Stock Lending | Industry-Leading Payout Rates | Cache
Welcome to Cache
Select your investor type:
- Investor: You are an individual or entity investing your own capital.
- Advisor: You are a financial intermediary representing clients you manage.
Mark sent you an exclusive invite to invest with Cache.
When you sign up for Cache using Mark's unique referral link, you both get $100,000 managed free for one year.
Stock Lending
Lend your stocks. Earn passive income.
If you own a significant stock position, you can monetize it with minimal risk through the Cache Stock Lending Program. We make it effortless, and pass on most of the revenue to you.
SEC Registered
Asset Custody at BNY Mellon
Secure & Private
Your Stocks
How does stock lending work?
Did you know that most brokerage firms lend out your stocks and earn revenue? This generates significant revenue amounting to billions in additional revenue for the brokerage industry, and is also known as share lending.
At Cache, we pass on most of the revenue to you.
- You lent security
Keep more of your money with competitive rates
We’re proud to offer one of the highest revenue splits in the industry.
| Company | Revenue Split |
|---|---|
| Cache | 60% |
| Interactive Brokers | 50% |
| Robinhood | 15% |
| Most brokerages | 0% |
Important details
Retain basic ownership rights
All the stocks you lend will still belong to you. Voting rights and qualified dividend treatment are waived to the borrower.
Get paid every month
You’ll see a monthly payment in your account at the end of the month if your stocks were lent out.
Earn dividends
Dividends are paid if you pledged stocks that pay them. Note that these are manufactured dividends, not qualified dividends, which is taxed as ordinary income.
Ample protection
All loans are backed by cash collateral from the borrower equal to 102% of the stocks borrowed, valued and adjusted daily.
Sell your stocks any time
You can sell stocks that are lent out. We automatically recall the stock and cancel the stock loan.
Common Questions
Who’s eligible for stock lending?
Our stock lending program is available for anyone holding at least $100,000 in stock at Cache.
Is stock lending a good idea?
If you hold a significant position in particular stocks, stock lending could be a straightforward way to earn passive income.
What if I change my mind? Can I recall an outstanding stock loan?
Yes. If you want to sell your stock, we’ll automatically recall your stock and terminate the outstanding loan.
How can I enable or disable stock lending?
Open the Settings tab and toggle on or off stock lending for particular stocks.
What are the risks when I lend out my stocks?
- Waived voting rights: You’ll assign the voting rights of your stocks to the borrower.
- Loss of SIPC Protection: SIPC doesn’t cover stocks on loan.
- No guarantee of loan: If there isn’t a market demand for the stock, then your stocks might not be lent out.
- Tax Implications: Dividends paid on lent stocks are manufactured dividends, not qualified dividends taxed at a preferential rate.
- Borrower Default Risk: The borrower may default.
- Collateral Re-Investment Risk: When cash is received as collateral, it may be reinvested in a money market fund.