Hargreaves Lansdown founder and executive director Peter Hargreaves has conceded the firm’s stockbroking charges are not competitive and says the firm is lowering its prices in a bid to build market share.
Hargreaves says the firm should be doing better with the client bank it has. He says: “In many areas of Hargreaves Lansdown, you would struggle to find a better deal than the one you get with us but in stockbroking, while we believe we are market-leading in terms of service, we certainly are not the cheapest.”
HL announced a stockbroking dealing income of £11.9m in its half-year results last week.
Hargreaves says the firm is some way behind TD Waterhouse and Barclays, who he acknowledges are the leading players in the market.
He says: “There are three or four firms about our size and we would like to break out of that pack. It is a huge ask to compete with the big two because they are massive entities in the stockbroking space and have grown through acquisition. We will not go down that route but we feel we should be making greater strides.”
Skerritt Consultants head of investments Andrew Merricks says: “If Hargreaves wants to remain competitive, then it is a necessary move but it will be difficult going head to head with the bigger companies.”