Savings & Investing
Vanguard vs Hargreaves Lansdown — Which Platform Is Best?
Detailed comparison of Vanguard UK and Hargreaves Lansdown. We compare fees, fund range, ISAs, SIPPs, and help you decide which platform suits your investing style.
Vanguard and Hargreaves Lansdown represent two different philosophies. Here’s how to choose between them.
Quick Verdict
| Category |
Winner |
| Lowest cost (funds) |
Vanguard |
| Lowest cost (shares) |
Hargreaves Lansdown (cap) |
| Investment choice |
Hargreaves Lansdown |
| Research tools |
Hargreaves Lansdown |
| Index investing |
Vanguard |
| Customer service |
Hargreaves Lansdown |
| Simplicity |
Vanguard |
| SIPP |
Depends on size |
| Aspect |
Vanguard |
Hargreaves Lansdown |
| Focus |
Low-cost index investing |
Full-service platform |
| Range |
Vanguard funds only |
Everything available |
| Approach |
Passive investing |
All investing styles |
| Complexity |
Simple |
Comprehensive |
| Target user |
Set-and-forget investors |
Active investors, researchers |
Fee Comparison
| Tier |
Vanguard |
Hargreaves Lansdown |
| Annual platform fee |
0.15% |
0.45% |
| Fee cap |
£375 |
£45 (shares/ETFs) |
|
|
£200 (SIPP) |
Fee Calculation Examples
| Portfolio |
Type |
Vanguard Cost |
HL Cost |
| £10,000 |
Funds |
£15 |
£45 |
| £50,000 |
Funds |
£75 |
£225 |
| £100,000 |
Funds |
£150 |
£450 |
| £250,000 |
Funds |
£375 (cap) |
£875 |
| £10,000 |
Shares/ETFs |
£15 |
£45 (cap) |
| £100,000 |
Shares/ETFs |
£150 |
£45 (cap) |
| £300,000 |
Shares/ETFs |
£375 (cap) |
£45 (cap) |
Key insight: For funds, Vanguard is cheaper. For share portfolios over ~£30k, HL’s £45 cap becomes attractive.
Dealing Fees
| Transaction |
Vanguard |
HL |
| Buy Vanguard funds |
Free |
Free |
| Buy other funds |
N/A |
Free |
| Buy shares |
N/A |
£11.95 |
| Buy ETFs |
Free (Vanguard) |
£11.95 |
SIPP Fees
| Portfolio |
Vanguard |
HL |
| £50,000 |
£75 |
£200 (cap) |
| £100,000 |
£150 |
£200 (cap) |
| £200,000 |
£300 |
£200 (cap) |
| £300,000 |
£375 (cap) |
£200 (cap) |
For larger SIPPs (£134k+), HL can be cheaper due to the £200 cap.
Investment Range
| Category |
Vanguard |
HL |
| Vanguard funds |
~80 |
~80 |
| Other funds |
❌ |
3,000+ |
| UK shares |
❌ |
3,000+ |
| International shares |
❌ |
7,000+ |
| ETFs |
Vanguard only |
2,000+ |
| Investment trusts |
❌ |
400+ |
| Bonds |
❌ |
✅ |
Winner: Hargreaves Lansdown — if you want anything beyond Vanguard funds.
| Feature |
Vanguard |
HL |
| Fund research |
Basic |
Excellent |
| Share research |
N/A |
Comprehensive |
| Analyst ratings |
❌ |
✅ |
| Company reports |
❌ |
✅ |
| Charting |
Basic |
Advanced |
| Screeners |
❌ |
✅ |
| News |
Limited |
Extensive |
| Wealth Shortlist |
N/A |
✅ (curated picks) |
Winner: Hargreaves Lansdown — no contest for research.
| Aspect |
Vanguard |
HL |
| Mobile app |
Basic |
Good |
| Website |
Functional |
Comprehensive |
| Ease of use |
Simple |
Complex |
| Features |
Limited |
Many |
| Reliability |
Good |
Excellent |
Vanguard is simpler; HL has more features but can overwhelm.
Customer Service
| Channel |
Vanguard |
HL |
| Phone support |
✅ |
✅ (UK-based, excellent) |
| Email |
✅ |
✅ |
| Chat |
Limited |
✅ |
| Quality |
Good |
Excellent |
Winner: Hargreaves Lansdown — renowned for customer service.
Account Types
| Account |
Vanguard |
HL |
| Stocks & Shares ISA |
✅ |
✅ |
| SIPP |
✅ |
✅ |
| Junior ISA |
✅ |
✅ |
| Lifetime ISA |
❌ |
✅ |
| General account |
✅ |
✅ |
HL has Lifetime ISA; Vanguard doesn’t.
Who Should Choose Which?
Choose Vanguard If:
| Profile |
Why |
| Passive index investor |
Built for this |
| Want lowest costs |
Cheapest for funds |
| “Set and forget” |
LifeStrategy is perfect |
| New to investing |
Simple, hard to go wrong |
| Only want Vanguard funds |
Why pay more elsewhere? |
| Under £250k portfolio |
Fees are lower |
Choose Hargreaves Lansdown If:
| Profile |
Why |
| Want individual shares |
Vanguard doesn’t offer |
| Active fund selector |
Wide choice, good research |
| Value research tools |
Best available |
| Want one platform for everything |
Widest range |
| Large share portfolio |
£45 cap is excellent |
| Want flexibility |
Can hold anything |
| Need Lifetime ISA |
Vanguard doesn’t have one |
Common Strategies
Just Starting Out (Under £10k)
| Platform |
Cost |
Verdict |
| Vanguard |
£15/year |
Better |
| HL |
£45/year |
Fine but more |
Best choice: Vanguard (simple, cheapest)
Passive Investor (£50k in funds)
| Platform |
Cost |
Verdict |
| Vanguard |
£75/year |
Much better |
| HL |
£225/year |
3x the cost |
Best choice: Vanguard (no contest)
Active Share Investor (£100k in shares)
| Platform |
Cost |
Verdict |
| Vanguard |
N/A |
Can’t invest |
| HL |
£45/year + dealing |
Only option |
Best choice: Hargreaves Lansdown
Mixed Investor (Funds + Shares)
| Strategy |
Approach |
| Option 1 |
HL for everything (convenient) |
| Option 2 |
Vanguard for funds, HL for shares (cheaper) |
| Option 3 |
HL shares account, Vanguard SIPP |
Many investors use both platforms.
A common approach:
| Account |
Platform |
Why |
| SIPP (passive) |
Vanguard |
Lowest cost for pension |
| ISA (active) |
HL |
Shares + wider choice |
| ISA (passive) |
Vanguard |
Low-cost index ISA |
You can only contribute to one Stocks & Shares ISA per year, but can hold multiple.
Vanguard to HL
| Transfer Type |
Process |
| In-specie (Vanguard funds) |
Transfer holdings directly |
| Cash transfer |
Sell, transfer cash |
| Time |
2-8 weeks typically |
HL to Vanguard
| Transfer Type |
Process |
| In-specie (Vanguard holdings) |
Can transfer directly |
| Non-Vanguard holdings |
Must sell first |
| Cash transfer |
Sell everything, transfer |
The Bottom Line
| Investor Type |
Recommendation |
| Passive/index investor |
Vanguard |
| Stock picker |
Hargreaves Lansdown |
| Research-focused |
Hargreaves Lansdown |
| Cost-minimiser (funds) |
Vanguard |
| Large share portfolio |
Hargreaves Lansdown |
| Want one platform |
Hargreaves Lansdown |
| Maximum simplicity |
Vanguard |
| Want choice |
Hargreaves Lansdown |
Summary:
- Vanguard for cheap, simple passive investing
- HL for choice, research, and shares
- Many investors use both