Lightyear Review UK: Fees, ISA and How It Works
Quick answer
Lightyear is a low-cost UK investing app offering commission-free stocks and ETFs in a flexible Stocks and Shares ISA or general account, a 0.1% currency conversion fee, and interest on uninvested cash through money market funds. It is a direct challenger to Trading 212, aimed at buy-and-hold investors. It does not offer a pension.
Lightyear at a glance (2026)
| Feature | Detail |
|---|---|
| What it is | A UK investing app (Estonian-founded) for stocks, ETFs and money market funds |
| Accounts | Flexible Stocks and Shares ISA, Cash ISA, and a general investment account |
| Commission | GBP 0 on stocks and ETFs |
| Currency conversion (FX) fee | 0.1% when you buy in another currency |
| Interest on cash | Up to around 3.75% AER (variable) via money market fund Vaults |
| Fund costs | ETF ongoing charges still apply, set by the fund manager |
| Pension (SIPP) | Not offered - Lightyear has no pension product |
| Protection | FCA-authorised in the UK; eligible investments covered by the FSCS up to GBP 85,000 where applicable |
Step by step
- 1
Check it covers what you need
Lightyear does stocks, ETFs and cash Vaults in an ISA or general account. If you want a pension, individual bonds, or funds it does not list, it is not a one-stop shop.
- 2
Note the 0.1% FX fee
Buying US or other foreign shares costs 0.1% to convert currency. That is low, but it still applies each time, so it matters for frequent overseas trading.
- 3
Use Vaults for idle cash
Uninvested cash can sit in a money market fund Vault earning interest, rather than doing nothing.
- 4
Keep your pension elsewhere
Because Lightyear has no SIPP, use a separate pension platform for retirement money and treat Lightyear as your ISA or general-account broker.
Lightyear is one of the newer low-cost investing apps taking aim at Trading 212, and it has grown fast on a simple pitch: commission-free stocks and ETFs, a flexible Stocks and Shares ISA, a low 0.1% currency conversion fee, and interest on cash you have not yet invested. For a buy-and-hold investor who wants a cheap ISA and does not trade constantly, it is a genuinely competitive option.
The one thing to be clear about is what it does not do. Lightyear has no pension, so it cannot hold a SIPP with the tax relief that pension money gets. That makes it a broker for your ISA or general account, not a home for your retirement savings. Treat it that way - Lightyear for the ISA, a dedicated SIPP provider for the pension - and it does its job well. As with any investing app, the ETF fund charges set by the manager still apply on top of Lightyear own low fees.
For the wider decision, see our best UK investment platform comparison and our stocks and shares ISA comparison. If you do want a pension, the AJ Bell, Vanguard and Fidelity SIPP guides cover the low-cost options. This is general information, not financial advice; the value of investments can fall as well as rise.
Frequently asked questions
Is Lightyear safe and any good?
Lightyear is authorised by the FCA in the UK and holds client assets through custodians, with FSCS protection up to GBP 85,000 where eligible. For low-cost buy-and-hold investing in a Stocks and Shares ISA it is competitive, with commission-free trades and a low 0.1% FX fee. The main gap is that it has no pension option.
How does Lightyear compare with Trading 212?
Both offer commission-free stocks and ETFs and a flexible Stocks and Shares ISA, and both pay interest on cash. Trading 212 also offers a Cash ISA and a SIPP; Lightyear does not have a pension. On core costs they are close, so the choice often comes down to the app, the specific interest rates, and whether you need a pension.
Does Lightyear have a Stocks and Shares ISA?
Yes. Lightyear offers a flexible Stocks and Shares ISA and a Cash ISA. Flexible means you can withdraw and replace money in the same tax year without losing that part of your GBP 20,000 allowance.
Does Lightyear offer a pension or SIPP?
No. Lightyear has no pension product, so it cannot hold your retirement savings in a tax-relieved SIPP. If you want a pension, use a dedicated SIPP provider and keep Lightyear for your ISA or general investment account.
Sources
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.