Interactive Investor
vs Hargreaves Lansdown
The decision between these two platforms comes down to one question: does a flat monthly fee beat a percentage custody charge at your portfolio size? Updated for the March 2026 HL fee restructure and ii’s February 2026 plan overhaul.
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TL;DR
- Portfolio is above £20,500 — flat fee beats the percentage
- You invest passively via regular investing at £0/trade
- Building a large ISA or SIPP and want no percentage-based drag
- You want to hold multiple currencies (USD, EUR) in one account
- You’re a limited company director investing business cash
- Portfolio is under £20,500 — the percentage fee is lower in absolute terms
- You want a Lifetime ISA — ii doesn’t offer one
- You value HL’s Wealth Shortlist, research tools, and education
- You’re a beginner who wants a polished, guided platform
- You rely on UK-based phone support
Why the fee model is the decision
Everything else — platform quality, research tools, app UX — is secondary to pricing structure. That structure determines which broker costs you less, and the gap compounds over decades of investing.
You pay £5.99/month on the Core plan regardless of portfolio size. A £20,000 portfolio and a £500,000 portfolio pay the same £71.88/year. The fee becomes proportionally smaller as your portfolio grows — the opposite of what a percentage model does.
You pay 0.35% per year on shares and ETFs, capped at £150/year in an ISA or SIPP. For small portfolios the absolute cost is low, but it scales up with portfolio value until the cap kicks in around £42,857.
Full fee comparison
ii Core plan versus Hargreaves Lansdown standard account. ii also offers Plus (£14.99/month) and Premium (£39.99/month) for higher-frequency traders — Core covers the majority of long-term passive investors.
| Fee | Interactive Investor (Core) | Hargreaves Lansdown |
|---|---|---|
| Platform / custody fee | £5.99/month (£71.88/year flat) | 0.35% p.a. on shares & ETFs |
| ISA ETF custody cap | N/A — flat fee model | £150/year |
| SIPP ETF custody cap | N/A — flat fee model | £150/year |
| Share & ETF dealing | £3.99 (UK & US); £9.99 (international) | £6.95; £3.95 for 20+ trades/month |
| Regular investing | £0 (all plans) | £1.50/trade |
| Fund dealing | £3.99/trade | £1.95/trade (from Mar 2026; was £0) |
| FX markup | ~0.75% (Core — estimate; not officially published) | 0.99% (≤£10k) / 0.50% (£10k–25k) / 0.20% (>£25k) |
| Fractional shares | No | No |
| Free monthly trades | None (Core); 2/month (Premium) | None |
| Minimum deposit | £0 | £1 |
What does each platform actually cost at your portfolio size?
Scenario: passive ETF investor, Stocks & Shares ISA, using regular investing (£0/trade on ii; £1.50/trade on HL). Platform/custody fees only — dealing commissions shown separately below.
| Portfolio size | HL annual cost (ETFs, ISA) | ii Core annual cost | Result |
|---|---|---|---|
| £5,000 | £17.50 | £71.88 | HL saves £54.38 |
| £10,000 | £35.00 | £71.88 | HL saves £36.88 |
| £20,000 | £70.00 | £71.88 | About equal |
| £25,000 | £87.50 | £71.88 | ii saves £15.62 |
| £50,000 | £150.00 ← capped | £71.88 | ii saves £78.12 |
| £100,000 | £150.00 ← capped | £71.88 | ii saves £78.12 |
| £250,000 | £150.00 ← capped | £71.88 | ii saves £78.12 |
If you make 12 manual trades per year (monthly lump sums rather than using regular investing):
- ii Core: 12 × £3.99 = £47.88 dealing + £71.88 platform = £119.76/year total
- HL: 12 × £6.95 = £83.40 dealing + custody fee = varies by portfolio
- At a £25,000 portfolio with 12 trades/year: ii = £119.76; HL = £170.90 — ii saves £51.14/year
- HL’s £3.95 rate (for 20+ trades/month) rarely applies to typical long-term investors
Platform & user experience
Both are full-service UK investment platforms — not neobrokers. Neither will feel like a mobile-first app. The UX difference matters most for investors who engage with their platform frequently.
- Practical interface — not the slickest, but covers everything you need
- Multi-currency accounts: hold USD, EUR, and other currencies alongside GBP without converting at every trade
- ii Community forum for portfolio discussion and investor ideas
- Super 60: rated fund shortlist; ACE 40: sustainable fund list
- Regular investing tool — automate monthly ETF buys at £0
- Mobile app is functional; less refined than HL’s
- Consistently rated as the best retail investing UX in the UK — polished onboarding and navigation
- Wealth Shortlist: curated, in-house researched fund recommendations
- Extensive educational hub: guides, podcasts, webinars, and market commentary
- Portfolio analytics and benchmarking tools built in
- Strong mobile app, regularly updated
- Active Savings: access to competitive cash rates from partner banks
Accounts & investment universe
| Feature | Interactive Investor | Hargreaves Lansdown |
|---|---|---|
| Stocks & Shares ISA | Yes | Yes |
| Junior ISA | Yes | Yes |
| Lifetime ISA (LISA) | No | Yes |
| SIPP | Yes | Yes |
| Junior SIPP | No | Yes |
| General Investment Account | Yes | Yes |
| Company / corporate account | Yes | No |
| Cash savings | Yes (Cash Savings) | Yes (Active Savings) |
| Multi-currency accounts | Yes — hold USD, EUR, others | No — converts at point of trade |
| UK & US stocks | Yes | Yes |
| International stocks | Yes (17+ exchanges) | Yes |
| ETFs | Yes (1,000+) | Yes (2,500+) |
| Investment trusts | Yes | Yes |
| Bonds & gilts | Yes | Yes |
| Fractional shares | No | No |
SIPP comparison
Platform costs in a pension compound over decades. The flat-versus-percentage difference is more significant in a SIPP context than anywhere else.
- The same £5.99/month Core fee covers your ISA, SIPP, and GIA together — no extra wrapper cost
- No custody percentage at any portfolio size — significant for large pension pots
- Regular investing at £0 — well suited to monthly pension contributions
- Pension drawdown supported within the same account; no separate wrapper required
- Wide investment range including investment trusts and bonds
- Custody 0.35% p.a. on shares & ETFs, capped at £150/year
- Junior SIPP available — useful for parents investing for children’s retirement
- Flexible drawdown with strong visualisation tools for retirement income planning
- Regular investing at £1.50/trade (paid monthly)
- HL pension support team consistently rated as the strongest in the UK
Research tools & customer support
For passive ETF investors who rarely interact with their platform, this section matters less. For investors who want fund curation, education, or regular phone contact, it matters a great deal.
- Super 60: ii’s rated fund shortlist for core UK and global funds
- ACE 40: rated sustainable/ESG fund list
- Market news, analyst notes, and company data integrated
- Community forum for portfolio discussion and investor ideas
- Customer support via phone and secure messaging — adequately reviewed, not industry-leading
- FCA regulated; FSCS protected up to £85,000
- Wealth Shortlist: curated, in-house researched fund recommendations
- Extensive educational hub: guides, podcasts, webinars, and market commentary
- Portfolio analytics and X-ray performance benchmarking tools
- UK-based phone support — the strongest reputation in UK retail investing
- Multiple industry awards including Which? Recommended and Boring Money Best Buy
- FCA regulated; FSCS protected up to £85,000
Who should pick which broker
The right answer depends on portfolio size, how you invest, and which features you actually need. Run through this before opening anything.
- A passive ETF investor with a portfolio above £20,500 using regular investing
- Building a large ISA or SIPP and want to avoid percentage drag at scale
- Investing in USD or EUR assets and want to hold currencies without converting on every trade
- A limited company director looking to invest business cash
- Consolidating multiple old pensions in one flat-fee account
- An experienced investor who doesn’t need research curation or support-led investing
- Starting out with a portfolio under £20,500 — the % fee is lower in absolute terms
- Under 40 and want a Lifetime ISA for a first home or retirement boost
- Someone who values Wealth Shortlist curation, research, and education
- A beginner who wants a polished, guided onboarding experience
- Someone who relies on UK phone support and wants the best-regarded customer service
- Looking to use a Junior SIPP for a child
If you invest primarily in active funds rather than ETFs, the March 2026 HL restructuring changed the calculation. HL fund dealing was previously free — it now costs £1.95 per trade. Fund custody on HL also follows a different, higher fee tier than the 0.35% share rate. For monthly fund investors making regular subscriptions, this is a material increase. ii’s £3.99 flat dealing and flat platform fee may be less disruptive than expected for frequent fund buyers. Model your scenario before deciding.
Ready to open your account?
Both platforms are established, FCA-regulated, and FSCS-protected up to £85,000. The right choice is almost entirely a portfolio-size decision. Run your numbers in the cost calculator first.
Go deeper
Frequently asked questions
Is Interactive Investor cheaper than Hargreaves Lansdown?
For portfolios above roughly £20,500, ii’s flat fee (£5.99/month Core = £71.88/year) is cheaper than HL’s 0.35% annual custody charge — assuming you use regular investing at £0 per trade on ii and £1.50 on HL. Below that threshold, HL’s percentage model costs less in absolute terms. HL’s ISA ETF custody caps at £150/year above roughly £42,857, but ii Core still undercuts this at £71.88/year regardless of how large your portfolio grows.
Which is better for a large Stocks and Shares ISA?
Interactive Investor is typically cheaper for large ISAs. HL caps ISA ETF custody at £150/year once your portfolio exceeds roughly £42,857, but ii Core costs £71.88/year regardless of portfolio size. For passive ETF investors using regular investing (£0/trade on ii), ii wins on cost at any portfolio above approximately £20,500. The saving stays fixed at around £78/year once HL’s cap kicks in — not enormous in isolation, but consistent over a 20 or 30-year investment horizon.
Which is better for SIPPs?
Both offer full SIPPs with pension drawdown. For large pension pots, ii’s flat fee structure is significantly cheaper — a £250,000 SIPP on ii Core costs £71.88/year in platform fees, while HL’s SIPP caps at £150/year for shares and ETFs. The gap widens further if you add dealing commissions: £6.95 per trade on HL versus £0 for regular investing on ii Core. HL holds an advantage on Junior SIPP availability (ii doesn’t offer one) and is generally rated higher for retirement support and customer service quality.
Is Hargreaves Lansdown better for beginners?
For most beginners, yes. HL offers a cleaner onboarding experience, an extensive educational hub, curated fund recommendations through the Wealth Shortlist, and the best-regarded customer support in UK retail investing. For investors starting with under £20,500, HL’s percentage-based custody fee is also lower in absolute terms than ii’s £5.99/month flat fee. The calculation shifts once your portfolio grows — but at the start, HL is typically both cheaper and more beginner-friendly.
Do Interactive Investor or Hargreaves Lansdown offer fractional shares?
No. Neither ii nor HL offers fractional shares — both platforms deal in whole shares only. This means you need enough capital to buy at least one full share in any company or ETF. For investors who want fractional investing in individual stocks, neobroker alternatives like InvestEngine (ETFs only, fractional from £1) or Freetrade are worth considering instead.
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. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.