Securities lending is demand‑driven: the chances to match with borrowers and potential earnings vary greatly depending on the borrower and the market demand for any given security.
The net return rate for loaned securities can be up to 2% yearly with monthly pay‑outs. For some securities the return can even exceed 5%.
Toggle Securities Lending on or off at your discretion. When enabled, Swissquote oversees transactions on your behalf, ensuring institutions provide a collateral worth at least 105% of the borrowed assets’ value, safeguarding your interests. Enjoy your earnings deposited directly into your account, with clear documentation in your monthly statements.
At Swissquote we understand the importance of protecting the assets you have worked hard to build and grow. It is critical, and you can trust Swissquote's top priority is safeguarding your assets.
The borrowers Swissquote has selected to work with are all systemic tier 1 banks (often considered "too big to fail"). Before we lend any holdings, we ensure we have obtained your prior and explicit consent. We would then require collateral of at least 105% of the lent assets' value to be deposited with our collateral agent by the borrowing banks. These assets are held in a segregated account with The Bank of New York Mellon (rated as Aa1 by Moody and AA+ by Fitch both deemed high grade).
The collateral is marked‑to‑market daily. This means that, in the unlikely event that a borrower defaults or declares bankruptcy, your assets will be protected by the collateral placed by the borrower at The Bank of New York Mellon (these collateral are assets held independently from Swissquote and the borrower).