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Well well well…it is hard to believe that just a year ago that the third party automated investment tool LendingRobot was in private beta. Back in December of 2013, they opened to the public and in April of 2014, they were registered with the SEC as a Registered Investment Advisor. Today I’m excited to share that it is now free for users with up to $10,000 managed investment. New users will be able to start using the service without entering their credit card information. If you’re an existing user, you’ll see your bill reduced accordingly. Have more than that to manage? Don’t worry, you’ll still see a benefit.
I reached out to the great folks at LendingRobot to get the details:
We’ll subtract $10K of accounts’ value before calculating the fees. So for someone with $9K managed, it remains free forever. For someone with $50K managed, they’ll only pay our 0.45% fees on $50K - $10K = $40K.
For the people in ‘trial’ mode, the trial will end once we invested at least $10K for them. To continue using LendingRobot, they’ll have to enter their credit card.
As longtime readers know, I’m a big proponent of keeping all (not just p2p lending) investing fees low, so this is a welcome change. LendingRobot is the only third party company I’m aware of offering automation for both Lending Club and Prosper that is open to the public. If you haven’t created an account with LendingRobot, I highly recommend you sign up and take a look around.
Have questions? What do you think? Let me know in the comments!
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Does Lending Robot even have any investors? Seems like a non-player.
Hi John, thanks for stopping by. Lending Robot certainly has investors although I can’t speak to how many users they currently have. Like I mentioned in the post, they are the only company open to retail investors. Many of the third party tools still have yet to have signups open on their site. The Registered Investment Advisor piece is probably big for lots of people . I expect some big changes in the next year as several other tools begin to mature.
I just opened an account with LendingRobot and linked my Lending Club and Prosper accounts. I have been very impressed with the service so far. Idle cash is invested quickly in notes that have just become available. The filters seem to be working as expected. My only question for which I cannot seem to get an answer is how do I know that I am not investing more than once in a note?
Hi Dick, by default, it will only invest in the “Amount per loan” you specify and won’t submit multiple orders for the same note. If you still wanted to verify, you can login to your Lending Club account and either download your notes csv or view a portfolio. Simply sort by the id of the note and you would see two entries if you had purchased the same note twice. Hope that answers your question. If it doesn’t, let me know and I’d be happy to get in touch with someone from the LendingRobot team and point them to your question.
Thanks for stopping by!
Ryan