Reduced direct debit and dividend reinvestment charges

It is reported that from April 11, customers who invest regularly in Hargreaves Lansdown through direct debits will no longer have to pay the 1.£50 fee。New fee waivers apply to buying and selling of stocks, investment trusts and ETFs。Regular investments in mutual funds have been exempted from fees.。

Hargreaves Lansdown will also eliminate charges related to the reinvestment of stock dividends, which currently stand at 1.0%, minimum charge is 1.00 pounds, up to 10.00 pounds。

Dividend reinvestment is one of the main drivers of the long-term compounding effect of equity portfolios.。Where appropriate, the strategy can significantly increase returns。

Hargreaves Lansdown's Present and Past

Hargreaves Lansdown has taken a series of measures to make its products more competitive, and the fee reduction is the latest of these measures。The company recently dropped its fees for its Junior ISA and dropped its lifetime ISA fees from zero..45% down to 0.25%。

Interactive Investor launched its investor essence platform in February this year, allowing inventors with £30,000 or more to invest for a fixed monthly fee of just 4.99 pounds。It runs in parallel with Interactive Investor's regular investment account, which charges users 9 per month..£99, most of which is returned through monthly commission-free transactions。

Another major investment platform, AJ Bell, charges 0 per year.25% management fee, but if the funds in the portfolio reach or exceed £250,000, the management fee is reduced to 0.1%。

Hargreaves Lansdown currently charges 0 to fund investors with portfolios up to £250,000.45% management fee, which is reduced to 0 per year if your portfolio in the company reaches or exceeds £1 million..25%。

Increasing competition to lower investment account fees is to be expected, as most platform providers are effectively resellers of other people's products, competing with each other on user experience, customer service, commissions and management fees。

Lowering fees is good for investors and savers, but if there is full competition on fees, there will be few winners。Big brands are keen to increase the value of their assets under management, but in the long run, innovation and differentiation are more productive than sustained cost-cutting.。