Wise co-founder Taavet Hinrikus says he has never bought a stake in a publicly traded company, despite being a prominent angel investor and leading one of the UK’s most valuable companies. increase.
But this morning, Chairman Wise claims he changed that in his first deal with Lightyear. This is a new DIY equity investment platform where he is an investor.
Former product manager Martin Sokk of his former colleague Wise and engineering leader Mihkel Aamer have announced plans to launch earlier this summer.
Today, waiting list users will be able to open trading as they aim to face off emerging pack leaders such as eToro, Freetrade and Trading 212 and challenge established DIY investment platforms such as Hargreaves. increase. Lansdown, AJ Bell, Interactive Investor.
Former Wise employees Mihkel Aamer and Martin Sokk came up with the idea for Lightyear after frustrating the existing app and its high prices.
Lightyear is another fee-free stock trading app that comes to the market trying to take advantage of the rise of DIY investment platforms.
It only provides the ability to invest in stocks and does not provide clients with access to risky CFDs.
It arose mainly from Sokk and Aamer’s own frustration with the current market, especially the expensive currency conversion fees.
After working to remove some barriers related to international remittances in Wise, formerly known as Transferwise, Sokk and Aamer want to apply the same principles to their investments.
“Since I’ve spent my career on financial services, I’ve seen good, bad, and ugly things.
“I believe private investment in Europe is still very’ugly’,” Sock said earlier.
“We’re talking about sneaky rates, reduced access, and complex products that remain as they are.”
Light-year users are not charged foreign exchange fees up to £ 3,000 per month.
For Hinriks, this lack of transparency is exactly what he has postponed buying stock in the past.
“I have made a lot of private investment, but I have never bought public stock in my life.
“Some of them weren’t simple enough to suit my taste,” he says.
“When Martin and Mihkel Aamer came in and talked about Lightyear’s plans, I thought it was time to start investing in public equities, so I’m going to make my first deal in Lightyear.”
Like Wise’s co-founder, this new generation of investors is increasingly attracted to well-known US stocks like Amazon and Tesla, but currency conversions face heavy charges on already expensive stocks. It means that you are doing it.
Lightyear wants to remove this barrier and apply Wise’s core principles by providing users with multi-currency accounts and “free” access to the global market.
Users do not pay account or transaction fees, and unlike most rival trading apps, they do not pay forex fees. Beyond £ 3,000 / month, users will have to pay a 0.35% Forex fee.
“We are building investment apps with Europe in mind.
“Europe has so many different currencies and countries that it’s very important to have a good solution for Forex and no one has ever invested,” Sokk said. increase.
“Our multi-currency account allows people to deposit, hold and invest in multiple currencies, eliminating the need to constantly convert your money back and forth, which creates extra costs.”
Like its rivals Freetrade, Trading212 and eToro, Lightyear offers users the opportunity to buy odd lots. This is part of one share, not the entire one or more individual shares.
This makes it easy for investors to invest in major stocks with high stock prices.
“When it comes to building a portfolio, high personal stock prices should not be a barrier to entry.
“We’ve also removed all transaction costs, which allows us to diversify our portfolio through fractional transactions,” Sokk adds.
|Transaction size||Exchange rate||Foreign currency fees||Other charges|
|Light year||£ 1,000||0.0%||Not applicable|
|£ 5,000||0.35%||£ 17.50|
|£ 10,000||0.35%||£ 35|
|eToro||£ 1,000||50 pips||c £ 12 (1)||After 12 months with no login activity, you will be charged an inactive fee of $ 10 per month for your remaining available balance. Open positions are not closed to cover charges.|
|£ 5,000||50 pips||c £ 46 (1)|
|£ 10,000||50 pips||c £ 88 (1)|
|Free trade||£ 1,000||0.45%||£ 4.50||Other investor costs include ISA (£ 3 / month), GIA (free), SIPP (£ 9.99 / month), or Plus account (£ 9.99 (including ISA costs)) subscriptions. It may be.|
|£ 5,000||0.45%||£ 22.50|
|£ 10,000||0.45%||£ 45|
|Trading212||£ 1,000||0.15%||£ 1.50|
|£ 5,000||0.15%||£ 7.50|
|£ 10,000||0.15%||£ 15|
|(1) eToro-Complete end-to-end cost: deposit, start position, end position, and withdrawal of funds (charges $ 5).|
Early Monzo Investors Support Lightyear in $ 10 Million Round
Lightyear clearly takes advantage of the demand for unlimited access to global equities as new investors seek to diversify their portfolios.
More than 5,000 people are on the waiting list, which was launched just three months ago.
Starting today, users will be able to trade over 1,000 global stocks.
The light-year buzz and its claim to rock the European investment market have raised $ 10 million from the industry’s largest player.
Following the first $ 1.5 million pre-seed round led by Hinrikus and Teleport co-founder Sten Tamkivi, the Lightyear team secured an additional $ 8.5 million.
The round was led by Mosaic Ventures along with existing investors and a few angel investors, including early Monzo supporter Eileen Burbidge.
“When it comes to investing in early-stage businesses, it’s important that the team is best-in-class and believes in this sector, and the product is globally attractive.
“Over the last year and a half, more and more people are interested in retail investment. This team is something special, coupled with this highly ambitious, highly talented and sincere team. “I’m producing,” says Burbidge.
“I’m excited about Lightyear’s commitment to transparency and building the best access, tools, confidence, friendly and comprehensive platform for everyone to invest in.”
Voting of trust from such veteran investors is certainly welcome, but it is still in its infancy for Lightyear.
With plans to expand to Europe next year, Lightyear will cut down on jobs that compete with established platforms that have benefited from the pandemic surge.
The old question of whether it can make money is also important.
For now, Lightyear is focused on building a customer base, but the founders say they will consider a subscription model to access more tools, news and more sophisticated products.
It says that standard investment accounts always remain free.
Isa comparing stocks with the best DIY investment platform
When it comes to choosing an investment platform, equity & equity Isa, or a general investment account, the range of options may seem overwhelming.
All providers have slightly different offerings, charge more or less for trading or holding stocks and provide access to a wide range of stocks, funds and mutual funds.
When considering the service that is right for you, it is important to check the services it offers, administration fees, transaction fees and other additional costs.
To help you Compare investment accounts, We have scrutinized the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
Although the table below highlights the key players, we encourage you to do your own research and consider the points of the complete guide linked here.
|Administrator fee||Price memo||Fund transactions||Standard stocks, trusts, ETF transactions||Regular investment||Dividend reinvestment|
|AJ Bell YouInvest||0.25%||Up to £ 3.50 per month for stocks, trusts and ETFs.||£ 1.50||£ 9.95||£ 1.50||1% (minimum £ 1.50, maximum £ 9.95)||detail|
|Bestinvest||0.40%||free||£ 7.50||Not applicable||Not applicable||detail|
|Charles Stanley Direct||0.35%||No stock platform fees for up to £ 240 per year on trading that month||free||£ 11.50||Not applicable||Not applicable||detail|
|Fidelity||0.35% of funds||Price of £ 45 up to £ 7,500. Up to £ 45 per year for stocks, trusts and ETFs||free||£ 10||Free Fund £ 1.50 Shares, ETF Trust||£ 1.50||detail|
|Hargreaves Slan’s Down||0.45%||Stocks, trusts and ETFs capped at £ 45||free||£ 11.95||£ 1.50||1% (£ 1 minute, up to £ 10)||detail|
|Interactive Investor||£ 119.88 for £ 9.99 per month||£ 7.99 / month with trading credits||£ 7.99||£ 7.99||free||£ 0.99||detail|
|iWeb||£ 100 1 time only||£ 5||£ 5||Not applicable||2%, up to £ 5||detail|
|Free trade||Isa standard account £ 3 months free||Freetrade Plus, which invests more, costs £ 9.99 per month.Isa charge||No funds||free||Not applicable||Not applicable||detail|
|Vanguard||0.15%||Vanguard Fund Only||free||Free for Vanguard ETFs only||free||Not applicable||detail|
|(Source: ThisisMoney.co.uk July 2021. Administration costs are estimated annually and may be monthly or quarterly)|
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Light Year App: Can this wise trading app fight rivals?
https://www.dailymail.co.uk/money/diyinvesting/article-9985949/Lightyear-app-Wise-backed-trading-app-battle-rivals.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Light Year App: Can this wise trading app fight rivals?