Short Selling
- Thread starter Darts
- Start date
I knew it, I just knew it. The broker is lending out my stock and earning a lending fee and I don't get a cut of the revenue. What a racket!
They aren't th e only ones gaining from your hard work.
Sites that know you exist sell your eyeballs to advertisers (Terb does it). Google, FB, Twitter, YouTube al of these "free" sites and boards are run because you provide the potential of a sale to someone. SP's pay to be seen by you, and the rest of us. You get zero, nada, unless you count the benefit of seeing those ads and the discounted broker fees.
You do get a benefit, just not as directly as you might like.
IBKR gives you a portion of the interest charged on the shares short sellers borrow from you.
Stock Yield Enhancement Program | Interactive Brokers LLC
Our Stock Yield Enhancement Program allows you to earn extra money by lending us your fully-paid stock shares. We then lend these shares to traders who pay interest.
www1.interactivebrokers.com
Interesting. I have so far only dealt with "Big 5 Banks" owned brokers. Who are the principals behind IBKR?IBKR gives you a portion of the interest charged on the shares short sellers borrow from you.
Stock Yield Enhancement Program | Interactive Brokers LLC
Our Stock Yield Enhancement Program allows you to earn extra money by lending us your fully-paid stock shares. We then lend these shares to traders who pay interest.
Could you provide an example of how the interest rebate works (especially since interest rates are so low).
As with all things finance, I'm not here to convince you, you should be doing your own DD. I just mentioned IBKR because not many Canadians know about them, they're more popular in the US. The IB name has been around for a few decades now, IBKR trades on the Nasdaq with a market cap of 26B. They're bigger and have a better infrastructure than Questrade. I know back in March, QT had trouble logging in/executing orders while IB did not.
I'm not enrolled in that program so I can't tell you specifics but there is an example on that page. Cash interest rates are low right now but with this program, you're not lending cash, you're lending shares, which I'm pretty sure would fetch a higher interest rate.
