I received a notice from interactive brokers. It’s the opportunity to loan shares of stocks to short sellers. IB keeps 50% of the interest paid, and I get to keep 50%. That seems like a steep fee for them. Has anyone done this? The fees to borrow shares of TSLA are pretty high.
It’s good IB even offers part of the money they make. I have never had offers like this from all my previous brokerages.
The part I was worried about is being unable to choose to sell the stock if it’s currently borrowed. You can choose to sell it, so that’s good. I don’t like that there’s no executive or opt-in for each stock. If you opt-in, then it automatically happens. I wish I could opt-in for a couple of positions and not my whole account. That way I can stick my toe in the water before diving in head first.
I didn’t even realize some of my shares were loaned out. Turns out I made $222 last year from loaning out shares. I’ll take free money.