Reading the terms and conditions it would appear that opting out of share lending is not an option:
22.7. We have systems and controls in place to ensure that only shares belonging to clients who have given prior express consent can be used for shares lending, as such your consent and agreement is required by signing or equivalent. If You no longer want to participate in Share Lending You will have to terminate this Agreement or have a Sell-only Limitation placed on your account and close all of your current positions. Any positions left open would still be eligible for Share Lending.
*28.6. If You no longer want to participate in Share Lending You will have to terminate this Agreement.*
Am I correct, is there no way of opting out from share lending?
Yes there is no way to opt out of share lending. There’s nothing you should worry about regarding it.
This is supporting the entire invest/isa platform. Why would you want to opt out?
If you want you could use a pay to use platform and then receive the interest back on share lending?
You will see that it will cost you more in the end
The equivalent fees would only be fractions of a penny on each pound of investment
I don’t think this is “supporting the entire” invest platform. There are other ways the platform makes money.
I would want to opt out because lending your shares to other companies so they can short them will drive the price of your actions down.
It would be nice, having the option to pay a fee and being able to opt out of share lending.
On a free platform? I don’t think they will implement fees in such an odd manner.
It is effectively where they get the revenue from to support the invest/isa platform
Except that there is something to worry about, as this is helping others shorting your shares.
It’s not just used to short it’s also used as margin for cfd buyers so trading 212 can cover the spread and leverage. The shares aren’t used by other companies either as far as I’m aware.
To have any real impact on whether short sellers can get hold of shares to short, the entirety of 212 userbase would have to opt out of share lending and then IB would have to do it too and probably a couple of US brokers also. Even then, there would be many other financial firms willing to step in and provide the service to short sellers.
So in actuality what you’d gain is nothing and loss would be no more commission free trading.
Also worth noting, although I don’t know the exact figures/proportions - share lending is not only used by short sellers. A quick google will show you there are many other use cases for borrowing securities.
Why do you think shares are not used by other companies? In the agreement it says:
A reputable **third party** will be the counterparty (the “Borrower”) in this respect to Us and as such will have the obligation to redeliver the shares that are lent.
I’m pretty sure
third party can be a different company.
I would have thought they are referring to the exchange (IB)
The only thing I struggle with is why you are using a free platform and then moan about how they manage it
Where does it look to you that I’m moaning? I just asked a question and then participate in the discussion, I didn’t moan at all.
Glad to hear your not moaning about how t212 manage the free platform so you can trade without cost