Swissquote Securities Lending for All Clients, Extra Income?

Swissquote is offering a novel income-generating opportunity for its clients by lending their securities to institutions.

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Swissquote is offering a novel income-generating opportunity for its clients by lending their securities to reputable financial institutions. This new service enables clients to earn a monthly income while still receiving dividends and retaining the flexibility to sell their securities at any time.

The offering, known as securities lending, is available to all private clients of Swissquote directly from their bank accounts and the mobile app, with no minimum deposit requirement for qualification. Initially, the eligible assets for lending include individual stocks and certain exchange-traded funds (ETFs), with plans to expand to more asset categories in the future.

Clients opting for securities lending can expect a net client return rate of up to 1% annually, with monthly payouts. Some securities may yield returns exceeding 5%, depending on demand. Participation requires explicit registration and agreement, with clients able to activate the “Securities Lending” option for their entire portfolio online or exclude specific securities through customer service.

Swissquote Securities Lending for All Clients, Enabling Extra Passive Income

During the loan period, securities are only lent to reputable top-tier banks and financial institutions, which borrow assets to support the smooth functioning of capital markets, such as timely settlement of trades or as collateral. Clients continue to benefit from any value increase in their assets and receive both lending income and income earned by the assets themselves, including dividends.

However, clients should note that during the loan period, they cannot vote in shareholder meetings and may receive cash payments in lieu of regular dividends. The securities lending process is demand-driven, with liquid assets having lower demand and rarer assets potentially yielding higher returns.

Swissquote has partnered with Sharegain, a securities lending specialist with expertise and direct access to borrowing institutions in financial hubs like London and New York City. Sharegain’s involvement in this initiative follows a successful launch in Luxembourg, expanding the reach of securities lending to a broader client base.

Jan De Schepper, Chief Sales and Marketing Officer of Swissquote, emphasizes that this opportunity, once exclusive to large investors, is now available to all clients, offering a convenient way to generate passive income from existing securities. Boaz Yaari, Founder and CEO of Sharegain, expresses excitement about partnering with Swissquote, stating that securities lending will now deliver greater value to a wider range of clients beyond the largest financial institutions.

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