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HSBC InvestDirect investment platform review

We analyse the charges levied by HSBC InvestDirect and discover whether the investment platform provides good value for investors

In this article
What is HSBC InvestDirect? Is HSBC InvestDirect any good? What do customers say about HSBC InvestDirect? What are HSBC InvestDirect's charges?
Who is HSBC InvestDirect good for? Who is HSBC InvestDirect expensive for? What accounts and services does HSBC InvestDirect offer? Is your money safe with HSBC InvestDirect?

What is HSBC InvestDirect?

HSBC presents DIY investors with a slightly disjointed investment platform, with fund investing available through its Global Investment Centre brand and a wider range of stocks, trusts, gilts and funds under its InvestDirect banner.

This article will focus mainly on the InvestDirect service. You'll need to be an HSBC current account customer and registered for online banking to get started.

Is HSBC InvestDirect any good?

Members can log in to see our review of HSBC. If you're not already a member, join Which? and get full access to these results and all our reviews.

 

How we rate investment platforms

 

Our rating for customer satisfaction is based on feedback from customers.

We ask investors to rate their current platform for the quality of its online tools and smartphone app, customer service, and information on investment opportunities and performance. We also ask whether it meets their needs, represents value for money and whether they'd recommend it to someone else.

How do we pick Which? Recommended Providers?

A platform must allow investors to pick their own investments from an extensive list.

It must get a customer score of at least 70%, and mustn't get any ratings below three stars on any of the underlying criteria, such as customer service, investment information or the quality of its online tools.

It also mustn't be in the top four platforms for charges, based on our fee analysis.

What do customers say about HSBC InvestDirect?

We’ve heard from investors who use HSBC InvestDirect and this is what some of them had to say:

  • 'Consistent, reliable, good, albeit expensive service over many years since 1972.'
  • 'Have been running my own portfolio through HSBC for over 20 years. Have been happy with the service and occasional advice. I am a knowledgeable investor.'
  • 'High (although not unusually so) fees. Feeling that I am just a small, relatively unimportant investor.'

Read our guide on the best and worst investment platforms to see how HSBC compares with AJ Bell Youinvest, Hargreaves Lansdown and other investment platforms.

What are HSBC InvestDirect's charges?

Annual charges

  • £42 (£10.50 quarterly account fee)

Trading charges

  • £10.50 to trade UK shares and investment trusts online, falling to £7.95 for frequent traders
  • £39.95 for gilts
  • €29.95 for shares denominated in euros
  • $29.95 for US shares
  • £15 per line of stock to transfer out

How much will I pay to invest with HSBC InvestDirect?

We’ve estimated the cost of investing with HSBC InvestDirect over the course of a year, in a stocks and shares Isa.

Costs will vary depending on how much you invest, and whether you trade funds or shares. All assume you make four purchases and four sales each year, spread out over different months.

Amount invested Annual cost
£5,000 Logged out detail
£10,000 Logged out detail
£25,000 Logged out detail
£50,000 Logged out detail
£100,000 Logged out detail
£250,000 Logged out detail
£500,000 Logged out detail
£1m Logged out detail

Source: Analysis by Which? Money correct as of April 2022

Read our comparison of investment platform charges to see how much investing with HSBC costs for a range of portfolios.

If you're thinking of using HSBC to take an income from your pension in a drawdown plan, read our comparison of pension drawdown charges

Who is HSBC InvestDirect good for?

With its fixed fee, HSBC will be more suitable for investors with medium to large portfolios (more than £50,000), who trade infrequently.

It's also relatively cheap for share trading, especially for larger portfolios. 

However, given HSBC's poor customer scores and limited choice of investments, such investors might be better off looking at fixed-fee brokers Halifax Share Dealing and Interactive Investor.

Who is HSBC InvestDirect expensive for?

Investors with small to medium portfolios who trade frequently will lose out as a result of HSBC's fixed-fee structure.

Such investors should consider AJ Bell Youinvest and Vanguard.

What accounts and services does HSBC InvestDirect offer?

The information below gives an at-a-glance view of the key things that HSBC InvestDirect's accounts and services offer. 

  • Advisory Services - allow you to access professional investment advice. 
  • General investment account - can hold different types of investments but doesn't give tax-free benefits like pensions and Isas. 
  • Sipp - a pension where you have complete control over the investments you put your savings into.
  • Stocks and shares Isa - a tax-free account that allows you to put your money in a range of investments
  • Savings accounts - offers a range of savings accounts and cash Isas.
  • Banking services - allow you to operate bank accounts, make transfers and make payments.

What can you invest in?

  • More than 450 funds as well as shares, trusts, bonds and exchange-traded funds (ETFs)

What tools and research does HSBC offer?

  • Investments search tool 
  • Investment calculator to see how the value of the investment could change over time depending on market performance  
  • Online investment advice for a 0.5% fee with HSBC My Investment 
  • HSBC Financial Advice available to those with a pot of £100,000 or more

Is your money safe with HSBC InvestDirect?

If HSBC went out of business, you would be compensated by the Financial Services Compensation Scheme (FSCS).

The FSCS will cover up to £85,000 of investments per person, per platform. You can claim for free online: there’s no reason to use a claims management company.

You won’t be compensated for investments falling in value, or a company in which you hold shares goes bust, unless this poor performance resulted from bad advice given by a regulated Independent Financial Advisor that has since gone bust. 

 

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