AJ Bell vs Lightyear
AJ Bell rings up the costs. Lightyear keeps them down.
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When you invest, your capital is at risk.
 | ||
|---|---|---|
Platform fees | Free | 0.25% of holdings per year, max £42 |
ETFs - execution fee | Free | £3.50 - £5.00 |
US shares - per order | $1 max 0.1%, min $0.10 | £3.50 - £5.00 Plus FX fee |
EU shares - per order | €1 | £3.50 - £5.00 Plus FX fee |
UK shares - per order | £1 | £3.50 - £5.00 |
Currency conversion (FX) | 0.35% | 0.75% |
Multi-currency | ||
Interest on GBP - uninvested cash | 3.00% AER | 2.32% AER, first £10k (see below) |
Interest on EUR - uninvested cash | 2.00% AER | |
Interest on USD - uninvested cash | 3.00% AER |
Pricing data sourced from ajbell.co.uk, and correct as of 26th November 2024.
The AJ Bell fees for trading ETFs and stocks are based on trades in the previous month. If you had more than 10 share deals in the previous month then the £5.00 charged is reduced to £3.50.
Cash paid on uninvested cash is tiered, with 2.32% being paid on the first £10,000, 2.68% between £10,001 and £100,000, and 3.34% on balances over £100,000.
Frequently asked
AJ Bell vs Lightyear: FAQs
Which is cheaper, AJ Bell or Lightyear?
AJ Bell and Lightyear have different pricing structures tailored to different types of investors.
- AJ Bell charges a platform fee of 0.25% annually, capped at £3.50/month (or £42/year) for shares accounts. Stock and ETF trades cost £5.00 per order, though this reduces to £3.50 if you executed more than 10 trades in the previous month. AJ Bell does not offer a multi-currency account and charges a 0.75% FX fee for currency conversions when trading non-GBP stocks.
- Lightyear charges no platform fees and offers ETF trades with zero execution fees. US stock trades cost 0.1%, capped at $1 per order, and UK/EU stock trades cost £1/€1 per order. Lightyear’s FX fee is lower, at 0.35%, and it supports multi-currency accounts to help investors reduce unnecessary conversions.
For investors prioritising cost-efficiency, Lightyear’s lower trading fees and absence of platform fees could make it a more economical choice, particularly for investors who focus on ETFs or those investing internationally.
Is the AJ Bell ISA flexible?
No, the AJ Bell Stocks & Shares ISA is not flexible. This means that if you withdraw funds during the tax year, you cannot replace them without affecting your annual ISA allowance. Investors who require greater flexibility may want to consider alternatives that offer flexible ISA options. AJ Bell does not offer a Cash ISA.
Lightyear does not currently offer a Stocks & Shares ISA or a Cash ISA. We’ll be launching our ISA before the end of this tax year (by the end of March 2025).
Can I earn interest on cash held with AJ Bell?
Yes, AJ Bell pays interest on uninvested GBP cash balances, but the rates are tiered and depend on the amount held. The latest rates are shown in the table above. AJ Bell does not pay interest on uninvested USD or EUR balances.
Lightyear also pays interest on uninvested cash but offers flat rates of 3.00% AER on GBP, 3.00% AER on USD, and 2.00% AER on EUR, with no tiers or upper limits.
Can I transfer stocks from AJ Bell to Lightyear?
Yes, you can transfer stocks from AJ Bell to Lightyear. Lightyear accepts transfers of whole shares, provided each position is worth at least £/$/€1,000. However, Lightyear does not support non-qualified stock options (NSOs).
To start a transfer, read our guide to stock transfers.
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Disclaimer
This comparison is for educational purposes only and should in no way be taken as investment advice. When investing, your capital is at risk. Seek guidance if necessary.