eToro review: Platform launches UK stock lending to transform investor income
Trading and investing platform eToro has introduced its stock-lending programme in the United Kingdom, expanding a service previously rolled out in Europe and the UAE. The initiative allows eligible UK users to generate passive income by lending out fully owned shares from their portfolios, bringing a long-established institutional practice directly to the retail market.
- Chosen by 1 600+ local traders in the last 3 months.
- Traders earn on average 12% more per month vs other brokers.
The programme enables participants to lend whole-unit shares, while fractional shares and leveraged positions remain excluded. Investors who take part retain dividend rights and may sell their shares at any moment, though they temporarily give up voting rights while shares are on loan. Lenders receive monthly payments, typically equal to half of the net revenue that eToro collects from borrower agents. All loaned positions are backed by collateral, often in the form of government securities, to protect users against counterparty risks.
Expanding retail access through institutional infrastructure
The UK deployment strengthens eToro’s growing relationship with BNY, which provides clearing, settlement, custody and broader infrastructure supporting eToro’s stock and ETF offering across 19 global exchanges. Stock-lending operations are facilitated through EquiLend, which sources borrowers and oversees the lending workflow.
According to eToro executives, the programme aims to democratise access to passive income tools that were once the domain of large asset managers. The feature will first become available to higher-tier eToro Club members — including Platinum, Platinum Plus and Diamond — before being gradually extended to all retail users.
What comes next for retail investors
Market analysts note that stock-lending returns depend on demand for specific shares and may fluctuate, yet the feature presents long-term investors with a way to earn additional yield without reducing their holdings. As stock lending becomes accessible to a broader user base, it may influence how individual investors think about portfolio efficiency, income generation, and overall equity-holding strategies.
For eToro, the move marks another step in its broader strategy to expand global access to advanced trading tools and enhance the investing experience for its more than 40 million registered users.
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