Earn extra income by lending securities
Did you know that you can earn interest on securities you already own by lending them out? E*TRADE now offers a Fully Paid Lending Program to eligible customers. The program is easy and straightforward—from enrollment to monitoring your loaned securities:
Easy and automated
Once enrolled, E*TRADE will automatically review your portfolio and may borrow securities, in exchange for cash collateral.1
E*TRADE gives you a full view into your activity so you can see what positions are on loan, the rate for the loan(s), and how much interest is accrued daily.
While your securities are on loan, you will earn daily interest based on an annualized rate with interest paid monthly2,3
Because you retain your full ownership rights, you are free to sell your shares, or leave the program, at any time
Can I see loaned securities in my account?
Yes, any loaned shares will be visible in your account at all times with a notation that the shares are on loan.
Will I receive notifications when my shares are loaned?
Yes. Even though your shares have been loaned out, you retain full ownership. That means you can continue to trade as usual and sell shares at any time without restriction.
How do I get paid?
The loan fee paid by the borrower, which fluctuates based on market demand, is split between you (the lender) and E*TRADE. The income you earn accrues to your account daily.
Are there risks involved?
Securities that have been loaned out are not protected by the Securities Investor Protection Corporation (SIPC). However, the cash collateral received for the loaned securities is typically protected by SIPC up to $250,000.