4 Min. Read

Bondster Review: Is it good? Don't invest before you read this! (11/2022)

Bondster

Bondster

U Libeňského pivovaru 63/2, 8 - Libeň 181 00 Praha

Test result

3.16 of 5

Invest now on Bondster

Safety

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1.50

Interest & Risks

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4.40

Features

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4.00

Advantages

  • Experienced platform

  • Comparatively high Ø interest rates

  • Automatic investment function

  • Secondary market

  • Buyback guarantee

Disadvantages

  • Unregulated

  • No app

How good is Bondster?

If that's what you want to know, then keep reading.

We took a close look at the platform and tell you whether it's worth it.

In this test, we show you:

What is Bondster?

Infographic: how does Bondster work

Bondster is a P2P platform from Prague in the Czech Republic, founded in 2017.

If offers P2P loans to investors from loan originators, who have no economic connection with the platform.

Since the platform only offers loans from intermediaries, it is also referred to as a P2P marketplace.

Since its inception, the platform has funded more than €100 million worth of loans and is one of the small P2P platforms in Europe.

How does Bondster work?

Before you can invest on Bondster, you must first register and deposit money into your account via a bank transfer.

Furthermore, with your first transfer, you also confirm the bank account to which you can withdraw money in the future.

Bondster only requires a minimum investment amount of €5; otherwise, you do not have to consider any other conditions.

And it is up to you whether you want to invest manually or automatically.

There are two markets available for investing on the platform: The primary market (initial issuance of loans) and the secondary market (loans from other investors).

Features

In the following, we would like to present the most important features of the platform.

Regulation

Bondster is not supervised by an official financial market regulator, and we currently do not expect this to change in the future.

Loans

The average interest rate of the loans is 13.70% and loans with an interest rate of 5% to 17% are offered.

In comparison, the average interest rates are in the front field, with only a few other platforms offering even higher interest rates.

These include NEO Finance with about 15%, Robocash with about 14% and Lendermarket with about 14%.

On Bondster, 22 loan originators currently offer their loans, a large proportion of which are attributable to ACEMA.

The following types of loans are offered for you to invest in:

  • Payday Loans,

  • Consumer Loans,

  • business loans,

  • Real estate loans and

  • Other.

Payday loans and consumer loans account for the largest share of supply at approximately 70%, followed by business loans at approximately 16%.

The loans come from 20 countries, but mainly from:

  • Czech Republic,

  • Indonesia,

  • Colombia and

  • Russia

Maturities range from 1 to 120 months, but most loans have short maturities between 1 and 3 months.

To assess the risk of each loan, the platform assigns risk classes (ratings) from D3 to A1 (low risk).

Manual investing

On Bondster, you can select each loan you want to invest in individually.

This can make sense, especially in the beginning if you wish to invest your money quickly.

In addition, you can use the secondary market if not enough loans on the primary market meet your expectations.

Auto Invest

With the Auto Invest function, you can automatically invest in the offered loans.

It is convenient that you can either choose from preset strategies or create your own strategy.

The preset strategies differ in return and risk, and you can choose from:

  • Diversified,

  • conservative and

  • High-yield.

If you don't like any of the strategies, you can create your own strategy with different settings.

The most important ones in our opinion are:

  • Investment per loan,

  • interest rate,

  • country,

  • loan orignators,

  • loan type and

  • buyback guarantee.

Overall, we find Auto Invest a bit overloaded and beginners in particular will probably be overwhelmed.

However, we like the fact that Auto Invest can be used for both the primary and secondary market.

Only a few platforms offer this, including Mintos, for example.

Buyback Guarantee

Delayed loans with a Buyback Guarantee are bought back after 60 or 30 days.

As compensation, investors receive their originally invested capital and the lost interest.

Secondary market

You can get out of your loans earlier or buy others' loans on the secondary market at Bondster.

The secondary market overview is not much different from the primary market, except that it shows you the discounts and premiums for the loans.

It's arranged clearly, and you can invest in a loan with one click.

And as mentioned before, we really like the fact that you can also invest in the secondary market loans automatically.

Tax report

Bondster offers a feature that allows you to automatically generate a tax report.

All you have to do is set the reporting period (year) and then you can download the report.

App

Unfortunately, the platform does not offer its investors an app to manage their investments.

We do not expect this to change in the near future.

How much does investing on Bondster cost?

Investing is free of charge as long as the loans are in €.

For foreign currencies, a fee of 1% of the amount is charged.

Furthermore, the platform also charges fee of 0.5% on the amount for sales on the secondary market.

Warning signals (red flags)

Currently, we have not noticed any warning signals at Bondster.

Frequently asked questions

Below, we address some questions that are often asked about Bondster.

Bondster is regrettably not regulated by an official financial market regulator, which typically dispels any doubts about its safety.

However, since the platform has been able to broker loans worth more than €100 million since its inception, there is no doubt in our mind about its safety and legality.

How does Bondster make money?

Bondster makes its money through fees charged to investors and loan brokers.

Who owns Bondster?

Bondster is owned by the private equity company CEP Invest Private Equity.

Expert conclusion

Bondster is a safe P2P platform with a financed loan volume of more than €100 million.

In comparison, it offers investors above-average interest rates, with almost free use. The fees for loans in foreign currencies and for the secondary market are in our opinion negligible for most investors.

After a simple registration and uncomplicated deposit, it is possible to invest automatically in the loans via Auto Invest.

Apart from the lack of regulation, we did not notice any particular weaknesses with Bondster. Should the platform allow itself to be regulated in the future, this would have a very positive impact on our overall rating.

Overall, we therefore consider the platform to be recommendable.

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Last updated on 05 October 2022