Lightyear Investing Review

We used to say the lack of an ISA was the major drawback of Lightyear as it left savers and investors unable to take advantage of the ISA's tax advantages. But, that's no longer the case. Lightyear now offers a Stocks and Shares ISA, as well as a Cash ISA and General Investment Account (and a Business GIA). And it's extraordinarily cheap given that there are no execution or custody fees to pay. That makes Lightyear one of the lowest-cost ways to open and hold an investment ISA.

Both the Cash and Stocks & Shares ISAs are flexible (meaning you can take money in and out without it affecting your annual allowance), plus they come with no withdrawal penalties, and there's no minimum deposit, so these are great for small starters.

If you're struggling to decide what to invest in, Lightyear's research tools will satisfy even seasoned investors. In-app earnings calls are a unique proposition here, and analyst estimates and price targets are all free to access. Want to know how many analysts recommend you buy, hold or sell? It’s all available within the app. That's an unusually broad range of tools for a simple investing solution, and makes Lightyear stand out.

Assets are limited to stocks, Money Market Funds and ETFs, but the selection will be ample for most new or intermediate-level investors. You'll also have access to fractional shares, meaning you can own a piece of big-value stocks without needing to pay the hefty price tag of a full single stock. What's more, Lightyear has just removed commission on all its assets. With no account fees and no commission on trades, all you're paying for is the fund fee and currency conversion costs if you're investing in a foreign stock.

Money Market Funds (they're called 'Vaults' at Lightyear) are growing in popularity thanks to their low risk nature. They allow you to gain some of the security of a cash savings fund, but often with a higher rate of interest than you'll find on an ordinary savings account. Lightyear's Vault is currently paying a handsome 4.17% AER. Bear in mind though, that there is some risk associated with this as it's an investment, not a savings product. But it's very low risk, and a good potential return.