Our Stock Yield Enhancement Program allows you to lend your fully-paid stock shares to Place Trade in exchange for cash collateral; PT will lend the borrowed shares to traders who want to sell them short and are willing to pay a fee to borrow them.
Each day that your stock is on loan, you will be paid a loan fee based on market rates. You share a percentage of this with PT (currently 50%) as a fee for managing the program. Stocks that are eligible to be loaned out are all "fully-paid" stocks (stocks not held on margin) and "excess-margin" stocks (stocks held on margin but whose market value exceeds 140% of your margin debit balance).
The Stock Yield Enhancement Program is available to eligible PT clients1 who have been approved for a margin account, or who have a cash account with equity greater than USD 50,000.
How to sign up for PT's Stock Yield Enhancement Program:
Simply log into Account Management
> Choose Manage Account (from the main menu)
> Trade Configuration
> Trade Permissions
> Check Stock Yield Enhancement Program and continue.
How much you can earn:
You can see how much you might earn in our Stock Yield Enhancement Program by running the PT Stock Yield Calculator. Access the Calculator in Account Management by clicking stock Yield Enhancement Program under New Features on the Account Management Home page, then clicking the Calculate Potential Extra Yield button on the Stock Yield page.
For a complete discussion of the risks and characteristics of the program:
Please view our PDF regarding IMPORTANT CHARACTERISTICS AND RISKS OF PARTICIPATING IN INTERACTIVE BROKERS FULLY-PAID SECURITIES LENDING PROGRAMS. You should read this document carefully before participating in our Stock Yield Enhancement Program. This PDF is courtesy of our clearing firm.
1Please Note: Not all clients are eligible to participate in our Stock Yield Enhancement Program at the present time. Currently clients in Canada, India and Japan are NOT eligible. Clients in the UK, Japan and India are eligible.