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
Learn more about the E*TRADE Fully Paid Lending Program
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. Positions on loan can be seen on the Portfolios page with an “FP” notation. Access this page by logging onto etrade.com and going to Accounts > Portfolios.
Will I receive notifications when my shares are loaned?
Yes. You will receive notifications after your security is loaned out, when the rate changes on the loan, when the quantity of borrowed securities changes, and for each interest payment you receive.
Will I receive collateral for securities borrowed by E*TRADE?
Yes. E*TRADE deposits cash collateral equal to the dollar amount of the securities borrowed to E*TRADE Bank. The provisions of the Securities Investor Protection Act of 1970 may not protect you with respect to loaned securities and, therefore, the collateral provided in respect of loaned securities may constitute the only source of satisfaction of E*TRADE’s obligations to you.
How am I compensated for participation in the Fully-Paid Lending Program?
E*TRADE will generally split approximately 50% of the income earned from lending shares borrowed from you.3