Trading 212 vs Lightyear (2026): Which Free UK Investing App Actually Wins on Fees and Interest?

Short answer: for most UK investors in 2026, Trading 212 is the better all-rounder — £0 commission, a 0.15% FX fee, a free flexible ISA, a SIPP, and interest on cash without paying for a plan. But Lightyear wins in a few specific cases: if you mainly invest inside an ISA (its ISA/general-account FX fee is just 0.10%, lower than Trading 212's), if you want the calmest, simplest app, or if you want a Cash ISA that quietly tracks the Bank of England base rate with no bonus-rate games.

We compared both apps against their current pricing pages, help-centre documents and independent reviews, as of June 2026. We have not personally moved money through both apps for this piece, so everything below is drawn from published terms — here's what the numbers actually show, and who each one suits.

For the wider field, see our best investing apps UK guide. For the other big rivalry, read Freetrade vs Trading 212.

The short version

• Lowest everyday FX fee: Trading 212 at 0.15% — but Lightyear undercuts it inside an ISA at 0.10%.
• Cheapest to run: tie — both are £0 commission, £0 platform fee, £0 ISA fee.
• Best Cash ISA: Trading 212 (~4.76% AER new customer) edges Lightyear (3.75% AER) on headline rate today.
• Best for a pension: Trading 212 — it has a SIPP; Lightyear does not.
• Best app experience: Lightyear — the cleanest, calmest design of the two.
• Best overall: Trading 212, for the wider range and the SIPP.

Fees and FX: the numbers that quietly cost you

Both apps are "commission-free" on shares and ETFs, with no platform fee and no ISA fee. So the real cost battle is the FX fee — what you pay to convert pounds when you buy a US or other non-GBP share.

Trading 212 charges a flat 0.15% FX fee across its Invest and Stocks ISA accounts. That's confirmed on its own help centre and is the lowest standard FX fee of any major UK app. On a £1,000 US share purchase, that's about £1.50.

Lightyear is more interesting here. Its standard currency-conversion fee is 0.35% — but for UK ISA and general investment accounts, it drops to 0.10% of the trade value. So if you're investing inside an ISA (which most UK investors should be), Lightyear is actually cheaper than Trading 212 on FX: 0.10% versus 0.15%. On that same £1,000 US purchase, Lightyear's ISA FX fee is about £1.00.

One honest catch: published fee schedules suggest Lightyear charges around £1 per trade on UK-listed shares, while Trading 212 is £0. [VERIFY: some 2026 reviews describe Lightyear UK share dealing as commission-free, others quote £1 per UK trade — confirm the live schedule at sign-up, as this directly affects which app is cheaper for UK-share buyers.] If you mostly buy UK shares, that per-trade fee could outweigh Lightyear's lower FX advantage.

The honest downside for both: "commission-free" never means "fee-free." FX fees, and any per-trade UK charges, are easy to miss and add up over years of buying.

ISAs: both free and flexible, but the Cash ISA differs

Both apps offer a free, flexible Stocks and Shares ISA for the 2026/27 tax year. Flexible means you can withdraw money and replace it within the same tax year without losing any of your £20,000 allowance — a genuinely useful feature, and both have it.

The bigger difference is the Cash ISA (a savings account where interest is tax-free):

• Lightyear's Cash ISA pays 3.75% AER as of June 2026, designed to track the Bank of England base rate with — in its words — "no asterisks": no bonus rates that expire, no withdrawal penalties, and it's flexible. That's confirmed on Lightyear's own Cash ISA page.
• Trading 212's Cash ISA pays around 4.76% AER for new customers (a 12-month introductory rate), dropping to roughly 3.60% AER for existing customers afterwards, per current reviews of its rate.

So today, Trading 212's headline Cash ISA rate is higher — but that top rate is an introductory offer, while Lightyear's is a steady base-rate tracker. Which is better depends on whether you'll chase rates each year.

The honest downside: Cash ISA rates move with the base rate and change often. Don't pick an app purely on a headline number that may not last.

Interest on uninvested cash

Money sitting in your account, not yet invested, can earn interest on both apps.

Trading 212 pays interest on uninvested cash with no subscription required, roughly tracking the Bank of England base rate. As of mid-2026 that's in the region of the base rate, paid on eligible balances.

Lightyear pays interest on idle GBP too, and separately offers "Vaults" — money market funds run by BlackRock that pay more. As of June 2026 the GBP Vault pays around 3.75% AER (variable). [VERIFY: reported Lightyear idle-GBP and Vault rates varied across sources in 2026 (idle GBP quoted anywhere from ~1% to ~2.5%+, Vaults ~3.75% to ~4.35%); confirm the current figure in-app before quoting.]

The honest downside: money in a money market fund is not covered by the FSCS the way bank-held cash is. Vaults are low-risk, not no-risk — read the fund details before parking large sums there.

Range and features: where Trading 212 pulls ahead

This is the clearest gap between the two.

Trading 212 offers individual shares, ETFs, fractional shares from £1, automated "Pies", a Cash ISA, a Stocks and Shares ISA, and — since 2026 — a SIPP (self-invested personal pension) with £0 commission and £0 platform fee. The catch on the SIPP is a third-party operator fee of roughly £75–£100 a year. It was also named the UK's #1 overall broker for 2026 by StockBrokers.com.

Lightyear offers UK, US and European shares and ETFs, fractional investing, ready-made Plans, a Stocks and Shares ISA, a Cash ISA and Vaults — but no SIPP as of June 2026. Its investment range is narrower than Trading 212's.

The honest downsides: Trading 212 also offers CFDs — a high-risk leveraged product a beginner should simply ignore (stick to the Invest and ISA sides). And the sheer number of features can feel busy. Lightyear, meanwhile, has the shorter track record of the two and no pension option, so it can't be your one-app home for retirement saving.

App experience: Lightyear's home turf

Where Lightyear genuinely shines is design. It's the calmest, cleanest app of the two, with plain-English explanations where jargon would normally sit. For a nervous beginner, that matters — the app you actually keep using beats the one with more buttons.

Trading 212's app is powerful and polished, but with CFDs, Pies, multiple account types and a long instrument list, it can feel like more than a first-timer needs. Neither is bad; they're built for slightly different temperaments.

The honest downside: app "feel" is subjective. Don't let a nicer interface talk you past a real cost difference if you're investing serious sums.

Side-by-side comparison (June 2026)

Figures checked 17 June 2026 against provider pricing pages and help-centre documents, plus independent reviews where noted. Rates and fees change frequently — always confirm on the provider's own site before opening an account.

Which should you pick?

Pick Trading 212 if you want the strongest all-rounder: the widest range, a SIPP for retirement saving, the lowest standard FX fee, and interest on cash without paying for a plan. For most UK investors, it's the safer default.

Pick Lightyear if you mainly invest inside an ISA and want the lowest FX cost there (0.10%), if a clean and calm app genuinely helps you stick with investing, or if you want a Cash ISA that simply tracks the base rate with no expiring bonus rates.

And honestly: if you only ever buy a UK-listed global index fund inside an ISA, both apps will serve you well, and the differences above mostly disappear. The gaps matter most when you buy overseas shares, want a pension, or leave cash sitting around.

How to get started

1. Download Trading 212 or Lightyear and sign up with your email and UK details.
2. Verify your identity with a passport or driving licence — usually a few minutes.
3. Open the Stocks and Shares ISA version of the account, unless you've already used this year's £20,000 allowance elsewhere.
4. Add money by bank transfer or debit card — start with whatever you won't need for five-plus years, even £25. (Note: debit-card top-ups may carry a small fee on Lightyear; bank transfers are free.)
5. Buy something simple and diversified first — a low-cost global index ETF is where most beginners start — and set up a monthly auto-invest so it happens without you.

FAQ

Is Trading 212 or Lightyear cheaper in 2026? It depends what you buy. Trading 212's FX fee on overseas shares is 0.15%, the lowest standard rate of any major UK app. But Lightyear charges only 0.10% FX inside its ISA and general account, so for ISA investors buying US shares, Lightyear can be cheaper. Both charge £0 platform and £0 ISA fees.

Do Trading 212 and Lightyear both offer a Stocks and Shares ISA? Yes — both offer a free, flexible Stocks and Shares ISA for 2026/27, sheltering up to £20,000 a year from tax on gains and dividends. Lightyear also runs a Cash ISA paying 3.75% AER; Trading 212's Cash ISA pays around 4.76% AER for new customers.

Which app pays more interest on uninvested cash? Trading 212 pays interest on idle cash with no subscription, roughly tracking the base rate. Lightyear pays interest on idle GBP too, and its Vaults money market funds pay more (around 3.75% AER as of June 2026). Both move with the base rate, so check current figures first.

Are Trading 212 and Lightyear safe? Both are authorised and regulated by the FCA, with eligible cash and investments protected by the FSCS up to £85,000 if the firm fails. FSCS cover does not apply to money held in money market funds, and never covers normal investment losses.

Can I get a pension (SIPP) with Trading 212 or Lightyear? Trading 212 offers a SIPP with £0 commission and £0 platform fee, though a third-party operator charges roughly £75–£100 a year. Lightyear does not offer a SIPP as of June 2026. If a pension is your priority, Trading 212 is the only one of the two that has one.

This is general information, not financial advice. Fees and features are current as of June 2026 and change often — always check each provider's website before you sign up. Investing puts your capital at risk; you may get back less than you put in. Do your own research and consider speaking to a qualified adviser about your situation.

Last updated: 17 June 2026.