Costs really matter when investing, and you might be paying too much.
Investment providers often make fees difficult to understand and hard to find. We’re committed to giving you the knowledge you need to make the best decisions for your financial future.
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What fees can our Founding Members expect?
platform fee
transaction costs
ongoing charges on 30 of the world’s most popular index funds and ETFs on assets bought during offer period (charged upfront, refunded annually)
fund transaction costs on 30 of the world’s most popular index funds and ETFs on assets bought during offer period
*The initial offer period runs to 31st July 2024 and covers up to £20 million of investments in aggregate from our Founding Members. If you join during this period, assets you buy during this time will remain free of platform fees, transaction costs and fees on the 30 index funds and ETFs highlighted at time of sign-up until you start taking money from your pension or the age of 75, whichever is the sooner. Assets bought outside of the offer period will be subject to a standard 0.25% fee. Seek financial advice if you are unsure about your the tax treatment of our products.
What fees am I charged and why?
When you invest, it’s crucial to understand the different types of fees you’ll encounter. These fall under:
Platform fees
The cost for using your investment platform. Companies may charge flat, % based, or monthly fees.
To make it even more complex, some might charge these as "account fees" for an ISA or SIPP instead of calling them a "platform fee".
Some even charge both.
Transaction fees
Charged when you buy or sell assets, these cover the costs of executing the trade, from the technology involved to paying any middlemen.
Some companies call their trading charges transaction fees. You might also be charged
"market spread", which is the difference between the buy and the sell price of an ETF, and government taxes.
Fund fees
These cover the costs of managing the fund you're invested in. You'll see these split into separate costs.
One is annual charge for managing and operating a fund, which you might see as an OCF (Ongoing charges figure or TER (Total Expense Ration). Fund transaction costs are generated by a fund when it buys or sells its underlying investments. Some companies may also charge you a "performance fee", paid if a fund beats its performance target.
Entry charges
Sometimes known as an ‘initial charge”, this is a one-off payment, charged when you first invest in a fund, to cover initial admin costs.
Exit charges
Similar to entry charges, but paid when you sell any assets.
Advice charges
The cost of talking to, and getting advice, from a financial advisor.
Do higher fees really matter that much?
Most people assume that the fees they’re charged are reasonable and the price they have to pay for someone else handle things. We thought the same until we did some digging around. How can it make so much of a difference?
The power of compound interest and the tyranny of compounding costs!
Compound interest means you’re not just earning interest on your initial investment, but on the interest that’s already been added to it too. This can rapidly grow your money over time - but work the same away against you once fees are factored in.
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Is anything here not crystal clear? Reach out to us. We’ll happily go on the record and answer every single one of your questions.
You can also visit ScamSmart and PensionWise, run independently by the UK government, to get free financial advice.
Why do fees matter?
We’ve put together a simple pension calculator to show you the impact of fees at retirement, and how much better off you could be with Prosper.
Your input
Your results
Maximise your potential wealth
Invest in funds and portfolios and get exclusive access to private markets. All with low, transparent fees. Join and invest before 31st July 2024 to access exclusive benefits.
Prosper membership is by invitation only.
When you invest your capital is at risk.
The above reflects the current "Offer" terms of Prosper and will apply to any investment amounts initiated during the current offer period. The above also assumes the investor is only invested in funds and products covered by the "Offer". More information on the current "Offer" can be found here.
The above does not take into account trading costs as these are currently Free at Prosper (under the current "Offer") and we assume 0% portfolio turnover for both your existing investment and one with Prosper.
Future values shown are not guarantees and are for illustrative purposes only. The returns you receive will vary and you might get back less than you invested. Your capital is at risk.
All growth rates are nominal, compounding and fees are calculated annually and investments are held for the full period stipulated.
Low / Medium / High Growth rates have been determined using FCA guidance in COBS 13 Annex 2.
The above does not take into account tax considerations and should not be considered as tax advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in future.
Frequently asked questions
- How are Prosper fees so low?
First and foremost we believe that existing investment and pension providers earn too high a profit margin at the expense of their customers. We are happy making less, because our members make more.
Secondly, we believe that those organisations are cost inefficient, caused by legacy technology and manual processes. In short, they could be making far more profit than they are from your hard earned cash. We are using modern scalable technology and have partnered with a digital Custodian called Seccl Custody Limited to help us to build a low cost, highly scalable, digital first business.
We work hard to find the lowest cost fees, but make sure they are actually great value for money too by looking at their performance and only work with the very best asset managers in the world who have the scale cost advantages to also keep your fees low.
- How long does the Founding Member offer last?
Our Founding Member offer is only available to customers who open accounts on or before 31st July 2024. The Founding Offer will expire before 31st July 2024 if the asset value on our platform reaches £20 million. All new customers after this date or after the £20 million milestone will be subject to our normal rates so be sure to sign up now and lock in Founding Member status. We reserve the right to alter our offer terms by giving you 30 days’ notice.
- How much do I have to invest?
We have no account minimum as we want to make investing accessible for everyone. However, some public funds and all private markets funds will have applicable investment minimums. However, you can also start small now and make regular contributions over time!
When you invest your capital is at risk and you may get back less than you put in. Your tax costs and responsibilities depend on your individual circumstances and may change in the future.