Saxo Bank review: Japan unit launches stock lending for global equities
Saxo Bank Securities Ltd. Japan announced the launch of a new service allowing clients to lend their stocks and ETFs to other market participants. This move expands investment opportunities for clients in Japan amidst growing interest in passive ways of earning from portfolios.
- Chosen by 3 200+ local traders in the last 3 months.
- Traders earn on average 12% more per month vs other brokers.
According to FNG, the service is already available and aimed at investors willing to capitalize on market demand for borrowed stocks and ETFs, without losing ownership of their assets.
A new way to generate portfolio income
Saxo Bank Securities Ltd. Japan officially launched the stock lending service today. The service allows investors to lend their stocks and ETFs to other market participants, who then pay a fee for this.
The investor retains the economic rights to their assets: the stocks remain in their portfolio, they can sell them at any time, and they continue to receive payments equivalent to dividends, even when the shares are on loan.
Interest on each lent asset is accumulated daily, based on market conditions, with payments for accumulated interest being made the following month.
Wide range of stocks and flexibility
The service is available for over 6500 stocks and ETFs from various regions, including American, French, German, Swiss, Spanish, and Italian stocks.
This means that Saxo Japan clients can participate in lending not only local but also global assets, earning interest on high-demand market instruments.
The service can be activated or deactivated at any time through the account settings, offering control and flexibility to investors without long-term commitments.
New opportunities for investors and market impact
Saxo Bank Japan's innovation gives investors an alternative income source amid traditional stock and ETF trading. As passive income services gain traction and market conditions become more complex, the ability to earn from lending assets may be attractive for those looking to increase portfolio returns without additional trading risks.
However, it’s important to note that income depends on demand for specific stocks and ETFs: if demand is low, the loan may not be executed, and no interest will be earned.
The service opens new ways for individual investors in Japan to monetize their portfolios, expanding traditional investment strategies and offering a flexible tool for income growth.
It was earlier reported that Saxo Bank joins J. Safra Sarasin.
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