We're thrilled to announce the launch of our new Stock Lending Program for US-based users – a seamless and intelligent way to generate additional passive income from the stocks you already own. With this program, you can make your portfolio work smarter, not just harder.
What is Stock Lending?
Stock lending, also known as fully-paid securities lending, is a common practice where owners of securities can lend their shares to institutions, like Alpaca, for a fee. Borrowers may need these shares for a variety of reasons, including short selling, settling trades, or hedging. In return for borrowing the shares, the lender is paid an interest, where the interest is accrued daily for the duration of the loan and paid monthly.
How Our Program Works: Simplicity, Security, and Ownership
Our Stock Lending Program is designed with your needs in mind, offering a powerful combination of competitive earnings, effortless automation, and unwavering ownership.
Earn Passive Income at a Competitive Rate
With our program, you can earn up to 50%** of the interest income generated when your eligible shares are on loan. This means your existing investments can start generating a new stream of passive income, enhancing your overall portfolio returns without any hustle. It's a direct way to make your assets work more efficiently for you.
Example:
By enrolling in Alpaca’s Stock Lending Program, Alpaca may borrow up to 3,000 of your ABC shares and pay you an interest in return. In total, you could earn up to $6,300 ($180,000 x 3.5%) for the year as an Alpaca Elite member** and $2,520 ($180,000 x 1.4%) as a non-Elite member.
Please note that there is no guarantee that your securities will be loaned out or that a market for lending them exists.
Full Automation, Zero Hassle
We've built our Stock Lending Program to be fully automated. Once you're enrolled, everything runs on autopilot. That means our system identifies eligible shares in your portfolio, monitors demand, and intelligently lends them out when there's an opportunity.
Crucially, every single loan is secured with cash collateral, ensuring your investment is protected. You don't need to lift a finger – we handle all the complexities, allowing you to focus on your financial goals.
Retain Full Economic Ownership: Your Shares, Your Rules
When you lend your shares, you maintain the economic ownership of the assets, which means you can sell your shares at any time and benefit from any potential appreciation or the economic value of your dividends. You also have visibility of which of your shares are on loan through your dashboard. However, when your securities are on loan, you will temporarily lose voting rights.
Should you decide the program isn't for you, you can opt out anytime with ease and regain voting rights. Your financial flexibility and control remain paramount.
Eligibility
To be eligible for Alpaca’s Stock Lending Program, one of the following pre-requisites needs to be met:
- You have an account balance of $2,500
- You have a reported income of $20,000
- You have $20,000 in liquid assets
- You have at least 1 year of trading experience
Enroll Today
The launch of our Stock Lending Program represents a significant opportunity to enhance your investment strategy. By allowing your eligible shares to be lent out, you can unlock a new source of passive income, all while enjoying the benefits that come with full automation and complete economic ownership over your assets.
Don’t let your portfolio site idle. Consider the ways it could be working more effectively for you. Sign up for an account or enroll on your dashboard today.
Still have questions? Learn more about the program and the associated risks in our FAQs for Alpaca’s Stock Lending Program or contact us at [email protected].
*Please note that this is currently only available to US-based Alpaca users.
**Alpaca Elite users earn 50% of the interest income, while all users are guaranteed 20% of the interest income. For more information on Alpaca Elite please see the term and conditions.
Please read Important Risk Disclosures With Respect To Participating In Fully Paid Securities Lending Transactions carefully before deciding whether to participate in lending Fully Paid Securities or agreeing to enter into a Master Securities Lending Agreement with Alpaca Securities LLC.
These disclosures describe important characteristics of, and risks associated with engaging in, securities-lending transactions.
All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
Cryptocurrency services are made available by Alpaca Crypto LLC ("Alpaca Crypto"), a FinCEN registered money services business (NMLS # 2160858), and a wholly-owned subsidiary of AlpacaDB, Inc. Alpaca Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Please see the Disclosure Library for more information.
This is not an offer, solicitation of an offer, or advice to buy or sell securities or cryptocurrencies or open a brokerage account or cryptocurrency account in any jurisdiction where Alpaca Securities or Alpaca Crypto, respectively, are not registered or licensed, as applicable.
