Question 1

What's share lending?

Accepted Answer

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

Question 2

How does it work?

Accepted Answer

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.

Question 3

Are there any risks?

Accepted Answer

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 £120,000 protection by the FSCS.

Question 4

How are my lent shares protected?

Accepted Answer

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.

Question 5

Does FSCS still cover me?

Accepted Answer

Yes. If Trading 212 fails, the value of your assets is protected up to £120,000 by the FSCS.

Question 6

Am I eligible for share lending?

Accepted Answer

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

Question 7

Can I disable share lending?

Accepted Answer

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.

Question 8

Will share lending affect my position?

Accepted Answer

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.

Question 9

Are all shares eligible for share lending?

Accepted Answer

Yes.

Question 10

Will all of my positions be lent?

Accepted Answer

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.

Question 11

How much interest will I receive?

Accepted Answer

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.

Question 12

Will I receive dividends from lent shares?

Accepted Answer

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

Question 13

What's a manufactured payment?

Accepted Answer

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.

Question 14

Can I exercise my voting rights while my shares are lent?

Accepted Answer

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

Question 15

Why are shares usually borrowed?

Accepted Answer

Shares are typically borrowed for short selling.

Question 16

What is short selling?

Accepted Answer

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

Question 17

Who usually lends securities?

Accepted Answer

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

Question 18

Do I still own the shares that have been lent?

Accepted Answer

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.

Question 19

Where can I learn more about share lending?

Accepted Answer

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

Earn daily interest on your portfolio

Boost your investment returns with Trading 212’s share lending

Fully automatic

No restrictions to your trading

Complete transparency

No commitments

Loss of voting rights

Lent shares may be used for shorting

Dividend taxation

See how much you could earn

Frequently asked questions

How does it work?

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.

Are there any risks?

How are my lent shares protected?

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.

Does FSCS still cover me?

Yes. If Trading 212 fails, the value of your assets is protected up to £120,000 by the FSCS.

Will share lending affect my position?

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.

Will all of my positions be lent?

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.

How much interest will I receive?

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.

Will I receive dividends from lent shares?

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

What's a manufactured 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.

Can I exercise my voting rights while my shares are lent?

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

Why are shares usually borrowed?

Shares are typically borrowed for short selling.

What is 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.

Who usually lends securities?

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

Do I still own the shares that have been lent?

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.

Start building wealth now

Join over 5 million clients

Earn daily interest on your portfolio

Boost your investment returns with Trading 212’s share lending

Fully automatic

No restrictions to your trading

Complete transparency

No commitments

Loss of voting rights

Lent shares may be used for shorting

Dividend taxation

See how much you could earn

Frequently asked questions

What's share lending?

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

How does it work?

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.

Are there any risks?

How are my lent shares protected?

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.

Does FSCS still cover me?

Yes. If Trading 212 fails, the value of your assets is protected up to £120,000 by the FSCS.

Am I eligible for share lending?

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

Can I disable share lending?

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.

Will share lending affect my position?

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.

Are all shares eligible for share lending?

Yes.

Will all of my positions be lent?

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.

How much interest will I receive?

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.

Will I receive dividends from lent shares?

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

What's a manufactured 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.

Can I exercise my voting rights while my shares are lent?

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

Why are shares usually borrowed?

Shares are typically borrowed for short selling.

What is 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.

Who usually lends securities?

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

Do I still own the shares that have been lent?

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.

Where can I learn more about share lending?

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

Start building wealth now

Join over 5 million clients

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.

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.