Securities Lending - Revenue share

Hi All

Logged into the app today to recieve a notification that Freetrade are looking to implement securities lending. I do understand this is a move to try to make profit, but I was curious if there would be any kind of revenue share with the investor who has the securities lent out.

For example, if some of my shares get lent to someone for a premium, would I as the investor get a small cut of this? (I expect the answer is no, so would it be something Freetrade may implement in the future?)


They will “productise” share lending for Plus users however we dont know when

Hey - thanks for your question! @adam gave some colour on this topic (alongside a number of other ones) in the main thread on this update. It’s worth taking a look over there too and posting any other questions you might have!

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Ah thanks for the link - feel free to lock/close this one as a duplicate one, sorry :smiley:

This I wouldn’t have an issue with as it would benefit me, what I’m not happy about is then being lent out for no direct benefit for me. I own them!!!

Like they are renting out my car and keeping all the money makes no sense to me!

I appreciate for the moment GIA is free, but I see it as a gateway into plus/USA/sipp in the future I see myself becoming a paying customer as my positions grow/make sense to but as the ownership/security of the shares is a big selling point to Freetrade compared to the competitors it’s strange

Sorry for the rant!

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Respectful rants always are fine and I appreciate where you’re coming from :smiley:

There’s a lot more detail on the practice and its uses across financial services businesses on a landing page we created ahead of this terms update.

The biggest lenders of shares in the market tend to be pension funds and long-only funds (including ETFs). Retail brokers also do lend out customers shares held in nominee accounts as a source of additional revenue, in a similar way that we (for example) generate interest on cash held in customer accounts.

On the point about different account types it’s worth pointing out that we cannot (down to HMRC rules) lend anything held in an ISA.

Beyond that, I’m going to close this thread and would suggest you post any further questions on the main thread here. There’s been a lot of discussion and we’re happy to jump in with further answers as needed!

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