Earn extra revenue on your securities
If we borrow any of your securities and lend them out to third parties, you can earn extra revenue on the loan. You can still sell the loaned securities and receive payments equivalent to applicable dividends.
Securities Lending – Earn extra revenue, and avoid custody fees
The actual lending of securities depends on market demand. No lending or revenues are guaranteed by opting in.What is Securities Lending?
What is Securities Lending?
How does it work?
How does it work?
More about Securities Lending
With Securities Lending activated, we may borrow certain securities from your account and lend them out to third parties. For the securities we borrow, you will receive a monthly payment of any extra revenue generated by the loan, and we will collateralise you in accordance with the applicable regulations under Singapore law.
Note: You continue to retain the market risk of price fluctuation for your securities on loan, just like you would if you didn’t lend those securities. In addition, you continue to retain the right to sell your securities at any point irrespective of the loan.
There are several reasons third parties may borrow securities. For instance, they may want to hedge their existing positions, to short markets in which they don't own any shares, or to borrow assets to meet a demanding delivery deadline.
Not necessarily. There may be little or no demand to borrow your securities. Certain assets are in greater demand than others, and this demand will fluctuate over time. Across your portfolio you may find, for instance, that a majority of the assets you hold do not command a lending fee at any point in time. This means that it is possible you may not earn any revenue through Securities Lending.
You will still get the custody fee lowered or waived no matter how many (if any) of your securities Saxo borrows and no matter how much revenue you may earn from a potential loan.
No, you can’t choose to only make certain securities available for lending. When you activate Securities Lending, all eligible securities in your account become available for lending.
Yes, you’ll be able to see which securities (if any) are on loan and what revenue (if any) you received.
Yes, you can always sell your securities. If you sell a loaned security, the loan terminates.
Yes, you receive payments equivalent to applicable dividends or distribution on securities while they are lent to Saxo. You should consult a tax advisor regarding any potential tax implications of such payments.
While your securities are lent out, you do not retain rights to vote or attend shareholders meetings (as applicable).
When opening an account, you can activate Securities Lending as a step in the signup process. If you are already a client, you can activate or deactivate Securities Lending in your Portfolio overview or click here.
To deactivate Securities Lending, you can submit a support ticket via the trading platform.
To deactivate Securities Lending, you can submit a support ticket via the trading platform.
This is a fee we charge for holding stocks, ETFs/ETCs and bonds on your behalf. As a Singapore resident or a Singapore-incorporated entity you don’t pay a custody fee for holding SGX stocks and ETFs.
Based on the plan you’re on, a set custody fee may apply for holding stock, ETF/ETC or bond positions. We calculate your custody fee daily and debit your account on a monthly basis. You can learn more about the custody fee here.
Based on the plan you’re on, a set custody fee may apply for holding stock, ETF/ETC or bond positions. We calculate your custody fee daily and debit your account on a monthly basis. You can learn more about the custody fee here.
Annual custody fee | Bronze | Silver | Gold | Platinum | Diamond |
|---|---|---|---|---|---|
If opted into Securities Lending | 0.06% | No custody fee | No custody fee | No custody fee | No custody fee |
If opted out of Securities Lending | 0.12% | 0.12% | 0.12% | 0.12% | 0.06% |
For more information, please refer to the Securities Lending Terms here or visit our support centre.
260,000+
Daily trades
1,000,000+
Clients
100+ bn
USD client assets
17+ bn
USD daily trade volume