How to earn interest on your shares?

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This video is all about the new share lending feature available for the first time to retail investors from Trading 212. We’ll cover what it is, how it works, the risks, and even take you through the screens to show you how to get started.
📎 Link to the video mentioned by Tom: • Securities Lending Exp...
⌚ Timestamps:
0:00 - Intro
1:00 - What is share lending?
2:15 - How does it work?
5:00 - Can you exercise voting rights whilst shares are lent out?
5:10 - Who usually borrows shares and why?
6:20 - Do you still own the lent-out shares?
6:38 - What are the risks?
7:34 - Where can you learn more about share lending?
7:50 - How to set it up?
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#Investing101 #stockmarket #trading #stocks #trading212 #shares
When investing, your capital is at risk. Investments can fall and rise and you may get back less than you invested. The information contained within the video was correct at the time of recording but may have since changed.

Опубликовано:

8 авг 2024

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Комментарии : 52

@johnrussell7625 11 месяцев назад

Excellent - All your video's are so clear and your answers to questions so quick. Thank You

@ceasar1887 11 месяцев назад

Is there a way we can look at the projection again?

@MATIvmr Год назад

Weird because there’s no such option for me and I’m in the UK 🤔

@UnWantedXReCoN 9 месяцев назад

How much money can you earn on interest before reporting it to HMRC? I can seem to find info on this

@lopezjuan316jl Год назад

I would rather have the option to turn it on on individual stocks. I might do it when it gets to Spain though, it might help me speed up the process and I can always cancel the lending in order to have the voting rights after

@Trading212 Год назад

Share lending on individual stocks is not available, but we will keep your preferences in mind. Thanks for sharing ✌

@onehandwashes 10 месяцев назад

Not worth doing unless they split the profits with you. Interest splits mean almost nothing

@tomsmatisons7961 5 месяцев назад

What happens if borrower doesn`t return your shares? Is there any kind of safety pillow behind it? Tnx

@kvsider7599 8 месяцев назад

It's November 30th and the share lending interest earning feature isn't available in the rest of Europe. Is there a new target date for this?

@Trading212 8 месяцев назад

We can't provide a precise timeframe at the moment. However, we'll let you know once the option is available to our EU clients 👌

@teokeitaanranta658 Месяц назад

If the lender does not return the shares, will I be compensated automatically or would I have to do something myself?

@Trading212 Месяц назад

Your shares are secured by collateral in the form of US treasuries and cash, equal to at least 102% of the value of shares lent. In this unlikely scenario, we'll provide you with more information on how to proceed.

@johnrussell7625 11 месяцев назад

Can you do this with shares held in a trading 212 ISA

@Trading212 11 месяцев назад

ISA accounts cannot be enrolled and earn interest through share lending due to HMRC regulations.

@NepaliSher101 11 месяцев назад

Hello if I invest 100 and it goes down to 80. I started lending when it was at 100 Gbp. Will the collateral be 102% for 100 or for 80

@JasonEyermann Месяц назад

Yeah I have the same question

@Trading212 Месяц назад

You will receive collateral of at least 102% of the value of the lent shares. The collateral is adjusted daily to match the value of the shares you have lent.

@valentinilie1560 Год назад

Hello. I have Hyllion bought at $1.83 and I put an selling limit order at 1.85, when the price has reached today 3 times why it didn't sell them ? The price reached $1.86 and still not sell them why ? And why I'm buying more expensive then the price that shows me ? The price was $ 1.80 and I presed buy and it buyed at $1.83 why ?

@Trading212 Год назад

We want to take a closer look into the case and provide you with the detailed calculations of the position. Would you mind reaching us at info@trading212.com from your associated email address, with the position ID? If you already emailed us, please share the ticket ID.

@kunwer9216 11 месяцев назад

Hi can you please clarify broadly speaking who the shares will be lent to other than buyers shorting the stock. Some examples would be great thank you.

@Trading212 11 месяцев назад

Usually, securities are lent to pension and insurance funds, ETF issuers, banks, and brokers.

@davidclark2286 9 месяцев назад

But tax office say manufactured payments are taxable, dividend tax allowances do not apply.

@antonioteixeira6957 Год назад

Will this ever be available on the Isa?

@Trading212 Год назад

ISA accounts are not eligible for share lending due to HMRC regulations.

@lawrencer25 Год назад

@NightElff88 Год назад

I just enrolled. Waiting to see what part of my portfolio will be lent out and which part.

@mxmus08 Год назад

Let us know how you get on, please.

@NightElff88 Год назад

@@mxmus08 As Tom said in the video - you'll need to wait up to 4 days. So I am waiting for now. 😀

@kvsider7599 8 месяцев назад

@@NightElff88 What's your experience with it so far? This feature hasn't been rolled out for me as I'm not in the UK but I'm curious as it's supposed to be available by the end of the year.

@Sajuuk9 Год назад

If we could turn it on individually per stock it would be fine, but on some i don't want it.. so until then, no go for me. the lending part is almost always used for people shorting your stock.. so screwing you over.

@Trading212 Год назад

While it's not available as an option, you can opt-out for the share lending anytime you want.

@NightElff88 Год назад

Like AMC? 🦍

@trevspark Год назад

There always a risk the lender won't give them back, but you can buy and sell when you want to. Confused

@Trading212 Год назад

You can buy and sell your shares at any moment with Trading 212. In the rare cases where the borrower becomes insolvent and we're unable to return your lent shares, you'll receive collateral that's 102% or more of the value of the lent shares.

@craigcogley5071 11 месяцев назад

@@Trading212 would this be automatically done for you or would you need to spot it your self and then clam?

@RichTeaBiscuits 11 месяцев назад

@@Trading212 the above comment asks a very good question! Will this be done automatically or would we need to spot it ourselves and then claim it?

@craigcogley5071 11 месяцев назад

@@RichTeaBiscuits the lack of response may say it all.

@RichTeaBiscuits 11 месяцев назад

@@craigcogley5071 hmmm, I hope not, that would be a pretty disappointing way of dealing with it

@andrewgibbs4009 10 месяцев назад

I will wait and see what happens with $MMTLP between the Security and exchange commission and Congress before I invest another penny.. it is very clear that the market is manipulated.

@ceasar1887 11 месяцев назад

Why’s amc interest at 300% 😂

@munrajdhariwal8638 Год назад

So we can lend our shares to be shorted by someone else but don’t have the option to short the stock ourselves on T212?

@lawrencer25 Год назад

Plenty of other platforms 🥳🥳🥳🥳

@NightElff88 Год назад

There is "most requested features" list on the Trading 212 community forum. You can add it there, currently is not in the top 10. Multicurrency accounts tops the list and they just released it.

@darioraducanu4591 7 месяцев назад

@@lawrencer25q

@MattMcQueen1 9 месяцев назад

For me, this seems pretty pointless. My lent value today is £1,443.57. The interest rate (APY) is 0.08%. I don't think this will make me rich. I question why the interest rate is so low, given that the base rate is a lot higher (even accounting for Trading 212 taking half of the interest).

@Trading212 9 месяцев назад

Share lending is based on supply and demand, so the interest rate is variable and based on that. Shares with low availability and high demand are more likely to be borrowed.

@MattMcQueen1 9 месяцев назад

@@Trading212 In my case, I have shares in ARM. According to the app, Demand is High. However, the interest rate is 0.09%. There doesn't seem to be much correlation between demand and interest rate, and such a low interest rate is risible.

@kunwer9216 Год назад

Just a question - 1 - Can i cancel the lent shares to regain voting rights 2 - if the borrower goes bust, the collateral will only be paid at the market rate the borrower lent them for. So if im down 50% on my purchase price, ive lost out as they will not pay me the original purchase price. Please confirm. 3 - what percentage of borrowers go bust?

@Trading212 Год назад

Sure, let us shed some light: 1. Our UK clients can enable or disable the option via the 'Earn interest on your shares' section in the account's menu. 2. The collateral gets adjusted daily. If you lent $100 worth of TSLA and in a month that TSLA's now worth $10,000, the collateral you'll receive if the borrower doesn't return the shares will be at a minimum 102% of $10,000, so $10,200. 3. We've never experienced a failure to return shares, but that doesn't mean it's impossible, just extremely unlikely.

@NightElff88 Год назад

@@Trading212 This is very good to know, thanks!