eToro Launches Stock Lending for UK & Europe

eToro has announced the launch of a stock lending program, allowing users in the UK and Europe to earn passive income by lending out their stocks. eToro is rolling out the initiative in collaboration with BNY and EquiLend, marking a significant expansion of its financial services.

BNY will act as the custodian for the program, ensuring the security of assets, while EquiLend will oversee the stock lending process, identifying borrowers and facilitating transactions. eToro will gradually introduce the program, starting with its higher-tier Club members—Platinum, Platinum+, and Diamond—before extending it to other users at a later stage.

eToro Launches Stock Lending for UK & Europe

Historically, stock lending has been a practice largely reserved for major financial institutions, but eToro aims to make it accessible to retail investors. “Stock lending has traditionally been the preserve of large financial institutions, and it’s 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,” said Yossi Brandes, VP of Execution Services at eToro. “Leveraging BNY’s Global Clearing services, we want to level the playing field by enabling millions of eToro users across the UK and Europe to engage with stock lending easily and transparently.”

Eligible users can opt into the program, and once they do, eToro will consider their entire portfolio of whole-unit stock positions for lending. After enrolling, they will receive monthly statements tracking their earnings from loaned-out stocks. However, only whole-unit ‘real’ stock positions qualify for lending. eToro excludes CFDs and fractional shares, rounding eligible shares down to the nearest whole share.

Stock Lending Mechanics and User Benefits

Borrowers are more likely to seek stocks with lower market liquidity, higher volatility, and strong demand, which can generate higher returns for lenders. Collateral backs loaned-out stocks, ensuring security in the process.

Users who lend their stock temporarily transfer ownership to the borrower and, as a result, lose voting rights while the stocks are on loan. However, they will still receive dividends, retain the ability to sell their stocks, and can opt out of the program at any time without additional fees.

The launch of stock lending further strengthens eToro’s relationship with BNY, leveraging BNY’s Global Clearing platform to provide integrated solutions across clearing, custody, settlement, execution, and financing. This partnership enables eToro’s clients to access trading opportunities across 19 global exchanges.

Industry Leaders Applaud the Initiative

Victor O’Laughlen, Head of Global Clearing at BNY, enthusiastically discussed the partnership: “BNY is expanding its relationship with eToro and actively supporting a holistic solution set across clearing, settlement, custody, foreign exchange, and cash management. This development represents the very best of eToro, EquiLend, and the heritage and innovation of BNY’s world-class platform, as investors look to access a cutting-edge feature in their investing journey.”

Dan Dougherty, Managing Director and Global Head of Sales & Account Management at EquiLend, highlighted the technological advancements brought by the partnership: “The collaboration between EquiLend Spire and eToro marks a significant advancement in the securities lending market, enabling eToro to enhance its services with a fully paid lending program that benefits from cutting-edge technology. This move not only demonstrates EquiLend Spire’s commitment to innovation but also eToro’s dedication to providing efficient and modern financial solutions to its users.”

With this initiative, eToro is poised to redefine stock lending for retail investors, opening up new opportunities for users to maximize the potential of their investments while contributing to market liquidity.

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