Schwab Securities Lending Fully Paid Program
Help your clients earn additional monthly income by putting their stocks to work.
Discover a new way for your clients to reach their financial goals
With Schwab's Securities Lending Fully Paid Program, your clients can loan their eligible shares to other investors or financial institutions when there is a demand for them, often driven by short selling. In exchange, your clients will receive interest based on this demand.
Passive income—activated
Monthly income potential for your clients. No enrollment fees or hidden costs.
You're always in control
Your client maintains full ownership by remaining invested in their securities. They can sell or opt out at any time.
Reassurance made easy
Securities are backed with cash collateral. You apply, we do the rest.
Put in-demand securities to work
- Clients can lend eligible securities without changing their investment strategies.
- When securities are loaned out, interest is accrued daily and will be automatically paid into your clients' accounts each month.
- Clients can view loan status and accrued interest on Schwab Alliance.
Still have questions? We're here to help.
Advisors receive support from a dedicated Securities Lending team. If you want to know more about the Securities Lending Fully Paid Program, you can reach us by calling 877-793-8872 between 8:30 a.m. and 4:00 p.m. EST.
Enrollment in the program is subject to approval. Not all clients will qualify. Employer-sponsored retirement plan accounts like 401(k)s are not eligible under ERISA rules. Clients must meet specific appropriateness requirements in order to be eligible to enroll in the program.
Clients receive cash collateral held at Charles Schwab Trust Company (CSTC) for the securities loaned, which is at least equal to the securities' market value as of the prior day's market close.
Demand and pay rates vary by security and over time. Schwab may terminate a loan at any time. Shares loaned out are not protected by SIPC. However, Schwab will maintain cash as collateral, which will amount to at least 100% of the loan. In the unlikely event of Schwab filing for bankruptcy, you can draw on this collateral, which may be the only source of resolution. Each security will have its own lending rate based on demand. The annualized lending interest rate is a portion of the total interest earned on the loaned shares. Shares on loan often support short trading strategies.
This information is for educational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.
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Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, or maintenance, or for other reasons.