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.
When you invest your capital is at risk.
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?
Compound returns mean you’re not just earning a return on your initial investment, but earning extra returns on the returns.
This can rapidly grow your money over time, but this works the same away against you with fees. Fees on fees drag returns down, and by much more than you’d imagine over the long run.
For example
Say you invested £100,000 and held it for 30 years. Assuming an average of 5% return every year, if you paid a 2% fee you would earn a net return of 3% and would receive just over £240,270. But with a 0.5% fee, the same fund would be worth £370,450.
for buying and selling funds
We do retain interest on cash left uninvested in investment products and any cash held in the Prosper Wallet. We also may receive a share of the interest paid by the bank on each savings product, but the rate you see (in the app or elsewhere) is the rate you receive.
(e.g. Blackrock, Vanguard, Fidelity)
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.
The above does not take into account trading costs as these are currently Free at Prosper 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.
When you invest, it can be hard to understand the different types of fees you’ll encounter. Usually these fall under:
Choose from over 150 index, portfolio, mutual funds and ETFs. For expert investors who know where they want to put their money.
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.
Prosper does not charge for this
Charged when you buy or sell assets, these cover the costs of executing the trade, from the technology involved to paying any middlemen. Prosper doesn't charge for this!
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.
Prosper does not charge for this
These cover the costs of managing the fund you're invested in. You'll see these split into separate costs. Prosper passes on the cost of these in most cases but repays the annual charge on 30+ ETFs currently.
One is annual charge for managing and operating a fund, which you might see as an OCF (Ongoing charges figure or TER (Total Expense Ratio). 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.
Prosper passes on the cost of these in most cases but repays the annual charge on 30+ ETFs currently.
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.
Prosper doesn't charge for these
Similar to entry charges, but paid when you sell any assets.
Prosper doesn't charge for these
The cost of talking to, and getting advice, from a financial advisor. We hope to offer low cost expert guidance to all of our members in 2025.
Prosper is currently offering financial guidance on a fixed fee basis.
