Lightyear Investing Review: A Comprehensive Analysis of the Investment Platform
Lightyear is a new and low-cost investing and trading app that allows users to buy and sell stocks and ETFs from the UK, US, Europe, and even a few Chinese companies. The app is highly rated and available on both Apple and Android devices. One of the standout features of the app is that users can store multiple currencies, which could help them avoid currency conversion fees altogether.
However, it’s worth noting that there’s no Stocks & Shares ISA available on Lightyear, which means users may have to pay tax on their profits. For those looking to invest within an ISA, Trading 212 is a commission-free alternative with a wide range of investments.
In this article, we’ll take a closer look at Lightyear and answer some key questions, such as whether it’s a good option for beginners, the range of investments available, account options, fees, customer support, safety, and more.
Key Takeaways
- Lightyear is a new and low-cost investing and trading app that allows users to buy and sell stocks and ETFs from the UK, US, Europe, and even a few Chinese companies.
- The app is highly rated and available on both Apple and Android devices, and users can store multiple currencies to help them avoid currency conversion fees.
- However, there’s no Stocks & Shares ISA available on Lightyear, which means users may have to pay tax on their profits. Trading 212 is a commission-free alternative with a wide range of investments.
Is Lightyear good for beginners?
Lightyear is a great platform for beginners who are new to stock trading and want to buy and sell investments themselves. The platform allows users to make their own decisions around which investments they want to make, such as trade stocks and shares, and other investments.
One of the advantages of Lightyear is that you don’t need much cash to get started, and because there’s low fees, in theory, you can grow your money a bit faster than platforms with much higher trading fees like Hargreaves Lansdown. This makes it a great option for beginners who may not have a lot of money to invest initially.
When browsing through companies, Lightyear provides a lot of information about the company or investment, such as the market cap (total value) of a business, the earnings per share (how much it makes in profit for each share), and whether it pays dividends and at what rate (giving profits back to shareholders – the people that own the stocks). There are even analyst ratings – showing whether they think it’s a good buy or not, and the financial performance of the business too (for instance it’s profit per year). You can even see the latest news about the company. This information can be super handy to make better-informed decisions.
Lightyear is not suitable for those who are looking for experts to manage their investments for them, and grow their money over the long term. For this, it is recommended to use an expert-managed investment platform, such as Moneyfarm, who will handle everything and you simply add your cash.
In conclusion, Lightyear is a great platform for beginners who are new to stock trading and want to buy and sell investments themselves. It is a low-cost platform that provides a lot of information to help users make better-informed decisions. However, it may not be suitable for those who are looking for experts to manage their investments for them.
Range of investments
Stocks and shares
Investing in stocks and shares means owning a portion of a company, known as a ‘share’, which is traded on various stock exchanges worldwide. Lightyear offers a wide selection of over 2,000 US stocks, including popular companies such as Tesla, Apple, Google, Alibaba, and more. Additionally, there is a diverse range of the most successful UK, European, and Chinese companies available for investment.
For investors interested in UK companies, Lightyear provides access to over 200 UK stocks, with new additions regularly incorporated. It is important to note that while larger UK companies are typically available, there may be limitations for smaller companies listed on the Alternative Investment Market (AIM).
Lightyear also allows the trading of fractional shares for US stocks, enabling investors to purchase smaller portions of high-value shares. This feature is beneficial for those looking to invest in a range of shares without a substantial account balance. However, it is essential to consider that fractional shares are bought at the current market price, precluding the use of limit orders.
ETFs (exchange-traded funds)
Lightyear offers a diverse selection of over 200 ETFs, which are pooled investments comprising various assets such as stocks and shares. These ETFs cover a wide range of options, including index funds tracking top companies in the UK and the US, as well as funds focused on dividends and property, among others. This variety allows investors to build well-diversified portfolios for long-term investment.
Notably, Lightyear does not impose fees when purchasing ETFs, providing a cost-effective investment option. However, it is important to be aware that fees are applicable within the ETF itself, irrespective of the investment platform used for ETF purchases.
Multi-Currency Accounts
Lightyear allows users to trade in multiple currencies and buy stocks and shares from across the world. Users can also store multiple currencies within their accounts, including Pounds (GBP), Dollars (USD), and Euros (EUR). Hungarian Forint (HUF) is also available for Hungarian customers. Additionally, users can deposit and store foreign money in their accounts, which can help save on currency conversion fees. Lightyear’s multi-currency account feature offers flexibility and convenience for investors looking to diversify their portfolio across different currencies.
Account Options
General Investment Account (GIA)
Lightyear offers a General Investment Account (GIA), which is a no-frills account that allows you to buy individual shares. It is the only account that you can open with Lightyear. The account is not tax-free, and you will only pay tax if you earn a fair amount of profit per year (£6,000) and only if you sell your investments. You can have as many GIAs as you like on different investment platforms. You can also pay into one Stocks and Shares ISA, and if you have to pay Capital Gains Tax, you’ll pay 10% if you earn less than £50,270 per year, and 20% if you earn more.
Stocks & Shares ISA
Lightyear does not offer a Stocks and Shares ISA. A Stocks and Shares ISA allows you to invest completely tax-free, and you won’t pay any tax on your investments ever. You have an ISA allowance of up to £20,000 per year to invest, and you can only pay into one per tax year. If you’re new to investing, it is recommended to let the experts manage your ISA and build it up to a nice big pot over time. Then, you can make your own investments within a General Investment Account (GIA). If you only want to invest within a Stocks and Shares ISA, check out the best investment platforms for all your options.
Pension
Unfortunately, Lightyear does not offer a self-invested personal pension (SIPP), which has some great tax benefits for saving for the future. If you’re keen to invest within a pension, check out the best pension providers. PensionBee is an easy-to-use platform with a great record and low fees.
Crypto
Lightyear does not allow for trading crypto. If you want to trade crypto, check out the best crypto exchanges or eToro, which is easy to use.
CFDs
Lightyear does not allow for trading Contract For Differences (CFDs), which is trading the price of the stock rather than buying it directly. These are for advanced traders. If you are interested, check out the best CFD trading platforms to learn more.
Interest on Uninvested Cash
Lightyear offers a great feature where users can earn interest on their uninvested cash balance. This means that even if the money is not invested, it’s still growing in the user’s account. The interest rates are currently high, with 4.25% per year for both pounds and US dollars, and 2.75% per year for euros. These rates are subject to change, so it is important to double-check on the Lightyear app. The interest rates offered by Lightyear are attractive and hard to find on the market.
Lightyear fees
Trading fees
Lightyear charges a fixed fee per trade when making investments. The fees are only charged when buying shares, and ETFs are free of Lightyear fees. The fee for US shares is 0.1% (maximum $1), for UK shares it is £1, and for EU shares, it is £1. It is important to note that the fees are charged every time an investment is made, so it is advisable to think carefully before making trades, especially for low amounts.
Currency conversion fee
When making investments not in the local currency or another currency in the account, Lightyear charges a currency conversion fee. This fee is 0.35% and is only charged when there is a need to convert currencies. For instance, when buying foreign stocks like US stocks or European stocks, one would need to convert their currency. If £100 is converted to Dollars, one will pay £0.35 in fees.
Compared to other brokers and investment apps, Lightyear’s currency exchange fees are very cheap. The fee is significantly lower than what other brokers charge.
Fast deposit fees
If an investor wants to add money to their account quickly using a card, they can opt for the “lightning fast” option. However, it comes with a fee of 0.5%. The first £500 is free, but any amount above that will attract the fee.
It is important to note that Lightyear is a low-cost investment app, and there are no fees charged for opening an account or depositing cash, except when depositing by card. Withdrawals are also free, and the only fees charged are related to making investments (trading fees), currency conversion fees, and fast deposit fees.
Customer Support
The customer support at this platform is good overall. They offer a comprehensive help centre on their website and app that covers almost everything related to the user’s account, such as buying and selling investments, dividends, and taxes. If users can’t find what they’re looking for, they can email support and expect a quick response. However, there is no live chat feature available on the app or website, and users can’t speak to anyone over the phone. Traditional stockbrokers are more likely to offer this service.
Is Lightyear Safe?
Lightyear is a UK-based investment platform that is authorized and regulated by the Financial Conduct Authority (FCA), which means it has permission to operate in the UK. Lightyear is an appointed representative of RiskSave Technologies Ltd.
Although Lightyear is not covered by the Financial Services Compensation Scheme (FSCS), which covers your money up to £85,000 if Lightyear were to go out of business, your investments are still protected. This is because they are held separately from Lightyear’s own funds. In case Lightyear were to go out of business, your investments would still be returned to you.
Furthermore, if you hold US stocks, you are protected up to $500,000 by the Securities Investor Protection Corporation. European stocks are protected by the Estonian Investor Protection Sectoral Fund, which provides protection up to 20,000 euros.
Overall, Lightyear is a safe investment platform as it is authorized and regulated by the FCA and your investments are held separately from Lightyear’s own funds. However, it is important to note that it is not covered by the FSCS, which means that your money is not protected if Lightyear were to go out of business.
Lightyear Customer Reviews
Lightyear is highly rated by customers on Trustpilot, with an impressive score of 4.7 out of 5. Customers praise the app’s ease of use, the ability to buy stocks and shares, and the detailed analysis and additional information provided about each stock. Overall, customers seem to love Lightyear for its user-friendly platform and the wealth of information available to help inform their investment decisions.
Pros and Cons of Lightyear
Pros
- Lightyear offers an awesome mobile app and web app to its users.
- Trading fees are low, making it an affordable option for investors.
- Users can enjoy a multi-currency account, which eliminates pricey currency conversion fees.
- Lightyear provides a great interest rate on uninvested cash.
- Overall, the cost is very low, making it an attractive option for those looking to invest.
Cons
- Lightyear is not commission-free, which may be a downside for some investors.
- Although Lightyear offers over 200 UK stocks, it does not offer a huge range of UK stocks.
- Lightyear does not offer a Stocks & Shares ISA or a personal pension.
- There is no live-chat support available, which may be inconvenient for some users.
Our Thoughts
Lightyear is a low-cost investment platform that offers a user-friendly mobile app for both Android and iOS. The platform allows users to invest in a diversified range of stocks and ETFs from across the world. ETFs are completely free of Lightyear fees, and you’ll only pay fees on shares, which are around £1. Currency conversion fees are also low at 0.35%, and you can hold multiple currencies within your account.
Lightyear is an excellent platform for new investors to learn about trading and investing. The platform offers a good amount of analysis for each stock, which helps investors learn as they trade and find new opportunities. The range of investments is good for US stocks, and it does include stocks and ETFs from across the world.
Unfortunately, a Stocks & Shares ISA isn’t available, which is great for tax-free investing. However, a great strategy is to let the experts manage your Stocks and Shares ISA and make your own investments within a regular trading account, such as Lightyear. For expert-managed Stocks and Shares ISAs, check out the best investment platforms.
Lightyear also offers a great saving rate on uninvested cash, which is beneficial when waiting for a good investment opportunity. Overall, Lightyear is an excellent investment platform for retail investors. However, it may not be suitable for investors who want to invest in a wider range of assets.
When it comes to account opening, Lightyear has a minimum deposit of £1. Deposits and withdrawals can be made via bank transfer or debit card. The platform also provides analyst ratings and price targets, which can help investors make informed decisions.
Some Legal Stuff from Lightyear
Before investing with Lightyear, it is important to note that your capital is at risk. Lightyear Financial Ltd is the provider of investment services for the UK, and Lightyear Europe AS serves the EU. It is recommended that you seek qualified advice if necessary and read Lightyear’s terms and conditions at golightyear.com/terms.
It is also important to note that Nuts About Money may receive a referral fee if you open an account and deposit funds through some of the links on their website. Lightyear is regulated by the Financial Conduct Authority (FCA) in the UK, and investor protection is £20k for non-US assets and cash, $500k for US securities.
Frequently Asked Questions
What are the fees associated with using Lightyear for investing?
Lightyear offers a commission-free investment platform, meaning users can buy and sell shares without paying any commission fees. However, users should note that there are other fees associated with using Lightyear, such as the annual account fee of £1.99 and currency conversion fees of 0.5%.
How does Lightyear’s safety and security compare to other investment platforms?
Lightyear is a regulated investment platform and is authorised and regulated by the Financial Conduct Authority (FCA). Additionally, Lightyear uses bank-level security measures to protect user data and transactions. These security measures include two-factor authentication, SSL encryption, and segregated bank accounts.
Can users expect to see profits when investing with Lightyear?
Investing with Lightyear, like any other investment platform, carries a degree of risk. Users should be aware that the value of their investments can go up or down and they may not get back the full amount invested. However, Lightyear provides users with the tools and resources needed to make informed investment decisions, which can increase the likelihood of seeing profits.
What are users saying about Lightyear on Trustpilot?
According to Trustpilot, Lightyear has a rating of 4.5 out of 5 stars based on over 200 reviews. Users have praised Lightyear for its user-friendly platform, low fees, and excellent customer service. However, some users have reported issues with delayed withdrawals and slow customer service response times.
How does Lightyear stand up against competitors like Trading 212?
Lightyear and Trading 212 are both popular investment platforms. While both offer commission-free trading, Lightyear has a wider range of investment options, including access to over 1,500 stocks, ETFs, and investment trusts. Additionally, Lightyear offers a more comprehensive investment platform, with features such as a news feed and investment insights.
