Is Vanguard cheaper than Hargreaves Lansdown?

Usually, yes — for passive/index investing Vanguard is significantly cheaper. Vanguard charges 0.15% with a £375 cap, while HL charges 0.45%. However, for portfolios mostly in shares/ETFs, HL's £45 cap can be competitive. Compare based on what you'll actually invest in.

Can I buy individual stocks on Vanguard?

No — Vanguard UK only sells Vanguard funds and ETFs. If you want individual company shares, you need Hargreaves Lansdown or another broker. This is Vanguard's biggest limitation.

Should I use Vanguard or Hargreaves Lansdown for my pension?

For low-cost index fund investing in a SIPP, Vanguard is cheaper. For a wider choice of investments, research tools, and flexibility, HL is better. If you just want Vanguard funds in your pension, use Vanguard directly.

Can I transfer from Hargreaves Lansdown to Vanguard?

Yes — if your HL holdings are Vanguard funds/ETFs, you can transfer in-specie (keeping investments). If you hold other investments, you'd need to sell them first or keep them at HL. Both ISA and SIPP transfers are possible.

Vanguard vs Hargreaves Lansdown — Which Platform Is Best? | PocketWise

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

Platform Philosophy

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

Platform Fees

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.

Research & Tools

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.

App & Platform

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)

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.

Using 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.

Transfer Between Platforms

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