Lend your securities. Earn income.

Fidelity’s Fully Paid Lending Program lets you earn incremental income on securities that you already own, just by lending them out.

What is the Fully Paid Lending Program?

Fidelity's Fully Paid Lending Program provides you with the opportunity to lend securities in your portfolio and earn income. If there is demand in the securities lending market, generally due to short selling, scarce lending supply, or corporate events, Fidelity may borrow certain eligible securities until either you or Fidelity elect to close the loan.


Earn incremental income

Receive interest income from Fidelity on any borrowed securities. Income accrues daily and is credited to your account monthly.


Maintain full economic ownership

Remain exposed to the market while your securities are on loan. Sell your shares or recall the loan at any time.


Monitor activity online

Securities on loan, lending interest, and program activity can be viewed on your Fidelity.com Positions page, along with your current portfolio valuations.

How does it work?


Sign up once

Provide your name and email address in the form at the bottom of the page. The enrollment materials will then be emailed to you.


Lend your eligible securities

Once enrolled, there are no extra steps. All eligible securities in your account, now or in the future, will be considered for borrowing based on demand in the lending market.


Start earning

The income for lending your securities will be credited to your Fidelity account.

How am I paid?

Each month you will be paid interest income that is automatically credited to your Fidelity account. Lending interest rates are variable and may change at any time based on market conditions. Here’s a hypothetical example of how interest is calculated, using an annualized lending rate of 8.50%.



* The lending interest rate is based on the relative value of the loaned security, which is determined by several factors including borrowing demand and short selling, and general market conditions.

Important considerations

When deciding whether to participate in Fidelity’s Fully Paid Lending Program it is important that you are aware of these considerations.

ENROLLMENT

Once enrolled, if Fidelity borrows a security, the length of the loan and your ability to earn income will vary depending on short selling demand and available lending supply.

SIPC

Shares on loan are not covered under Securities Investor Protection Corporation (SIPC). However, Fidelity provides collateral at a minimum of 100% of the loan value. In any securities lending transaction, counterparty default is a risk.

DIVIDENDS

Cash distributions paid on securities borrowed over the dividend record date are credited as of a "cash-in-lieu" payment, which may have a different tax treatment than the actual dividend from the issuer.

VOTING RIGHTS

When you loan your shares, you relinquish voting rights. However, if you want to vote your shares, you can terminate your loan in advance of the record date.

Frequently asked questions

  • What determines which securities are eligible for fully paid lending?
    Based on demand in the lending market, Fidelity identifies securities in your account that may be hard to borrow due to demand for short selling, scarce lending supply, or corporate events that could affect the liquidity of a security. Fidelity then determines which, if any, of those securities they want to borrow.
  • Which eligible securities in my portfolio are available for lending?
    Fully paid and excess-margin securities1 are eligible for lending through the program. You may lend all or a portion of the securities in your portfolio.
  • Does my enrollment in the Fully Paid Lending Program guarantee that my eligible securities will be borrowed?

    No, Fidelity is not obligated to borrow securities. By enrolling, you are giving Fidelity permission to borrow from your current and/or future eligible securities, as needed.

    When enrolling, you will complete the Master Securities Lending Agreement (MSLA), which is a separate agreement from any previously executed margin agreement(s).

  • How does lending affect my ownership of the securities?

    Under the securities lending agreement you maintain full economic ownership of the securities on loan and may sell or recall loans at any time.2 However, you do relinquish your ability to exercise voting rights if shares are on loan over a proxy record date.

  • Will I still receive cash dividends while securities are on loan?

    You will receive cash-in-lieu payments, not dividends, on securities that are on loan over a dividend record date.

    Cash-in-lieu payments may have different tax treatment consequences than actual dividends from the issuer. To help offset any additional tax burden associated with these payments Fidelity may provide a credit adjustment to participating taxable accounts.3

  • How can I monitor my securities on loan?

    You can monitor your securities on loan in the same manner as the rest of your portfolio through Fidelity.com.

    You can view your securities on loan and real-time lending rates on the Loaned Securities page, which can be accessed from your Positions page. You also will receive a detailed monthly statement, which is available on the Statements page under Account Records.

  • What determines the lending rate?

    The lending rate for each security is based on several factors including borrowing demand, the overall lendable supply of the security, short selling and hedging interest, and general market conditions.

  • Will the lending rate change over the life of the loan?

    Changing market conditions may necessitate a change in the lending rate. If a rate changes, you will receive a detailed trade confirmation. You can also view the rates in real-time on the Loaned Securities page. As always, you maintain the right to “recall” or request to have shares returned at any time. Please refer to the Master Securities Lending Agreement (MSLA) for more details on how the lending rate is determined.

  • Does Fidelity receive compensation for use of my loaned securities?

    Fidelity receives compensation in connection with the use of your loaned securities when lending to other parties or facilitating the settlement of short sales.

  • What are the risks associated with Fully Paid Lending?

    Shares on loan are not covered under SIPC. However, Fidelity provides collateral at a minimum of 100% of the loan value. In any securities lending transaction, counterparty default is a risk.

    Fidelity is your counterparty on all fully paid loans. If Fidelity were to default on its obligations as defined in the MSLA, you would have the right to withdraw the collateral from the custodian bank.

    In addition, voting rights are relinquished, and dividends are paid as cash-in-lieu payments which may have different tax consequences than actual dividends. Short selling activity may impact the price of your security.

  • Can you tell me more about the collateral provided?

    Fidelity will provide you with collateral that is held at a third-party custodial bank. The bank will serve as your collateral agent and hold your collateral in cash or cash-equivalent form. The collateral will be equal to at least 100% of the value of the shares on loan.

    Fidelity will adjust the collateral each day to account for marks to market and additional lending activity.

  • How does a loan get terminated?

    Either you or Fidelity can terminate the loan at any time by selling the shares on loan (which is a termination or "recall" notice) or recalling the shares by contacting Fidelity to request that a loan be returned. Fidelity can terminate a loan at any time by returning the shares on loan.

Ready to get started?

Submit the form below, and we’ll email you the enrollment application and other important materials.