Securities Lending


Earn extra income from the securities you already own

What is Securities Lending?

This service provides you with an additional way to generate revenue from your existing portfolio. Through it, Swissquote lends your securities to reputable third-party institutions, who pay a fee during the lending period.

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Effortless monthly passive income
We find reputable borrowers and deposit the revenue straight into your account monthly

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Retain the financial benefits
You still receive substitute dividends. You can sell your securities anytime on the same original conditions

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Absolute peace of mind
While your securities are on loan, we hold collateral equivalent to 105% of the value of your loaned securities as guarantee

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How much can you earn?
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Securities lending is demand-driven: the chances to match with borrowers and potential earnings vary greatly depending on the borrower and the market demand for any given security.

The gross return rate for loaned securities usually ranges from 0.5% to over 4% for any given loan.

Securities lending

How to get started?

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Go to the Securities Lending section of your eTrading web platform

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Follow the instructions to fill out the contract and send it to us

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The service will be activated for your account within a few business days

Securities Lending devices

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FAQs
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Why should I participate in securities lending?

Securities lending could offer additional returns on top of the returns generated by the performance of your portfolio.

Which type of assets are eligible for the Securities Lending service?

Non registered shares, as well as some ETFs are currently eligible for lending. We are planning to make the service available for more financial instruments in the future.

Will all securities in my portfolio be loaned out?

It is very unlikely. Securities Lending is demand-driven, so Swissquote cannot guarantee that it will find borrowers interested in your securities. Remember that securities with a liquid supply are usually in low demand, while rarer securities have a greater potential to be loaned out and yield greater returns.

Can I choose which securities to lend?

Through our platforms, you can only activate the Securities Lending service for the entirety of your portfolio. However, if you wish to exclude specific securities from the service, you can do so by calling our Customer Care Center on + 0848 25 88 88.

Who will borrow my securities and why?

We only lend to reputable, top-tier banks and financial institutions, who often borrow securities to ensure the smooth running of capital markets. For instance, they may be looking to borrow securities to help ensure the timely settlement of trades or simply to use them as collateral.

Will participating in Securities Lending limit my day-to-day investment activity?

No. As a client, you will not notice any difference in your investments and trading activities while your securities are on loan (except for the lending revenue deposited monthly into your account).

Can I still sell and profit from my securities while they are on loan?

Yes, you can sell them at the same conditions as usual, without any hassle. You will receive any revenue earned while the security was on loan, including dividends in the form of cash payments.

Who decides when a securities loan ends?

The duration of the loan depends on the borrower, the client and Swissquote.

Of course, if you decide to sell a security or disable the service in the Securities Lending section on Swissquote’s platforms, your security will be recalled, and you will cease to get the securities lending benefits from that position. Before a corporate action, your securities will be recalled automatically and your loan will cease.

Are there any costs?

When we lend your securities, we incur operational costs, such as those related to collateral management and transfer settlements. These costs will be automatically deducted from the revenue generated by the loan. The revenue received will be paid to you net of these costs. All details will be in the related monthly statement.

Where can I see my lending revenue?

You will receive monthly statements on your lending revenue in the "Documents" section of your account.

How can I disable the Securities Lending service?

You can do so, even while your securities are on loan, from the "Securities Lending" section of your Swissquote eTrading web platform (this service is currently not available on the mobile app).

Are there any risks or downsides to lending my securities?

There are some risks and downsides which may make this service unsuitable for some investors. Here’s a summary of the main drawbacks:

When shares are out on loan, you lose ownership while keeping a claim for restitution of securities of the same quantity and kind, and temporarily lose the right to vote, for instance at the annual general meeting of the issuing company.

You may receive cash payments in lieu of dividends on loaned securities.

It is possible that Swissquote may not be able to return the loaned securities. In such case, Swissquote would do its utmost to compensate you by using the collateral that is provided up front for each and every loan.

See the special terms and conditions and the securities lending risk disclosure for more detailed information.

I have enabled Securities Lending but am not receiving any revenue reports, why?

The most likely reason that you are not receiving reports is simply that we could not find any borrowers for your securities. Remember that securities lending is demand-driven, and we do not guarantee that we can find a match for your securities. However, if you have any doubts, do not hesitate to contact our Customer Care Centre.