eToro to launch stock lending feature for UK, European users
eToro stock lending starts in UK and EU
eToro, the multi-asset trading and investing platform, has announced the upcoming launch of its stock lending program, which will enable users in the United Kingdom and Europe to earn passive income by lending their stock holdings.
The initiative is part of eToro’s broader strategy to expand investment opportunities and democratize access to financial tools that were previously available only to institutional investors, according to the platform’s official website.
Initially, the stock lending service will be available to higher-tier eToro Club members — specifically Platinum, Platinum+, and Diamond levels — with plans to extend access to lower-tier members in the future.
Partnership with BNY and equiLend
The program is being launched in collaboration with two key partners: BNY, which will serve as the custodian and clearing partner, and EquiLend, a platform specializing in securities lending, which will manage borrower identification and the execution of lending agreements.
“Stock lending has traditionally been the domain of large financial institutions, making it far more difficult for retail investors to earn passive income this way,” said Yossi Brandes, VP of Execution Services at eToro. “By leveraging BNY’s Global Clearing services, we aim to level the playing field and give millions of eToro users across the UK and Europe a simple and transparent way to participate in stock lending.”
How the program works
To participate, eligible eToro users must register for the program. Once enrolled, their entire portfolio of real, whole-share stock positions — excluding fractional shares and CFDs — becomes available for lending. eToro users will receive monthly reports summarizing income earned from any successful stock loans.
Only full-unit stocks are eligible for the program, and the likelihood of a stock being borrowed depends on market demand, liquidity, and volatility.
While users temporarily lose ownership and voting rights over the lent stocks, they retain the ability to receive dividends, sell the stocks, or exit the program at any time without any fees. All loans are secured with collateral to protect the interests of the lender.
Strategic value and retail market impact
The launch underscores the growing partnership between eToro and BNY, which uses BNY’s global clearing platform covering 19 global exchanges and providing integrated solutions for custody, settlement, execution, and financing. It also marks a significant innovation in the retail investment space through the integration of EquiLend’s Spire technology.
Victor O’Laughlen, Head of Global Clearing at BNY, emphasized that the expanded partnership with eToro supports a comprehensive solution spanning clearing, settlement, asset custody, foreign exchange, and cash management. This development combines the strengths of eToro, EquiLend, and BNY’s world-class infrastructure, offering investors access to next-generation investing tools.
It’s worth noting that eToro previously conducted a global study revealing that retail investors continue to demonstrate resilience and strategic thinking despite ongoing market turbulence.
