eToro to launch stock lending programme
10 April 2025 Europe
Image: Mojahid_Mottakin/stock.adobe.com
Trading and investing platform eToro has expanded its relationship with BNY to launch a fully-paid stock lending programme, enabling Europe-based users to earn passive income.
BNY will act as the custodian, while EquiLend Spire will identify borrowers and facilitate the stock lending process.
Yossi Brandes, vice president of execution services at eToro, comments: 鈥淪tock lending has traditionally been the preserve of large financial institutions, and it鈥檚 been much harder for retail investors to earn passive income in this way. Yet it is an important practice that helps to support liquidity in financial markets.鈥�
The feature will be rolled out gradually to members of the eToro Club, starting with Platinum, Platinum+, and Diamond Club members, followed by lower-tier club members at a later date.
Eligible users will be given the option to opt into the programme, at which point their entire portfolio of stock positions will be considered for lending.
Once opted in, users will begin receiving monthly statements if their stock is successfully lent to keep track of the income they earned in the specific period.
Only whole unit 鈥榬eal鈥� stock positions are eligible for lending, meaning that contracts for difference (CFDs) and fractional shares are excluded, with eligible shares rounded down to the nearest whole share.
Stocks with low market liquidity, high volatility, and high demand are more likely to be borrowed and generate higher earnings, according to eToro, with loaned-out stocks backed by collateral.
This launch of stock lending represents an expansion of the growing clearing relationship between eToro and BNY, which utilises BNY鈥檚 Global Clearing platform, offering integrated solutions across US and international clearing, custody, settlement, execution, and financing.
Brandes adds: 鈥淪ince the inception of our relationship, BNY has enabled us to expand our offering of investment opportunities through their global clearing and custody services, which provide the financial structure for our global, fully funded stock and ETF offerings across 19 exchanges.
鈥淭his new collaboration marks a significant step in our commitment to adding features and products to the platform that enrich the investing experience and help users to grow their knowledge and wealth.鈥�
BNY will act as the custodian, while EquiLend Spire will identify borrowers and facilitate the stock lending process.
Yossi Brandes, vice president of execution services at eToro, comments: 鈥淪tock lending has traditionally been the preserve of large financial institutions, and it鈥檚 been much harder for retail investors to earn passive income in this way. Yet it is an important practice that helps to support liquidity in financial markets.鈥�
The feature will be rolled out gradually to members of the eToro Club, starting with Platinum, Platinum+, and Diamond Club members, followed by lower-tier club members at a later date.
Eligible users will be given the option to opt into the programme, at which point their entire portfolio of stock positions will be considered for lending.
Once opted in, users will begin receiving monthly statements if their stock is successfully lent to keep track of the income they earned in the specific period.
Only whole unit 鈥榬eal鈥� stock positions are eligible for lending, meaning that contracts for difference (CFDs) and fractional shares are excluded, with eligible shares rounded down to the nearest whole share.
Stocks with low market liquidity, high volatility, and high demand are more likely to be borrowed and generate higher earnings, according to eToro, with loaned-out stocks backed by collateral.
This launch of stock lending represents an expansion of the growing clearing relationship between eToro and BNY, which utilises BNY鈥檚 Global Clearing platform, offering integrated solutions across US and international clearing, custody, settlement, execution, and financing.
Brandes adds: 鈥淪ince the inception of our relationship, BNY has enabled us to expand our offering of investment opportunities through their global clearing and custody services, which provide the financial structure for our global, fully funded stock and ETF offerings across 19 exchanges.
鈥淭his new collaboration marks a significant step in our commitment to adding features and products to the platform that enrich the investing experience and help users to grow their knowledge and wealth.鈥�
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