Unlock Passive Income with eToro and BNY’s New Lending Stocks Initiative!
eToro, a leading trading and investing platform, is set to revolutionize the way users in the UK and Europe earn passive income through a new stock lending program. This innovative initiative, developed in partnership with BNY, a global investment management firm, aims to make stock lending accessible to retail investors.
Overview of eToro’s Stock Lending Program
The upcoming stock lending feature is designed to allow eligible eToro users to lend out their stocks and earn passive income. Here’s what you need to know:
- Partnerships: eToro collaborates with BNY for global investment management and EquiLend for facilitating the stock lending process.
- Eligibility: The program will initially be available to Platinum, Platinum+, and Diamond Club members, with plans to expand to lower-tier members later.
- Opt-in Feature: Users can choose to participate, with their entire stock portfolio considered for lending.
How the Stock Lending Process Works
Once users opt into the program, they will receive monthly statements detailing the income generated from their lent stocks. Here are some key points about the stock lending process:
- Only whole unit ‘real’ stock positions qualify; CFDs and fractional shares are excluded.
- Stocks with low market liquidity and high demand are more likely to be borrowed, resulting in potential higher earnings.
- Loaned stocks are backed by collateral to ensure security.
During the lending period, users temporarily transfer ownership of their stocks to borrowers and lose voting rights but still receive dividends. Users maintain the flexibility to sell their stocks or opt-out of the program at any time without incurring costs.
Strengthening the Partnership with BNY and EquiLend
This stock lending initiative is part of a broader collaboration between eToro and BNY, leveraging BNY’s Global Clearing services. The partnership aims to enhance liquidity in financial markets and provide users with integrated solutions across various services. Yossi Brandes, VP of Execution Services at eToro, stated:
“Stock lending has traditionally been the preserve of large financial institutions… We want to level the playing field by enabling millions of eToro users to engage with stock lending in an easy and transparent way.”
Benefits for Users
The introduction of the stock lending feature represents a significant enhancement to the investing experience on eToro. According to Victor O’Laughlen, head of global clearing at BNY:
“This development represents the very best of eToro, EquiLend, and the heritage and innovation of BNY’s world-class platform.”
Additionally, Dan Dougherty, managing director at EquiLend, highlighted that:
“The collaboration between EquiLend Spire and eToro marks a significant advancement in the securities lending market, providing efficient and modern financial solutions to users.”
Conclusion: A New Era for Retail Investors
eToro’s new stock lending program signifies a shift towards inclusivity in investment opportunities for retail investors. By partnering with reputable firms like BNY and EquiLend, eToro is committed to enriching the investing experience and helping users grow their wealth. For more information about eToro and its offerings, visit their official website.
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