Are big investment platforms making fools of small investors?

About this ThinkIn

The investment platform Hargreaves Lansdown is a financial giant, FTSE 100-listed and valued at more than £7bn. The personal wealth of one of its founders alone, Peter Hargreaves, is estimated at over £4bn. Hargreaves Lansdown’s business model is controversial. It rose to prominence through its association with so-called ‘star traders’ – fund managers like Neil Woodford who fell from grace last year, and took a big chunk of the savings of thousands of ordinary investors down with him. The evidence suggests that active funds, like Woodford’s, are poor value for consumers. Tracker funds, which automatically track movements on stock exchanges or other markets, are cheaper and better. How do we make sure small investors aren’t losing much of their savings to huge platforms like Hargreaves Lansdown?


Ceri Thomas
Editor, Tortoise