We’re considering taking the next step to make our unique zero-commission, zero-fee investing service even more sustainable. A fairly common practice amongst brokers is to lend out the securities of their clients to other market participants who’d like to borrow them for short selling. For the clie…

[image] Antidev: Given the rise of commission free, this does seem like the best way forward for both T212 and clients. As someone else already mentioned the majority of ETFs do this already. Do you mean that there’s a competitive service that doesn’t do this? If we don’t do it, who will pay …

Hi @AlexK , I think you may have misinterpreted me, or maybe I was not clear. If so apologies. I think this is a good business model. It keeps barrier to entry low and keeps T212 Invest sustainable. I was just asking when we would get some T&Cs detailing the specifics of the risks for your clients. …

We’ll publish it in a couple of days. You will see that nothing changes for you but it will be a major step for our sustainability. Unlike other brokers, we are not planning to package essential investing/trading features into a paid subscription plan in order to generate revenue. We’ll keep adding…

Thanks for clarifying that @AlexK

@David @AlexK I think this is a great step! But I have 2 questions: Will investors be paid interest on their lent out fully-paid securities? As my other brokers, pay a daily interest on lent out securities. Good to see you will allow short-selling - but, who’ll be short-selling? Investors on T…

We won’t pay the interest to the investors - this will be a revenue source for us. It’s a very small percentage but the total will be meaningful for us. The benefit for the investors is that our service is completely free, unlike any other investing service in the UK and Europe. We are not plan…

I hope all is well - because certainly I’m kind of getting the feeling that T212 is not profitable. I remember T212 team mentioning the company is profitable since 15+ years? Now with millions of users (and more on the way), you should be even more profitable. BTW I do NOT mean this in a bad way, …

Thanks for the swift answer! Great initiative and thanks for being transparent about this with the community beforehand! Super kudos :muscle: As for the interest, I and most other retail investors won’t mind not getting it (unless they have a big portfolio) as long as we are getting an amazing serv…

when will short selling be available?

[image] saifali: As for the interest, I and most other retail investors won’t mind not getting it We do not know what deal T212 has negotiated with IB. Hopefully is it favourable. But as a guide, we can read the FAQ pages of Interactive Brokers, where explain their Stock Yield Enhancement Pro…

Securities Lending

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AlexK May 18, 2020, 9:36am 11

Do you mean that there’s a competitive service that doesn’t do this? If we don’t do it, who will pay your bill for using our services completely free? This is a pure formality which will not affect our clients in any way and is not posing any risk whatsoever.

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Securities Lending

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