Trading 212 vs Lightyear

Trading 212 offers many services for free, including ISAs and stock orders. It costs them money to offer these services, so they subsidise them with other revenue sources.

Currency conversion is one revenue stream, on which Trading 212 charges a low 0.15% fee. Another comes from spreads and overnight interest on CFDs ("Contracts for Difference"). These are complex, high-risk derivatives that let customers speculate on price movements without actually owning the assets. This means high leverage, which can amplify losses and make it possible to lose more than your initial investment. Over 80% of Trading 212's retail customers lose money trading CFDs.

Lightyear does not offer CFDs. Instead, we charge simple low fees which reflect what it costs us to offer our services.

Yes - both Lightyear and Trading 212 are protected in the UK. If either firm went out of business, and there was a loss in the cash assets returned to you, you may be able to claim up to £85,000 through the Financial Services Compensation Scheme (FSCS).

Like Trading 212, Lightyear is fully FCA regulated. You can read about how your funds are protected in our Help Centre.

Note that FSCS protection does not cover poor investment performance. You can learn more about the FSCS here.

Trading 212 is FCA regulated and FSCS protected, and they offer a variety of stocks and funds of varying risk levels.

However, if your priority is long-term investing, you should consider whether their focus on short-term, high-risk instruments like CFDs fits with your investment ethos. Over 80% of Trading 212's customers make losses on these products, and these subsidise the services they offer for free.

Unlike Trading 212, Lightyear does charge order fees: £1 on UK stocks, €1 on EU stocks, and 0.1% to a max of $1 on US stocks. We charge no execution fees on ETFs. If you're a long-term investor rather than a day trader, take a look at Lightyear's Stocks & Shares ISA or Cash ISA, and the stocks and funds available.