The incentive is you have earned a little extra return, from no work? It might just be pot luck that the shares you hold are not popular in share lending / shorting, possibly because they are well reputable companies with little risk?
Look after the pennies and the pounds take care of themselves as they say!
Put into context - 212 pay 50% of income earned. For any of us to earn 1p a day, 212 have to earn 2p+. Annualise that and from £100 they would need a return of 7.3% which is rather high.
I see share lending as a bonus, not part of my investment strategy and personally have earned pennies, but its better than a platform fee, or nothing which a lot of other brokers provide.
Also from the FAQs I read, I couldnāt find anything that said fractional pennies would be carried over, so Iāve always assumed it works on a round down basis which is fair.
I assumed it would work like āearn interest on cash.ā I mean, itās called āearn interest on shares.ā
Earn interest on cash does roll over fractional amounts, so doesnāt require a huge leap of imagination or IT to apply that to earn interest on shares.
Yes earn interest on shares is a plus but not allowing the rollover is a poor decision. Both things can be true.
Any update on allowing interest earned on share lending below payment thresholds to be carried over, in the same way interest on cash is carried over when under payment thresholds?
@Bogi.H Does disabling share lending actually disables all lending or just the interest part (e.g. are the shares still lent out but we donāt receive the interest)?
Iām asking because the message says ādisable share lendingā but the button says āyes, disable interestā. It confuses me a bit.
Yes, if you confirm the action, all lending will be disabled. I get your point when it comes to the wording, and Iāll forward the feedback to our team