Lightyear.com Review

Based on looking at the website, Lightyear.com presents itself as an investment platform offering access to stocks, funds, and interest-earning opportunities.

While the platform emphasizes commission-free access to ETFs and regulated status by entities like EFSA and FCA, a critical review from an ethical standpoint, particularly concerning Islamic principles, reveals significant issues.

The core offering of earning interest Riba on savings and uninvested cash, along with trading in conventional stocks and bonds that may not align with Sharia principles, makes Lightyear.com impermissible for Muslims.

The promise of “putting your money to work in our easy access, high yield Savings” directly contradicts the prohibition of Riba in Islam, which forbids any predetermined interest or gain on borrowed money or deposits, as it is considered exploitative and unjust.

Overall Review Summary:

Website Focus: Investment platform for stocks, funds, and interest-bearing savings.
Key Offerings: Commission-free ETFs, access to US, EU, UK, and Baltic stocks, money market funds, and interest APY on savings and uninvested cash.
Regulatory Status: Regulated by EFSA EU and FCA UK, with US securities SIPC protected via partner Alpaca.
Ethical Review Islamic Perspective: Highly problematic due to the explicit promotion and facilitation of interest Riba on savings and uninvested cash, and involvement in conventional stock and bond markets which may include haram industries.
Recommendation for Muslims: Not recommended. The platform’s fundamental financial model includes interest-based transactions, which are strictly forbidden in Islam.

The website prominently features “Earn interest” and “2.24% APY interest” as a core benefit, stating, “Put your money to work in our easy access, high yield Savings.” This direct engagement with and promotion of interest Riba is a fundamental conflict with Islamic financial ethics.

Riba is explicitly prohibited in the Quran and Sunnah, as it is seen as a system that perpetuates economic injustice and fosters greed rather than equitable wealth distribution.

Furthermore, while the platform offers various stocks and funds, there is no indication of Sharia compliance screening for these investments.

This means a Muslim investor using Lightyear.com could inadvertently invest in companies involved in impermissible activities such as alcohol, gambling, conventional banking, or entertainment.

Therefore, despite its regulatory assurances and user-friendly interface, Lightyear.com is not a suitable platform for a Muslim seeking to adhere to Islamic financial principles.

Best Alternatives for Ethical Financial Practices Non-Edible Products:

When seeking ethical alternatives that align with Islamic principles, the focus shifts away from interest-based investments and towards Sharia-compliant wealth management, real asset investments, and ethical trading platforms.

The goal is to avoid Riba, Gharar excessive uncertainty, and Maysir gambling, and to invest in permissible sectors.

Since the original product is a financial platform, direct “product” alternatives in the non-edible category are challenging to list like physical goods.

Instead, the focus will be on conceptual alternatives for ethical financial management, often facilitated by specific platforms or methods that uphold Islamic finance principles.

Sharia-Compliant Investment Platforms:
- Product Name: Wahed Invest
- Key Features: Offers diversified portfolios Equities, Sukuk, Gold, Real Estate screened for Sharia compliance. Automated investment, low minimums. Focus on ethical, halal investments.
- Average Price: Management fees typically range from 0.49% to 0.99% annually, depending on the portfolio size.
- Pros: Fully Sharia-compliant, easy-to-use platform, diversified portfolios, low barriers to entry.
- Cons: Limited investment options compared to conventional platforms, performance tied to Sharia-compliant market segments.
- Wahed Invest
Islamic FinTech Apps for Ethical Savings:
- Product Name: Zoya App
- Key Features: A stock screening and halal investing app that helps users identify Sharia-compliant stocks. It does not offer direct investment but empowers users to make informed choices on other platforms.
- Average Price: Free basic version, premium subscription available for advanced features typically around $10-$15/month.
- Pros: Excellent for researching individual stocks, provides detailed Sharia compliance reports, educational resources.
- Cons: Not an investment platform itself. requires integration with a brokerage.
- Zoya App
Gold and Silver Physical Investment as wealth preservation:
- Product Name: Physical Gold Bullion / Physical Silver Bullion
- Key Features: Tangible assets, store of value, hedge against inflation. Permissible in Islam as a form of wealth preservation and exchange.
- Average Price: Market price of gold/silver plus a premium.
- Pros: Halal form of savings, tangible asset, historical store of value.
- Cons: Storage costs, liquidity can be an issue for large amounts, price volatility.
Real Estate Investment Direct Ownership or Sharia-Compliant Funds:
- Product Name: Crowdfunding Platforms for Sharia-Compliant Real Estate e.g., specific platforms focusing on ethical real estate
- Key Features: Investing in physical assets that generate rental income or capital appreciation without interest. Can be through direct ownership or Sharia-compliant REITs/crowdfunding.
- Average Price: Varies greatly based on investment size, can range from a few thousand to millions.
- Pros: Tangible asset, potential for steady income and capital growth, generally considered permissible if structured correctly.
- Cons: Illiquid, high entry barrier for direct ownership, requires thorough due diligence.
Ethical Microfinance or Peer-to-Peer Lending Non-Interest:
- Product Name: Kiva Focus on Qard Hasan or profit-sharing models
- Key Features: Facilitating loans without interest Qard Hasan or through profit-sharing arrangements Musharakah, Mudarabah. Supports entrepreneurs and communities.
- Average Price: No direct cost to the lender, but funds are tied up for the loan term.
- Pros: Socially impactful, adheres to Islamic principles of helping others without interest.
- Cons: Not a direct investment for personal gain, risk of default, longer repayment periods.
Sharia-Compliant ETFs Exchange Traded Funds:
- Product Name: Islamic ETFs e.g., iShares MSCI World Islamic UCITS ETF
- Key Features: Funds that track an index of Sharia-compliant companies globally. Diversified and liquid.
- Average Price: Standard brokerage fees for trading ETFs, plus a low expense ratio e.g., 0.50% annually.
- Pros: Diversification, liquidity, passively managed, Sharia-screened.
- Cons: Still subject to market fluctuations, Sharia compliance depends on the underlying index methodology.
Ethical and Sustainable Unit Trusts/Mutual Funds Sharia-Screened:
- Product Name: Islamic Mutual Funds e.g., Amana Funds
- Key Features: Professionally managed funds that invest in a diversified portfolio of Sharia-compliant stocks, often with a focus on ethical and socially responsible investing SRI criteria.
- Average Price: Management fees typically range from 0.50% to 1.50% annually, plus potential load fees.
- Pros: Expert management, diversification, aligns with ethical principles.
- Cons: Higher fees than ETFs, performance can vary, due diligence required to ensure true Sharia compliance.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Lightyear.com Review & First Look

When you first land on Lightyear.com, the immediate impression is one of a sleek, modern investment platform.

It promises an “edge” in investing, with direct access to stocks, funds, and a prominent display of interest rates for savings.

The clean interface and clear calls to action, like “Get started,” aim to draw in users quickly.

They position themselves as a straightforward solution for those looking to manage and grow their money.

However, a deeper dive beyond the initial façade reveals structural elements that are fundamentally at odds with Islamic financial principles.

The Immediate Problem: Interest Riba

The very first value proposition highlighted on Lightyear.com is the ability to “Earn 2.24% APY interest” on savings. This isn’t buried in fine print.

It’s front and center, a core feature they want to emphasize.

For anyone adhering to Islamic finance, this is a red flag big enough to be seen from orbit.

Direct Conflict: The explicit offering of interest Riba is prohibited in Islam. Riba is considered exploitative and unjust, creating an imbalance in economic transactions. The Quran and Sunnah forbid it unequivocally.
Prominent Feature: The website actively promotes this feature, stating, “Put your money to work in our easy access, high yield Savings.” This indicates that interest-earning is not a side option but a central component of their service.
Impact on Legitimacy Islamic View: From an Islamic perspective, any platform built on or heavily featuring Riba automatically falls into the impermissible category, regardless of its other functionalities or regulatory compliance.

Regulatory Compliance and Its Limitations

Lightyear.com boasts regulation by the Estonian Financial Supervision Authority EFSA in the EU and the Financial Conduct Authority FCA in the UK.

They also mention SIPC protection for US securities through their partner, Alpaca. Porchpirates.us Review

What it means: This indicates they operate within established financial frameworks, offering some level of investor protection against platform failure not market loss.
What it doesn’t mean for Muslims: While regulatory compliance is crucial for conventional finance, it does not equate to Sharia compliance. A regulated platform can still engage in activities forbidden in Islam, such as interest-based transactions or investments in haram industries.
Key Regulatory Bodies Mentioned:
- EFSA Estonian Financial Supervision Authority: 4.1-1/31
- FCA Financial Conduct Authority UK: FRN 987226
- SIPC Securities Investor Protection Corporation via Alpaca: Protects securities up to $500,000 in case the brokerage firm fails.
- Estonian Investor Protection Sectoral Fund: Insures assets up to €20,000 for EU investors.

These are important for a conventional investor, but they don’t screen for ethical investments according to Islamic law.

Initial Impressions of Service Offerings

Beyond the interest, Lightyear.com promotes:

Commission-free access to ETFs: Zero execution fees, zero custody fees, no FX fees for home currency investments.
Diverse Asset Types: US stocks, EU stocks, UK stocks, ETFs, Money Market Funds, Baltic stocks, and Baltic bonds.
Specific Companies Highlighted: NVIDIA, Microsoft, Apple, Amazon, Alphabet, Meta US. SAP, ASML, Hermes, LVMH, L’Oreal, Shell, Siemens EU. AstraZeneca, HSBC, Shell, Unilever, Rolls-Royce, British American Tobacco, Rio Tinto UK.

The sheer breadth of conventional stocks and bonds offered, without any mention of Sharia-screening, implies that many of these investments would likely be impermissible for a Muslim investor due to the nature of the companies’ business or their financial structures e.g., high debt ratios.

Lightyear.com Features and their inherent issues for ethical investing

Lightyear.com is designed to be a comprehensive investment platform, but its features, when viewed through an Islamic ethical lens, present significant challenges.

The convenience and breadth of options it offers come at the cost of Sharia compliance.

Interest-Bearing Savings and Money Market Funds

The platform proudly advertises “high yield Savings” with varying APY rates for EUR, GBP, and USD, managed by BlackRock.

It also offers interest on uninvested cash and highlights Money Market Funds MMFs as low-risk, highly liquid, and AAA-rated investments that pay interest.

Riba on Savings: The primary issue. Any fixed or variable rate of return on cash deposits, independent of actual profit-sharing or underlying permissible asset growth, falls under Riba. This is a clear violation of Islamic finance principles.
Money Market Funds: While often seen as low-risk, conventional MMFs typically invest in short-term debt instruments like commercial paper, certificates of deposit, and government bonds, all of which are interest-bearing. Therefore, investing in these funds through Lightyear.com would involve engaging with Riba.
Example Rates:
- EUR Savings: 2.24% APY
- GBP Savings: 4.39% APY
- USD Savings: 4.33% APY
- Uninvested Cash EUR: 0.75% APY
- Uninvested Cash GBP: 2.50% APY
- Uninvested Cash USD: 3.00% APY

These rates, no matter how attractive from a conventional perspective, are impermissible from an Islamic one.

Broad Access to Global Stocks and ETFs

Lightyear.com provides access to a vast universe of stocks from the US NYSE, Nasdaq, Europe Euronext, Deutsche Börse, and the UK London Stock Exchange, along with a diverse range of ETFs. Hostija.com Review

Lack of Sharia Screening: The critical missing piece is any mechanism for Sharia compliance screening. A Muslim investor needs to ensure that the companies they invest in do not derive substantial income from impermissible activities e.g., alcohol, gambling, conventional banking, pornography, weapons. They also need to check financial ratios, such as debt-to-equity, to ensure they meet Islamic guidelines. Lightyear.com offers no such filters or assurances.
Examples of Potentially Impermissible Stocks:
- HSBC Holdings Banks: Conventional banking is interest-based, making it impermissible.
- British American Tobacco Tobacco: Investing in companies involved in harmful products like tobacco is generally considered impermissible.
- Companies with High Debt: Many conventional companies carry significant interest-bearing debt, which could make them non-compliant depending on the Sharia screening methodology.
ETFs: While Lightyear.com promotes “Diverse ETFs from some of the world’s largest fund managers,” these ETFs typically track conventional indices that include a mix of permissible and impermissible companies, making them unsuitable without prior Sharia screening.

Baltic Stocks and Bonds

The platform specifically highlights access to stocks and bonds from Estonian, Latvian, and Lithuanian markets.

Bonds and Riba: Bonds are inherently interest-bearing financial instruments. Investing in bonds, whether corporate or government, involves earning or paying interest, which is Riba. This makes all conventional bonds offered on Lightyear.com impermissible.
Examples of Bonds Offered:
- AST 0.5% 5.25Y green bond
- AUGA group 6% 5Y green bond
- Admiral Markets 8% subord. bond
- Admirals Group 8.00% subord. bond
- Amber Beverage Group Holding 4Y bond
- Bigbank 6.50% subord. bond
- Bigbank 7.00% subord. bond

Even “green bonds” or “subordinated bonds” typically carry an interest coupon, rendering them impermissible.

User Experience and Accessibility General Perspective

From a purely operational standpoint, Lightyear.com seems to focus on ease of use.

Commission-Free Trading: Attracts users looking to minimize costs.
Easy Access, High Yield Savings: Pitched as a convenient way to earn returns.
Quick Withdrawals: Claims funds arrive the same or next day for GBP, EUR, HUF, and within two days for USD.
Customer Funds Protection: Segregation of customer funds from company assets, government insurance schemes SIPC, Estonian Investor Protection Sectoral Fund.

While these features might appeal to a conventional investor, they do not mitigate the underlying ethical impermissibility for a Muslim user.

The convenience of a forbidden transaction does not make it permissible.

Lightyear.com Pros & Cons Focusing on the Impermissible Aspects

Given Lightyear.com’s fundamental conflict with Islamic financial principles, discussing “pros” in a conventional sense becomes misleading for an ethical review.

Instead, this section will highlight aspects that, from a conventional viewpoint, might be seen as advantageous but are ultimately outweighed by their impermissibility for a Muslim investor.

The “cons” will directly address these ethical conflicts.

Conventional “Pros” Caveated by Impermissibility

Broad Investment Universe: The platform offers access to a wide range of global stocks US, EU, UK, Baltics, ETFs, and money market funds. This breadth could be seen as an advantage for a conventional investor seeking diversification across markets and asset classes.
“Commission-Free” Trading: The advertised zero execution fees, zero custody fees, and no FX fees for home currency investments appear attractive, potentially reducing the cost of trading for frequent investors.
Regulated and Insured: The fact that Lightyear.com is regulated by reputable bodies like the FCA and EFSA, and offers investor protection schemes SIPC, Estonian Investor Protection Sectoral Fund, suggests a degree of institutional legitimacy and security against brokerage failure for conventional purposes.
Interest-Earning Potential for Conventional Investors: The prominent 2.24% APY on savings and interest on uninvested cash up to 4.39% APY for GBP is a significant draw for those seeking passive income from their cash holdings in a conventional framework.
User-Friendly Interface: The website appears clean, modern, and easy to navigate, suggesting a focus on a smooth user experience for managing investments.
Accessibility: Low minimums “From 1€ to infinity” make it accessible to a wide range of investors, from beginners to experienced traders.

Significant Cons From an Islamic Ethical Perspective

Riba Interest is Central: This is the most significant and non-negotiable drawback. Lightyear.com explicitly promotes and facilitates interest-earning on both savings and uninvested cash, and through Money Market Funds and conventional bonds. Riba is strictly forbidden in Islam, making the platform’s core offering impermissible. No amount of regulatory compliance or convenience can override this fundamental prohibition.
Lack of Sharia Compliance Screening: The platform offers a vast array of stocks and ETFs without any built-in mechanism to filter out companies involved in impermissible activities e.g., alcohol, tobacco, gambling, conventional finance, adult entertainment, pork products or those with excessive interest-bearing debt. A Muslim investor would have to manually screen every single investment, which is impractical and goes against the very spirit of a “ready-to-use” platform.
Involvement in Impermissible Bonds: The explicit offering of Baltic bonds directly involves interest-based debt instruments, which are unequivocally forbidden in Islamic finance. Bonds, by their nature, are Riba-generating assets.
Conventional Financial Products: The entire construct of the platform is rooted in conventional finance, which often involves elements like interest, derivatives, speculative trading that are not aligned with Islamic principles of ethical and responsible investing.
Ethical Compromise: Using such a platform forces a Muslim to compromise on their religious principles, even if they try to cherry-pick specific stocks. The underlying infrastructure and many of the facilitated transactions are problematic.
Risk of Unintentional Haram Income: Even if one tries to avoid interest-earning savings, the nature of stock and ETF offerings means there’s a high risk of unintentionally investing in non-compliant companies or sectors, leading to impermissible income.

In summary, while Lightyear.com might appeal to a conventional investor looking for low-cost, broad access to markets and interest on cash, it is fundamentally incompatible with Islamic financial ethics due to its pervasive engagement with Riba and lack of Sharia-compliant investment options.

Lightyear.com Alternatives

For those seeking to invest and manage their finances ethically, in accordance with Islamic principles, Lightyear.com is unsuitable. Cmginternationalmoving.com Review

The alternatives focus on Sharia-compliant investment vehicles and platforms that avoid interest Riba and impermissible industries.

The goal is to grow wealth through legitimate means, prioritizing ethical conduct and social responsibility.

Sharia-Compliant Investment Platforms

These platforms are specifically designed to adhere to Islamic finance principles.

Wahed Invest: A global pioneer in Sharia-compliant investing.
- Key Features: Automated halal investment portfolios across various asset classes global equities, sukuk, gold, real estate. All investments are screened by an independent Sharia Supervisory Board.
- Why it’s better: Directly addresses the Sharia compliance issue by vetting all underlying assets.
Amanah Invest: Focuses on ethical investing, including halal options.
- Key Features: Offers Sharia-compliant funds and investment strategies. Emphasis on socially responsible investing SRI alongside Islamic principles.
- Why it’s better: Provides screened investment options, aligning with ethical guidelines.

Islamic ETFs and Mutual Funds

These are funds that specifically invest in companies deemed Sharia-compliant.

iShares MSCI World Islamic UCITS ETF: Tracks an index of Sharia-compliant companies globally.
- Key Features: Diversified exposure to global equity markets, with companies screened for adherence to Islamic principles e.g., no alcohol, tobacco, gambling, conventional finance.
- Why it’s better: Allows for diversification while adhering to Sharia. Available through various conventional brokerages that do not engage in interest on cash balances.
Amana Funds: A family of mutual funds designed for Muslim investors in the US.
- Key Features: Offers several Sharia-compliant mutual funds e.g., Amana Growth Fund, Amana Income Fund that invest in companies meeting strict Islamic criteria.
- Why it’s better: Professionally managed funds with robust Sharia screening processes.

Direct Investment in Halal Businesses or Assets

For those with higher capital or a desire for more direct involvement.

Direct Equity in Sharia-Compliant Companies: Investing directly in the stock of companies whose primary business activities and financial structure are permissible. This requires thorough personal due diligence or using Sharia-screening tools.
- Key Features: Full ownership of shares in ethical businesses.
- Why it’s better: Provides complete control and assurance of Sharia compliance, if due diligence is done correctly.
Real Estate Direct Ownership or Sharia-Compliant REITs/Crowdfunding: Investing in physical properties to generate rental income or capital appreciation.
- Key Features: Tangible asset, potential for stable income and capital growth, permissible if structured correctly without interest-based financing.
- Why it’s better: Real assets are a fundamental form of wealth in Islam.

Physical Gold and Silver

As a store of wealth and hedge against inflation, permissible in Islam.

Physical Gold Bullion / Physical Silver Bullion: Buying actual gold and silver coins or bars.
- Key Features: Tangible assets, historically store value, considered permissible wealth preservation.
- Why it’s better: A universally accepted form of halal wealth, avoids interest.

Ethical Microfinance or Qard Hasan Interest-Free Loans

While not direct investment for personal profit, these are ethical avenues for capital.

Kiva: A platform that facilitates microloans to entrepreneurs in developing countries, often structured without interest Qard Hasan.
- Key Features: Supports poverty alleviation and economic empowerment through interest-free micro-lending.
- Why it’s better: Aligns with the Islamic principle of helping those in need without exploiting them through interest.

These alternatives provide pathways for individuals to manage their finances and invest their wealth in ways that are both financially prudent and ethically sound according to Islamic principles, avoiding the fundamental impermissibility found in platforms like Lightyear.com.

How to Avoid Lightyear.com and Similar Impermissible Platforms

For those committed to Islamic financial principles, the best approach to Lightyear.com and similar platforms is complete avoidance.

Engaging with services that build their core business around interest Riba or offer unchecked conventional investments poses an inherent ethical conflict. Pipsticks.com Review

The focus should always be on proactive measures to identify and opt for Sharia-compliant alternatives.

Understanding the Red Flags

Before even considering a platform, know what to look for and what to avoid.

Interest APY, % returns on cash/savings: Any mention of “interest,” “APY,” “yield” on cash deposits, or fixed returns on non-profit-sharing schemes is a clear red flag. Lightyear.com prominently features “Earn interest” and “2.24% APY interest” on its homepage.
Bonds: Conventional bonds are essentially interest-bearing loans. If a platform offers “bonds” as an investment option without specifying them as Sharia-compliant Sukuk Islamic bonds, assume they are impermissible. Lightyear.com lists “Baltic bonds.”
Unscreened Stocks/ETFs: A platform that offers a vast universe of global stocks and ETFs without any mention of Sharia-compliance screening or a Sharia Supervisory Board is highly likely to include impermissible investments. Companies involved in alcohol, gambling, conventional banking, pornography, and those with excessive interest-bearing debt are common in conventional indices.
“High Yield” Savings Accounts: While tempting, these accounts generate returns from interest, making them impermissible.

Proactive Research and Due Diligence

Don’t just rely on flashy marketing. Do your homework before signing up.

Check the “About Us” and “Products” sections: Look for explicit mention of “Sharia compliance,” “Islamic finance,” or a “Sharia Supervisory Board.” If these terms are absent, it’s a strong indicator the platform isn’t designed for Islamic investors.
Examine Fee Structures: While Lightyear.com claims “zero execution fees,” investigate how they make money. If a significant portion comes from lending out uninvested cash which would involve interest, it’s problematic.
Read the FAQs and Terms of Service: These documents often contain crucial details about how money is managed and where returns are generated. Lightyear.com’s FAQ clearly states, “Yes! There’s two ways you can earn interest with Lightyear.”
Consult Islamic Finance Scholars: If uncertain, seek advice from knowledgeable Islamic finance scholars or reputable Islamic financial institutions.

Choosing Sharia-Compliant Alternatives

Instead of trying to navigate an impermissible platform, actively seek out alternatives built on Islamic principles.

Specialized Islamic Investment Platforms: Platforms like Wahed Invest are specifically designed to offer Sharia-compliant investment portfolios. They handle the screening process and ensure all underlying assets meet Islamic criteria.
Halal Stock Screeners: Use tools like the Zoya App or Islamicly to screen individual stocks for Sharia compliance before investing through any brokerage. This allows you to build a compliant portfolio even on a conventional platform, provided that platform doesn’t inherently deal in Riba on cash balances.
Takaful Islamic Insurance: For protection needs, opt for Takaful, which operates on principles of mutual cooperation and shared responsibility, avoiding interest and uncertainty.
Halal Loans Murabaha, Musharakah: For financing needs, look for Islamic banks or financial institutions that offer Sharia-compliant financing products, such as Murabaha cost-plus financing or Musharakah partnership financing, rather than interest-based loans.
Direct Asset Investment: Consider investing directly in physical assets like real estate or gold, structured in a Sharia-compliant manner.

Avoiding platforms like Lightyear.com is not just about financial prudence.

It’s about adhering to deeply held ethical and religious convictions.

There are viable, Sharia-compliant alternatives available that allow Muslims to grow their wealth responsibly and ethically.

Lightyear.com Pricing and why it’s still problematic

Lightyear.com positions itself as a cost-effective investment platform, highlighting commission-free access to ETFs and reasonable fees.

While attractive on the surface for a conventional investor, the very mechanisms by which they generate revenue, or the services they offer, can still contain elements problematic for a Muslim.

The Claimed “Reasonable Fees”

Lightyear.com states in its FAQ: “We couldn’t agree more – our fees are very reasonable. Baracuta.com Review

We’re one of the most competitively priced investment platforms on the market and that’s how we like it. Low cost, transparent pricing is in our DNA.

We charge small, but fair, execution fees and take a fee for both foreign exchange and interest payments.”

Zero Execution Fees for ETFs: This means you don’t pay a direct fee to Lightyear.com when you buy or sell ETFs.
Zero Custody Fees: No fees for holding your investments on the platform.
No FX Fees in Home Currency: If you invest in ETFs priced in your account’s home currency EUR, GBP, USD, there are no foreign exchange fees.
Fees for Foreign Exchange FX: When you convert currencies for investing in non-home currency assets, they charge a fee. This is a common and generally permissible fee if it reflects the cost of service and isn’t exploitative.
Fees for Interest Payments: This is a crucial point. Lightyear.com explicitly states they “take a fee for both foreign exchange and interest payments.” This confirms that interest is a core component of their business model, even if they’re charging a fee on it. The existence of interest payments, regardless of associated fees, renders the underlying transaction impermissible.

Revenue Streams and Islamic Compliance

Understanding how an investment platform makes money is critical for Islamic compliance.

Lightyear.com’s revenue model, as gleaned from their homepage, includes:

FX Fees: Generally permissible if representing a service charge.
Execution Fees likely on non-ETF assets or for certain transactions not explicitly stated as zero fee: These are standard brokerage fees and are generally permissible if for a specific service.
Spreads: While not explicitly mentioned in the provided text, many “commission-free” platforms earn revenue through a small difference spread between the buy and sell price of an asset, or by selling order flow. Depending on how these spreads are generated and if they are tied to interest-bearing activities, they could be problematic.
Fees on Interest Payments: This strongly suggests that a portion of their revenue, or a significant part of their offering, is derived from interest. Even if it’s a small percentage of a “profit,” if that profit itself is interest, then it’s impermissible.
Lending out Uninvested Cash: Many conventional brokerages earn interest by lending out customers’ uninvested cash. Lightyear.com explicitly states, “Your uninvested cash will also earn interest,” which confirms they are operating an interest-based system on dormant funds. This is a primary source of Riba for the user.

Why “Low Fees” Don’t Justify Impermissibility

For a Muslim, low fees on an impermissible transaction do not make the transaction permissible.

If the core service involves Riba interest or investments in haram industries, the cost structure becomes irrelevant from an ethical standpoint.

A cheaper way to do something forbidden is still forbidden.

Illustrative Data Lightyear.com’s own stated rates:

Interest on Savings APY:
- EUR: 2.24%
- GBP: 4.39%
- USD: 4.33%
Interest on Uninvested Cash APY:
- EUR: 0.75%
- GBP: 2.50%
- USD: 3.00%

These are the direct financial “gains” offered to the user, which are problematic due to Riba.

The pricing structure is designed to attract users with these interest benefits and low trading fees, but these benefits are exactly what make the platform unsuitable for a Muslim. Bebeamourco.com Review

Lightyear.com vs. Sharia-Compliant Investment Platforms

Comparing Lightyear.com to Sharia-compliant investment platforms is like comparing apples to oranges if your primary criterion is ethical investing according to Islamic principles.

While both aim to facilitate wealth growth, their fundamental operating models and ethical boundaries are vastly different.

Core Differences in Operating Principles

Lightyear.com:

Foundation: Built on conventional finance principles.
Interest Riba: Actively promotes and generates income from interest on savings, uninvested cash, and conventional bonds. This is a core offering.
Investment Screening: No explicit Sharia compliance screening for stocks, ETFs, or funds. Users are exposed to a broad, unvetted market.
Asset Classes: Offers conventional stocks, ETFs, money market funds, and interest-bearing bonds.
Goal: Maximize financial returns within regulatory frameworks, without specific ethical filters beyond general financial regulations.
Target Audience: General investors seeking low-cost access to global markets and interest on cash.

Sharia-Compliant Investment Platforms e.g., Wahed Invest, Islamicly-screened brokerages:

Foundation: Built entirely on Islamic finance principles.
Interest Riba: Strictly avoids all forms of interest-based transactions. Cash holdings are managed to prevent Riba generation or are invested in non-interest-bearing assets.
Investment Screening: All investments undergo rigorous Sharia compliance screening by an independent Sharia Supervisory Board or expert scholars. This ensures companies avoid impermissible activities and financial structures.
Asset Classes: Focus on permissible assets like:
- Equities: Stocks of Sharia-compliant companies.
- Sukuk: Islamic bonds asset-backed or asset-based, avoiding interest.
- Halal REITs: Real estate investment trusts adhering to Sharia.
- Physical Gold/Silver: Direct ownership of precious metals.
Goal: Facilitate wealth growth in an ethical, permissible manner, ensuring all transactions align with Islamic law, alongside financial returns.
Target Audience: Muslim investors and ethical investors who prioritize Sharia compliance and socially responsible investing.

Comparative Table: Lightyear.com vs. Sharia-Compliant Platforms Conceptual

Feature	Lightyear.com	Sharia-Compliant Platforms e.g., Wahed Invest
Ethical Framework	Conventional, profit-driven	Islamic finance principles, ethical wealth growth
Interest Riba	Explicitly offered and promoted APY on savings	Strictly prohibited and avoided
Investment Screening	None for Sharia compliance	Rigorous Sharia compliance screening for all assets
Asset Types	Conventional stocks, ETFs, bonds, money markets	Sharia-compliant equities, Sukuk, halal REITs, gold
Fees	Low fees, but on impermissible services	Transparent fees, only on permissible services/assets
Regulatory Status	FCA, EFSA, SIPC standard financial regulation	Regulated by financial authorities AND Sharia boards
Withdrawal Ease	Claims quick withdrawals 1-2 days	Generally efficient, similar to conventional platforms
Accessibility	Low minimums from 1€	Often low minimums, accessible

Conclusion of Comparison

While Lightyear.com offers regulatory assurances and competitive conventional pricing, its fundamental business model and investment offerings are incompatible with Islamic finance due to its reliance on interest and lack of Sharia-compliant screening.

For a Muslim investor, Sharia-compliant platforms are the only viable and ethically sound choice, as they are built from the ground up to adhere to religious principles, ensuring that wealth is earned and managed in a permissible way.

Choosing Lightyear.com would mean compromising on fundamental Islamic ethical obligations.

Understanding Lightyear.com’s Business Model and Its Islamic Implications

To fully grasp why Lightyear.com is unsuitable from an Islamic perspective, it’s essential to dissect its apparent business model and how it generates revenue and value for its users.

The homepage text provides significant clues, revealing a reliance on mechanisms forbidden in Islam.

How Lightyear.com Generates Revenue Implied from Homepage

Lightyear.com, like many conventional brokerage platforms, likely generates revenue through a combination of methods: Tradingeconomics.com Review

Foreign Exchange FX Fees: They explicitly state, “No FX fees when investing in your home currency… we take a fee for both foreign exchange.” This is a standard and generally permissible revenue stream for a financial service, provided the fee is a service charge and not a hidden interest component.
Execution Fees: While they claim “Zero execution fees” for ETFs, it’s possible they charge small execution fees for other asset types or for certain transaction volumes, or they earn through Payment for Order Flow PFOF as is common in the US market, though not explicitly stated.
Spread Income: Many platforms earn a small spread between the buy and sell price of assets. This is a common practice.
Lending Uninvested Cash Riba: This is a critical point. The website’s promotion of “Earn interest” on both a separate “Savings” balance and “uninvested cash” strongly suggests they take client funds and lend them out or invest them in interest-bearing instruments like Money Market Funds, which they explicitly state are managed by BlackRock and pay interest. This is a primary source of Riba for the user and likely for the platform.
- Direct Statement: “Your uninvested cash will also earn interest — 0.75% on EUR, 2.50% on GBP and 3.00% on USD APY.”
- Money Market Funds: “Money Market Funds are low risk, highly liquid and AAA-rated investments that pay interest.” This confirms that the underlying mechanism for the “Savings” product is interest-generating.
Fees on Interest Payments: They explicitly state, “We… take a fee for… interest payments.” This means they are monetizing interest-based transactions, which is directly participating in Riba.

Islamic Implications of the Business Model

The presence of interest Riba as a core component of Lightyear.com’s offering and likely revenue generation makes it inherently problematic for a Muslim.

Direct Riba for Users: By depositing money into Lightyear.com’s “Savings” or simply holding “uninvested cash” on the platform, a Muslim user would directly receive interest, which is strictly forbidden Haram in Islam. Engaging in such transactions, even passively, means participating in a forbidden financial system.
- Quranic Prohibition: The Quran states: “O you who have believed, fear Allah and give up what remains of interest, if you should be believers. And if you do not, then be informed of a war from Allah and His Messenger. But if you repent, you may have your principal – you do no wrong, nor are you wronged.” Quran 2:278-279
Facilitation of Riba: The platform is designed to facilitate interest-based transactions. Even if a user somehow tried to avoid the interest-bearing features, the platform itself is built upon and promotes Riba. Supporting such a platform e.g., through fees could be seen as indirectly contributing to a forbidden economic activity.
Unscreened Investments in Impermissible Sectors: While this is a separate issue from Riba, it compounds the problem. The absence of Sharia screening means that funds could be invested in companies involved in industries forbidden by Islam e.g., alcohol, tobacco, conventional banking, gambling, adult entertainment or companies with impermissible financial structures e.g., high interest-bearing debt.
Conventional Bonds: The explicit offering of Baltic bonds is a direct involvement in interest-bearing debt instruments, which are unequivocally forbidden in Islamic finance. Bonds, by their nature, are Riba-generating assets.

Ethical Conclusions

From an Islamic perspective, Lightyear.com’s business model is fundamentally flawed.

It offers and generates income from Riba, which is a major sin in Islam.

The convenience, low fees, or regulatory compliance cannot override this fundamental ethical breach.

A Muslim seeking to manage their wealth in an Islamically permissible way must avoid such platforms entirely and seek out alternatives that are built on the principles of halal investing, profit-sharing, and asset-backed financing.

FAQ

What is Lightyear.com?

Lightyear.com is an online investment platform that allows users to invest in stocks, ETFs, and earn interest on their savings and uninvested cash.

It positions itself as a low-cost, accessible option for global investing.

Is Lightyear.com regulated?

Yes, Lightyear.com states it is regulated by the Estonian Financial Supervision Authority EFSA in the EU and the Financial Conduct Authority FCA in the UK.

US securities are also covered by SIPC protection through their partner, Alpaca.

Can I earn interest on my money with Lightyear.com?

Yes, Lightyear.com explicitly promotes earning interest APY on a dedicated “Savings” balance and also on uninvested cash held in the account. Movertix.com Review

For example, they mention 2.24% APY on EUR savings and up to 3.00% APY on USD uninvested cash.

Does Lightyear.com charge commission fees?

Lightyear.com states it offers “commission-free access” for buying ETFs, with zero execution fees, zero custody fees, and no FX fees when investing in your home currency.

They do charge fees for foreign exchange and interest payments.

What asset types does Lightyear.com offer?

Lightyear.com offers a variety of asset types including US stocks, EU stocks, UK stocks, ETFs, Money Market Funds, Baltic stocks, and Baltic bonds.

Is Lightyear.com suitable for Muslim investors?

No, Lightyear.com is not suitable for Muslim investors due to its core offerings.

The platform explicitly promotes and facilitates interest Riba on savings and uninvested cash, which is strictly forbidden in Islam.

Additionally, it offers conventional stocks and bonds without Sharia screening, meaning many investments could be impermissible.

What is Riba and why is it prohibited in Islam?

Riba refers to interest or usury, which is any predetermined gain or excess received on borrowed money or deposits.

It is prohibited in Islam because it is considered exploitative, unjust, and conducive to wealth concentration rather than equitable distribution.

Are the bonds offered by Lightyear.com permissible in Islam?

No, the conventional bonds offered by Lightyear.com are generally not permissible in Islam. Thelondonsockexchange.net Review

Bonds are interest-bearing debt instruments, and earning interest Riba from them is forbidden.

Does Lightyear.com screen its investments for Sharia compliance?

Based on the website’s description, there is no indication that Lightyear.com screens its investments for Sharia compliance.

This means investors would be exposed to companies potentially involved in impermissible activities e.g., alcohol, gambling or with high interest-bearing debt.

What are some ethical alternatives to Lightyear.com for Muslim investors?

Ethical alternatives include Sharia-compliant investment platforms like Wahed Invest, Islamic ETFs e.g., iShares MSCI World Islamic UCITS ETF, direct investment in Sharia-compliant stocks or real estate, and physical gold and silver.

How does Lightyear.com protect customer funds?

Lightyear.com states that customer funds are held separately from the company’s own assets in authorized banks and BlackRock money market funds.

They also mention government insurance schemes like SIPC protection for US securities up to $500,000 and the Estonian Investor Protection Sectoral Fund up to €20,000 for EU investors.

Is Lightyear.com a bank?

No, Lightyear.com states it is not a bank but an investment platform.

They clarify that while they are regulated by similar authorities as banks, the protection schemes differ slightly for investment platforms.

How does Lightyear.com make money if it offers commission-free ETFs?

Lightyear.com likely generates revenue from foreign exchange FX fees, spreads on trades, and by taking a fee on interest payments.

They also earn revenue from lending out uninvested customer cash. Walrusaudio.com Review

Can I withdraw my money easily from Lightyear.com?

Lightyear.com claims that withdrawals are easy, with funds typically arriving on the same or next day for GBP, EUR, and HUF, and within two days for USD, depending on the payout method.

What kind of interest rates does Lightyear.com offer on uninvested cash?

Lightyear.com offers varying interest rates APY on uninvested cash: 0.75% on EUR, 2.50% on GBP, and 3.00% on USD.

These rates are considered Riba and are impermissible in Islam.

How does Lightyear.com’s “Savings” product work?

The “Savings” product on Lightyear.com invests into BlackRock’s money market funds and offers interest in three currencies.

These funds are generally interest-bearing and thus impermissible from an Islamic perspective.

Are there any Sharia-compliant platforms that offer access to global stocks like Lightyear.com?

Yes, some Sharia-compliant platforms or brokerages provide access to global stocks that have been screened for Sharia compliance.

Tools like Zoya App or Islamicly can also help users identify permissible stocks on conventional brokerages.

What is the “edge” that Lightyear.com claims to offer?

Lightyear.com claims its “edge” comes from saving on fees and paying users yield interest, aiming to maximize the money users get from their investments through competitive pricing and interest-earning opportunities.

Does Lightyear.com offer a free trial or minimums for investing?

The website states “No minimums, No maximums.

From 1€ to infinity,” indicating a low entry barrier for getting started. Hostliger.com Review

It does not explicitly mention a “free trial” for its investment services but rather a “Get started” option for account creation.

Why is investing in “Money Market Funds” on Lightyear.com problematic for Muslims?

Money Market Funds typically invest in short-term, interest-bearing debt instruments such as commercial paper, certificates of deposit, and government bills.

Since these instruments generate Riba, investing in them through Lightyear.com’s Money Market Funds is impermissible for Muslims.