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Swissquote, renowned for its role as a broker with a Swiss banking license, is taking a significant leap forward by introducing a stock lending program. This announcement, made on Thursday, marks a strategic expansion of services, enabling customers to potentially earn over 5 percent on specific borrowed stocks.

In the initial phase, Swissquote is limiting stock lending to specific shares and exchange-traded funds, with plans to progressively incorporate additional asset categories into the program. The annual payout rate, which may surpass 5 percent for select shares, is subject to demand dynamics. Notably, the net client return rate for loaned securities has the potential to reach up to 1 percent annually, with customers receiving monthly payouts.

Securities lending, a practice allowing holders of physical securities to lend their shares to other market participants in exchange for a fixed return, facilitates the earning of interest on the lent stock, in addition to the regular dividends.

Jan De Schepper, the Chief Sales and Marketing Officer of Swissquote, remarked on the democratization of securities lending, stating, “Securities lending has long been an attractive option only for investors with large investments.” With this innovative program, Swissquote is extending the benefits of securities lending to a broader spectrum of investors, making it an attractive option for a wider clientele.

As Swissquote pioneers the integration of stock lending into its suite of offerings, this move reinforces its commitment to providing diverse and lucrative opportunities for its customers, marking a significant milestone in the evolution of its financial services.

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