Freetrade vs Lightyear
Free trades can cost you. Invest wisely.
Open account
When you invest, your capital is at risk.
 |  |  | ||
|---|---|---|---|---|
Monthly fee | Free | Free | £5.99 | £11.99 |
Multi-currency | ||||
Currency conversion (FX) | 0.35% | 0.99% | 0.59% | 0.39% |
ETFs - execution fee | Free | Free | Free | Free |
US shares - per order | $1 max 0.1%, min $0.10 | "Free" There's a 0.99% FX fee | "Free" There's a 0.59% FX fee | "Free" There's a 0.39% FX fee |
EU shares - per order | €1 | "Free" There's a 0.99% FX fee | "Free" There's a 0.59% FX fee | "Free" There's a 0.39% FX fee |
UK shares - per order | £1 | Free | Free | Free |
Price alerts | ||||
Interest on GBP - uninvested cash | 3.00% AER | 1.00% AER, up to £1K | 3.00% AER, up to £2K | 5.00% AER, up to £3K |
Interest on USD - uninvested cash | 3.00% AER | |||
Interest on EUR - uninvested cash | 2.00% AER |
Pricing data for all Freetrade plans sourced on Freetrade.io, and correct as of 21st November 2024. In the above table, the Standard plan is presented with a monthly fee of £5.99 which can be reduced to £4.99 if paid annually. The 'Plus' plan is £11.99, or £9.99 if paid annually.
Frequently asked
Freetrade vs Lightyear: FAQs
Does Freetrade offer a Cash ISA?
No, Freetrade does not offer a Cash ISA. They only provide a Stocks & Shares ISA. While it’s possible to hold cash in a Stocks & Shares ISA, interest rates are typically more competitive in a dedicated Cash ISA. If Freetrade’s interest rate meets your needs and you’re comfortable with paying a monthly fee, it could still be a suitable option.
Which is cheaper, Lightyear or Freetrade?
Lightyear and Freetrade have different pricing models. Freetrade uses a freemium approach, where users pay monthly fees to access certain features, such as ISAs and SIPPs. While Freetrade does not charge execution fees for stock trades, it applies a foreign exchange (FX) fee when buying non-GBP stocks (e.g. U.S. stocks). This FX fee ranges from 0.99% to 0.39%, depending on your subscription level.
By contrast, Lightyear has no monthly fees. It offers a fixed FX fee of 0.35% and charges simple, flat fees for stock trading. ETF trades are completely free of execution fees. Additionally, Lightyear allows you to hold cash in multiple currencies and earn interest on uninvested balances, with no minimum or maximum limits.
Can I earn interest on cash held with Freetrade?
Yes, Freetrade pays interest on GBP (£) balances, with limits based on your membership type: £1,000 for free accounts, £2,000 for the mid-tier plan, and £3,000 for the premium plan. Interest rates are 1% for free accounts and 3% or 5% for paid plans.
However, Freetrade does not support holding balances in other currencies. If you’re looking to hold Euros or Dollars and earn interest on those balances, Lightyear may be a good fit.
Can I transfer stocks from Freetrade?
Yes, you can transfer stocks from Freetrade to Lightyear. Lightyear accepts whole share transfers, provided the value of each position is at least £/$/€1,000. Only regular, exercised stocks can be transferred—Lightyear does not accept non-qualified stock options (NSOs).
To get started, read our guide to Freetrade 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.