Best Investing App? (Lightyear)

JakeHyde

Hey guys,

Do you have much experience with various investing apps?
I'd love to 'Buy the Dip', but I've never done anything like buying stock before.
I've stumbled across this app called 'Lightyear', which claims to be zero fees: (Can't post the link) -> golightyear dot com

Also, if anyone were to use these 3rd party apps to invest in the Stock Market/Index Fund, what would happen if the app company suddenly went bust?
Would you still own the stocks, where would the deeds be, and how does that work? I ask because this app looks quite new.

Thanks in advance.

bostonerimus

I have no experience whatsoever with such apps and never will. If you "buy on a dip" how do you know it's a dip and relative to what other phase of the market, when do you sell? Market timing is to be avoided. You are making a number of errors right from the start.

Pay off any high interest debt you have
Save 6 months cash spending in the bank
Contribute to your workplace pension
Open an ISA and but a multiasset fund like VLS80 etc and keep doing that for 10, 20 or 30 years.

wmb194

JakeHyde said:

Hey guys,

Do you have much experience with various investing apps?
I'd love to 'Buy the Dip', but I've never done anything like buying stock before.
I've stumbled across this app called 'Lightyear', which claims to be zero fees: (Can't post the link) -> golightyear dot com

Also, if anyone were to use these 3rd party apps to invest in the Stock Market/Index Fund, what would happen if the app company suddenly went bust?
Would you still own the stocks, where would the deeds be, and how does that work? I ask because this app looks quite new.

Thanks in advance.

They're more accurately termed, stockbrokers. Whether you buy shares and other securities via a stockbroker's 'app', telephone line or a website isn't important. What they buy for you is held on a nominee basis. You're still the benefcial owner and these assets should be held separately from the stockbroker's assets. For more peace of mind make sure they're covered by the FSCS as this will/should protect you from any maladministration.

Isn't Lightyear US shares only at the moment? I've not used it but I am using Freetrade and is fine as a low cost stockbroker. It's been raising plenty of money to keep going for a while but it's still a young company. If you're worried about their resilience then you'd be better looking at opening a stockbroking account with more established companies and household names like Hargreaves Lansdown, Barclays, HSBC, Halifax/iWeb/Lloyds, and AJ Bell. They'll be more expensive, though.

ColdIron

I've never heard of them. A Whois search shows the domain is for sale but maybe this is par for the course. They say they are an appointed representative of RiskSave Technologies Ltd (amongst many other companies)

Also, if anyone were to use these 3rd party apps to invest in the Stock Market/Index Fund, what would happen if the app company suddenly went bust?

No mention of FSCS that I can see

But you are making a number of mistakes. Using non-mainstream platforms. Buying company shares (presumably). Trying to time the markets

jimjames

JakeHyde said:

Also, if anyone were to use these 3rd party apps to invest in the Stock Market/Index Fund, what would happen if the app company suddenly went bust?
Would you still own the stocks, where would the deeds be, and how does that work? I ask because this app looks quite new.

If they bought the stocks as a nominee then you would still own them. If they didn't buy the stocks and just pocketed the money but showed you a fictional number on the app then you'd be out of pocket (and if the info above is correct and no FSCS protection and would have nowhere to go for compensation)

wmb194

ColdIron said:

I've never heard of them. A Whois search shows the domain is for sale but maybe this is par for the course. They say they are an appointed representative of RiskSave Technologies Ltd (amongst many other companies)

Also, if anyone were to use these 3rd party apps to invest in the Stock Market/Index Fund, what would happen if the app company suddenly went bust?

No mention of FSCS that I can see

But you are making a number of mistakes. Using non-mainstream platforms. Buying company shares (presumably). Trying to time the markets

This one has come up before. IIRC it's a new(er) one founded by some of the people related to the early days of (Transfer)Wise. Again IIRC, RiskSave is to do with outsourcing the management some of the regulatory stuff. 

Personally, I wouldn't use this one right now. If you want to buy US shares then there are better, more established brokers that are covered by the FSCS. I'd always choose this over having to deal with any US related administration headaches.

As it's US only at the moment it says that it's covered by the US' equivalent of the FSCS, the SIPC.

adindas

bostonerimus said:

I have no experience whatsoever with such apps and never will. If you "buy on a dip" how do you know it's a dip and relative to what other phase of the market, when do you sell? Market timing is to be avoided. You are making a number of errors right from the start.

Pay off any high interest debt you have
Save 6 months cash spending in the bank
Contribute to your workplace pension
Open an ISA and but a multiasset fund like VLS80 etc and keep doing that for 10, 20 or 30 years.

Not all the people are the same and want to blindly buy a particular stock or fund in particular sector at any price at any time just because they have money to invest. Some people understand the stock market well, regulalry read the stock market news, understand psychology in the stock market. They have various statistical tools to analyse the price/volume action, know how to do the technical analysis and read the chart.

Also there is no pressure to do it In perfection as you just need 50%+ right to get the better result then another alternative, e.g blindly buy at any price at any time just because you have spare money to invest. But certainly, it is not recommendable if you do not want to learn this sort of thing.

It is less effective in the in the multi diversified fund as the price movement and volatility is not that significant to make it worthy the effort in term of Risk/Rewards. But is effective for high growth stocks, penny stock, small cap and low float.

Also buy the dip does not mean you need to buy full force it in one go as you should combine it with drip-feeding, dollar cost averaging down (DCA). You have the price level where you’re re willing to buy based on your own thesis. Even they are making the dip you do not blindly buying the dip if it is still above your target price level. Also if your initital thesis you made when you bough a stock has changed fundamentally then instead of buying the dip you shoukd consider selling it.

eskbanker

adindas said:

bostonerimus said:

I have no experience whatsoever with such apps and never will. If you "buy on a dip" how do you know it's a dip and relative to what other phase of the market, when do you sell? Market timing is to be avoided. You are making a number of errors right from the start.

Pay off any high interest debt you have
Save 6 months cash spending in the bank
Contribute to your workplace pension
Open an ISA and but a multiasset fund like VLS80 etc and keep doing that for 10, 20 or 30 years.

Not all the people are the same and want to blindly buy a particular stock or fund in particular sector at any price at any time just because they have money to invest. Some people understand the stock market well, regulalry read the stock market news, understand psychology in the stock market. They have various statistical tools to analyse the price/volume action, know how to do the technical analysis and read the chart.

But OP (the 'you' to whom @bostonerimus was addressing the comments) is clearly not one of those people:

JakeHyde said:

I'd love to 'Buy the Dip', but I've never done anything like buying stock before.

maxsteam

GoLightyear.com didn't have their FCA registration saying the same as their website last time I looked and they haven't enough funds to buy a better website address. There's a bloke in your local pub who can offer a better deal.