The Verdict
Average Success Rate
Prosper 5-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
Prosper is one of the UK's newest investing platforms, having only launched in 2021. It offers access to funds through a a choice of either a general investment account,
Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAstocks and shares ISA
, and
A self-invested personal pension (SIPP) is a type of private pension that allows you to control the specific investments that make up your pension fundSIPP
. It also offers a range of cash savings options.
The range of funds on offer is much better than many other providers in the 'simple investing solution' space, with funds from major asset managers such as Vanguard, Blackrock and Fidelity.
You're not getting the thousands of funds you'll find at one of the big players like interactive investor, Hargreaves Lansdown or Saxo, but if you're just starting out, you could find that big-player level of choice overwhelming. At the other end of the scale, are apps like Beanstalk, which offers a choice of just two funds. Prosper's selection of 150 funds will suit investors who still want simplicity but don't want to sacrifice the chance to pick a more personalised portfolio.
Prosper is also promising to add [sc_Private markets] to its menu soon. While that option is initially expected to only be open to high-net-worth investors, they aim to eventually make it available to all. That would give Prosper a unique selling point for those with the budget and interest in markets that are not typically traded on public exchanges such as venture capital.
On price, Prosper really shines. With no annual fees and no trading fees for buying and selling your funds, it's effectively free to use Prosper unless you opt for the 'Standard fund' (Prosper's name for their ready-made portfolio option). That comes with a very reasonable 0.17% annual fee, which you're paying for the convenience of having the selection and management of your funds taken care of for you by professionals. For those who are less confident choosing their own investments, this is a good option. However, there's only one ready-made portfolio here, and it has a risk rating of 5/7 so make sure you're comfortable with that level of risk before you commit.
On price for their SIPP, you will not find a better offer anywhere. This is a zero-fee SIPP. That's not something I've come across anywhere else. And they even accept employer contributions, making this a really good option for those who are able to set up their own workplace pension arrangements. (It's not an auto-enrolment scheme, just for those able to ask employers for a contribution into their own set-up.)
Prosper isn't the only brand trying to make investing more accessible through a simplified platform and low, low pricing. It's doing it better than most competitors, however. Well worth a look if you want a no-fee ISA, SIPP or general investment account.
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Pros
- No platform fees
- No dealing fees
- 30 funds are free of ongoing fund charge making it totally free to invest
- A good choice of funds (150+)
- ISA, SIPP and general investment account options
- Low-cost ready-made portfolio has excellent historical returns
- Start investing from £1
- 'Boosted' excellent rates of interest on bank savings accounts
- SIPP accepts employer contributions and has zero fees
- Excellent human customer service
Cons
- Can only invest in funds (no individual stocks)
- No interest paid on uninvested cash
Ready-made Portfolio
Average Success Rate
Prosper 5-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
The ready-made portfolio offered by Prosper is BlackRock’s MyMap 6, which has achieved an impressive 52.4% rate of return over the past five years, placing it way over the industry average.
Note: Past performance is not indicative of future performance.
Fees
This is as good as pricing gets.
With no annual fees and trading costs for buying and selling your funds, it's effectively free to use Prosper unless you opt for the 'Standard fund' - a ready-made portfolio option. That comes with a very reasonable 0.17% annual fee, but with this option, the selection and management of your funds is taken care of for you by the professionals at Prosper.
You will need to pay ongoing fund fees, as you would with any provider, and these vary from fund to fund and are detailed in the fund key information documents provided by Prosper. From what I can see, ongoing fund charges vary from 0.06% to 2.30% with plenty of options in between. These fees go directly to the fund provider (not Prosper) and are taken from your fund balance so you don't need to stump up the cash to pay for them. There are also 30 funds, called 'qualifying funds' which are free of ongoing charges (you'll pay them, but Prosper refunds the fee back to you). If you invest in those funds, you will be paying nothing at all to invest which is outstanding and a real selling point of using this platform.
To my amazement, even the SIPP has zero fees.
The one potential downside, (but there has to be something on a free account) is that Prosper doesn't pay interest on uninvested cash.
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Pros
- 0.17% - Low ready-made fund management charge
- No platform fees
- No dealing fees
- 30 funds are free of ongoing fund charge making it totally free to invest
- No fees for opening a savings account
- Start investing from £1
Cons
- No interest paid on uninvested cash
Account Opening
Account opening is done through the app and was a very straightforward and smooth process. It took me less than 5 minutes. Identity verification takes place digitally so you'll need your National Insurance number and either a passport or driving licence.
Pros
- Fully digital application possible
- Took less than 5 minutes
- Immediate digital identity verification through a secure provider
- Smooth process
Research
I really like the way Prosper presents information on funds. It is clear, easy to understand and the bits you will be really interested in (the ongoing charge for investing in that particular fund, its risk rating, and 5-year returns) are placed front and centre as you undertake research.
There's a fund screener and more detailed information, including on the composition of the fund, when you select a fund in the app.
Pros
- Stock screener
- View performance charts
- Key information on risk ratings of funds, past performance and ongoing fund charges easy to view
Safety
Prosper is authorised and regulated by the Financial Conduct Authority (FCA).
The Financial Services Compensation Scheme provides Prosper clients assurance of compensation of up to £85,000 for eligible investments in the event that Prosper ceases trading and is unable to return assets. In line with the FCA's client money rules, all client money is also segregated from the firm's own funds so that it cannot be claimed by creditors if the company went into administration.
Pros
- Regulated by the FCA
- Biometric authentication available to secure access to the app
- FSCS protection up to £85,000
- Use of a custodian to keep clients' money segregated from Prosper's own and protected from creditors
Education
Prosper does not offer any educational materials on their website or app to help new investors get to grips with investing. With so much help freely available elsewhere, however, Prosper may have simply decided that they don't need to repeat information their clients are perfectly capable of seeking out for themselves, and chosen to invest their time into other areas of their service. Or they might just not have got around to adding it yet.
Customer Service
Prosper's UK-based customer support team is available by telephone and email from Monday to Friday, 9am - 5:30pm. That's quite unusual for a newer, low-cost platform where the trade-off for those low fees is often hard-to-reach customer service and in-app chat as an alternative for real human contact. Not so with Prosper, who are happy to publish their phone number and encourage you to make contact.
I called Prosper and my call was immediately answered by a receptionist who told me that unfortunately all advisers were currently busy, so took my name and number to pass on to an adviser when free. A short while later, I received a call back and my questions were answered by a very helpful human. All very olden times, and all thoroughly satisfying.
Pros
- Attentive customer service from humans rather than robots
- Telephone support is excellent
- Email enquiries answered quickly
- FAQs on the website
Cons
- No weekend support
- No chatbot (although you may see this as a positive)
More info 
Fact Checked 
Disclosure 
Share 
Prosper 5-Year Avg 
Industry avg. 
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Verdict 
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