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.
What fees can our Founding Members expect?
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 30th April 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:
The cost for using your investment platform. Companies may charge flat, % based, or monthly fees.
Charged when you buy or sell assets, these cover the costs of executing the trade, from the technology involved to paying any middlemen.
These cover the costs of managing the fund you're invested in. You'll see these split into separate costs.
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.
Similar to entry charges, but paid when you sell any assets.
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.
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.
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 30th April 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.