Twino Review: Is it good? Don't invest before you read this! (2/2023)
Dzirnavu iela 42 Riga
3.88 of 5€ 20 Twino Promo Code
5 of 5
Financed Loans (50%)
5 of 5
Interest & Risks
Ø Interest (50%)
2.4 of 5
Warning Signals (50%)
3 of 5
Auto Invest (20%)
5 of 5
Buyback Guarantee (20%)
0 of 5
Secondary Market (20%)
5 of 5
Tax Report (20%)
5 of 5
5 of 5
- Incl. investor protection
Invest free of charge
Automatic investment function
Comparatively low Ø interest rates
Currently 3 warning signals
No buyback guarantee
How good is Twino?
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 Twino?
Twino is a P2P platform from Riga in Latvia, founded in 2015.
It is a subsidiary of SIA Twino, which is also based in Latvia.
On Twino, almost universally, P2P loans are offered by loan originators that belong to the same company.
Since its inception, the platform has funded more than €1 billion worth of loans, making it one of the largest P2P platforms in Europe.
How does Twino work?
To invest on Twino, you must first register online and then deposit money via a bank transfer.
With your first deposit via a standard bank transfer, you also confirm the bank account to which withdrawals can be made.
After that, you can invest directly in the offered loans.
You have to invest at least €10, and you can invest either manually or automatically through Auto Invest.
You can also invest in two markets: the primary market (initial loans) or the secondary market (loans from other investors).
On Twino, you do not invest directly in loans, but through securities in loan pools (multiple loans).
These securities are collateralized with these loans, and accordingly their value depends on them.
That is why they are called asset-backed securities.
The securities differ according to:
Country (origin of the loans),
interest rate (coupon),
Let's have a look at a simple example.
Example of a security on Twino
Interest rate: 12
Maturity: 6 months
If you were to invest €3,500 in this security, you would invest over it in 1% of the bundled loans.
All securities offered on Twino have an official security identification number (ISIN or WKN), as you may know from other securities such as ETFs or stocks.
In the following, we would like to present the most important features of the platform.
The platform must therefore comply with strict regulations and offers investor protection of €20,000 per investor.
On average, the loans have an interest rate of 10% and loans with a minimum interest rate of 8% to a maximum of 12% are offered.
A comparison shows that the platform with its average interest rates is below average and there are several platforms that offer higher interest rates.
Which platforms offer higher interest rates?
Among the regulated platforms, there is only one that offers strikingly higher interest rates than all the others, and that is NEO Finance, with about 15%.
Otherwise, you can only get higher interest rates at non-regulated platforms, including Lendermarket (approx. 14%) and Esketit (approx. 13%).
But then you have to accept that these platforms do not offer you any investor protection and that you have to expect a higher platform risk.
Currently, the loans are offered by 3 intermediaries, which, with one exception, belong to the same company as the platform.
And that is the loan intermediary for Vietnamese loans, for which a joint venture (joint venture) was entered into with viainvest.
On Twino you can invest in Payday Loans (mini loans), consumer loans and in real estate loans (Twino Ventures).
However, real estate loans make up only a small part of the total offer.
The P2P loans come from 3 countries:
The terms of the loans are between 6 and 12 months, and in rare cases longer terms are offered.
You can choose every single loan you want to invest in on the platform.
Among other things, this makes sense if you are just starting to invest and don't want to wait for Auto Invest to invest for you.
Or if you wish to invest on the secondary market because you cannot automatically invest in the loans on the secondary market.
The platform offers an automatic investment function, Auto Invest.
With it, you can specify which loans you want to invest in.
The following settings are possible:
However, you cannot select the maximum amount you intend to invest per security.
However, since you invest in several loans via one security on Twino anyway (loan pool), we think this is fine.
We like Auto Invest very much, it is streamlined and easy to use.
In our opinion, however, the option to also automatically invest in loans in the secondary market is missing.
This would be especially helpful if no loans are offered on the primary market.
On the secondary market, you can offer your loans to other investors or buy their loans from others.
The secondary market is clearly arranged, and you can invest in a loan with just one click.
It is a pity, as already mentioned for the Auto Invest, that it is not possible to use the Auto Invest for the secondary market.
On Twino, you can easily create the documents for your tax return.
A tax report is offered for the individual years, which you can download.
The platform offers a native app for iOS and Android.
Compared to the website, however, it does not offer any other helpful features; at most, the push messages are worth mentioning.
The fact that the app offers a rather modest user experience is also shown by the average ratings in the Apple and Google app stores.
How much does investing on Twino cost?
Investing on Twino is completely free for you.
This applies to both the primary market and the secondary market.
There are also no fees for deposits or withdrawals.
Warning signals (red flags)
Currently, we would see the following warning signals at Twino.
#1 Lending business in Russia stopped
Before the start of the war in Ukraine, loans from Russia were also offered and on a large scale.
However, due to the war, the first difficulties with repayments from these loans occurred already at the end of February and beginning of March.
The platform reacted quickly and set up an action plan, which it presented on its blog, with the goal of repaying all outstanding payments from loans to investors as quickly as possible.
At the current time, it looks like full repayment will take 3 years (June 2022).
However, we generally assume that the platform will not face any negative consequences of this situation.
#2 Negative net result for 2021
For the fiscal year 2021, the parent company SIA Twino has achieved a negative net result.
Although the platform was able to achieve a positive net result from interest and commissions, administrative costs in particular contributed to the negative result.
This surprised us, as the platform has been able to grow strongly, especially recently.
#3 No loans available
According to our observations, there are often no new or only a few loans offered on the primary market.
And when loans are offered, they are usually only 1 to 2 securities.
This disadvantage can be partially or fully compensated via the secondary market, but it is still not advantageous for investors.
Twino Promo Code
If you want to get a €20 bonus after your registration, you have to register via our bonus link.
After that, you have to invest at least €500 to get the bonus.
Frequently asked questions
Below, we address some questions that are often asked about Twino.
How safe (reputable) is Twino? Is Twino legal?
As mentioned above, Twino is officially supervised by the Latvian Financial Market Authority.
Moreover, the platform has financed more than €1 billion worth of loans, which already speaks for itself.
Therefore, we would rate the platform as safe, pursuing a legal business purpose.
How does Twino make money?
Twino is a subsidiary of SIA Twino and therefore passes on its profits and losses to the parent company.
The parent company earns its money mainly through interest income, with additional income from commissions and other operational activities.
Who owns Twino?
The platform belongs to the financial company SIA Twino, which was founded in 2009 by Armands Broks.
He still owns 100% of the shares in the company.
What about withholding taxes at Twino?
You have to pay a withholding tax of 20% on your earnings, which is withheld directly by Twino.
However, you can maybe reduce the tax to 10% with a residence certificate from your tax office.
With an average interest rate of 10%, you will still be left with 8% or 9% (with a certificate) after tax.
Twino is a safe P2P platform with an official regulation and a financed loan volume of more than 1 billion € and the use is free of charge for investors.
Registration takes only a few minutes and after the first deposit, it is easy to determine which loans should be invested in with the practical Auto Invest. With the secondary market, even larger amounts can be invested quickly.
In our opinion, the platform is not as strong when it comes to interest rates, which seem somewhat low, especially in comparison.
Furthermore, we see 3 warning signals at once, of which the warning signal for Russian loans, however, mainly concerns existing investments. In particular, the combination of below-average interest rates and few available loans is detrimental to the investment result in the medium to long term.
Overall, we consider the platform as recommendable.
Not convinced? These are the alternatives
Last updated on 12 December 2022