What Is Fidelity Fully Paid Lending? How Does It Work?

Someone asks:

Has anyone participated in the Fully Paid Lending Program with Fidelity? I just signed up and was wondering how it works.

Do they pay the interest at the end of the month, or do they pay you when they close the position? Fidelity returned one of my loaned stocks, but I don’t see any interest payment. My guess is at the end of the month.

TIA

Community Answers:

Richard M:

With Fidelity Fully Paid Lending Program, you essentially get paid interest to allow your stock to be lent to short sellers. We can’t short unless we have access to borrowable shares. Not all stocks are qualified, only some.

Kyle G:

I’ve been doing it for about a year. I’ve been getting about 40% interest on my BYND shares for over a month. But I typically have about 4-8 positions loaned out at a time, varying between 0.5 and 40% interest being paid on them.

Honuman C:

I also enrolled in the Fidelity stocks lending program a month ago. I am noticing that they indeed take the new stocks (like mid/small growth stocks, ETFs, things to do with current trends like bitcoin, electric cars, etc.) like LEV, ARVL, WKHS, BLNK, BITW, etc. I think for a few days, my BITW shares was loaned for 13.5%.

Chris D:

I called Fidelity today. Here’s what I learned, in addition to those commented above.

  1. No company funded accounts count towards the $250,000 minimum. So 401k’s will not be included.
  2. The $250,000 minimum eligibility in your accounts can include cash.
  3. So if you have $150,000 invested in stocks/etfs, and $100,000 cash just sitting there, then that counts, and you pass the $250,000 minimum.

1 post – 1 participant

Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

Leave a Comment

Your email address will not be published.