As pointed out here:
Most brokers loan out shares to other big players without is knowing. But this can be opted out from.
Presumably FreeTrade uses this same mechanism?
Can we opt out?
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They don’t.
Therefore no need to opt out.
Securities Lending is a perfectly legitimate operation but it HAS to be explicitly disclosed to it’s clients (you) via the T&Cs.
But for the record I’d like to see FT lend stock. It’s virtually zero risk, it moderate/medium operationally problematic and it generates an income that can (should) be shared with clients (you). You - as a client - are entirely covered by daily mark to market margin requirements and collateral in-lieu of assets lent in the unlikely event of default by the counterparty (which is usually intermediated anyway - effectively an insurance policy)
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Interesting, it’s a less known feature (I didn’t know about it) but it would be interesting to know if there are plans to implement it.
Trading212 did and initially the reaction was part “ok” and part “you’re robbing me blind”
It’s tough.
I’d like to see it implemented but net income split 50/50 between FT (for running the op) and the client (for lending).
Worth noting you can’t loan stock held in an ISA
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I wanted to opt-in to share lending on my Schwab account, but it wasn’t offered to UK investors. Would be happy if Freetrade offered this option if I get my cut.
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