SECURITIES LENDING PROGRAM

Real upside, no effort. Earn passive income while maintaining full ownership of your stocks and ETFs.

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A mobile interface displaying securities lending information, showing three stocks (AAPL, AMZN, BRK.B) on loan and $32.10 interest earned this month.

What is Securities Lending?

It’s an easy way to make more money on your investments. We loan them out, you get monthly income.

Illustration showing a central handshake surrounded by financial icons including a bank, security certificate, rising stock chart, coins, and growing plant.

STEP ONE

Buy and hold eligible U.S. securities

Once opted-in, eligible securities in your Questrade TFSA, Cash, or Margin account can be lent out.

STEP TWO

Let Questrade lend your securities to other traders

As long as you’re opted in, we’ll look for borrowers to lend your stocks and ETFs to.

STEP THREE

Get paid monthly while retaining full control

You can trade dividend equivalents and trade as usual while earning monthly income, too.

List of benefits

How our Securities Lending Program benefits you

  • Earn more money on your investments

    Once you’re opted in, Questrade takes care of the rest, and you can receive extra income.

  • You and your investments are protected

    Lending is low risk. But we’ll also hold 100% of your shares’ market value as cash collateral.

  • Everyone is eligible

    All you need is at least one full share of an eligible security in a self-directed Questrade TSFA, Cash, or Margin account.

  • You've got control

    Your securities appear in your portfolio as usual, letting you trade any time.

The math behind Securities Lending

How income is calculated for a stock or ETF

( $10,000

Market value

The current value of the shares you are lending out.

[price per share] × [No. of shares].

×
8% )

Securities lending fee

The fee paid by borrowers to access these shares.

×
.50

Revenue share

The revenue earned is split 50/50 between Questrade and you.

=
$400

Potential yearly revenue

How much you could earn from lending in one year.

Calculation for example purposes only: Many factors including market conditions and security supply and demand influence income potential. Past performance is not indicative of future growth potential.

Minimize the trade offs with Questrade

There are a few key things to keep in mind with Securities Lending. We've got solutions for each of them.

 Trade offHow we help
Voting rightsYou can't vote with shares that are actively loaned out.You can recall shares before a vote to get your rights back, then opt those shares back into lending after.
InsuranceLoaned shares don't qualify for Canadian Investor Protection Fund coverage.We've got you covered. Questrade will hold 100% of your shares' value as collateral.

Unlock the upside of securities lending to earn a passive income

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Common Frequently Asked Questions

It is a way of earning passive income by lending your securities (stocks and ETFs) to other investors. You still own your loaned assets and can sell them at any time without delay. But, while they’re loaned out, you’ll be generating extra money on them. We’ll handle finding a borrower for you and there’s no minimum portfolio value or number of shares you need to hold to be eligible. Canadian securities aren’t eligible for lending yet.
When someone borrows a security, they have to pay a securities lending fee, which Questrade splits with you. Your earnings depend on a few factors, including: how many of your securities are out on loan, the length of the loan, and the overall market conditions. The income generated from all your loaned securities will be paid out once per month. 
No. You retain full legal ownership of your assets throughout the lending period. Your securities are simply lent out temporarily, and you have the right to sell them whenever you want.
Don’t worry: if your investment earns dividends while it’s loaned out, you’ll receive a compensation payment in the equivalent amount deposited into your account. You should consult with a qualified tax advisor about the tax treatment of compensation payments.
Your dividend reinvestment will work as usual—the manufactured dividends you receive from the securities lending program will be reinvested automatically.
You can—no restrictions, no questions asked. Once you do, your stocks and ETFs won’t be lent out anymore. You’ll find this option by logging into your Questrade account and going to Securities Lending. Remember: this also means you won’t be earning passive income anymore. Learn more.

Money earned from securities lending in a registered account, such as a TFSA, may have different tax implications than earnings in a non-registered account like a Margin or Cash account. We outlined some of the considerations here but, as always, you should consult with a qualified tax advisor for specific guidance.

 

Is there something else you’re looking for?

See the full Securities Lending Program Frequently Asked Questions.