The social trading platform eToro is democratising access to securities finance by introducing a stock lending programme for its UK and European users, partnering with banking giant BNY Mellon and securities lending technology provider EquiLend. The initiative marks a significant move to bring institutional-grade investment features to retail traders.
Under the new programme, eToro clients can generate passive income by lending whole shares from their portfolios (excluding CFDs and fractional positions). The platform will automatically round down eligible positions to the nearest whole share, with high-demand, volatile stocks likely to generate the most income. All loaned securities will be fully collateralised, protecting lenders’ assets.
“Stock lending has traditionally been the preserve of large financial institutions,” said Yossi Brandes, eToro’s VP of Execution Services. “By leveraging BNY’s Global Clearing services, we’re enabling millions of users to participate in this market practice that helps support liquidity.”
The programme will initially roll out to Platinum-tier members of eToro Club before expanding to other levels. Participants retain rights to dividends and can sell shares or exit the programme anytime, though they temporarily forfeit voting rights during loan periods. Monthly statements will detail lending activity and earnings.
BNY Mellon’s Victor O’Laughlen noted the partnership delivers “a holistic solution across clearing, settlement and custody,” while EquiLend’s Dan Dougherty highlighted how the collaboration brings “cutting-edge technology” to retail investors. The infrastructure connects eToro’s users to 19 global exchanges through BNY’s established clearing network.
This development represents eToro’s latest move to bridge the gap between retail and institutional investing, following its recent expansion into bond trading and smart portfolios. The stock lending feature could prove particularly attractive in the current high-interest rate environment, where securities financing demand remains robust.