Mintos review
Investing can be intimidating, especially with the number of options available today. However, Mintos, an online peer-to-peer (P2P) lending platform, has consistently stood out as a reliable choice for both experienced and beginner investors. Rated 9 out of 10 by Investeerders.nl, Mintos is popular for its ease of use and the relatively stable returns it offers. In this detailed review, we’ll break down what makes Mintos attractive, its potential risks, and how to get started.
What is Mintos?
Mintos is a P2P lending platform that allows investors to diversify their portfolios by investing in loans. Founded in 2014, Mintos quickly became the European leader in P2P lending. Over half a million users have used the platform, investing nearly 1.2 billion euros by 2023. Originally, Mintos offered primarily unsecured loans, but it has since expanded its offerings to include bonds, ETFs, and real estate. Despite the platform’s diversification, loans remain its core offering.
What makes Mintos especially appealing is the average return on loans. In 2023, investors saw an average net return of 11.26%, significantly higher than many traditional savings accounts or bonds. However, it’s essential to remember that higher returns also come with higher risks. Like any online investment platform, there’s always the possibility of losing your investment, which we will discuss further.
Earn € 50 and 1% bonus on your average investment
Why Choose Mintos?
The appeal of Mintos lies in its simplicity, diversification, and competitive returns. Many investors are drawn to the platform because it allows them to invest in a variety of loans worldwide, spreading risk and helping them achieve diversified portfolios. The platform also complies with strict European financial regulations, specifically MiFiD II, which ensures investor protection.
Mintos’ user-friendly interface makes it accessible even to those who are new to investing. The platform’s Auto-Invest function allows users to automate their investments based on predefined criteria, making it an excellent option for passive investors.
For our review, we created two separate accounts and invested in various loans and ETFs. We found the registration and investment process to be seamless, and while returns fluctuated, they remained within the expected range. It’s worth noting that Mintos offers a variety of tools to suit different types of investors, whether you prefer a hands-off or hands-on approach.
Setting Up an Account (Step-by-Step Guide)
Creating an account on Mintos is straightforward, and as of March 2024, the platform is officially active in the Netherlands. You can complete the entire registration process in Dutch by selecting the language option on the website, further demonstrating Mintos’ commitment to localization.
Here’s how to get started:
- Sign-Up: Go to the Mintos website and create an account. You’ll need to provide your email, social security number (BSN), and a government-issued ID (passport or ID card). A mobile phone with a camera is required for identity verification.
- Verification: After verifying your email and uploading the necessary documents, you’ll need to answer a few questions to comply with European investment regulations. This includes questions about your investment experience and financial knowledge.
- Deposit Funds: Once your account is verified, you can deposit money. Mintos supports multiple payment methods, including bank transfers. For Dutch users, Mintos has integrated with local banks, making the deposit process quick and simple.
- Start Investing: After depositing funds, you can begin investing immediately. Mintos offers a wide range of loans to choose from, and the platform’s Auto-Invest feature allows you to set specific criteria for automatic investments.
Earn € 50 and 1% bonus on your average investment
Get David Visser’s stories in your inbox
Join Medium for free to get updates from this writer.
Usability: A Smooth Experience for All Investors
One of the biggest selling points of Mintos is its ease of use. Whether you’re new to investing or a seasoned investor, the platform is intuitive and user-friendly. Once you’ve set up your account, you can choose between manual investing and Auto-Invest.
- Manual Investing: For those who prefer to hand-pick their loans, Mintos offers detailed loan overviews. You can select loans based on criteria such as loan originator, interest rate, country, loan term, and currency. This option provides more control but requires time to evaluate each loan carefully.
- Auto-Invest: The Auto-Invest feature is designed for investors who want a more passive approach. You can set specific parameters, such as the interest rate, loan term, and risk level, and the platform will automatically invest your funds in loans that meet these criteria. More than 80% of Mintos investors use this feature.
One of the most popular Auto-Invest options is Mintos Core, which offers an average return of 10%. This option allows Mintos to manage your investments, ensuring they are diversified across multiple loans. You can also exit your investments early by selling loans on the secondary market, though this depends on market conditions.
Auto-Invest vs. Manual Investing: Which is Better?
The decision between Auto-Invest and manual investing depends on your personal investment goals and the time you’re willing to commit to managing your portfolio.
- Auto-Invest is perfect for those who want a hands-off approach. You set your investment preferences, and the platform does the rest. This option ensures that your investments are diversified across various loans, reducing your exposure to risk.
- Manual Investing, on the other hand, offers more control and the potential for higher returns. You can choose exactly which loans to invest in, allowing you to target high-yield opportunities. However, this requires more time and effort, as you need to thoroughly evaluate each loan and manage your portfolio.
Fees and Costs: Transparent and Fair
One of the standout features of Mintos is its transparent fee structure. Most of the platform’s costs are covered by borrowers, meaning there are no fees for opening an account, depositing funds, or withdrawing money. However, there are a few fees investors should be aware of:
- Currency Conversion Fees: If you choose to invest in loans issued in different currencies, you will need to pay a conversion fee when exchanging euros for other currencies.
- Secondary Market Fees: Mintos allows investors to sell loans on the secondary market, but there are small fees involved in this process.
- Inactivity Fees: If your account is inactive for more than six months, you may incur fees for holding uninvested funds.
While these fees are minimal compared to other platforms, it’s essential to factor them into your overall investment strategy.
Diversification on Mintos: More Than Just Loans
While Mintos started as a peer-to-peer lending platform, it has since expanded its offerings. In addition to loans, Mintos now allows users to invest in bonds, ETFs, and real estate. This diversification makes it an attractive option for investors looking to spread their risk across multiple asset classes.
- P2P Loans: These remain the core offering of the platform, allowing investors to earn interest by lending to individuals and businesses worldwide. Mintos offers loans in various currencies, with interest rates as high as 18%.
- Bonds and ETFs: For those looking for a more traditional investment vehicle, Mintos offers bonds and ETFs. These products provide long-term growth potential and are ideal for investors seeking a more stable investment option.
- Real Estate: In 2024, Mintos introduced real estate as a new investment option. This allows investors to further diversify their portfolios by investing in property-related loans.
Risks and Reliability: What You Need to Know
Like any investment platform, Mintos comes with risks. The primary risk is the nature of the investments themselves. Many of the loans on Mintos are unsecured, meaning there’s no collateral backing them. If a borrower defaults, you may lose part or all of your investment. Additionally, global events, such as political instability or economic downturns, can impact loan repayments.
That said, Mintos offers a buyback guarantee on certain loans. Loans with this guarantee are backed by the loan originator, who promises to repurchase the loan if the borrower defaults. This provides an extra layer of security, though it’s important to note that this guarantee is only as strong as the loan originator’s financial health.
Mintos is regulated under MiFiD II, which offers additional investor protections, including transparency and accountability. The platform has also won several prestigious awards, including AltFi’s People’s Choice Award, which it has won five years in a row.
Customer Support: A Work in Progress
Mintos provides several customer support options, including email, chat, and a callback service. While the platform’s customer support is generally helpful, it does have some limitations. For example, callback requests can take a few hours, and the chat function often begins with a chatbot before escalating to a human agent.
The FAQ section and chatbot are helpful for answering common questions, but if you prefer personalized support, you might find the customer service experience a bit lacking. The support team primarily operates in English, but Dutch users can communicate in Dutch, although translations may not always be perfect.
User Experiences: What Others Are Saying
User reviews of Mintos are generally positive. Many investors appreciate the platform’s ease of use and the competitive returns it offers. The Auto-Invest feature is particularly popular, as it allows investors to automate their investments and build diversified portfolios with minimal effort.
However, there are some criticisms. Delays in loan repayments and the occasional default are common complaints. Some users also note that the buyback guarantee doesn’t always protect them from losses if the loan originator encounters financial difficulties.
In general, Mintos is well-regarded in the investment community. The platform is especially popular in Germany and Eastern Europe, where it has financed billions of euros in P2P loans.
Conclusion: A Solid Investment Platform with Some Risks
Mintos is an excellent option for investors looking to diversify their portfolios and earn higher-than-average returns. The platform’s user-friendly interface, Auto-Invest feature, and competitive returns make it appealing to both new and experienced investors. However, it’s essential to approach Mintos with a clear understanding of the risks involved, particularly when investing in unsecured loans.
In our review, we gave Mintos a solid 9 out of 10. It’s a reliable platform that offers great opportunities for diversification and growth. However, the platform’s ease of use can also be a double-edged sword, as it’s easy to overlook the risks involved in P2P lending. If you’re looking for a straightforward way to invest in loans and earn attractive returns, Mintos is worth considering. Just make sure to do your due diligence, diversify your investments, and be prepared for the occasional bump in the road.
