How much can I earn from stock lending on etoro?

Many factors influence the amount of payment you may receive from stock lending, making it difficult to estimate how much someone can earn from the process.

When opting in, you allow etoro to consider your entire portfolio for lending. Shares are lent according to market demand. It’s possible that none of your shares are loaned during a particular month, which would produce no payment, but it's also possible that your entire portfolio is lent, and you receive a larger payment that month.

How is the stock lending revenue calculated?

If your shares are in demand and lent out, an example of the formula calculating the gross daily amount earned on a lent position is as follows:

Daily gross revenue = asset closing price × number of units × (lending fee rate % / 360)

To calculate the daily net revenue that you would earn, you must deduct the following from the daily gross revenue:

• Facilitation and maintenance cost.
• Revenue retained by etoro: We combine all of the daily amounts within a month, and the net income earned is shared equally between the lender (you) and etoro.

Example of the revenue calculation:

Let’s say you wanted to calculate the lending revenue for Tesla Motors, Inc. (TSLA):

• Asset closing price = $350
• Number of units = 2,000
• Lending fee rate = 1%
• Facilitation and maintenance total cost = 15% *
• Revenue retained by etoro = 50%
• Duration of loan = 112 days

Assuming the above data doesn’t change for the duration of a 112-day loan:

• Daily gross revenue = $350 × 2,000 × (1% / 360) = $19.44
• Facilitation and maintenance total cost = $19.44 × 15% = $2.92
• Net lending revenue = $19.44 - $2.92 = $16.52
• Retained by etoro = $16.52 × 50% = $8.26
• Your daily net revenue = $16.52 × 50% = $8.26
• Your net revenue for a 112-day loan = $8.26 × 112 = $925.12

Important notes:

• * The facilitation and maintenance total cost is 15% but may change in the future.
• The lending fee rate can change for the same lent shares over the duration of the loan. In securities lending, the fee rate is often variable and can be adjusted periodically based on market conditions, supply and demand for the shares, and other factors. For example, if the lending fee rate starts at 1% and then changes to 1.2% halfway through the loan period, you would calculate the revenue for the first half using the 1% rate and for the second half using the 1.2% rate, then sum the two amounts to get the total revenue.
• There are no additional fees for participating in the stock lending programme.