eToro Unveils Exciting Stock Lending Program for UK and Europe Investors
eToro has just launched an innovative stock lending programme, allowing users in the UK and Europe to earn passive income by lending their stocks. This new feature is designed for whole unit ‘real’ stock positions, while CFDs and fractional shares are not included. Eligible stocks will be rounded down to the nearest whole share, making it easier for users to participate.
Understanding eToro’s Stock Lending Programme
With eToro’s stock lending programme, users can benefit from lending out their stocks, particularly those with low market liquidity, high volatility, and strong demand. These factors increase the likelihood of stocks being borrowed, which can lead to higher earnings. It’s important to note that loaned stocks are backed by collateral, providing an extra layer of security for lenders.
How the Programme Operates
When eToro users opt to lend their stocks, they temporarily transfer ownership to the borrower and lose their voting rights during the lending period. However, they can still enjoy the following benefits:
- Receive dividends on their stocks
- Sell their stocks at any time
- Opt-out of the programme without incurring any costs
Exclusive Access for eToro Club Members
The stock lending programme will initially be available to members of the eToro Club, which was established to reward valued clients. Membership is categorized into five tiers, with the programme being rolled out to Platinum users first, followed by other tiers gradually.
Opt-In Process and Monthly Tracking
Eligible users will have the option to opt in to the programme. Once they accept, their entire portfolio of stock positions will be considered for lending. Monthly statements will be provided to track income earned from successful stock loans.
Partnerships Enhancing User Experience
Dan Dougherty, managing director and global head of sales and account management at EquiLend, emphasized that this collaboration with eToro enhances their services through a fully paid lending programme that utilizes advanced technology. This initiative showcases EquiLend Spire’s commitment to innovation and eToro’s focus on delivering efficient financial solutions to users.
Victor O’Laughlen, head of global clearing at BNY Mellon, stated that this partnership supports a comprehensive solution across various financial aspects, including clearing, settlement, custody, foreign exchange, and cash management. This development exemplifies the strengths of eToro, EquiLend, and BNY’s innovative platform, catering to investors seeking cutting-edge features.
Empowering Retail Investors
Yossi Brandes, VP of execution services at eToro, highlighted the significance of this programme, noting that stock lending has typically been reserved for large financial institutions. By leveraging BNY’s Global Clearing services, eToro aims to democratize access to stock lending, enabling millions of users in the UK and Europe to earn passive income in a straightforward and transparent manner.
For more information about eToro’s stock lending programme and its benefits, visit eToro’s official website.
