3
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Fully paid lending stocks?
Posted on 5/18/22 at 10:05 am
Posted on 5/18/22 at 10:05 am
Is there any reason not to enroll in a fully paid lending program with TD Ameritrade or other brokerage? You lend out your shares, can sell whenever you want, and are paid out in monthly at 50% of the amount of stock that was lent out at whatever % it was borrowed? The only thing I think is that you can't trade on margin.
Is this basically correct?
Follow up can you enroll IRA and 401k also?
Is this basically correct?
Follow up can you enroll IRA and 401k also?
This post was edited on 5/18/22 at 10:06 am
Posted on 5/18/22 at 10:22 am to Pierre
No reason not to if you believe in the stock long term. I've gotten lucky in having a couple of OTC stocks that have been heavily borrowed and have made around $70k total on FPL in the last 2 1/2 years.
It fluctuates though based on the value of your stock and the rate to borrow. And when the stock price drops, you'll get fewer shares loaned out. In the last month I've gone from making $160 a day on FPL to $20 yesterday.
Just don't post about it if you frequent forums dedicated to the stock. With all the myths around short sellers, other shareholders don't like people lending out shares, which probably gives you a better chance of having your shares borrowed.
It fluctuates though based on the value of your stock and the rate to borrow. And when the stock price drops, you'll get fewer shares loaned out. In the last month I've gone from making $160 a day on FPL to $20 yesterday.
Just don't post about it if you frequent forums dedicated to the stock. With all the myths around short sellers, other shareholders don't like people lending out shares, which probably gives you a better chance of having your shares borrowed.
This post was edited on 5/18/22 at 10:23 am
Posted on 5/18/22 at 10:28 am to Diseasefreeforall
Thanks But you can't sell the stock if it is lent out? Can I control how much is lent?
I thought if I enrolled all the stocks in my account would be available so if I had apple, tesla, GE or whatever they would all be able to be lent at anytime?
Is that not correct?
I thought if I enrolled all the stocks in my account would be available so if I had apple, tesla, GE or whatever they would all be able to be lent at anytime?
Is that not correct?
Posted on 5/18/22 at 10:37 am to Pierre
You can still sell your stocks like normal if you wish. FPL makes no difference with that.
The downsides are that dividends may be taxed differently but I have no experience in that and you could lose your loaned shares if your brokerage went bankrupt, but the chances of that happening seems remote for a large broker.
With Etrade, when I enrolled in the FPL program in a non-margin account all my stocks were eligible to be loaned out. Brokerages want to loan out stocks because they are making cash too so you just sign up, let them do the work and get your half.
The downsides are that dividends may be taxed differently but I have no experience in that and you could lose your loaned shares if your brokerage went bankrupt, but the chances of that happening seems remote for a large broker.
With Etrade, when I enrolled in the FPL program in a non-margin account all my stocks were eligible to be loaned out. Brokerages want to loan out stocks because they are making cash too so you just sign up, let them do the work and get your half.
Posted on 5/18/22 at 10:38 am to Diseasefreeforall
Posted on 5/18/22 at 10:43 am to Pierre
quote:
Follow up can you enroll IRA and 401k also?
I am with Fidelity and my brokerage account and Roth IRA's are eligible for fully paid lending, but not my self directed 401K or my HSA.
Posted on 5/18/22 at 11:23 am to GeneralLee
It is legit free money, no reason not to do it. As an added bonus as you see certain stocks are lent out it can be a leading indicator of a drop in the price.
Posted on 6/3/22 at 7:39 am to Chucktown_Badger
I enrolled about 15 days ago and a nice little bundle of kash was dropped in my account from the sky with apparently no downsides. Thanks!
edt: Right now getting paid 11.5% half goes to TD Ameritrade
edt: Right now getting paid 11.5% half goes to TD Ameritrade
This post was edited on 6/3/22 at 7:40 am
Posted on 6/3/22 at 11:18 am to Pierre
Pierre,
What was the minimum for TD Ameritrade? Fidelity is $250k in account to be eligible
What was the minimum for TD Ameritrade? Fidelity is $250k in account to be eligible
Posted on 6/3/22 at 2:59 pm to ThatsAFactJack
I’m not certain. I looked on the td Ameritrade page but didn’t find any acct minimums. Td Ameritrade has a really good customer service number you can call. I would contact them. The number is on the web page
Posted on 6/3/22 at 6:04 pm to Pierre
Don’t really know anything about this or that it was an option. Interesting… thanks
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News