Loading ...IMO, if you go for this you are shooting yourself in the foot….and If you don’t opt out…you are automatically in! This is also the reason some Brokers have reduced or no longer charge you a commission on your trades. FWIW! (Sorry, but there ain’t no free lunch)
| What is the Securities Lending Program? |
| The Securities Lending Program lets you earn extra money by letting Questrade lend out your fully-paid stocks to other institutions. This allows you to earn passive income on stocks that you own, while still maintaining complete ownership of your stocks. |
| How do I participate? |
| All Questrade customers with eligible accounts (TFSA, margin and cash) will be enrolled in the Securities Lending Program. If you do not wish to participate, you can easily opt out by signing into your account and clicking opt out. Opt out here. |
| What are the trade-offs about this program? |
| If you participate in the program, you will no longer have voting rights on shares during the time that they are lent out. Also, there is no Canadian Investor Protection Fund (CIPF) coverage for your shares if they are lent as part of the program. However, Questrade will hold cash collateral to cover 100% of the value of your shares. In the rare situation shares are not returned, the collateral will be used to return the value of the shares to you. We have provided additional information in the Securities Lending Program Risks Disclosure (which is described below).
If you would like more information about the Securities Lending Program, go to our frequently asked questions. You’ll be notified when the program launches and any shares we borrow from you will be reflected in your account statement. We’ve also updated the Account Agreements to include the terms of our Securities Lending Program in Section 1.12 and we are providing you with a separate Risk Disclosure with this change. Please take a moment to review these documents. |