This is not financial advice.
I’ve actually written quite a bit about Scalable Capital already, but here’s a small update: If you’ve closed a portfolio once, you can no longer create a new one using the same email address. In other words, I was asked to open a new portfolio with a different email address. Of course, I’m not going to do that. If Scalable Capital resolves this issue, I’ll open a RoboAdvisor portfolio there again. For now, I’m only using the Direct Broker. I do get a small referral fee for this link.
Why Scalable Capital at all, if I’m so happy with Growney? Simple: Growney is definitely very easy to use and I truly recommend it to anyone who has little time or little knowledge. But, for more experienced investors, the data at Growney isn’t updated very frequently. You don’t get real-time prices. Recently, I sold something, and it took over a week before I even saw any change in my portfolio, even though the money had already been in my account. In that regard, Scalable Capital is definitely better.
In addition to the RoboAdvisors, I’m also seeing more and more decentralized finance (DeFi) and similar providers being promoted in the FIRE movement, like EstateGuru and Bondora. Both platforms aim to help build passive income. EstateGuru, for example, offers the opportunity to participate in property transaction financing. In most cases, you’re entered as a creditor in the 1st rank in the land register. So, the likelihood of losing everything is quite low.
You need to keep your nerves here, though, as payments are constantly delayed, and I’ve had a loan default. It can take months before money starts coming back in. Diversification is important here too—different countries, different types of loans, etc.
With Bondora Go & Grow, you’re financing consumer loans. In this product, the portfolio is managed by Bondora, which means slightly lower returns (6.75%, not guaranteed), but also fewer decisions to make. It’s not possible to invest a large sum all at once. The maximum amount you could invest monthly used to be €200, but now it’s €1,000. Withdrawals incur a fee, by the way—this applies to EstateGuru as well.