Lightyear presents an excellent option for investors with a long-term outlook, primarily due to its competitive fee structure, including the availability of commission-free ETFs. Individuals concerned about preserving the worth of their savings will find value in Lightyear’s attractive interest rates on uninvested funds. Additionally, Lightyear boasts one of the top-tier mobile applications in the market. However, it may not suit active traders due to the absence of derivative products and its relatively basic charting features.
Safety
Lightyear, established in 2020, is headquartered in the UK. Lightyear Financial Ltd is a registered company in England and Wales. The greater the historical track record of a broker, the more evidence we possess of its ability to weather past financial crises successfully.
Lightyear Europe is under the direct regulation of the Estonian Financial Supervision Authority (EFSA). Additionally, there is indirect regulation in the UK through Lightyear Financial Ltd, acting as an appointed representative of RiskSave Technologies Ltd, which holds authorization and regulation from the Financial Conduct Authority (FCA). Lightyear is currently in the process of obtaining a license from the FCA.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| All Clients | Lightyear Europe AS | Estonian Financial Supervision Authority (EFSA) | $500,000 – US stocks €20,000 – non-US assets and cash |
Equally significant is the complete segregation of customer assets. This ensures that in the event of the broker declaring bankruptcy, clients can still retrieve their assets.
Account Opening Process
Opening an account with Lightyear is swift, entirely digital, and user-friendly. Additionally, the flexibility to commence with any amount is advantageous. Corporate accounts are also an option. However, they are only available for Estonian private limited companies.
The account opening process typically lasts about 15 minutes and is exceptionally user-friendly. Verification is swift; our account was verified within one hour. To confirm your identity and residency, you may be required to upload your national ID and submit a utility bill for verification.
| Account Type | Description |
|---|---|
| Personal Account | Account owned by an individual |
| Business Account | Account available to Estonian private limited companies |
Products
Lightyear offers a restricted product range comprising solely stocks and ETFs. Other asset classes such as mutual funds, bonds, or options are not available. The selection of trading instruments is average when compared to offerings from other brokers within the industry.
Stocks
Lightyear provides access to a range of stocks from the US, UK, and EU markets. Additionally, investors can explore opportunities in select non-American companies with American Depositary Receipts (ADR) listed on US exchanges, such as Barclays or Alibaba. US stock trading is facilitated through Alpaca Trading on the Lightyear platform.
One notable feature is the ability to invest in fractional US shares, which is particularly beneficial for those with smaller investment amounts or who prefer not to commit to stocks with high share prices. While fractional shares are exclusive to US stocks and not available for EU stocks, Lightyear’s curated stock list, influenced by community preferences, includes prominent names like Amazon, Facebook, Tesla, and Google.
Fees
Lightyear offers commission-free ETFs and minimal stock fees while providing substantial interest rates on uninvested cash. The platform imposes no charges for account maintenance, inactivity, custody, or withdrawals. However, users should note a 0.35% FX conversion fee and a 0.5% fee applicable to card deposits surpassing a specified threshold.
Low Stock Commissions
Lightyear’s fees for US stocks are less than half of the industry standard. These fees are determined by a rate of 0.1%, with a maximum charge of $1 per trade.
| Stock Type | Commission Cost |
|---|---|
| US Stock | $1 |
| UK Stock | $1.3 |
| German Stock | $1.1 |
Withdrawal, Inactivity & Other Fees
There are no account, inactivity, or withdrawal fees associated with this service. Additionally, bank transfer deposits incur no fees. However, payments made via debit card, Apple Pay, or Google Pay are subject to a lifetime free allowance of only €500. Once this limit is reached, a 0.5% charge is applicable for further deposits.
Additionally, if you trade a stock denominated in a currency different from the one you’ve invested, there’s a 0.35% FX fee. Unlike certain other brokers, Lightyear enables you to maintain multiple currencies simultaneously. This feature is advantageous as it facilitates the avoidance of FX conversion by allowing you to hold the currencies necessary for your investments.
Conclusion
In conclusion, Lightyear emerges as a compelling choice for investors prioritizing long-term strategies, supported by its advantageous fee structure. The platform’s commitment to safeguarding the value of savings through attractive interest rates on uninvested funds further solidifies its appeal. With a top-tier mobile application enhancing user experience, Lightyear stands out as a user-friendly investment platform. However, it may not cater to the needs of active traders seeking derivative products and advanced charting features. Nonetheless, for those seeking a reliable and accessible option for long-term investment growth, Lightyear remains a commendable choice.
