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any comments\experience with vanguard's equity lending program? seems like a potential source of no risk uncorrelated income, although likely small. of course, vanguard doesn't disclose their cut, and i always wondered if they monetize customer limit orders.
There is a thread on securities lending at BB with Fido focus. VG (or Schwab) program should be similar. If you signup, you have to hold some hot securities. Even if you don't signup for securities lending program, your margin agreement allows brokers to lend your securities without your permission and without any compensation. https://big-bang-investors.proboards.com/thread/3061/securities-lending
@bee that’s the program, just follow your link. Yes, both taxable and IRAs are eligible. I only earned 2-3% (annualized) but in some cases the rates are considerably higher. Check the thread on BB (see YBB’s post) for other experiences.
HSA accounts must not be eligible….I have two Brokeragelink accounts attached to my workplace 40x, and an HSA. My Roth (and my parents’ IRAs) is at TDA (for 30 more days). It said I am ineligible (this is all at Fidelity).
Does anyone know the link for Schwab’s lending program for future reference? Thanks. I can’t do much on Schwab yet (though I did create an account ID there ahead of the transfer).
From related Schwab FAQs, https://www.schwab.com/securities-lending/faqs "Currently, most accounts are eligible. However, it should also be noted that employer‑sponsored retirement plan accounts like 401(k)s are not eligible under ERISA rules."
Comments
Even if you don't signup for securities lending program, your margin agreement allows brokers to lend your securities without your permission and without any compensation.
https://big-bang-investors.proboards.com/thread/3061/securities-lending
my offer is for a brok account with never enabled margin, options.
Can you share more details? Thanks.
Are IRA accounts eligible?
I found this link:
https://fidelity.com/trading/fully-paid-lending
Does anyone know the link for Schwab’s lending program for future reference? Thanks. I can’t do much on Schwab yet (though I did create an account ID there ahead of the transfer).
https://www.schwab.com/securities-lending
From related Schwab FAQs,
https://www.schwab.com/securities-lending/faqs
"Currently, most accounts are eligible. However, it should also be noted that employer‑sponsored retirement plan accounts like 401(k)s are not eligible under ERISA rules."