Participate in stock lending

In this article:

Overview

Learn how to manage your stock lending participation and view your loan confirmations. For general information about stock lending, please check out: Learn about stock lending on Wealthsimple

Note: You can only manage these settings in the Wealthsimple mobile app.

Eligible accounts

You can participate in stock lending in any self-directed investing account. Other Wealthsimple accounts aren't eligible for stock lending.

Start participating in stock lending

To enable stock lending:

  1. Log in to your Wealthsimple app
  2. Tap the Move tab at the bottom of the screen
  3. Under Automations, tap Stock lending
  4. Follow the prompts to learn about stock lending
  5. Review and sign the agreement
  6. Tap Confirm to enable stock lending
  7. Choose which account(s) you'd like to enable stock lending in
Note: If you have previously signed the stock lending agreement, received and acknowledged the risk disclosure, and have enrolled in the stock lending program, then we'll enable stock lending in any new account you open. You can opt out of stock lending at any time.

Stop participating in stock lending

To opt out of stock lending:

Note: To exclude specific securities from stock lending, set a percentage of shares you don't want to lend, or recall your shares to participate in voting, please contact our support team. Our team can help you on an individual basis.
  1. Check that you're on the latest version of the Wealthsimple app
  2. Log in to your Wealthsimple app
  3. Tap the Move tab
  4. Under Automations, tap Stock lending
  5. Toggle which account(s) you want to opt out of
Note: It can take up to five business days to terminate a loan after opting-out.

View your loan confirmations

We provide loan confirmations for each of your eligible shares that've been loaned through stock lending. To view your loan confirmations:

  1. Log in to your Wealthsimple app
  2. From the Home tab, tap the Profile icon in the top right corner
  3. Tap the Settings (gear) icon
  4. Tap Automations
  5. Choose Stock lending from the options
  6. Tap View details on the account(s) you're interested in
  7. Select the date(s) you want to view
  8. Select View lending confirmation
Tip: You can also see your loan activity in your monthly statements.

What's available in your loan confirmations

The loan rate in your confirmation is calculated using a weighted average rate for each loan type (high demand loan or low demand loan) at the security and currency level.

Here's an example of how this aggregation works:

ABC shares loaned out at varying rates:

Trade ID Asset Trade Type Quantity Rate
1 ABC Low Demand 100 -5%
2 ABC Low Demand 80 -4%
3 ABC Low Demand 50 -1.50%
4 ABC High Demand 200 10%
5 ABC High Demand 200 5%

What you'll see in the loan confirmation:

Asset Trade Type Quantity Weighted Rate
ABC Low Demand 230 -3.89%
ABC High Demand 400 7.50%

Why you may see 0% rebates on some loans

Sometimes, we lend your shares in a special way where we pay a fee to the borrower. This typically happens when interest rates are high and the interest we earn on the cash collateral is more than the fee we pay. We choose this approach when there are no loans available where the borrower would pay us a fee, and when the interest we earn exceeds what we pay to borrow your shares.

In these situations, your shares are loaned out, and you receive a portion of the interest income we earn. You don't pay any fees in this process. When this type of lending occurs, you'll see these loans reflected on your loan confirmations with a loan rate of 0%.

Learn more about stock lending on Wealthsimple

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