How to earn interest on your shares?

This video is all about the new share lending feature available for the first time to retail investors from Trading 212. We’ll cover what it is, how it works, the risks, and even take you through the screens to show you how to get started.

⌚ Timestamps:

0:00 - Intro
1:00 - What is share lending?
2:15 - How does it work?
5:00 - Can you exercise voting rights whilst shares are lent out?
5:10 - Who usually borrows shares and why?
6:20 - Do you still own the lent-out shares?
6:38 - What are the risks?
7:34 - Where can you learn more about share lending?
7:50 - How to set it up?

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Our Investing 101 series covers the fundamentals of investing and tries to bring you the basics to build a solid foundation. Let us know in the comments about future topics you would like to see covered in these videos.

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#Investing101 #stockmarket #trading #stocks #trading212 #shares

When investing, your capital is at risk. Investments can fall and rise and you may get back less than you invested. The information contained within the video was correct at the time of recording but may have since changed.

[johnrussell]

Excellent - All your video's are so clear and your answers to questions so quick. Thank You

[teokeitaanranta]

If the lender does not return the shares, will I be compensated automatically or would I have to do something myself?

[MATIvmr]

Weird because there’s no such option for me and I’m in the UK 🤔

[UnWantedXReCoN]

How much money can you earn on interest before reporting it to HMRC? I can seem to find info on this

[lopezjuanjl]

I would rather have the option to turn it on on individual stocks. I might do it when it gets to Spain though, it might help me speed up the process and I can always cancel the lending in order to have the voting rights after

[NightElff]

I just enrolled. Waiting to see what part of my portfolio will be lent out and which part.

[kunwer]

Hi can you please clarify broadly speaking who the shares will be lent to other than buyers shorting the stock. Some examples would be great thank you.

[tomsmatisons]

What happens if borrower doesn`t return your shares? Is there any kind of safety pillow behind it? Tnx

[ceasar]

Is there a way we can look at the projection again?

[davidclark]

But tax office say manufactured payments are taxable, dividend tax allowances do not apply.

[kvsider]

It's November 30th and the share lending interest earning feature isn't available in the rest of Europe. Is there a new target date for this?

[maja]

I have a question... i have two fractional shares lent in full, with a 0.53% intrest rate apy, however it states i get 0.00€ daily and the same has been for a couple a days

[munrajdhariwal]

So we can lend our shares to be shorted by someone else but don’t have the option to short the stock ourselves on T212?

[johnrussell]

Can you do this with shares held in a trading 212 ISA

[Sajuuk]

If we could turn it on individually per stock it would be fine, but on some i don't want it.. so until then, no go for me. the lending part is almost always used for people shorting your stock.. so screwing you over.

[valentinilie]

Hello. I have Hyllion bought at $1.83 and I put an selling limit order at 1.85, when the price has reached today 3 times why it didn't sell them ? The price reached $1.86 and still not sell them why ? And why I'm buying more expensive then the price that shows me ? The price was $ 1.80 and I presed buy and it buyed at $1.83 why ?

[NepaliSher]

Hello if I invest 100 and it goes down to 80. I started lending when it was at 100 Gbp. Will the collateral be 102% for 100 or for 80

[kunwer]

Just a question -
1 - Can i cancel the lent shares to regain voting rights
2 - if the borrower goes bust, the collateral will only be paid at the market rate the borrower lent them for. So if im down 50% on my purchase price, ive lost out as they will not pay me the original purchase price. Please confirm.
3 - what percentage of borrowers go bust?

[andrewgibbs]

I will wait and see what happens with $MMTLP between the Security and exchange commission and Congress before I invest another penny.. it is very clear that the market is manipulated.

[MattMcQueen]

For me, this seems pretty pointless. My lent value today is £1, 443.57. The interest rate (APY) is 0.08%. I don't think this will make me rich. I question why the interest rate is so low, given that the base rate is a lot higher (even accounting for Trading 212 taking half of the interest).