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What is the Fully-Paid Securities Lending Program?

The Fully-Paid Securities Lending Program gives eligible National Bank Direct Brokerage clients the opportunity to earn additional income by lending their fully paid securities held in their non-registered accounts.

To learn more, visit our Fully-Paid Securities Lending Program page, read our article or watch this short video.

Did you know that you may be able to earn additional income on your fully paid stock & ETF holdings by participating in Fully-Paid Securities Lending Program? During the course of a typical trading day, brokers lend or borrow securities to and from investors for a variety of purposes such as for short selling, hedging strategies or to take advantage of arbitrage opportunities.

 

These investors are then charged a borrowing fee by the broker which varies based on the availability and demand of those securities. A higher fee applies for hard to borrow shares and a lower one for those easy to borrow. Your stock & ETF positions held in a non-registered account can help facilitate these transactions and earn you additional income in return.

 

In fact, we will pay you 50% of the borrowing fee earned. While your holdings are on loan, you’ll accrue daily interest, paid to your account once a month, in addition to the value of any dividend payments for those shares.

 

Once enrolled in the program, National Bank Direct Brokerage may borrow and lend your securities when opportunities arise. In the meantime, they remain in your account. Even when lent, you have complete visibility and your ongoing ownership allows you to sell or call back the shares at any time.

 

To learn more about the Program, visit NBDB.ca or contact us at 1-888-902-0202.

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