Lightyear price comparison
Here's the detail on how we calculate the price comparison data across providers.
Our price comparison data is based on pricing information that we have taken from other providers’ websites on specific dates.
The price comparison shows how much it costs a customer to invest using each provider listed based on a number of editable user inputs and some assumptions.
The inputs are: starting portfolio value, new amount invested into the portfolio on a monthly basis, average number of buy/sell orders per month and portfolio lifetime.
The assumptions we make are that an average balanced portfolio will return 10% per year and on average an investor will have a monthly portfolio turnover ratio of 7%.
Based on these user inputs and assumptions we are able to calculate the fees incurred across the different providers and how these fees would impact on the lifetime returns of the portfolio.
In case you want to know more we’ve explained what all the different price components mean and how we work them out below.
We compute the portfolio value in monthly increments based on the lifetime of the investment. Each month we will calculate the value of the portfolio including new investments and rate of return, then calculate all the various fees per provider listed below and remove them from the value of the portfolio for that particular provider. This then gives us a final portfolio value at the end of the portfolio lifetime, this is the amount you will see compared across providers in the price comparison data.
Some providers charge a monthly / quarterly / yearly account fee. This may be a flat fee or a percentage of the portfolio help on their platform.
For each provider we define whether a fee is charged and if so remove the relevant amount from the portfolio at the relevant time.
Some providers charge a fee every time a trade is placed. This may be a flat fee or a percentage of the trade.
For each provider we define whether a fee is charged and if so remove the relevant amount from the portfolio based on the number / value of monthly trades.
Some providers charge an FX fee every time a trade is placed in US stocks from a GBP account, i.e. every time a currency conversion takes place in a user’s account. This is a percentage of the trade.
For each provider we define whether a fee is charged and if so remove the relevant amount from the portfolio based on the value of monthly trades.
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Remember, when you invest your capital is at risk.
Lightyear Europe AS is authorised and regulated as an investment firm by the Estonian Financial Supervision Authority (Finantsinspektsioon) under activity licence number 4.1-1/31.
Lightyear Europe is a company registered in Estonia with company number 16235024 and registered office at Tallinn, Niine 11, 10414, Estonia.