Lend your stocks with Stake: how and why you’d want to do it

Stake investing Sydney

The thought of giving someone else access to your hard-gotten stocks and shares in companies or funds you love is a new concept for a lot of us, but it turns out, not the worst decision you could make!

Of course with anything regarding your own cash and investments, do your own research, but here’s some good info to know about what new tricks Stake is offering to those who hold a portfolio with the online broker.

What is stock lending?

Stock lending with Stake is a concept whereby an owned security is lent to a borrower (to enable practices such as Stock Arbitrage, Index and ETF trading or Hedging) and that borrower pays a
fee. Similar to an interest payment for borrowing cash.

Why is Stake doing it?

Well, many traditional stock brokers practice securities lending but typically keep all the returns to themselves. Stake instead has redefined the model to ensure their customers get part of this return.
A seamless digital experience will give you control over the lending so you can start earning income on your stocks without having to lift a finger. Moreover, understanding how to do your own fundamental analysis of stocks can empower you to make informed decisions about which securities to lend, maximising your returns and optimising your investment strategy.

What else is there to know?

Largely, it’s a fair simple concept. You loan out your stocks for a fee that gets paid to Stake and they then share that fee with you.

Thing is though, when loaning out, you temporarily transfer ownership of the holding to the loanee, meaning you’ll get a lending fee at a pre-determined frequency and still be owed dividends from the stocks you hold. Bonus!

The only thing you forfeit is any voting rights associated with your holdings.

You might find a little more handy info from our favourite resource here.

How to start stock lending?

Just log on to your Stake account and follow the prompts to get it going. Do your own research before embarking on any financial decision, though. This isn’t advice.

Head to Stake and start lending stocks now

Stock lending Stake