Thanks. It looks to me personally like Fidelity has been the best (of Schwab, IB, and Fidelity) over the long term for a share lender. IB is higher sometimes but it's lower sometimes. Of course this could change any day.
KnowLittle: Very helpful information, indeed.
I think that we should do our best to hold these brokerages' feet to the fire. For many, it is pretty easy to switch shares from one brokerage to another.
I think that we should do our best to hold these brokerages' feet to the fire. For many, it is pretty easy to switch shares from one brokerage to another.
adiggs
Active Member
This is sort of what I'm thinking for myself. It also looks like Fidelity will be a friendlier outfit for a customer like myself, who will struggle to find enough trades in a year to make IB happy for a month
Now to find some time and get paperwork submitted to move some accounts... passing up the interest from loaning out my TSLA shares these last few years would hurt more if I'd known how easy it was to get involved, and how much it could be. Since I only really became conscious of the idea the last couple of months, my pain is more restrained.
adiggs
Active Member
Yonki (or anybody in the know) - it sounds like with Fidelity, when I sign up for an account there, I need to make it a margin account in order to be able to make my position(s) available for lending. Does that sound right?
(I'm not opposed to making it a margin account, and am likely to do so regardless for the flexibility)
Thx
(I'm not opposed to making it a margin account, and am likely to do so regardless for the flexibility)
Thx
Yonki
Supporting Member
I'm not sure - mine's margin, though. I'm attaching a pdf about the program that should have all the details.
Don't forget that if you want to participate, you need to give them >$250k in assets. And if you do that, don't forget to get your $600 (or more) by registering for this.
Good luck!
I lend out shares in my IRA, so margin is obviously not a prerequisite - but maybe it is in a taxable account. Google the phone number for "fully paid securities lending" and they should be able to answer your questions.
adiggs
Active Member
Yonki
Supporting Member
We've got that in common. And MikeC reminded me that I'm loaning out the shares in my IRA, so margin isn't a requirement.Awesome info Yonki - and thanks for the link to the free money. I like free money. I'm shallow that way
But I just remembered that they won't lend out shares you're using as collateral for other margin ventures. I had a bunch of naked puts (leftovers from an ultimately terrible investment strategy Ameritrade led me into) and their margin requirement kept half of my TSLA from being loaned out until I closed them.
There. I think everyone knows as much about the topic as I do now.
adiggs
Active Member
Finding the application form on their site is a treat! I'm up to the hurryupandwait stage, while accounts at the old broker are moved to Fidelity. Thanks for the info and the help!
Yonki
Supporting Member
adiggs: You're welcome - good luck!
Despite the news and resultant price movement, rates at Fidelity are unchanged from yesterday:
Lend TSLA: 9.75%
Short TSLA: 17.0%, 0 shares available to short
Lend SCTY: 36.25%
Short SCTY: 63.0%, 0 shares available to short
Looks like the shorts are back to doing what they do best, so I'd expect to see rates moving up soon...
Despite the news and resultant price movement, rates at Fidelity are unchanged from yesterday:
Lend TSLA: 9.75%
Short TSLA: 17.0%, 0 shares available to short
Lend SCTY: 36.25%
Short SCTY: 63.0%, 0 shares available to short
Looks like the shorts are back to doing what they do best, so I'd expect to see rates moving up soon...
Those SCTY borrow rates seem totally bonkers to me. For years there were many compelling reasons to short SCTY, but it seems like they would be basically the TSLA rate now that the merger and fixed stock ratio have been announced. What's the opportunity they're chasing? Or have they just not settled in yet?
I can confirm that you can be in the Fully Paid Lending Program on cash accounts (both Roth IRA and regular brokerage).
Yonki
Supporting Member
Fidelity:
Lend TSLA: 9.75%
Short TSLA: 16.5%, 0 shares available to short
Lend SCTY: 36.25%
Short SCTY: 63.0%, 0 shares available to short
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