UK-based Prosper is a relative newcomer to the savings and investment space. In this independent review, we take a look at what Prosper has to offer to help you decide whether it's right for your needs. We also look at alternatives including Interactive Investor and Freetrade.
What is Prosper?
Prosper is a savings and investment platform which has been around since late 2021. The goal of the company is to provide savings and investment products that come with "fair, transparent" fees which are also as low as possible. The company was founded by Nick Perett, who previously co-founded Tandem Bank which is one of the leading green banks in the UK.
How does Prosper work?
Prosper's unique selling point is its low, transparent fee structure. It aims to provide a range of attractive passive and active funds as well as savings products for investors and savers alike.
Prosper works with partners such as Bondsmith and Akoni to offer boosted savings rates on various savings products. The platform also does not charge any platform fees or trading fees. In addition, it has around 30 "free" funds where investors are refunded their fund fees.
Prosper is a fairly new platform which is largely app-based. As such, those who wish to use it need to have a smartphone and need to be happy to manage their savings and investments via an app.
Beyond this, the app is fairly straightforward to navigate. You can open an account with Prosper in under 10 minutes by downloading the iOS or Android app and filling out a few personal details. Once Prosper reviews your application, you'll be notified that it's activated and ready to fund.
What products does Prosper offer?
Prosper offers a range of different investment products including a Self-Invested Personal Pension (SIPP), a Stocks and Shares ISA, and a General Investment Account (GIA).
The platform also offers savings accounts such as fixed-term bonds and notice accounts in collaboration with its partners Bondsmith and Akoni. Many of the savings accounts on offer at the moment are boosted by Prosper to offer higher interest rates than they normally would, giving you the opportunity to earn more interest as a result.
What can you invest in with Prosper?
Prosper offers a range of investment options including more than 150 passively managed index tracker funds as well as around 25 actively managed multi-asset investment funds. Ongoing charges for these funds vary and start from 0.05%.
Free funds available through Prosper
The following index tracker investment funds are offered by third parties and normally come with fees, however, the fees are refunded by Prosper if you invest via their platform. This can be quite attractive for investors with larger portfolios as the fees for the funds range between 0.05% to 0.12%.
There are a variety of different "free" funds available including global bond investment funds, UK bond investment funds, US bond investment funds, UK equity investment funds, and European equity investment funds.
- Fidelity World Index Fund - Accumulation
- Fidelity World Index Fund - Income
- iShares Global Aggregate Bond ETF (Hedged) - Income
- Vanguard EUR Corporate Bond ETF - Accumulation
- Vanguard EUR Euro Gov Bond ETF - Accumulation
- iShares £ Ultrashort Bond ETF - Income
- iShares Corporate Bond Index Fund - Accumulation
- iShares Corporate Bond Index Fund - Income
- iShares UK Gilts 0-5yr Bond ETF - Income
- Vanguard FTSE 100 Index Fund - Accumulation
- Vanguard FTSE 100 Index Fund - Income
- Vanguard FTSE 250 ETF - Accumulation
- Vanguard FTSE 250 ETF - Income
- Vanguard FTSE UK All Share Fund - Accumulation
- Vanguard FTSE UK All Share Fund - Income
- Fidelity US Index Fund - Accumulation
- Fidelity US Index Fund - Income
- iShares MSCI USA ESG Enhanced ETF - Income
- iShares S&P 500 ETF - Accumulation
- iShares US Index Fund - Accumulation
- iShares US Index Fund - Income
- Vanguard US Index Fund - Accumulation
- Vanguard US Index Fund - Income
- Vanguard USD Corporate Bond ETF - Income
- Vanguard US Government Bond Fund - Income
- iShares $ Ultrashort Bond ETF - Income
- HSBC European Index Fund - Accumulation
- HSBC European Index Fund - Income
- Fidelity Japan Index Fund - Accumulation
- SPDR S&P 500 UCITS ETF - Accumulation
- SPDR S&P 500 UCITS ETF - Income
Prosper's Standard Fund
Investors who prefer actively managed funds can choose from around 25 options by providers like BlackRock, Fidelity, Vanguard, and HSBC. Prosper's Standard Fund could be a good option for those who are unsure which actively managed fund is right for them.
The Standard Fund is a ready-made fund designed for long-term investors willing to lock their cash away for several years. The fund on offer is BlackRock MyMap 6 and comes with ongoing fund charges of 0.17%. Since its inception in 2019, the BlackRock MyMap 6 fund has grown by 55.27%. It has a Risk and Return rating of 5/7 meaning that a larger proportion of your money will be held in stocks. That said, a higher risk fund typically comes with the potential for higher returns although your capital is at risk.
Does Prosper pay interest on uninvested cash?
Prosper does not currently pay interest on uninvested cash within your investment accounts. If you're interested in earning interest on cash, you might want to take a look at one of Prosper's savings accounts instead.
Prosper fees
Prosper prides itself on its transparent, low-fee structure. In the table below, we outline the fees you can expect to pay if you choose to save and invest with the company. It's worth noting there are currently 30 zero-cost index funds on offer by Prosper. These come with third-party charges which are refunded by Prosper giving you a free fund.
If you select funds outside of the 30 zero-cost index funds, you'll be charged fund manager fees which we've outlined in the table below.
| Fee type | Amount |
| Platform fees | £0 |
| Transaction charges | £0 |
| Cash savings accounts | £0 |
| The Prosper Standard Fund | 0.17% |
| Index and ETF funds | 0.05% to 1.08% |
| Active ETF or mutual funds | 0.10% to 2.16% |
How does Prosper keep its fees low?
Prosper's team say they keep their fees low by using modern scalable technology as opposed to manual processes and inefficient legacy tech which is used by some of their competitors. They also say they keep their profit margins lower than their competitors to ensure their members make more money.
One way the company makes money is by sometimes receiving a share of the interest paid on savings products you take out. However, Prosper points out that the rate you see is the rate you get regardless of whether they take a cut or not.
Is Prosper safe?
Prosper is an FCA-regulated savings and investment platform which offers FSCS protection. This means that your funds are protected up to £85,000.
In addition to this, Prosper protects your money by holding it with an FCA-authorised and regulated UK custodian Seccl Custody Limited). The custodian structure requires that your money is segregated from company assets, which means that if the company goes bust, your money is still safe.
Prosper customer reviews
Prosper has a 4.3 out of 5.0 score on Trustpilot which is based on around 60 reviews. Approximately 81% of reviewers gave Prosper a 5-star rating while 9% gave it a 1-star rating. Reviewers who gave it a 5-star rating were particularly happy with the straightforward nature of the app, the efficient service they received, and the low fees. Those who gave it a 1-star rating, however, were unhappy with the customer service they received, and in particular, the difficulty with speaking to someone on the phone. Some customers also reported technical issues with the app.
Pros and cons of Prosper
Below, we outline some of the pros and cons of Prosper.
Prosper pros
- 30 zero-cost index funds (where fund charges are refunded)
- Boosted savings rates
- Low, transparent fee structure
Prosper cons
- Purely app-based so need a smartphone
- No interest paid on uninvested cash in investment accounts
- No individual shares (must choose from the funds on offer)
How to open an account with Prosper
Opening an account with Prosper is a fairly straightforward process. To get started:
- Download the Prosper app via the App Store or Google Play store
- Fill out your personal details
- Wait to have your application reviewed
- Fund your account
The application process shouldn't take longer than 10 minutes.
Prosper alternatives
If you're not quite sure that Prosper is right for you, you may want to consider alternatives such as Interactive Investor and Freetrade.
Interactive Investor
Like Prosper, Interactive Investor offers a range of products including stocks and shares ISAs, self-invested personal pensions and cash savings accounts. There are also individual shares on offer for those who wish to invest in specific companies. Interactive Investor offers a wider choice of funds and is a well-established company having been around since 1995.
That said, Interactive Investor does charge monthly fees starting from £4.99 and there are trading fees that you need to take into account, particularly if you want to invest in foreign shares.
You can find out more about this provider in our independent Interactive Investor review.
Freetrade
Like Prosper, Freetrade offers commission-free investing. That said, to open an ISA or SIPP, you'll need to pay the monthly subscription fee ranging from between £5.99 and £11.99 per month. There are also FX fees ranging between 0.39% and 0.99% depending on your monthly plan.
Freetrade's higher fees, however, come with access to more than 6,000 European and US stocks and ETFs. You can even choose to invest in fractional shares making it easier to own a piece of major companies. Our readers can receive a free share worth between £10 and £100 when they sign up for a basic Freetrade account* and deposit a minimum of £50 (capital at risk).
You can find out more about this provider in our independent Freetrade review.
Prosper vs Interactive Investor vs Freetrade
| Prosper | Interactive Investor* | Freetrade* | |
| Stocks and Shares ISA | YES | YES | YES |
| Self Invested Personal Pension (SIPP) | YES | YES | YES |
| Cash savings accounts | YES | YES | NO |
| Individual shares | NO | YES | YES |
| Interest on uninvested cash | NO | YES | YES |
| Monthly fees | Not applicable | £4.99 to £11.99 (Stocks and Shares ISA)
£5.99 to £12.99 (SIPP) ISA + SIPP from £9.99 per month |
£0 to £9.99 per month depending on your plan |
| Trading and fund fees | No trading fees
Fund fees range between 0.05% to 2.16% 30 zero-cost index funds |
UK and US trade fees cost £3.99 per trade
Other international shares cost £9.99 per trade |
No trading fees |
| FX fees | Not applicable | Between 0.25% to 1.5% depending on your transaction value | Between 0.39% and 0.99% depending on your plan |
| Trustpilot score | 4.3 out of 5.0 | 4.7 out of 5.0 | 4.2 out of 5.0 |
Should you use Prosper for your savings and investments?
Prosper is a relative newcomer to the savings and investment space but is backed by a highly experienced leadership team with a well-defined mission - to provide low-cost savings and investment products that perform well.
Its boosted savings products are often market-leading in terms of the interest rates on offer, making them a good choice if you want to get the most out of your money. Investing can be cheap with Prosper too, with no platform charges or commission charges. In addition, there are several free funds you can invest in, saving yourself fund charges that can quickly add up.
That said, Prosper isn't as well established as alternatives like Interactive Investor and Freetrade which are more expensive but offer more choice in terms of assets - including the opportunity to invest in individual shares, for example. Ultimately, your decision will likely depend on whether you're happy to invest in the funds on offer by Prosper or whether you're looking for more choice with a more established player.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Interactive Investor, Freetrade.
