Interactive Investor vs Lightyear
Their fees may be flat, but they could also be flattening your returns.
Open account
When you invest, your capital is at risk.
 |  |  | ||
|---|---|---|---|---|
Monthly fee | Free | £4.99 | £11.99 | £19.99 |
ETFs - execution fee | Free | £3.99 | £3.99 | £3.99 |
US shares - per order | $1 max 0.1%, min $0.10 | £3.99 | £3.99 | £3.99 |
EU shares - per order | €1 | £9.99 | £9.99 | £9.99 |
UK shares - per order | £1 | £3.99 | £3.99 | £3.99 |
Currency conversion (FX) | 0.35% | 1.50% First £25k (see below) | 1.50% First £25k (see below) | 1.50% First £25k (see below) |
Interest on GBP - uninvested cash | 3.00% AER | 1.51% AER, first £10k (see below) | 1.51% AER, first £10k (see below) | 1.51% AER, first £10k (see below) |
Interest on EUR - uninvested cash | 2.00% AER | 1.51 AER | 1.51% AER | 1.51% AER |
Interest on USD - uninvested cash | 3.00% AER | 1.51% AER, first £10k (see below) | 1.51% AER, first £10k (see below) | 1.51% AER, first £10k (see below) |
Pricing data for Interactive Investor sourced on ii.co.uk, and correct as of 21st November 2024.
FX fee is tiered and works as follows: £24,999 and below is 1.50%, £25,000 - £49,999 are 1.25%, £50,000 - £99,999.99 are 1%, £100,000 - £599,999 are 0.5%, and £600,000+ is 0.25%.
Interest rates on uninvested GBP and USD are also tiered, offering 1.51% AER on the first £10,000, 2.27% AER between £10,000 to £100,000, 3.30% between £100,000 and £1,000,000, and 4.07% over £1,000,000. Interest on EUR balances is not tiered.
Frequently asked
Interactive Investor vs Lightyear: FAQs
Is Interactive Investor expensive?
Interactive Investor (II) uses a transparent, flat-fee pricing model and offers access to a wide range of tradeable stocks and ETFs. The platform charges a monthly subscription fee between £4.99 and £19.99, depending on the service tier, with stocks and ETFs costing between £3.99 and £9.99 per trade.
While the flat fee structure may suit some investors, those looking for a simpler and more cost-efficient platform—without subscription fees, zero execution fees on ETFs, and lower currency conversion fees—might consider exploring alternatives like Lightyear.
Is Interactive Investor's ISA flexible?
No, Interactive Investor’s 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. For investors who value the ability to withdraw and replace funds without losing their allowance, a flexible ISA may be a better choice.
Additionally, Interactive Investor 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 Interactive Investor?
Yes, Interactive Investor pays interest on uninvested cash balances in GBP (£), EUR (€), and USD ($). Interest rates are tiered as follows:
- 1.51% AER on the first £10,000.
- 2.27% AER for balances between £10,000 and £100,000.
- 3.30% AER for balances between £100,000 and £1,000,000.
- 4.07% AER for balances above £1,000,000.
Lightyear also pays interest on uninvested cash balances, offering: 4.89% AER on GBP balances. 4.58% AER on USD balances. 3.11% AER on EUR balances.
Lightyear’s rates apply to all balances, with no minimum or maximum deposit limits. Higher rates are currently available via our investment product Vaults.
Can I transfer stocks from Interactive Investor?
Yes, you can transfer stocks from Interactive Investor to Lightyear. Lightyear accepts transfers of whole shares, provided each position is worth at least £/$/€1,000. Only regular, exercised stocks can be transferred—non-qualified stock options (NSOs) are not accepted.
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.