Share lending is the process of a lender transferring their shares to a borrower. In return, the lender receives daily interest and collateral.

We lend shares from your portfolio to borrowers and receive interest in exchange. We split all interest equally with you. Share lending is fully automatic and will never cause delays when selling.

Share lending is a complex product that comes with associated risks:

Risk: The borrower doesn't return your shares.
Safeguard: Your shares are secured by collateral in the form of US treasuries, protected as any other client investment.

Risk: Intraday price volatility. The value of your lent shares can increase, or the collateral value can decrease, leaving you insufficiently collateralised.
Safeguard: The collateral is minimum 102% of the value of your lent shares and is adjusted daily.

Risk: Trading 212 and all other parties simultaneously go bankrupt.
Safeguard: Up to £85,000 protection by the FSCS.

You will receive collateral of at least 102% of the value of the lent shares. The collateral will be in the form of US treasuries and will be adjusted daily to match the value of the shares. The collateral will follow the same regulatory rules as your other investments.

Yes. If Trading 212 fails, the value of your assets is protected up to £85,000 by the FSCS.

Everyone with an Invest account with Trading 212 UK is eligible for share lending. ISA accounts can't enrol due to HMRC regulations.

Yes. You can disable it anytime and it takes 2 trading days for the program to wind down. However, you will lose the opportunity to earn interest on your shares.

Share lending won't impact your position. You can close, modify, and add to a position even if your shares are lent. Share lending will not affect your trading in any way.

Yes.

Share lending is based on supply and demand. Shares with low availability and high demand are more likely to be borrowed. There is no minimum or maximum amount that can be lent.

Each day your shares are lent, Trading 212 will receive interest and pass you 50% of that interest.
The interest rate is variable and based on supply and demand.

You will still receive the entire dividend as a manufactured dividend payment.

A manufactured payment is when cash is delivered by the borrower of the shares instead of the stock issuer.
In some countries, they are taxed differently from regular dividends.
We suggest speaking with a tax professional if you have specific questions about its taxation.

When your shares are lent, you lose your right to vote with those shares.

Shares are typically borrowed for short selling.

If traders borrow shares to sell them short, they expect the share value to fall and aim to profit from a price drop.

Pension and insurance funds, ETF issuers, banks, and brokers.

You remain the beneficial owner of the shares. This means that you still benefit from any rise in the value of the shares or lose when the share price falls.

The International Securities Lending Association (ISLA) has an excellent video on the basics of share lending.