Lightyear
Very user-friendly platform for European & UK investors offering global stocks and ETFs at low cost.
Pros and Cons of Lightyear
Pros<ul class="tick"><li>Commission-free ETF trading</li><li>User-friendly mobile app</li><li>High interest with Savings Vaults</li><li>No account, inactivity, or withdrawal fees</li></ul>
Cons<ul class="dismiss"><li>No phone or live chat support</li><li>Only available in EU & UK</li></ul>
Lightyear is a UK-based stockbroker that launched in 2021, focusing on providing a simple and cost-effective investment platform for beginners and intermediate investors. With its user-friendly mobile app and competitive fee structure, Lightyear has quickly gained traction in the European market.
Why Choose Lightyear
Pros<ul class="tick"><li>Low-cost trading platform</li><li>Fractional shares available for US stocks</li><li>Multi-currency accounts</li><li>Transparent fee structure</li></ul>
Cons<ul class="dismiss"><li>No advanced trading tools</li><li>Limited research and analysis features</li><li>No demo account available</li></ul>
Lightyear stands out for its simplicity and affordability. It offers commission-free ETF trading and competitive stock fees and other fees may apply. Lightyear also offers interest rates on uninvested cash and option to earn even higher interest through their Savings Vaults using Money Market Funds (MMF) available in select countries. The platform's multi-currency account feature allows users to hold multiple currencies simultaneously, potentially saving on conversion fees. Lightyear's commitment to transparency in its fee structure is also commendable.
Who Is Lightyear For?
Pros<ul class="tick"><li>Ideal for beginners and intermediate investors</li><li>Suitable for long-term investors</li><li>Good for those interested in US, UK, and EU markets</li></ul>
Cons<ul class="dismiss"><li>Not suitable for advanced traders</li><li>Limited options for diversification</li><li>Not ideal for frequent traders</li></ul>
Lightyear is best suited for beginner to intermediate investors looking for a straightforward, low-cost platform to invest in stocks and ETFs. It's particularly appealing to long-term investors who prioritize low fees and are primarily interested in US, UK, and EU markets. However, advanced traders or those seeking a wider range of investment products may find the platform limiting.
Fees and Commissions
Pros<ul class="tick"><li>No commission on ETFs</li><li>Low stock trading fees</li><li>No account or inactivity fees</li></ul>
Cons<ul class="dismiss"><li>0.35% currency conversion fee</li><li>0.5% fee on card deposits after £500 limit</li></ul>
Lightyear offers a competitive fee structure with commission-free ETF trading and low stock fees (0.10% up to $1, €1 or £1 for UK stocks) €1 for EU stocks*. There are no account opening, inactivity, or withdrawal fees. However, users should be aware of the 0.35% currency conversion fee and the 0.5% fee on card deposits after reaching the £500 limit.
Product Selection and Markets
Pros<ul class="tick"><li>Access to US, UK, and EU stocks</li><li>Commission-free ETFs</li><li>Fractional shares for US stocks</li><li>Money Market Funds available</li></ul>
Cons<ul class="dismiss"><li>Limited to stocks and ETFs only</li><li>No options, futures, or forex trading</li><li>No cryptocurrency offerings</li><li>Limited bond selection</li></ul>
Lightyear's product range is focused primarily on stocks and ETFs from US, UK, and EU markets. The platform offers fractional shares for US stocks, making it easier for investors to diversify with smaller amounts. Recently, Lightyear introduced BlackRock Money Market Funds in USD, GBP, and EUR in select countries. However, the product selection is limited compared to some competitors, with no options for trading derivatives, forex, or cryptocurrencies.
Platform Experience
Pros<ul class="tick"><li>User-friendly mobile app</li><li>Desktop version available</li><li>Clean and intuitive interface</li><li>Easy order placement process</li><li>Social trading features</li></ul>
Cons<ul class="dismiss"><li>Limited charting capabilities</li></ul>
Lightyear's mobile app is offering a clean and intuitive interface that's easy to navigate. Additionally, they also do have a desktop version where you can do all the things you can do on the app. The order placement process is straightforward, and the app includes social trading features allowing users to connect with contacts and view their investments. However, the platform lacks advanced charting capabilities. Overall, it's one of the cleanest and most-user friendly interfaces we have come across all our reviews.
Account Opening
Pros<ul class="tick"><li>Fully digital process</li><li>Quick verification (usually within 1 hour)</li><li>No minimum deposit required</li><li>Available for individual and corporate accounts</li></ul>
Cons<ul class="dismiss"><li>Only available inside EU & UK</li></ul>
The account opening process at Lightyear is fully digital and user-friendly, typically taking about 15 minutes to complete. Verification is usually done within an hour. There's no minimum deposit required to open an account, and both individual and corporate accounts are available.
Deposit and Withdrawal
Pros<ul class="tick"><li>Multiple deposit options available</li><li>No deposit fees for bank transfers</li><li>No withdrawal fees</li><li>Multi-currency accounts</li></ul>
Cons<ul class="dismiss"><li>0.5% fee on card deposits after £500 limit</li><li>Only bank transfers available for withdrawals</li><li>Withdrawal process can take up to 2 business days</li></ul>
Lightyear offers various deposit methods including bank transfers, debit cards, and electronic wallets like Apple Pay and Google Pay. Bank transfers are free, while card and e-wallet deposits are free up to £500, after which a 0.5% fee applies. Withdrawals are free but limited to bank transfers only. The multi-currency account feature allows users to hold EUR, GBP, USD, and HUF (Hungary only), potentially saving on conversion fees.
Portfolio Transfer
Pros<ul class="tick"><li>Offers portfolio transfer-in</li><li>No fees for incoming transfers</li></ul>
Cons<ul class="dismiss"><li>Does not offer transfer-out service</li></ul>
Lightyear allows users to transfer their existing portfolios into their Lightyear account without charging any fees. This can be beneficial for investors looking to consolidate their holdings. However, the platform currently does not offer a transfer-out service, which may be a significant drawback for some users.
Safety and Fund Protection
Pros<ul class="tick"><li>Regulated by EFSA in EU and FCA in UK</li><li>Client funds segregated from company funds</li><li>Investor protection up to €20,000 in EU</li><li>US stocks protected up to $500,000 via SIPC</li></ul>
Cons<ul class="dismiss"><li>Relatively new company with limited track record</li><li>Not publicly listed, less transparency</li><li>Lower investor protection compared to some competitors</li></ul>
Lightyear is regulated by the Estonian Financial Supervision Authority (EFSA) in the EU and is an appointed representative of an FCA-regulated firm in the UK. Client funds are kept separate from company funds, and European investors are protected up to €20,000 by the Estonian Investor Protection Sectoral Fund. US stocks are protected up to $500,000 through SIPC. However, as a relatively new company, Lightyear has a limited track record in weathering market downturns.
Customer Service
Pros<ul class="tick"><li>Comprehensive FAQ section</li><li>Email support available</li><li>In-app help features</li></ul>
Cons<ul class="dismiss"><li>No phone or live chat support</li><li>Limited hours of operation</li><li>Inconsistent response times</li></ul>
Lightyear's customer support is primarily email-based, with no phone or live chat options available. The platform offers a comprehensive FAQ section on its website and in-app help features. However, support hours are limited, and response times can be inconsistent, with some queries taking several days to address. This level of support may be insufficient for users who prefer immediate assistance or have urgent issues.
Reputation and Reviews
Pros<ul class="tick"><li>Generally positive user reviews</li><li>Praised for user-friendly interface</li><li>Appreciated for low fees and transparency</li></ul>
Cons<ul class="dismiss"><li>Limited track record due to recent launch</li><li>Some complaints about limited product range</li><li>Concerns about customer service responsiveness</li></ul>
As a relatively new player in the market, Lightyear has a limited track record. However, user reviews are generally positive, with many praising the platform's user-friendly interface and low fees. The company's commitment to transparency is often highlighted as a strong point. Some users have expressed dissatisfaction with the limited product range and customer service responsiveness. It's important to note that the company's reputation is still developing as it grows its user base.
Learning Resources
Pros<ul class="tick"><li>Basic educational content available</li><li>In-app market news and company information</li><li>Clear explanations of platform features</li></ul>
Cons<ul class="dismiss"><li>Limited advanced educational materials</li><li>No webinars or video tutorials</li></ul>
Lightyear provides basic educational content and clear explanations of its platform features. The app offers market news and company information to help users make informed decisions. However, the platform lacks advanced educational materials such as webinars, video tutorials, or in-depth market analysis tools. This may be sufficient for beginners but could leave more experienced investors wanting more comprehensive resources.
Added Benefits
Pros<ul class="tick"><li>High interest rates via Savings Vaults</li><li>Fractional shares for US stocks</li><li>Social trading features</li><li>Regular platform updates and improvements</li></ul>
Cons<ul class="dismiss"><li>Limited additional features compared to competitors</li></ul>
Lightyear offers several added benefits, including high interest rates via Savings Vaults (*available in selected countries), fractional shares for US stocks, and social trading features. The platform regularly updates and improves its offerings based on user feedback.
Final Verdict
Lightyear is a solid choice for beginner to intermediate investors looking for a straightforward, low-cost platform to invest in stocks and ETFs. Its user-friendly mobile app, commission-free ETF trading, and competitive fees make it an attractive option for those just starting their investment journey or looking for a simple, transparent platform.
The Savings Vaults feature is very attractive and the ability to hold multiple currencies are significant advantages. However, the limited product range and lack of advanced features may not satisfy more experienced traders or those seeking a wider range of investment options.
While Lightyear's customer service and educational resources have room for improvement, the platform's commitment to transparency and regular updates based on user feedback are promising signs for future development.
Overall, Lightyear is best suited for long-term investors focused on stocks and ETFs in US, UK, and EU markets who value simplicity and low costs over advanced features and diverse product offerings. The platform itself is one of the nicest and user-friendly interfaces we have tested.
Affiliate disclaimer: We will be paid a referral fee if you open an account and deposit funds through some of the links on this page. Capital at risk. Provider of the investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: https://lightyear.com/terms. Seek qualified advice if necessary. This is not investment advice.