In the back
has negotiated extra discounts from
some fund managers – which it passes
on to customers.
It has an excellent website and high-
quality research, tools and data.
As a company, it is also now
bigger than British Airways parent
IAG, Standard Life Aberdeen and
Whitbread, so it ticks the box as a safe
haven for your life savings.
Many will argue that these aspects of
the Hargreaves package are worth the
fees and they may have a point.
But I return to the fact that if you
compare Hargreaves and Interactive
Investor on platform fees there are big
differences that dwarf some of the ad
hoc charges that have been abolished.
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If you think the service, discounts
and financial strength of Hargreaves
are worth £1,000 each year, I respect
your decision. To some people it
makes sense and we are talking about
value here, not just cost. A Ferrari
costs a lot more than a Hyundai.
Prison gates
Competitors of Hargreaves will claim
they too offer a great service and have
every ounce of the financial strength/
protection that Hargreaves offers.
For all Hargreaves clients, the prison
gates are now unlocked, and you can
leave free of charge. So, should you?
On a purely commercial basis, if your
portfolio is worth six figures, then you
are paying a lot more than you would
for a similar competitor.
For early stage and smaller investors, Hargreaves
makes a lot of sense, but for those who are more
experienced, it may be time to look for an alternative
home for your money
If you value the additional quality,
service, comfort and discounts that
Hargreaves offers and are prepared to
pay its premium, then stay.
Just remember compounding works
in reverse as well and the money you
pay in charges will not grow like the
rest of your investments.
For early stage and smaller investors,
Hargreaves makes a lot of sense, but
for those who are more experienced,
it may be time to look for an
alternative home for your
money.
Walking away is easy
Finally, the process of transferring
your investments between platforms
has become a lot quicker, with most
providers now subscribed to fully
electronic technology.
This means your holdings should
be transferred to a new provider in a
few days rather than the weeks and
months it took a few years ago.
Many platforms also offer cash-back
offers to attract business, sometimes
thousands of pounds, so it is
worth shopping around.
trustnet.com