Earn Extra Income
Boost your account balance with our Fully Paid Stock Lending program
TradeStation Securities, Inc.
With TradeStation’s Fully Paid Stock Program, your eligible stock positions may earn you extra income. When we lend out certain fully paid or excess margin securities in your account, you’ll receive a share of the interest we earn each day.
Low barriers to entry
Limited trading experience or a reasonable net worth to be eligible to participate in the program
Daily interest accrual
The interest you earn is accrued daily in your account and posted in your monthly account statement
Sit back and relax
Sit back and relax while you earn income if we lend out eligible securities you own
Ready to get started?
Who is eligible for Fully Paid Lending?
The Fully Paid Lending Program is available to all TradeStation clients who meet the following criteria:
- A minimum of $25,000 in total net worth OR one (1) year of trading experience
- An equities account (excluding custodial)
- A Master Securities Lending Agreement (MSLA) and related schedules and disclosures.
Have questions about your eligibility? Contact Client Services at 800.822.0512 or 954.652.7900.
How do I enroll?
- All new qualified clients are automatically enrolled in the program.
- For clients who opened an account prior to 2/15/19, visit the Client Center to enroll in the program.
- For existing clients whose eligibility criteria has changed, please complete and submit the Client Information Update form and then visit the Client Center to enroll.
How does it work?
- We identify securities in your account that qualify for lending
- Based on market demand, some or all of your eligible securities will be loaned out
- You’ll accrue daily income while your securities are on loan
- Once securities on loan are sold or if the loan is recalled, income stops accruing to your account on that loan
- All securities on loan and accrued interest will be reflected in your monthly statement
Are there trading restrictions?
There are no trading restrictions on securities that are loaned out. You can sell or transfer your positions at any time, just as you would if they weren’t on loan. As required, shares will be recalled and deposited back into your account.
What are the risks?
Shares loaned out are not protected by SIPC. There are also potential tax consequences:
- When shares are loaned out, you’ll receive cash payments in lieu of dividends; these payments are treated as ordinary income rather than taxed at the dividend rate.
- Loan income is taxed as ordinary income.
- There’s no guarantee that eligible securities in your portfolio will be loaned out, as there may be insufficient demand for the securities.
When securities are on loan you lose your ability to exercise voting rights. Other risks are outlined in the Fully Paid Lending Risk Disclosures you are given to review when you open an account and which are accessible through the TradeStation website.