Trading 212

tribetown

I have an account with Trading 212 and hold shares in an ISA.

I received an email form them offering daily interest on shares and was wondering if anyone
here has any experience with that, good or bad.

InvesterJones

I presume this is lending out your shares to short sellers. I don't think the numbers involved are much, unless there was a lot of confidence from such sellers that your shares are going to drop in value - in which case why are you holding on to them I guess.

WastedWords

I don't believe that interest on shares is available in an ISA, only in the invest account.
Interest on cash within ISA is available.

wmb194

tribetown said:

I have an account with Trading 212 and hold shares in an ISA.

I received an email form them offering daily interest on shares and was wondering if anyone
here has any experience with that, good or bad.

I have it turned on my GIA but if you only have an Isa lending shares isn't allowed by the government's Isa regulations so you won't be able to actually do it.

I'm not convinced it's worth the supposedly small risk - high quality collateral is supposed to be posted - because the returns are extremely meagre. So far I've earnt 9p, most of it from someone borrowing some of my shares in an investment trust and paying me just 0.28% p.a. interest.

T212 has a summary of some of the current rates and most are abysmal. Polestar's not too bad at 5.2% and there's another offering 24.88% (Quantum Computing, US:QUBT) but I'm guessing these are duds or overvalued and thus their shares are in demand from shorters:

tribetown

Thank-you for the replies.
The e-mail did not mention it is only available on the invest account which I do not have, just an ISA.

Yes InvestorJones, it does say "Lent shares may be used for shorting
Traders may borrow shares for shorting, which could affect the value of the stock".

wbm194, as you say, it does not really seem worth it for the small rewards.

Gladallover71

Not financial advice of course but just pointing out I'm earning nearly £1 per day share lending interest from one of investments of less than £2000 with TR212. 

[Deleted User]

In my opinion you should never let your broker use your shares for lending because all they're doing is loaning those shares to short sellers, who's goal is to try and short the stock so you're investing in that stock with the intention of wanting it to go up, but at the same time making it easier for short sellers to sell it... this is obviously counter productive.

The measly interest you get isn't worth it.

[Deleted User]

Gladallover71 said:

Not financial advice of course but just pointing out I'm earning nearly £1 per day share lending interest from one of investments of less than £2000 with TR212. 

What stock is this?