Interactive Brokers vs Hargreaves Lansdown
Interactive Brokers vs Hargreaves Lansdown: which is the better broker for global investors?
Same portfolio at both providers: USD 50,000 to start, USD 500 a month, 5% a year, held for 30 years. Interactive Brokers costs USD 614 in total fees. Hargreaves Lansdown costs USD 22,000, which is USD 21,386 more, roughly 36 times as much.
Referral link: ibkr.com/referral/marco1592. The bonus is paid by Interactive Brokers. Using it costs you nothing extra.
Cost comparison, side by side
| What you pay for | Interactive Brokers | Hargreaves Lansdown |
|---|---|---|
| Total fees over 30 years | USD 614 | USD 22,000 |
| Custody / platform fee | None on a standard account | 0.45% a year platform fee on funds, capped on shares and ETFs |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | Around GBP 5 to GBP 12 per order depending on activity |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | 1% on the first tranche of every conversion, tapering on large amounts |
| Other charges | No inactivity fee, no withdrawal fee for the first withdrawal each month | Higher fees on in-house managed portfolios |
Figures are indicative, based on published tariffs for the portfolio described above and converted to US dollars. Pricing differs by country of residence and changes often, so check both providers before you decide.
Where Hargreaves Lansdown is genuinely good
- Deep research, strong service and a long track record
- Tax-wrapper administration handled for you
- Phone support from people who answer
Where it costs you
- The platform fee alone can exceed a decade of IBKR costs
- 1% FX makes any non-domestic holding expensive
- In-house funds carry their own layer of charges
My take
A comfortable, well-run platform that charges comfortably for it. On a growing portfolio the percentage fee is the part that hurts.
Both accounts are legitimate and both are regulated. The question is what you are paying for. If you want a hand-held experience in your own language and time zone, Hargreaves Lansdown does that. If you want to keep as much of your return as possible, Interactive Brokers is the cheaper account and the extra paperwork takes about half an hour a year.