000, and 0.20% above £25,000.
Which platform offers a flexible ISA?
Freetrade offers a flexible Stocks and Shares ISA. This means you can withdraw money and re-deposit it in the same tax year without it counting against your annual allowance a second time. Hargreaves Lansdown does not offer a flexible ISA — withdrawals permanently reduce your allowance for that tax year. For most buy-and-hold investors who never withdraw, the distinction is academic. For anyone who might need to access their ISA cash temporarily during the year, it matters.
Does Freetrade pay interest on uninvested cash?
Yes. Freetrade pays interest on uninvested cash at a rate that varies by plan tier. Plus plan subscribers earn up to 5% on the first £3,000 of uninvested cash — competitive versus many instant-access savings accounts for that amount. Basic and Standard plan holders earn at lower rates. This is different from HL’s Active Savings product, which routes cash into separate accounts at partner banks with FSCS protection per bank.
Can I hold an ISA and SIPP on both platforms?
Yes. Both platforms offer a Stocks and Shares ISA and a SIPP. On HL, both are available with the standard platform fee and no additional wrapper charge — though there is a £100 minimum to open an ISA or SIPP (or £25/month regular investing). On Freetrade, the ISA is free on the Basic plan with no minimum. The SIPP is available via the Plus plan at £11.99 per month with no additional percentage fee on top.
Which is better for passive ETF investing — HL or Freetrade?
For a simple ETF strategy with monthly contributions, Freetrade is cheaper at virtually every portfolio size now that its ISA is free. There are no dealing commissions and no platform fee — the total ongoing cost for a passive ETF ISA is £0. HL is only competitive here if you exclusively use its free Direct Debit regular investing (no dealing fee), accept the 0.35% platform fee capped at £150/yr, and value the wider fund access and research tools. The cost advantage for ETF-only investors clearly sits with Freetrade in 2026.
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 reflect publicly available information as of April 2026 and may change — always verify current pricing on each broker’s official website before opening or funding 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.