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Securities Lending – Earn extra revenue, and avoid custody fees

Simply opt in for the chance of extra revenue from lending out your securities, and to have custody fees waived.

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  • Earn extra revenue on your securities

    If we borrow any of your securities and lend them out to third parties, you can earn extra revenue on the loan. You can still sell the loaned securities and receive payments equivalent to applicable dividends.

  • Custody fee waived

    When you activate Securities Lending, you get your custody fee waived no matter which account tier you're on.

The actual lending of securities depends on market demand. No lending or revenues are guaranteed by opting in.

What is Securities Lending?

Securities Lending is a service through which you make securities on your account (e.g. stocks and ETFs) available for lending to other market participants. Sometimes, the market is hungry for certain stocks and if you own these, you can earn extra revenue by lending them out.

The best part: you can continue to view any securities which you have lent out in your portfolio, you’ll receive payments equivalent to applicable dividends, and you can sell these securities whenever you like.

How does it work?

Let’s say you own shares in ACME Corp – and that stock is currently in high demand, whereby market participants are paying interest 24% per year to borrow such shares.* If you’ve activated your account for Securities Lending, we can arrange to loan your shares out to these interested market participants. We’ll then split the interest received 50/50, meaning you earn extra revenue of 12% per year, on loaning out your ACME Corp shares.

Any extra revenue generated from Securities Lending is deposited into your account at the end of each month, all visible in the Securities Lending dashboard in the platform. Although no lending or revenues are guaranteed by activating the service (since the actual lending of shares depends on market demand), we take care of the lending process for you, making it a true win-win.

*All securities and figures mentioned are hypothetical illustrations only.

More about Securities Lending

With Securities Lending activated, we may borrow certain securities from your account and lend them out to third parties. For the securities we borrow, you will receive a monthly payment of any extra revenue generated by the loan, and we will collateralise you in accordance with the applicable regulations under Singapore law.

Note: You continue to retain the market risk of price fluctuation for your securities on loan, just like you would if you didn’t lend those securities. In addition, you continue to retain the right to sell your securities at any point irrespective of the loan.

There are several reasons third parties may borrow securities. For instance, they may want to hedge their existing positions, to short markets in which they don't own any shares, or to borrow assets to meet a demanding delivery deadline.

Not necessarily. There may be little or no demand to borrow your securities. Certain assets are in greater demand than others, and this demand will fluctuate over time. Across your portfolio you may find, for instance, that a majority of the assets you hold do not command a lending fee at any point in time. This means that it is possible you may not earn any revenue through Securities Lending.

You will still get the custody fee waived no matter how many (if any) of your securities Saxo borrows and no matter how much revenue you may earn from a potential loan.

No, you can’t choose to only make certain securities available for lending. When you activate Securities Lending, all eligible securities in your account become available for lending.
Yes, you’ll be able to see which securities (if any) are on loan and what revenue (if any) you received. 
Yes, you can always sell your securities. If you sell a loaned security, the loan terminates. 
Yes, you receive payments equivalent to applicable dividends or distribution on securities while they are lent to Saxo. You should consult a tax advisor regarding any potential tax implications of such payments.  
While your securities are lent out, you do not retain rights to vote or attend shareholders meetings (as applicable).
 
When opening an account, you can activate Securities Lending as a step in the signup process. If you are already a client, you can activate or deactivate Securities Lending in your Portfolio overview or click here.

To deactivate Securities Lending, you can submit a support ticket via the trading platform.
This is a fee we charge for holding stocks, ETFs/ETCs and bonds on your behalf. As a Singapore resident or a Singapore-incorporated entity you don’t pay a custody fee for holding SGX stocks and ETFs.

We calculate your custody fee daily and debit your account on a monthly basis. You can learn more about the custody fee here.

Swipe left or right for more
Annual custody fee
ClassicPlatinumVIP
If opted into Securities Lending
0%0%0%
If opted out of Securities Lending
0.12%0.12%0.06%
For more information, please refer to the Securities Lending Terms here or visit our support centre.

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