Are you confused about whether to choose Interactive Brokers (IBKR) vs Hargreaves Lansdown as a broker for your investing needs?
In this side-by-side comparison, we analyse Interactive Brokers (IBKR) vs Hargreaves Lansdown to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
Interactive Brokers vs Hargreaves Lansdown: In a Nutshell
Every investor (best overall)
Interactive Brokers is a global online broker and publicly listed company which surpassed major financial crises, showing resilience and a rigorous risk management process.
It offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs.
Reliability and security (UK investors only)
Hargreaves Lansdown is one of the biggest UK platforms for individual investors. It serves more than 1.5 million clients with over £120 billion AUMs.
You will find the most relevant financial instruments (Stocks, ETF, funds,…). It’s a bit pricey, but it makes up for it by being one of the most reliable brokers.
It is well-established, secure and regulated by the FCA. The customer service is market-leading, and their educational resources are superb.
Pros and Cons
Interactive Brokers
Pros
- Low commissions on US stock trading (for EUR based accounts)
- No monthly inactivity fee
- The broadest product and markets range in the brokerage industry
- Demo account
- Excellent reputation (founded in 1978)
- Extensive research and Education tools
- Has a modern mobile trading app to trade Stocks, Options and ETFs, ideal for novice investors, IBKR GlobalTrader.
Cons
- Complicated and lengthy account opening process (but fully online)
- Steeper learning curve for beginners
- Website is difficult to navigate
- Interactive Advisors (Robo-advisor feature) is only available for US customers
Hargreaves Lansdown
Pros
- Excellent research and educational tools
- Great customer service
- No inactivity fee
- No withdrawal fee
- No minimum deposit
- High reliability and security
- Listed in the FTSE 100 index
- Has ISA, SIPP, and other products and services catered to british investors
Cons
- High trading commissions (UK and overseas shares, investment trusts, ETFs, gilts and bonds)
- Annual account charges for funds (up to 0.45%)
- No demo account
- Only one base currency: GBP
- High currency conversion fee (up to 1%)
Interactive Brokers vs Hargreaves Lansdown: Side-by-side Comparison
- General Information
- Founded in
- Demo Account
- Account Minimum
- Interest on unninvested cash (annually)
- Products
- Stocks
- ETFs
- Bonds
- Funds
- Options
- Futures
- CFDs
- Leverage Products
- Forex
- Cryptocurrencies
- Commodities
- Fees
- US stocks
- EU stocks
- ETFs
- Cryptocurrencies
- Custody Fee
- Inactivity Fee
- Withdrawal Fee
- Connectivity Fee
- Currency Conversion Fee
- Security
- Regulators
- Investor Compensation Scheme(per person, per institution)
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
