This low-cost platform gives ETFs and particular person shares
Lightyear is an funding supplier with an app that provides a Shares & Shares ISA at no further price. It gives DIY investing, so that you select your individual investments from its assortment of shares and exchange-traded funds (ETFs).
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Right here at Be Intelligent With Your Money, we’re not regulated to offer you monetary recommendation. We intention to provide the details a few supplier or funding but it surely’s as much as you to determine if it’s appropriate for you. In the event you’re in search of extra personalised steering, discover a monetary adviser who can provide you particular recommendation. Do not forget that your capital is in danger when investing — don’t make investments greater than you’re ready to lose.
The Lightyear Shares and Shares ISA is a free account out there to take a position into. It permits you to use your £20,000 ISA allowance, so you may make investments with out paying any tax in your earnings.
The ISA is versatile, which suggests you may withdraw from it and substitute the cash inside the identical tax 12 months with out shedding that quantity of your allowance. Nonetheless, ideally you’re not investing cash that you just’ll have to entry – this cash ought to keep invested for not less than 5 years to permit for the fluctuations of the inventory market.
You possibly can switch present Money ISAs or Shares & Shares ISAs into Lightyear, nevertheless these are achieved as money, so any present investments you might have shall be bought previous to the switch to Lightyear, the place you’ll should repurchase investments once more. The cash stays inside the ISA wrapper all through.
Different Lightyear merchandise
Alongside the Shares & Shares ISA, Lightyear gives a Normal Funding account, which doesn’t have the identical tax-free allowances.
It’s also possible to save right into a Money ISA that pays the identical because the Financial institution of England base price, though there are sometimes financial savings accounts that may beat this.
Uninvested money inside your funding account will earn 4.6% on the time of writing.
What you may spend money on with Lightyear
Lightyear gives particular person shares and exchange-traded funds that you may spend money on.
Change-traded funds are funds which are purchased and bought on inventory markets. These are a low-cost method to spend money on a diversified mixture of investments, so that you wouldn’t want to decide on an enormous vary of particular person shares to make up your portfolio, and might as an alternative select a number of ETFs.
There are 5,000 world shares out there, together with greater than 3,000 US shares. They’re effectively organised, so you may select particular sectors or international locations you wish to spend money on.
Lightyear charges
Lightyear’s charges rely upon what you determine to spend money on.
| Funding sort | Value |
| US shares | 0.1% — min $0.10 / max $1 max per transaction |
| UK shares | £1 per transaction |
| EU shares, bonds, ETNs and ETCs | €1 per transaction |
| ETFs | Free |
There’s additionally a 0.35% forex conversion charge for whenever you purchase shares in different currencies.
Lightyear doesn’t cost an account charge or to make use of the ISA. Transfers out and in are free, however there’s a 0.5% cost for ‘quick transfers’, that are ones utilizing Google/Apple Pay or by debit card.
Whereas it’s free to purchase and promote funds, you’ll nonetheless should pay fund charges when invested in funds. These shall be between 0.03% and 0.78% relying on the funds you select and also you’ll come throughout them it doesn’t matter what supplier you select.
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Options for newbie traders
Whereas Lightyear’s app and easy-to-use interface could be interesting to rookies, investing in particular person shares isn’t for newbie traders. Nonetheless, rookies can passively spend money on exchange-traded funds. There’s numerous data provided in regards to the investments, which may very well be a bit overwhelming for rookies, however does provide the probability to be taught.
There aren’t any ready-made choices — should you’d want a hands-off strategy to investing, you would possibly want a robo-advisor or provider that offers ready made portfolios.
Is Lightyear protected?
Lightyear is regulated by the Monetary Conduct Authority (FCA).
Your money and investments are lined by the Monetary Companies Compensation Scheme (FSCS) as much as £85,000. Plus, your cash is ring-fenced, so it’s saved separate from Lightyear’s personal cash — it doesn’t use your cash for its personal enterprise use.
You possibly can open a Lightyear Shares & Shares ISA on-line or within the app. On the web site or after you’ve downloaded the app, you choose ‘Enroll’. You’ll then create a login and supply some easy private data.
Then it’ll ask you which of them account you wish to open – at this stage you’ll select the Shares & Shares ISA.
At this stage, you’ll be requested on your citizenship data and your Nationwide Insurance coverage quantity.
Execs and cons of Lightyear
Execs
- No charges for ETFs
- Low price investing
- No further price for ISA
- Massive vary of funding choices
Cons
- No ready-made choices
- Could possibly be just a little overwhelming for rookies
Lightyear evaluations
Over on our sister website, Sensible Cash Individuals, Lightyear clients have rated the supplier 4.9 out of 5.
Optimistic reviewers say that it’s simple to make use of, that it pays curiosity on uninvested money and really feel like there’s a wide variety of investments out there.
Unfavourable reviewers, of which there aren’t many, don’t suppose the customer support is as much as scratch and one talked about that they don’t just like the gamification of the platform
Read customer reviews of Lightyear
Is Lightyear any good?
Zoe’s evaluation
All in all, Lightyear is a fairly good funding supplier. It’s received an awesome vary of investments out there, its app and person interface is basically modern and engaging, and the truth that it gives free investing in ETFs is nice.
Different investments are actually low-cost at simply £1/$1/€1. There are clearly some platforms that supply inventory investing for zero fee, like Buying and selling 212 and Freetrade, though that is nonetheless rather a lot lower than among the larger gamers, like Hargreaves Lansdown.
Newbies is perhaps turned off by Lightyear as a result of it doesn’t supply ready-made choices — there are many alternative providers that offer these.
