Comparison · Investment Platforms · UK
8 minute read · Updated February 2026
Vanguard and Hargreaves Lansdown are two of the UK's most popular investment platforms — but they serve very different types of investor. Vanguard offers rock-bottom fees and simplicity. HL offers the widest investment choice and the most comprehensive tools. Here is an honest comparison to help you decide.
| Vanguard | Hargreaves Lansdown | |
|---|---|---|
| Annual platform fee | 0.15% (max £375/yr) | 0.45% (max £45/yr shares; £200/yr pension) |
| Investment choice | ~80 Vanguard funds only | 2,500+ funds, shares, ETFs, trusts |
| Minimum investment | £500 or £100/mo | £1 / £25/mo |
| Products | ISA, SIPP, General Account | ISA, SIPP, LISA, Junior ISA, General |
| LISA available? | No | Yes |
| App quality | Good — clean, simple | Excellent — comprehensive |
| Research tools | Basic | Extensive fund factsheets and analyst ratings |
On a £100,000 portfolio Vanguard charges £150/year. HL charges £450/year. That £300 annual difference, compounded over 20 years at 7% growth, amounts to approximately £12,000 less in your pot with HL — purely from fees, assuming identical underlying performance. For most long-term investors this is meaningful.
However, HL caps fees on shares at £45/year on a share ISA. For large share portfolios above around £100,000 held in individual shares or ETFs, HL can actually be cheaper than Vanguard. This only applies to share/ETF holdings, not funds.
For investors following a simple index strategy — putting everything into one global tracker — Vanguard's range is more than sufficient. The Vanguard FTSE Global All Cap or LifeStrategy funds are among the most respected index funds available anywhere. But if you want third-party funds, investment trusts, individual shares, or access to a LISA — HL's breadth wins decisively.
| If you want… | Choose | Open account |
|---|---|---|
| Lowest fees, index funds only | Vanguard | Open with Vanguard → |
| Maximum choice, LISA, all products | Hargreaves Lansdown | Open with HL → |
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These two platforms serve meaningfully different investors. Vanguard is built for people who want to invest in index funds at the lowest possible cost and do very little else. Hargreaves Lansdown is built for people who want the widest possible choice — thousands of funds, shares, investment trusts — with premium research tools and customer service to match.
Choosing between them comes down to one question: do you need anything beyond a low-cost global index fund? If the answer is no, Vanguard will save you meaningful money over 20 years. If the answer is yes — you want to hold individual shares, use investment trusts, access specialist funds, or consolidate pensions from multiple providers — Hargreaves Lansdown is the more practical choice despite the higher cost.
The fee gap between Vanguard and HL is significant but not always what it first appears. Here is how costs compare at different portfolio sizes, assuming a fund-only portfolio:
| Portfolio size | Vanguard annual cost (0.15%) | HL annual cost (0.45%) | Annual saving with Vanguard |
|---|---|---|---|
| £10,000 | £15 | £45 | £30 |
| £50,000 | £75 | £225 | £150 |
| £100,000 | £150 | £450 | £300 |
| £250,000 | £375 (capped) | £1,125 | £750 |
| £500,000 | £375 (capped) | £2,250 | £1,875 |
At larger portfolio sizes, Vanguard's fee cap of £375 per year becomes a significant advantage. A £500,000 fund portfolio costs £375 at Vanguard and £2,250 at HL — nearly £1,900 per year. Over 10 years that is £19,000 plus the compounding growth that money would have generated.
However, HL does cap fees for share portfolios at £45 per year — making it very competitive if you hold individual shares rather than funds.
Vanguard on its direct platform only offers its own funds — around 80 options including LifeStrategy funds, index trackers, and target retirement funds. For most long-term investors this is entirely sufficient. The FTSE Global All Cap Index Fund, the LifeStrategy 80% Equity Fund, and a handful of bond trackers cover every major asset class most people need.
Hargreaves Lansdown offers over 4,000 funds from hundreds of fund managers, plus investment trusts, UK and international shares, ETFs, and bonds. If you want to invest in a specific country, sector, or active fund manager, HL almost certainly has it. If you want the simplicity of a single global index fund, that choice is available too — you are just paying more for the broader menu.
For a Stocks and Shares ISA with a simple index fund strategy — Vanguard wins on cost. For an ISA where you want to hold a mix of funds, shares, and investment trusts — HL's breadth justifies the higher fee.
One practical consideration: you can hold a Vanguard ISA for your long-term index fund investments and use HL (or AJ Bell) for more selective share or fund investments — splitting between platforms is perfectly legal and sometimes the sensible approach for larger portfolios.
Both offer excellent SIPPs. For a straightforward index fund pension accumulation strategy, Vanguard's lower fees will produce a meaningfully larger pot over 20-30 years. For those approaching retirement who want more drawdown flexibility, HL's more sophisticated drawdown tools and broader investment options are worth considering.
HL also makes pension consolidation easier — you can transfer multiple old workplace pensions onto a single platform and invest them in a fund of your choosing. Vanguard's transfer process is functional but the range limitation means it suits index investors specifically.
Choose Vanguard for the simplest, lowest-cost index fund strategy with no LISA needed. Choose HL for maximum choice, research tools, LISA access, or the peace of mind of the UK's most established retail investment platform.
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