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, Akoni and Griffin Bank 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 over 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). It also now offers a Flexible Cash ISA, allowing you to earn tax-free interest on your savings. At present, Prosper does not offer a Junior ISA or Lifetime ISA.
The platform also offers savings a savings hub with access to over 50 savings accounts. 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.
Does Prosper offer financial guidance?
Yes. Prosper provides a "pay-as-you-go" financial guidance service through its partner, Horizon Financial Planning. It is designed for those who want professional help without committing to ongoing percentage-based fees.
Members can book a free initial 30-minute consultation. Ongoing sessions are charged at a flat rate of £200 per hour (plus VAT). The guidance covers areas such as retirement planning, inheritance tax, and mortgages, but it stops short of providing regulated personal recommendations on specific funds
What can you invest in with Prosper?
Prosper offers a range of investment options, including more than 200 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 over 30 different "free" funds available, including global bond funds, UK bond funds, US bond funds, UK equity funds, and European equity funds. Examples include:
- Fidelity World Index Fund - Accumulation
- Vanguard FTSE 100 Index Fund - Accumulation
- Vanguard FTSE UK All Share Fund
- iShares S&P 500 ETF - Accumulation
- HSBC European Index Fund
Prosper's Standard Fund
Prosper's standard fund could be a good option for those who are unsure which fund is right for them. The Standard Fund is a ready-made fund designed for long-term investors. 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.
Private Markets
Prosper offers Private Market investments to high net worth individuals or professional investors who are willing to self-certify via the website. Private Market investments are considered long term and high risk and are not appropriate for investors who are not comfortable with the fact that they may lose all of the money the invest. That said, these types of investments come with the potential for high growth and certain tax relief that make them appealing to some investors.
Prosper researches and sources private market investment opportunities within the UK to help those who qualify diversify their portfolio. There is a 1% upfront fee charged for this service on top of the fees charged by the fund manager.
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 over 30 zero-cost index funds on offer by Prosper. These come with third-party charges, which are refunded by Prosper meaning you don't pay any fund fees.
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% |
| Private Market Funds | 1% |
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 up to £85,000 for investments. 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.
In terms of savings, Prosper uses the custodian Bondsmith, with Griffin Bank being responsible for holding your funds in a secure account until they are ready to be processed into your chosen savings product. Since your holding account is held with Griffin Bank Ltd, it is covered by the FSCS insurance for up to £120,000. This means that if Griffin Bank Ltd were to fail, your funds in the holding account would be protected by the FSCS.
Prosper customer reviews
Prosper has a 4.6 out of 5.0 score on Trustpilot, which is based on around 285 reviews. Approximately 84% of reviewers gave Prosper a 5-star rating while 8% 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 £5.99 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. It also offers an ISA and SIPP and it recently announced that a Junior ISA is on its way, however, a launch date has not been confirmed. It charges FX fees ranging between 0.39% and 0.99%, depending on your monthly plan.
Freetrade offers over 6,300 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. T&Cs apply. 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 | £5.99 (Invest up to £100,000)
£14.99 (Invest over £100,000 |
£0 |
| 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 (reductions available on higher tier plans)
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 | 0.99% (reductions available on paid plans) |
| Trustpilot score | 4.6 out of 5.0 | 4.5 out of 5.0 | 4.3 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. The recent addition of private markets will appeal to some investors as well.
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.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
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.
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 30th June 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
