Market Insights

Ever heard of fully paid stock lending? It could help you earn money without lifting a finger.

TradeStation can lend out shares in your portfolio according to demand in the market. Clients are entitled to receive half the proceeds from the loan.

How’s it work? There’s often demand in the market for borrowed shares. For instance, when someone shorts a stock, they need to borrow it before selling. If it happens to be in your account, we can help facilitate a loan and you’ll collect income.

TradeStation’s fully paid stock program is available to clients with $75,000 of liquid net worth or five years of trading experience. Click here for more information or to apply.

Investors participating in the program still have the right to exit positions at any time. There are one or two potential drawbacks that are probably minor for most accounts. One is you lose the right to vote for company board members during the time of the loan. Second, there may be less advantageous treatment of some dividends.

In conclusion, borrowing and lending lie at the heart of finance. Most people only think of lending money, like by purchasing bonds. But there’s also a world of lending securities with the potential to profit. TradeStation’s fully paid stock program can let you benefit from these transactions without the slightest effort.