Swissquote, a Swiss bank-licensed broker, has expanded its services by launching a stock lending program that allows clients to earn more than 5% on certain shares borrowed。

Swisquote Offers Stock Lending

Initially, the Swiss broker will be limited to lending to specific stocks and exchange-traded funds.。However, the company plans to add more asset classes in the future.。Although the annual rate of return on certain stocks may exceed 5 per cent, depending on demand, customers lending securities can have a net return of up to 1 per cent per annum and customers will receive monthly payments.。

Securities lending allows holders of physical securities to lend their shares to other market participants in exchange for a fixed return, allowing them to earn interest and, usually, dividends on the shares lent。

Jan De Schepper, chief sales and marketing officer at Swissquote, said: "For a long time, securities lending has only been attractive to investors with large investments.。"

Following its successful launch in Luxembourg, Swissquote is now open to all clients (except US clients), regardless of portfolio size.。They can get convenient additional passive income from the securities they already own.。

Ensure program security

Swissquote will launch securities lending services for all of its private clients directly from bank accounts and apps。In addition, there is no minimum deposit requirement to participate in the program。

The broker further stressed that participation in the program requires "clear registration and acceptance of the agreement."。In addition, customers need to understand the associated risks。

"Securities are only lent to reputable top banks and financial institutions, which often borrow securities to ensure the smooth functioning of capital markets.。For example, they may borrow assets to support the timely settlement of transactions or as collateral, "the official announcement explained.。

Prior to expanding its services, Swissquote achieved "a series of record financials" in 2023.。Net income for the year was reported to be about 5.300 million francs, pre-tax profit expected to be at least 2.5.5 billion Swiss francs。In addition, the company recently launched a digital banking service.。