Lightyear ETF portfolio experience

Lightyear offers a clean, attractive and easy-to-use investment app, while the fees could scarcely be more competitive.

Lightyear fees

The headline is that ETF investors don’t pay trading fees or platform fees. The main charge you’re likely to encounter is the 0.35% currency conversion fee. This is incurred on trades denominated in a currency you don’t hold in your cash account. For example, users holding GBP would pay 0.35% if they had to convert their cash to buy an ETF priced in euros. There are plenty of GBP-priced ETFs on the platform but, at the moment, you may have to trade in a foreign currency to gain exposure to some asset classes. For instance, the only gold ETC currently available is traded in euros. Lightyear doesn’t charge entry fees but you’ll probably need to sell your portfolio to cash if you wish to transfer out. One cost well worth avoiding is the 0.6% fee on deposits made by debit card, Apple Pay, or Google Pay. You can comfortably dodge this pesky fee by using a bank transfer to fund your account.

Lightyear investment and deposit protection

Lightyear is authorised and regulated by the Financial Conduct Authority, [FRN 987226]. That means your investments should be covered up to £85,000 under the terms of the Financial Services Compensation Scheme (FSCS). Uninvested cash is deposited with Natwest [FRN 121878] where it is protected by the FSCS scheme for banks. Note, the £85,000 compensation limit for cash also includes money you hold in personal Natwest accounts or other brands that are part of Natwest Group. Uninvested cash may also be held in BlackRock Money Market Funds (MMFs). The FSCS deposit protection scheme does not apply in this case. You can decide against lodging your money in MMFs by opting out of earning interest.

Lightyear customer support and services

Lightyear is user-friendly and highly accessible for beginners. It’s easy to navigate and key information is pleasingly simple to find. That said, advanced traders who expect powerful charting features and other trading tools should probably look elsewhere. The ETF range is relatively limited for now but the silver lining is that novices probably won’t suffer analysis paralysis. What’s more, all the major asset classes are present and correct, so you can readily buy into a low-cost, diversified portfolio if that’s your bag. Customer support is on hand via the app or email, but not telephone. Customer reviews are overwhelmingly positive too, with Lightyear scoring an excellent 4.7 out of 5 on Trustpilot. An ETF investment plan isn’t available but you can set-up monthly Repeat orders to automate your investing. The trick is you’ll need to remember to fund your account as Lightyear doesn’t offer direct debits or recurring payments. Your account options are limited to a flexible stocks and shares ISA or general investment account (GIA). There’s no sign of JISAs or pensions yet. Finally, Lightyear helps you earn a good rate of interest by sweeping uninvested cash into a money market fund - though you can always turn this option off as previously mentioned.

Lightyear review summary: Low cost and attractive

In sum, Lightyear is a strong contender for ETF investors who want minimal fees, a sleek interface, and interest‑paying multi‑currency accounts.

Check out Lightyear if you’re looking for:

• Zero-fee ETF investing
• A streamlined app experience that’s easy on the eye
• A decent selection of mainstream ETFs without the agony of endless choice