You can start earning interest on the shares you hold. We lend these shares from your portfolio to reputable borrowers and receive interest in exchange. It is then split equally with you.
What is share lending?
This is the process of a lender transferring their shares to a borrower. In return, the lender receives daily interest and collateral.
Am I eligible for share lending?
Only Invest accounts are eligible for share lending.
Will share lending affect my position?
Share lending won’t impact your position. You can close, modify, and add to a position even if your shares are lent.
Will all of my positions be lent?
Share lending is based on supply and demand. Shares with low availability and high demand are more likely to be borrowed. There is no minimum or maximum amount that can be lent.
How much interest will I receive?
Each day your shares are lent, Trading 212 receives interest and passes 50% of it to you. The interest rate is variable and based on supply and demand.
Will I receive dividends from lent shares?
Yes, you will still receive the entire dividend as a manufactured dividend payment.
What’s a manufactured payment?
A manufactured payment is when cash is delivered by the borrower of the shares instead of the stock issuer. In some countries, they are taxed differently from regular dividends. We suggest speaking with a tax professional if you have specific questions about its taxation.
Can I exercise my voting rights while my shares are lent?
When your shares are lent, you lose your right to vote with those shares.
Why are shares usually borrowed?
Shares are typically borrowed for short selling.
What is short selling?
If traders borrow shares to sell them short, they expect the share value to fall and aim to profit from a price drop.
Who usually lends securities?
Pension and insurance funds, ETF issuers, banks, and brokers.
Do I still own the shares that have been lent?
You remain the beneficial owner of the shares. This means that you still benefit from any rise in the value of the shares or lose when the share price falls.
Where can I learn more about share lending?
The International Securities Lending Association (ISLA) has an excellent video on the basics of share lending.